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Source: Economic Review of Kerala 2012,
http://www.emergingkerala2012.org/infrastructure.php, News articles, Census 2011
Cultural diversity and
well developed tourism
sector
• Kerala is known as God‟s own country. It is one of the few states to have marketed its
natural beauty successfully to the leisure tourism sector. The state‟s unique heritage and
cultural diversity have helped attract tourists from the world over. Kerala has won 11
awards in 2012-13, from both national and international bodies.
Highest literacy and sex
ratio • Kerala has the highest literacy rate (94.0 per cent) and sex ratio (1,084 women for 1,000
men) in India. Literacy rate for its rural population is also the highest at 93.0 per cent.
Largest recipient of
foreign remittances in
the country
• Kerala received NRI remittance of US$ 2.3 billion during 2013, up 10 per cent compared
to 2012. During 2014, remittance is expected to increase 10 -15 per cent.
Ranks second in
Investment Climate
Index
• Kerala ranks second in the Investment Climate Index below Karnataka, as per a policy
research working paper by the World Bank. The state stands second due to its world-class
infrastructure and well-trained human resource pool.
Source: Economic Review of Kerala - 2012, Kerala IT Policy 2012, http://www.igtpl.com/
TEU‟s = Twenty-foot Equivalent Unit
Strong agricultural
sector
• Kerala is a leading agricultural state in the country and the largest producer of rubber,
pepper, coconut and coir. In 2011-12, the state contributed 87.3 per cent and 79.1 per
cent to India‟s total rubber and pepper production, respectively. In 2012-13, the growth
rate is estimated at 4.4 per cent.
First international
container transhipment
terminal
• Kerala has the first international transshipment terminal in India, having a design capacity
of around 4 million TEUs and providing better connectivity between Kerala and other ports
in India.
Presence of world class
technology park
• Kerala has been promoting knowledge-based industries such as IT/ITeS, computer
hardware and biotechnology. It is the first state having a technology park with CMMI level
4 quality certification and a world-class IT campus in Thiruvananthapuram.
Best bandwidth
connectivity
• Kochi, a city in Kerala, is one of the only two locations in India having landing points for
submarine cables (SEA-ME-WE3 and SAFE), making Kerala one of the best states in
terms of bandwidth connectivity.
Source: Economic Review of Kerala - 2012, Tourism Vision 2030, www.keralatourism.org, ecostat.kerala.gov.in
GSDP: Gross State Domestic Product
Growing demand High economic growth
• Kerala‟s Gross State Domestic Product (GSDP) rose at a Compound Annual Growth Rate (CAGR) of 14.4 per cent between 2004-05 and 2012-13.
• Kerala is the leader in rubber production; high demand of rubber has opened up immense opportunities for the state in the rubber industry.
Leader in tourism
• Kerala has emerged as the country‟s top travel destination as per Google‟s Search Trends for India in 2012.
• BBC Travel survey has rated Kerala as the top favourite tourist destination among foreign travellers.
• Foreign and domestic tourist arrivals rose 8.1 per cent and 7.8 per cent during 2013 over 2012, respectively.
Policy and
infrastructure support
• Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies.
• It has a well-developed social, physical and industrial infrastructure and virtual connectivity, and good power, airport, IT, and port infrastructure. E-governance initiatives will further strengthen transparency and bridge digital divide.
Rich labour pool
• Kerala has a large base of skilled labour, making it an ideal destination for knowledge-intensive sectors.
• The state has the highest literacy rate in the country.
• It has a large pool of semi-skilled and unskilled labourers.
• The state has over 153 engineering colleges.
2013
Foreign
tourist
arrivals:
0.86 million
2021E
Foreign
tourist
arrivals:
3.0 million
Advantage
Kerala
Forestry
Energy
Agriculture &
livestock
Transport
Education Labour
Industry
• Increase the share of forestry
in GSDP to 0.5 per cent.
• Increase the productivity of
forests through improved
management of resources.
• Shift from subsistence farming to
highly knowledge intensive,
competitive farming.
• Self sufficiency in supply of fish,
meat, milk and other dairy
products to the local market.
• Affordable and clean power to all.
• Exploit the full potential of hydro-
electric generation.
• 100 per cent electrified households
with 24*7 availability.
• Green, sustainable and safe
transport.
• Provide high quality
education at affordable rates.
• Create a global brand name
in education and develop into
a knowledge hub by 2030.
• Growth oriented labour
welfare policy.
• Connecting labour supply
with demand.
• Increasing employment
opportunities.
• Increase the share of
manufacturing to 10 per cent
of the GSDP by 2030.
• Sustained increase in
employment in manufacturing.
Health
• Increase health expenditure
to GSDP ratio from 0.6 per
cent in 2012 to 4−5 per cent
by 2027−31.
• Set up three medical cities
by 2030.
• Provide health insurance
cover to all.
Vision
2030
Source: Government of Kerala
Kerala is located along the coastline to the extreme south-
west of the Indian peninsula, flanked by the Arabian Sea on
the west and the mountains of the Western Ghats on the
east. The state has a 580 km long coastline.
Malayalam is the most commonly spoken language. Hindi,
English and Tamil are the other languages used.
Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad,
Thalassery, Ponnani and Manjeri are some of the key cities
in the state.
There are 44 rivers flowing through Kerala, the major ones
being Periyar (244 km), Bharathapuzha (209 km) and
Pamba (176 km).
Source: Kerala at a glance,
Government of Kerala website, www.kerala.gov.in, Census 2011
Parameters Kerala
Capital Thiruvananthapuram
Geographical area (sq km) 38,863
Administrative districts (No) 14
Population density (persons
per sq km) 860
Total population (million) 33.41
Male population (million) 16.02
Female population
(million) 17.38
Sex ratio (females per 1,000
males) 1,084
Literacy rate (%) 94.0
Source: Maps of India
Parameter Kerala All states Source
Economy 2012-13 2012-13
GSDP as a percentage of all states‟ GSDP 3.7 100.0 Planning Commission Databook, June 2014,
current prices
Average GSDP growth rate (%)* 14.4 11.54^ Planning Commission Databook, June 2014,
current prices, from 2004-05
Per capita GSDP (US$) 1,840.7 1,833.2*** Planning Commission Databook, June 2014,
current prices
Physical Infrastructure
Installed power capacity (MW) 4,060 258,701.5 Central Electricity Authority, as of January
2015
Wireless subscribers (No) 31,224,302 952,344,219 Telecom Regulatory Authority of India, as of
January 2015
Broadband subscribers (No)** 1,707,000 94,490,000 Telecom Regulatory Authority of India, as of
January 2015
National Highway length (km) 1,812 96,260 Ministry of Road Transport & Highways, as of
January 2015
Major and minor ports (No) 1+17 13+187 Indian Ports Association
Airports (No) 3 125 Airports Authority of India
*Calculated in Indian rupee terms, **As of December 2012, ***As of December 2014, ^As of November 2014
Parameter Kerala All states Source
Social Indicators
Literacy rate (%) 94.0 74.0 Census 2011
Birth rate (per 1,000 population each year) 15.2 21.6 SRS Bulletin (www.censusindia.gov.in), October
2013
Investment
FDI equity inflows (US$ billion) 1.09* 238.6 Department of Industrial Policy & Promotion,
April 2000 to December 2014
Outstanding investments (US$ billion) 48.0 2,414.2 CMIE (2013-14)
Industrial Infrastructure
PPP projects (No) 33 1,339 www.pppindiadatabase.com
SEZ (No) 25 352 Notified as of December 2014,
www.sezindia.nic.in
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
*Including Lakshadweep
At current prices, Kerala‟s GSDP was about US$ 66.6
billion in 2013-14.
The state‟s GSDP recorded at a CAGR* of 14.5 per cent
between 2004-05 and 2013-14.
Growth was mainly driven by secondary and tertiary
sectors.
Source: Planning Commission Databook, June 2014, current prices,
Medium Term Fiscal Plan, Kerala
GSDP - Gross State Domestic Product
*CAGR calculated in Indian Rupee terms
GSDP of Kerala at current prices
(US$ billion)
26.6
31.0 34.1
43.5 43.9
48.9
57.8
65.7 64.3 66.6
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
CAGR
14.5%*
23.4
27.2 29.9
38.2 39.0
43.5 51.1
58.0 57.0
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
At current prices, Kerala‟s NSDP was about US$ 57.0 billion
in 2012-13.
NSDP expanded at a CAGR* of 14.5 per cent between
2004-05 and 2012-13.
NSDP of Kerala at current prices
(US$ billion)
CAGR
14.5%*
Source: Planning Commission Databook, June 2014, current prices
NSDP - Net State Domestic Product,
*CAGR calculated in Indian Rupee terms
810 935 1,019
1,291 1,294 1,430
1,678
1,892
1,841
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
The state‟s per capita GSDP was US$ 1,841 during 2012-
13 compared with US$ 810 during 2004-05.
Per capita GSDP increased at a CAGR of 13.5 per cent
between 2004-05 and 2012-13.
GSDP per capita of Kerala at current prices
(US$)
CAGR
13.5%*
Source: Planning Commission Databook, June 2014, current prices
GSDP - Gross State Domestic Product,
*CAGR calculated in Indian Rupee terms
711 822
895
1,135 1,150
1,270
1,483
1,672 1,630
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
Kerala‟s per capita NSDP was US$ 1,630 in 2012-13
compared with US$ 711 during 2004-05.
Per capita NSDP registered a CAGR* of 13.6 per cent
between 2004-05 and 2012-13.
NSDP per capita of Kerala at current prices
(US$)
CAGR
13.6%*
Source: Planning Commission Databook, June 2014, current prices
NSDP - Net State Domestic Product
*CAGR calculated in Indian Rupee terms
17.9% 15.1%
22.5% 25.0%
59.6% 59.9%
2004-05 2012-13 (Q)
Primary Secondary Tertiary
In 2012-13, the tertiary sector contributed 59.9 per cent to
the state‟s GSDP at current prices, followed by the
secondary sector at 25.0 per cent.
The tertiary sector grew at an average rate of 14.5 per cent
between 2004-05 and 2012-13. Growth was driven by
storage, transport, financial and real estate segments.
The secondary sector grew at an average rate of 15.9 per
cent between 2004-05 and 2012-13. Growth was led by
manufacturing, construction, and electricity, gas & water
supply segments.
The primary sector expanded at an average rate of 12.0 per
cent between 2004-05 and 2012-13, mainly supported by
growth across agriculture and mining & quarrying segments. Source: ecostat.kerala.gov.in
CAGR calculated in Indian Rupee terms,
Q- Quick Estimates
GSDP composition by sector
CAGR*
12.0%
14.5%
15.9%
Source: Directorate of Economics and Statistics, *Production in million nuts
Crop Annual production
in 2013-14 (metric tonnes)
Tapioca 2,479,070
Rubber 648,220
Banana 531,299
Rice 564,325
Areca nut* 100,018
Coffee 66,645
Tea 62,938
Pepper 29,408
Cashew nut 33,375
Ginger 21,521
Pulses 3,019
Groundnut 868
Turmeric 6,253
Coconut** 5,921
Total Cereals 564,635
Agriculture and allied sectors contributed 9.1 per cent to
Kerala‟s GSDP in 2011-12.
Kerala is one of the leading pepper producers in the
country. During 2012-13, production increased by 21.9 per
cent to 46,298 metric tonnes compared to 2011-12.
The state is also one of the largest producers of natural
rubber in India. Production was 648,220 metric tonnes
during 2013-14..
Total area under crops was around 2,616,670 hectares in
2013-14. In 2010-11, the state‟s agriculture income was
estimated at US$ 3,535.3 million.
Introduction of high tech farming is expected to further lead
the growth in output.
2,503
3,611 4,014
6,391 5,892
2008-09 2009-10 2010-11 2011-12 2012-13
Exports from Cochin port rose at a CAGR of 2.2 per cent to
3.8 million MT from 2009-10 to 2012-13. In value terms,
exports from Cochin port increased at a CAGR* of 20.8 per
cent to US$ 4,045.4 million.
Exports from CSEZs rose at a CAGR* of 29.0 per cent to
US$ 5,892 million in 2012-13 from US$ 2,503 million during
2008-09.
The increase in exports from CSEZs in recent years can be
attributed to a substantial rise in gem and jewellery exports.
Source: Economic Review of Kerala 2012
CSEZ - Cochin Special Economic Zone
*CAGR calculated in Indian Rupee terms
Total exports turnover from CSEZs
(US$ million)
CAGR
29.0%*
Exports break-up, Cochin Port (2012-13)
Sectors (US$ million)
Tea 95.0
Cashew kernels 365.0
Sea Foods 516.2
Coir products 102.5
Spices 69.0
Coffee 166.1
Miscellaneous 2,731.6
According to DIPP, FDI inflows to the state (including
Lakshadweep) totalled US$ 1.09 billion during 2000 to
December 2014.
Over 2013-14, outstanding investments in Kerala totalled
US$ 48.0 billion.
The services sector accounted for around 54.5 per cent of
total outstanding investments, followed by the
manufacturing sector (28.0 per cent).
Some of the recent investments in the state have been the
KINFRA International Apparel Parks Ltd (KIAP), KINFRA
Film and Video Park, International Convention Centre
Complex (ICCC) and Technocity (Phase-IV expansion
programme of Technopark) in Thiruvananthapuram, and
Technopark Phase-III and a deep water port at Vizhinjam,
near Thiruvananthapuram.
Projects worth US$ 2.4 billion are scheduled for completion
in the next 12 months.
Recent investments in the state include the
Puthuvypeen LNG Terminal Phase-I (US$ 598.4
million), Lulu Shopping Mall in Kochi (US$ 294.6
million) and Cruise Terminal in Kochi (US$ 50.2
million).
Kerala government has proposed to develop
manufacturing investment zones covering
Ernakulam, Thrissur, Palakkad and Malappuram
districts.
Source: CMIE,
DIPP - Department of Industrial Policy & Promotion,
http://www.emergingkerala2012.org/mega-projects.php
Break-up of outstanding investments by sectors
(2013-14)
Mega projects conceptualised and developed in Kerala
include Supplementary Gas Infrastructure Project by Kerala
Gail Gas Limited (US$ 400 million), Kochi Metro Rail Project
(US$ 900 million), and a monorail project in
Thiruvananthapuram (US$ 682 million).
7.1%
54.5%
0.9%
28.0%
8.0%
1.6% Electricity
Services
Mining
Manufacturing
Real Estate
Irrigation
For the farmers
For KSRTC
• An amount of US$ 8.3 million has been allocated for an insurance scheme which offers income
to the farmers having two hectares of land. The scheme insures the farmers if they fail to get
adequate returns from the crops they reared.
• The government would remit half of the loan (up to US$ 829.5) if the employed person of an
agricultural family dies.
• The government plans to form an Agriculture Mission to promote hi-tech farming, with the help
of agencies such as M S Swaminathan Foundation.
• The government would offer technological support for vegetable storage and green house
construction; US$ 5 million would be granted for encouraging the fishing sector.
• Cooperatives would be set up for marketing agriculture produce at the block level.
• Interest less loans of up to US$ 8,294.6 would be provided for hi-tech cultivation.
• Agricultural loans of US$ 8,294.6 at 4 per cent interest would be provided to farmers having Agri
cards.
The Government of Kerala announced a number of measures in its 2014-15 budget to accelerate growth in the primary
sector. It also unveiled measures for the welfare of farmers, including an income guarantee insurance scheme.
The budget offered several tax concessions to the tourism industry.
The state government anticipates the state‟s growth rate to reach 9.58 per cent during the current financial year.
For agriculture mission
• The budget has allocated US$ 29.4 million to KSRTC.
• This would be utilised for garage construction, e-governance and computer projects, and other
development works.
*Assumed exchange rate of US$ 1 = INR 60.00 for 2014-15
Tax on motor vehicles
For tourism
• Taxation on motor vehicles was hiked, and this is expected to provide US$ 5.6 billion revenue to
the state government.
• The tax on autos and taxis has been hiked.
• Luxury tax will be charged on vehicles above 1500 cc.
• A tax of 7 per cent will be levied on vehicles costing US$ 8,294.6 and below; imported cars in
the same range will attract a tax of 13 per cent.
• Vehicles priced at Rs. 5-10 lakh will be taxed at 10 per cent; imported version will be charged
18 per cent tax.
• Maida and wheat have been exempted from tax.
• A tax of 14.5 per cent will be levied on inverters and UPS.
• LED lights will be taxed 5 per cent.
• Large clothing showrooms will be charged a 2 per cent additional tax.
• Price of LPG has been decreased.
For essential goods
• Luxury tax on hotels has been reduced to 5 per cent during June-August to promote off season
tourism.
• Luxury tax on convention centres and auditoriums with a daily rent exceeding US$ 331.8 has
been decreased to 10 per cent from the existing 20 per cent.
• There has been substantial increase in allocation for marketing destinations and implementing
special tourism projects.
*Assumed exchange rate of 1 US$ = 60.00 INR for 2014-15
In Kerala, the Public Works Department (PWD) has a total
road length of 31,811.6 km of state roads and 1,542 km of
national highways.
The state is well-connected to its neighbouring states and
other parts of India through nine National Highways.
Agencies maintaining roads in Kerala include the Public
Works Department (PWD); panchayats; municipalities,
corporations; the departments of forests, irrigation, railways;
and the Kerala State Electricity Board (KSEB).
PWD roads constitute 15.3 per cent of total road network.
Around 6.66 km of PWD roads are made of cement
concrete, 30,744.4 km are black-topped, and 447.3 km are
water-bound macadam. Nearly 97 per cent of the total roads
are black-topped surfaces.
The Kerala State Transport Project (KSTP) was established
in June 2002 to improve the 1,600 km of state roads and 77
km of inland-canals with the use of geographic information
systems.
As of September 2012, the Kerala State Road Transport
Corporation (KSRTC) provided road transport services in
Kerala and operated 5,803 buses.
The state cabinet has approved 10 mega infrastructure
projects for further enhancement of flyovers and bypasses.
Source: Economic Review of Kerala, 2012
Ministry of Road Transport & Highways
Road type Road length (km)
National Highways 1,542
State Highways 4,341.65
Major district roads 27,469.9
Source: Maps of India
Kerala is well connected to other parts of the country via
railways. As of March 2013, it had a railway network of
1,257 km, with around 200 railway stations and 13 railway
routes.
The state government has appointed Kerala State Industrial
Development Corporation Ltd (KSIDC) as the nodal agency
for developing a project to establish a north-south High-
speed Rail Corridor (HSRC) to facilitate smooth and speedy
passenger movement between various cities and towns in
the state.
Railway divisions in Thiruvananthapuram, Palakkad and
Madurai jointly carry out railway operations in Kerala.
Works for Kochi Metro Rail System Phase 1 is underway. It
involves investment of US$ 864 million and is expected to
be completed in mid-2016.
Source: Maps of India
Source: Economic Review of Kerala, 2012,
Kerala State Industrial Development Corporation Ltd
Kerala has three airports handling domestic and
international flights, located at Thiruvananthapuram, Kochi
and Kozhikode.
The Cochin International Airport Limited (CIAL) has
displayed consistent growth in both passenger traffic and
aircraft movements since it opened in 1999.
The airport handled 5.39 million passengers in 2013-14, an
increase of 10 per cent from the previous fiscal year.
Nearly 3.27 million international travellers chose the airport
in 2013-14 along with 2.12 million domestic passengers.
The CIAL has recorded 11.5 per cent growth in international
and 7.8 per cent in domestic fliers.
The airport recorded 47,072 aircraft movements during the
year, 13.32 per cent higher compared to the previous year.
CIAL‟s cargo division turnover increased 17 per cent as
total cargo handled stood at 54,440 tonnes in 2013-14
against the previous year‟s 46,530.3 tonnes.
Source: Maps of India
Source: Economic Review of Kerala, 2012, Airports Authority of India,
Kerala State Industrial Development Corporation Ltd, News articles
Airport
Kerala has 18 ports, of which, Cochin is the major one.
Furthermore, there are three intermediate and 14 minor
ports.
Kerala is constructing the Vizhinjam deep-water
international container transhipment terminal at Vizhinjam,
17 km south of Thiruvananthapuram, under the PPP mode.
Government has already approved Cochin Port‟s land
utilisation policy, which will be placed before cabinet.
Source: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in
Existing ports
Major ports • Cochin
Intermediate ports
• Neendakara
• Alappuzha
• Kozhikkode
Minor ports
• Vizhinjam
• Valiyathura
• Vadakara
• Ponnani
• Thankasserry
• Kayamkulam
• Manakkodam
• Munambam
• Beypore
• Thalasserry
• Manjeswaram
• Neeleswaram
• Kannur
• Azhikkal
• Kasaragode
15.8 15.2
17.4 17.9
20.1 19.8 20.9
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
For FY2013-14, total trade volume handled at the Cochin
port rose to 20.9 million tonnes from 19.8 million tonnes in
2012-13.
This is the highest cargo throughput at the port in a year,
supported by increase in bulk, container and oil cargo.
Bulk cargo handling during 2013-14 rose by 17.2 per cent
compared with 2012-13, whereas oil cargo handling
increased 3.1 per cent and container cargo edged up by 3.4
per cent.
The Union Ministry of Defence and the state government
plan to look for more commercialisation of the port.
Source: Cochin Port Trust, ipa.nic.in, Kerala Ports,
News articles, www.keralaports.gov.in
Cochin port traffic (million tonnes)
CAGR
4.8%
The Cochin port is a favourite port-of-call for luxury cruise
liners from around the world.
During 2012-13, 50 cruise liners arrived at the Cochin port.
Around 58,000 cruise passengers embarked in Kochi in
2011; revenue generated from their visit has been estimated
at US$ 11 million.
The arrival of a cruise vessel has an added impact on the
regional economy as cruise tourists are high end
passengers. On an average, each tourist is estimated to
spend US$ 200 during the stopover of less than a day.
During February and March 2014, the port handled 18
cruise vessels (nine in February and nine in March). Source: Cochin Port Trust, New Indian Express
Number of cruise arrivals at Cochin port
11
18 19 22
38 39 44
50
200
2-0
3
200
3-0
4
200
4-0
5
200
5-0
6
200
6-0
7
200
9-1
0
201
1-1
2
201
2-1
3
3,514.0 3,553.7
3,718.8
3,827.7 3,856.4
3,892.0 3,892.0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*
As of January 2015, the state had total installed power
generation capacity of 3,891.96 MW, which consisted of
2,274.52 MW under state utilities, 1,554.37 MW under
central utilities, and 231.07 MW under the private sector.
Thermal power contributed 1,756.21 MW to total installed
power generation capacity. Hydropower (1,881.50 MW),
nuclear power (228.60 MW), and renewable power (193.65
MW) are the other main energy sources.
Kerala‟s state utilities, which account for 58.4 per cent of
overall capacity, generate 82.7 per cent of the energy
through hydroelectric power plants, and the remaining 17.3
per cent through thermal and renewable power generation
plants.
Kerala is among the prominent Indian states to have
achieved 100 per cent rural electrification.
Recently, NHPC and Kerala State Electricity Board (KSEB)
signed an agreement for the development of solar power
projects. As per the agreement, NHPC would take up the
implementation of a 50 MW grid linked solar power project
at West Kallada Panchayat in Kollam District in the first
phase.
Source: Central Electricity Authority, Business Standard,
*As of January 2015
Installed power capacity (MW)
CAGR
2.1%
In 2009, the government had planned to set up power
projects with a total capacity of 4,000 MW in the next 10
years. This would help in reducing energy shortage and
promoting new industrial investments.
The Energy Policy of Kerala lays down the need to develop
renewable energy sources and provides government
support for the same. Kerala has become the first state in
the country to launch an ambitious programme to generate
over 10 MW of solar power.
There is a pipeline of 27 hydel projects having an installed
capacity of 539.3 MW.
During 2012-13, US$ 218.2 million was earmarked for the
energy sector, a rise of 3.8 per cent over the previous year.
The amount was further raised during 2013-14 to US$ 252.4
million.
Per capita consumption of power in the state was 567 kWh
over 2011-12.
Kerala State Electricity Board‟s total reported revenues per
annum stood at US$ 1.4 billion during 2012-13.
Power generating stations in Kerala
• Hydel plants under KSEB: 24
• KSEB thermal plants: 2
• Central-sector (NTPC) owned thermal plant: 1
• Private hydel stations: 2
Source: Economic Review of Kerala, 2012
The state is setting up three mega projects and a small
hydro project with a total capacity of 2,742 MW in
Ernakulam district.
The projects, which are in various stages and nearing
completion, are expected to meet nearly 60 per cent of the
power requirement of the state by 2017, which is expected
to be 4,669 MW.
The KSEB is working on a project called the Restructured
Accelerated Power Development and Reforms Program,
which is intended to reduce interruptions and power
outages.
NHPC plans to set up a 50 MW floating solar power plant in
Kerala.
Telecom infrastructure
Wireless subscribers^ 31,224,302
Wire-line subscribers^ 2,655,807
Broadband subscribers 1,707,000 **
Post offices^ 5,057
Telephone exchanges 1,243*
Teledensity (in per cent) ^ 95.35
Source: Telecom Regulatory Authority of India,
Department of Telecommunications Annual Report 2011-12,
Ministry of Communications and Information Technology, India Post
*As of December 2011, **As of December 2012, ^As of January 2015
Kerala had an overall tele-density of 95.35 per cent as
against an all-India average of 78.16 per cent, as of January
2015.
The state has 1,243 telephonic exchanges. About 98.0 per
cent of Kerala's telephone exchanges have internet
connectivity through the National Internet Backbone (NIB).
VSNL has an international communication gateway in
Kochi, with two high-speed submarine cable landings (SEA-
ME-WE-3 and SAFE), offering 15 gigabytes per second
(Gbps) bandwidth.
According to the Telecom Regulatory Authority of India
(TRAI), as of January 2015, Kerala had nearly 32 million
wireless subscribers and 2.7 million wire-line subscribers
(including Lakshadweep).
Currently, Kerala is the largest revenue contributing state of
BSNL and accounts for nearly 25 per cent of the company‟s
national revenue. During 2012-13, BSNL posted a profit of
US$ 52.8 million from Kerala, the highest in the country.
The company expects to post a record profit of around US$
66.4 million during 2013-14.
Major telecom operators in Kerala
Bharat Sanchar Nigam Limited (BSNL)
Bharti Airtel
Aircel Limited
Vodafone Essar
IDEA Cellular
Tata Teleservices
Reliance Communications
Source: Telecom Regulatory Authority of India
Under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM), ten projects worth US$ 238 million have been
approved during 2005-2012 for the development of urban infrastructure in Thiruvananthapuram and Kochi. As on 31st
March 2014, 10 projects with a total cost of US$ 160.9 million are in progress.
The Kerala Sustainable Urban Development Project (KSUDP) is an Asian Development Bank-assisted project covering the
five municipalities of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With an investment of US$ 221.2 million,
the project focuses on urban infrastructure improvement, community upgrading, local government infrastructure
development and capacity building, and implementation assistance.
The Kerala Water Authority (KWA) is responsible for the design, construction, execution, operation and maintenance of
most of the water supply schemes, and the collection and disposal of waste water in Kerala.
Construction of the first phase of SmartCity Kochi, a self-sustained industry township project that is a conglomerate
promoted by Dubai Holding member TECOM Investments for knowledge-based companies, would be completed within 18
months from the start of construction in June 2013.
“Kudumbashree”, the State Poverty Eradication Mission, is involved in “Clean Kerala Business‟‟ to collect door-to-door
household waste and process it for economic benefits.
A Rural Water Supply and Environmental Sanitation Project had been implemented by the World Bank in September 2008;
another similar project is under implementation and is expected to be completed by June 2017, with an estimated cost of
US$ 222.3 million.
The World Bank has approved a US$ 216 million loan for the Kerala State Transport Project II to support the Government of
Kerala improve the condition, traffic flow, and safety of its road network.
Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012, World Bank
Project name Sector PPP type Contact authority Project cost
(US$ million)
Cochin International Airport Airports BOO Airport Authority of India 50.3
Vallarpadam Container Transshipment
Terminal Ports BOT-Toll Cochin Port Trust 351.4
LNG Regasification Terminal at Cochin Port Ports NA Ministry of Shipping 530.0
Crude Oil Handling for Kochi Refineries Ltd Ports Lease Cochin Port Trust 116.6
Thrissur-Edapalli Roads BOT-Toll National Highways Authority of India 51.8
Six laning of Vadakkancherry-Thrissur
section Roads BOT-Toll National Highways Authority of India 102.4
Four laning of Walayar-Vadakkancherry
section Roads BOT-Toll National Highways Authority of India 113.1
Source: Overseas Indian Facilitation Centre
BOT: Build-Operate-Transfer, BOO: Build-Own-Operate
By the end of 2013, Kerala had around 15 PPP projects, spreading across various sectors such as airports, roads, tourism,
urban infrastructure and ports.
Project name Sector PPP type Contact authority Project cost
(US$ million)
Four-laning of Karnataka & Kerala Border to
Kannur section Roads BOT-Toll National Highways Authority of India 191.9
Kannur -Kuttipuram Package- 2 Roads BOT-Toll National Highways Authority of India 217.7
Kannur-Kuttipuram Package – 1 Roads BOT-Toll National Highways Authority of India 226.6
Vizhinjam Port International Ports BOT - Annuity Directorate of Ports, Government of
Kerala 887.2
Development of a new bridge connecting
Mattancherry and Willingdon Island at
Cochin
Roads BOT-Toll The Greater Cochin Development
Authority 4.5
Development of resorts at Bekal Kasaraode
Dist Tourism BOO
Bekal Resorts Development
Corporation BRDC KTDC 9.1
Kochi Metro Rail Project Urban
development
BOT -
Annuity
Kerala Industrial Infrastructure
Development Corporation 505.6
Trivandrum City Road Improvement Urban
development BOT-Toll Kerala Road Fund Board 18.6
Source: Overseas Indian Facilitation Centre
BOT: Build-Operate-Transfer, BOO: Build-Own-Operate
Sutherland Global Services
Infopark
Cochin Port Trust, Puthuvypeen
Cochin Port Trust, Vallapadom
KINFRA, Kochi
Unitech Real Estate
Parsavnath Developers
Smart City Infrastructure
Carborundum Universal Limited
MM Tech Towers, Alwaye
Emmar MGF, Alwaye
Electronics
Technology Park
KINFRA
Techno Park SEZ - I
Technopark
Pallipuram
Techno Park SEZ - II
KINFRA, Kakkancherry
KSITI, Pallipuram
KSITI, Purakkad
• Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)
KSITI, Kasargod
Kerala State
Information
Technology
Infrastructure Limited
(KSITI), Kannur
Hindustan News Print
Limited
KSITI, Kollam
Source: www.sezindia.nic.in
Source: www.sezindia.nic.in, SEZ: Special Economic Zone
Name/Developer Location Primary industry
Cochin SEZ Cochin Multi-product
Infopark SEZ Kochi IT/ITeS
Electronic Technology Park-SEZ-I Thiruvananthapuram IT/ITeS
Electronic Technology Park-SEZ-II Thiruvananthapuram IT/ITeS
Cochin Port Trust Vallarpadam Port-based
KINFRA Film & Video Park Thiruvananthapuram Animation & gaming
Kerala State Information Technology Infrastructure Ltd Cherthala IT/ITeS
Kerala Industrial Infrastructure Development Corporation
(KINFRA) Pathanamthitta Food processing
Operational SEZs in Kerala
Kerala has eight operational SEZs.
Source: www.sezindia.nic.in, SEZ: Special Economic Zone
Name/Developer Location Primary industry
Cochin Port Trust Vallarpadam Port based
Cochin Port Trust Puthuvypeen, Ernakulam Port based
KINFRA Kazhakoottam,
Thiruvananthapuram IT (Animation & gaming)
Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS
Kerala State Information Technology
Infrastructure Ltd (KSITIL) Cherthalai, Alappuzha IT/ITeS
Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS
Cochin International Airport Ltd Ernakulam Airport based
Some of formally approved SEZs in Kerala
Kerala had 32 SEZs with formal approval and 25 notified SEZs.
NIMZ - National Investment and Manufacturing Zone, The Hindu
NIMZ • The Central Government has granted in-principle approval to the Kochi-Palakkad National
Investment and Manufacturing Zone (NIMZ) in 2013.
• The NIMZ is proposed to be set up in an area of 6,000 acres across 20 identified nodes.
State-of-the-art
infrastructure
• The state was exempted from the provisions related to geographical continuity in the
National Investment and Manufacturing Zone.
• Other infrastructure facilities required to be created include internal roads, drainages,
water treatment plants, and gas-based power plants for a total capacity of 2,500 MW.
• The cost of infrastructure development will exceed US$ 8.8 billion including the cost of
land.
Opportunity • The opportunities available in these projects are industrial plots, export and import-related
opportunities, packaging services, logistic services, etc.
Total employment
potential of around 0.5
million
• Kerala expects to generate direct employment for 0.5 million people in five years and
indirect employment for 2.5 million people in 10 years.
Educational infrastructure (2012)
Schools 12,638*
Universities 17^
Engineering institutions 158
Arts and science colleges 191
Polytechnics 49
Kerala has the highest literacy rate among all states in the
country. According to the provisional data of Census 2011,
the state has a literacy rate of 94 per cent; male and female
literacy rates stood at 96.1 per cent and 92.1 per cent,
respectively.
About 30.11 per cent of total students are enrolled in
government schools, 60.48 per cent in government-aided
private schools, and 9.41 per cent in unaided private
schools (2012-13).
Girl students constitute around 49.4 per cent of total student
enrolment in schools in the state.
Kerala had 2,915 higher secondary schools in 2012-13. Of
these, 1,107 (38.0 per cent) were government schools,
1,407 (48.3 per cent) aided schools, and the remaining 401
(13.8 per cent) unaided schools.
Source: Director of Technical Education, Kerala,
University Grants Commission,
General Education Department, Kerala,
*During 2012-13, ^As of March 2013
Kerala primary education statistics (2012-13)
Schools (No)
Lower primary: 6,760
Upper primary: 2,963
High schools: 2,915
School dropout rate (%) (2010-11)
Lower primary: 0.47
Upper primary: 0.32
High school: 0.78
Pupil-teacher ratio 26:1
Nature of schools Student strength
(in million)
Share of total student
strength (%)
Government 1.26 29.8
Government-aided 2.593 61.3
Unaided 0.376 8.9
Total 4.230 100.0
Source: General Education Department, Kerala, Economic Review of Kerala, 2012,
University Grants Commission
Major medical colleges in Kerala - 2012
• Medical colleges: 22
• Dental colleges: 21
• Nursing colleges: 111
• Ayurveda medical colleges: 17
• Homeopathy medical colleges: 5
• Siddha: 2
Source: Economic Review of Kerala, 2012,
Director of Technical Education, Kerala, University Grants Commission
Kerala is home to premier institutions such as:
Indian Institute of Management, Kozhikode.
Indian Institute of Space Science and Technology,
Thiruvananthapuram.
National Institute of Technology, Calicut.
National University of Advanced Legal Studies,
Kaloor.
Central Institute of Fisheries Nautical and
Engineering Training, Kochi.
Central Institute of Fisheries Technology, Cochin.
Central Marine Fisheries Research Institute,
Ernakulam.
Institute of Human Resource Development,
Thiruvananthapuram.
Besides, the medical council has received 13
proposals from Kerala.
Technical institutions under Directorate of
Technical Education-2013
Institutions Numbers
Government technical high schools 39
Government commercial institutes 17
Tailoring and garment making training
centres 42
Vocational training centres 4
Source: Sample Registration System (SRS) Bulletin September 2013
(www.censusindia.gov.in),
Economic Review of Kerala, 2013
*Per thousand persons,
**Per thousand live births
Health indicators as of 2012
Birth rate* 14.9
Death rate* 6.9
Infant mortality rate** 12
Life expectancy at birth (years)
Male 71.4
Female 76.3
Kerala has good health infrastructure with 681 primary
health centres, 25 dispensaries, 233 community health
centres, and 5,403 sub-centres.
Currently, of Kerala‟s total healthcare institutions, 1,281 are
Allopathic, three Ayurvedic and 661 under Homoeopathic.
As of 2013, the 1,281 health institutions under the Allopathic
segment contained 37,415 beds under the Health Services
Department.
Health infrastructure as of 2013 - Allopathy
• Primary health centres: 681
• Community health centres: 233
• District/taluka hospitals: 93
• General hospital: 15
• TB clinics/centres: 17
• Specialty: 19
• 24x7 PHC: 174
• Total: 1,281
Source: Economic Review of Kerala, 2012
Kerala has been rated as one of the Thirteen Paradises of
the World by National Geographic Traveller; it has been
promoted as „God‟s Own Country‟.
Health and wellness tourism in Ayurvedic medicine has
grown tremendously in the recent past.
Sri Padmanabhaswamy temple makes the state one of the
attractive religious tourism spots in India.
Other temples in Kerala, such as Guruvayoor and
Sabarimala, are also major religious attractions.
Recently, Kerala Tourism held 3 successful road shows in
the Nordic region for attracting more tourists from the
region.
Popular tourist locations
Beaches Kovalam, Varkala, Marari, Bekal
and Kannur
Backwaters Kumarakom, Alappuzha, Kollam,
Kochi and Kozhikode
Hill stations Ponmudi, Munnar, Wyanad and
Vagamon
Wildlife reserves
Periyar Wildlife Sanctuary,
Eraviikulam National Park,
Thattekad Bird Sanctuary
Parambikulam Wildlife Sanctuary
Source: Department of Tourism, Government of Kerala,
Economic Review of Kerala 2012
Art and culture are being fostered and promoted through
various bodies such as:
Kerala Sahitya Academy – To promote Malayalam
literature.
Kerala Sangeetha Nataka Akademi – To promote
traditional arts.
Kerala Lalithkala Academy – To promote painters
and sculptors.
Kerala Folklore Academy – To promote Kerala
folklore.
Kerala State Chalachitra Academy – Academy for
motion pictures.
Kerala Kalamandalam – To teach traditional dances.
The cities in Kerala have modern amenities for recreation
such as golf courses, shopping malls, theatres, café-
lounges and resto-bars.
Kerala got 25 new sports facilities owing to the National
Games held at the start of 2015.
New sports infrastructure projects in Kerala
New hockey stadium at Kollam
Rajiv Gandhi Indoor Stadium, Kochi
Shooting range at Vattiyoorkkavu, Thiruvananthapuarm
Corporation Stadium, Kollam
V.K.N. Indoor Hall, Thrissur
VKK Menon Stadium, Kozhikode
CSN Stadium, Thiruvananthapuram
New football stadium at medical college ground,
Kozhikkode
New multipurpose hall, Kannur
Kariavattom main stadium, Thiruvananathapuam
Synthetic Athletic track at University of Calicut,
Malapuram (Approved under Urban Sports
Infrastructure Scheme (USIS))
Source: Department of Tourism, Government of Kerala,
Economic Review of Kerala 2012, News articles
The state has 32 SEZs with formal approvals and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being
developed in Kozhikode.
Source: http://www.technopark.org/
Infrastructure Project description
Technopark
• The Technopark at Thiruvananthapuram is spread over 300 acres.
• It currently hosts over 290 IT and ITeS companies, employing over 42,500 IT professionals.
• Technopark Phase-II has been declared an SEZ by the Government of India.
• Technopark would become a 14.54 million sq ft technology park once its Phase-III is complete.
Technopark‟s Phase-III development is being implemented as an IT/ITeS SEZ, spread over 92
acres.
• As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in
Pallippuram, 5 km north of the main campus on the National Highway-47 to Kollam.
Infopark
• The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable
landings.
• The total land available with Infopark is 98.25 acres, of which 75 acres has been notified as an
SEZ by the Ministry of Commerce, Government of India.
Special Economic
Zones
• Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA
Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at
Vallarpadam and Puthuvypeen at Kochi; a food processing SEZ near Calicut; a pulp and paper
SEZ at Kottayam; and a non-conventional energy sources SEZ at Kalamassery.
Symbol Industries
IT
Engineering
Minerals and mining
Handlooms and power looms
Textile
Tiles
Canning
Coir products
Agriculture and forest-based
Sericulture
Rubber
Food products
Beedi
District Industries
Kannur Handlooms, power looms, beedi
Alappuzha Coir products
Idukki Agriculture and forest based
Thiruvananthapuram Handlooms, IT
Thrissur Power looms, handlooms, textile, timber, tile, canning
Palakkad Power looms, sericulture
Kollam Minerals and mining
Kozhikode Rubber
Wayanad Minerals and mining
Kasargod Minerals and mining
Kottayam Rubber, food products, engineering
Ernakulam IT
Kerala‟s strategic location on the trans-national trade
corridor, rich natural resources, and simple and transparent
procedures are favourably suited for investments in key
sectors such as tourism, IT/ITeS, manufacturing and mining.
Kerala‟s traditional industries include handloom, cashew,
coir and handicrafts.
KINFRA, KITCO Limited (formerly, Kerala Industrial and
Technical Consultancy Organisation Limited), the
Directorate of Industries and Commerce, and the Small
Industries Development Corporation are jointly responsible
for the development of industrial infrastructure in the state.
Forming industrial clusters and developing infrastructure
(such as rubber parks, electronic hardware park, coconut
industrial park, organic industrial park and food processing
parks) have been integral to the state‟s strategies to attract
investments in various industries.
The total number of functional micro, small and medium
enterprises (both registered and unregistered) in Kerala
stood at 150,000 and 2,063,000, respectively, as of March
2013. These units employed a total of 4,962,000 people
(621,000 employed under registered sector and 4,341,000
employed under unregistered sector).
The total number of SSIs/MSMEs registered in Kerala by
the end of March 2013 stood at 219,444 against 205,987 in
the previous year, indicating a growth of about 7 per cent.
Key industries in Kerala
• Handlooms and power looms
• Rubber
• Bamboo
• Coir
• Khadi and village industry
• Sericulture
• Seafood and other marine products
• Cashew
• Mining
• Tourism
• Food processing
• Spices and spice extracts
• IT & electronics
In terms of industrial growth, the state‟s average growth
from 2004-05 to 2011-12 was 13.6 per cent at current prices
SME‟s generated more than US$16 million worth of orders
from B2B meet held in February 2015 in Kochi.
Source: Economic Review of Kerala, 2013, News articles
Kerala accounts for approximately 52.0 per cent (in terms of value) and about 85.0 per cent (in terms of volume) of total coir
and coir products produced in India.
The coir industry provides employment to around 375,000 people.
The state has three coir parks: two in Alappuzha and one in Perumon (Kollam).
The Coir Co-operative Marketing Federation (COIRFED) is the apex federation of 842 primary coir co-operatives societies.
The US is the largest importer of coir products from India, followed by the Netherlands, the UK, Germany, Italy and Spain.
Around 170 foreign buyers have already registered from over 53 countries for the Coir Kerala Trade Fair to be held in
February 2015.
Source: Economic Review of Kerala, 2013,
Coir Board, News articles
Export of curled coir, coir fibre, coir pith, coir rope, coir yarn,
coir geo-textile, handloom matting, power loom mats and
rubberised coir from India increased in terms of quantity and
value during 2012-13 compared with the previous year.
Kerala‟s total coir exports stood at US$ 117.7 million during
2013-14. In terms of quantity, out of the total 537,040
tonnes of coir and coir products exported from India, Kerala
accounted for 73,665 tonnes.
In percentage terms, the state‟s share of total coir exports
stood at 14 per cent in quantity terms and 52 per cent in
value terms during 2013-14.
The National Coir Research & Management Institute
(NCRMI), a state government organisation, is following up
on a potential deal with Saudi Aramco for a new technology
that can help cultivate crops in saline and arid conditions.
The Department of Coir Development, Government of
Kerala, organised the world's largest expo on Kerala coir
and natural fibre products, called Coir Kerala 2014, on
February 1-15, 2014 in Alappuzha.
Transactions worth US$ 24.8 million occurred at the
trade fair.
Source: Economic Review of Kerala, 2012, Coir Board,
Government of India, Business Line,
*April-August 2014
Exports of coir industry of India („000 metric tonnes)
187.6 199.9
294.5 321
410.9 429.5
537.0
232.5
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*
Source: Economic Review of Kerala, 2013
*In Indian Rupee terms
Among the traditional industries of Kerala, the handloom sector stands second to the coir sector in providing employment.
The industry is concentrated in Thiruvananthapuram and Kannur districts and in some parts of Kozhikode, Palakkad,
Thrissur, Ernakulam, Kollam and Kasaragod districts.
Around 94.0 per cent of the total number of looms are under the cooperative sector (consists of factory type and cottage
type societies), the remaining being under industrial entrepreneurs.
During 2012-13, the state government granted US$ 2.7 million to the sector, whereas the central government and the
financial institution group (NCDC, NABARD & HUDCO) granted US$ 0.3 million and US$ 0.1 million, respectively.
At the end of March 2013, Kerala had 664 registered Primary Handloom Weavers Co-operative Societies (PHWCS),
consisting of 153 factory type societies and 511 cottage type societies.
Kerala‟s four integrated power loom co-operative societies in Calicut, Wayanad, Neyyattinkara and Kottayam have been
expanded by providing budgetary support.
The Calicut Integrated Powerloom Co-operative Society Ltd has been converted into a textile park comprising all the
segments of a composite mill (weaving, processing and garment making). At the society, semi-automatic power looms,
automatic looms and highly sophisticated machines are operational.
The total value of handloom production rose 10 per cent* to US$ 41.0 million in 2012-13 compared with 2011-12. The total
number of weavers employed increased from 49,930 to 50,433 during the year.
The number of women employed increased from 20,784 in 2011-12 to 21,434 in 2012-13. Total employment generated
increased from 9.0 million person days in 2011-12 to 10.6 million person days in 2012-13.
Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that
directly support major IT cities, including Bengaluru.
The annual plan outlay for information technology during 2012-13 is 27 per cent higher than that for 2011-12.
Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 per
cent).
The state has a techno park in Thiruvananthapuram, an info park in Kochi, and a cyber park in Kozhikode. It also has private
IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and
Muthoot Pappachan Techno Polis (Kochi).
In 2012-13, the state‟s software exports from registered units through Software Technology Parks of India (STPI) were
valued at US$ 644.4 million.
Kerala has three operational IT/ITeS SEZs, one in Kochi and the other two in Thiruvananthapuram.
The Chief Minister has said that Kerala will take big steps towards promoting IT. The completion of new campuses by TCS,
Infosys and UST are expected to add 22,000 new jobs.
Source: Kerala IT Policy 2012, Cybex, Indiaitnews,
Economic Review of Kerala 2012
IT exports from Kerala increased at a CAGR* of 23.8 per
cent between 2007-08 and 2012-13.
Operational costs in the state are among the lowest in India
(40 per cent lower as compared to other major IT locations
in India). Also, rental/real estate cost is lower than major IT
cities in the country.
Around 11 per cent of the national IT pool is contributed by
skilled human resources from Kerala.
Kerala has a strong e-governance infrastructure and is a
leading state in e-governance.
The government‟s objective is to achieve direct employment
of up to 0.5 million in the ICT sector and to have 3,000
technology start-ups by 2020.
Info park has registered IT exports worth US$ 390 million in
2013-14.
Source: Kerala IT Policy 2012,
Software Technology Parks of India, Cybex, Indiaitnews
ICT = Information and Communication Technology,
*CAGR calculated in Indian Rupee terms
Exports from IT industry (US$ million)
298.5
392.7 412.6 454.6
413.4
644.4
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
CAGR
23.8%*
Tata Consultancy
Services
Infosys
Collabera
RR Donnelley India
Outsource Pvt Ltd
• Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process
Outsourcing (BPO) services in India. TCS employed more than 300,000 IT consultants in 46
countries and generated revenue of US$ 5.9 billion in H1, FY‟15.
• TCS provides IT consulting and services in financial services, healthcare and life sciences,
insurance, manufacturing, media, entertainment, transportation etc. It has a software
development and training centre at Technopark in Thiruvananthapuram and plans to set up the
world‟s largest corporate learning centre in Thiruvananthapuram.
• Established in 1981, Infosys employs more than 160,000 people. The company generated US$
3.8 billion in revenue in H1FY‟15. It is engaged in IT consulting, modular global sourcing,
process re-engineering, and BPO services.
• The company has operations in Australia, China and the US, and marketing and technological
alliances with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30 countries
and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre
at Technopark, Thiruvananthapuram.
• Collabera is a fast-growing, end-to-end information technology services and solutions provider,
working with leading global 2,000 organisations from banking & financial services,
communications, media, manufacturing, retail, energy and utilities domains. The company
employs over 9,000 professionals across more than 25 offices and four world-class delivery
centres in the US, the UK, India, Singapore and Philippines. The company has an office at
Technopark, Thiruvananthapuram. In 2012, it generated US$ 510 million in revenue.
• Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite
operation centres across nine countries and had a revenue of US$ 10.2 billion in 2012.
• It is a subsidiary of RR Donnelley (RRD), a global provider of integrated communications,
business services and supply chain solutions. RR Donnelley is a US$ 11 billion Fortune 300
company, with around 65,000 employees across the world. The company has an office at
Technopark, Thiruvananthapuram.
The self contained Electronics Technology Park at
Technopark, Thiruvananthapuram, has been instrumental in
attracting global electronics manufacturers.
The state has ample availability of skilled and semi-skilled
workers for the electronics industry.
The electronic hub proposed at Kochi is a prestigious
project of the Government of Kerala to promote electronic
hardware manufacturing and assembling units and R&D
centres, and to support infrastructure for the same.
This hub is a high-priority area, which would promote a
large number of small-, medium- and large-scale industries
in the state. It would also form a National Investment &
Manufacturing Zone (NIMZ) for manufacturing electronic
hardware items.
In November 2012, Hindustan Aeronautics Limited has set
up phase-I of an electronics factory at the cost of US$ 12.1
million at Kasaragod to manufacture advanced avionics for
aircraft and helicopters.
Development of the factory will lead to the growth of
subsidiary industries, which in turn will generate
secondary employment opportunities and augment
skill-sets in this area.
Key players
• Traco Cable Company Limited
• Transformers and Electricals Kerala Ltd (TELK)
• Kerala State Electronics Development Corporation
Ltd (Keltron)
Source: Economic Review of Kerala, 2012
Business Standard, November 2012
Traco Cable Co Ltd
Transformers and
Electricals Kerala Ltd
(TELK)
Kerala State Electronics
Development Corp
(Keltron)
• Traco Cable Company Limited commenced operations in 1964. It manufactures high-quality
cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO
currently meets the needs of public sector undertakings in India such as railways and the
electricity boards of various states. The company is headquartered in Kochi and has factories in
Ernakulam, Kannur and Thiruvalla.
• TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala
State Industrial Development Corporation, and Hitachi Limited, Japan. It manufactures
transformers, bushings and tap changing gears. The factory and corporate office are located in
Angamally, near Kochi. In 2012. TELK won the Kerala Safety Award for very large factories in
the engineering category.
• TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator
Transformer to India's first 500 MW Thermal Unit.
• Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800
people and has 10 manufacturing centres. It provides technical manpower to leading
organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company‟s
products span categories including aerospace electronics, security and surveillance systems,
intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure
solutions, process automation, ID card projects, power electronics, electronic components and
TE units.
• Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across
Kerala with a strong infrastructure spread over 700,000 sq ft of built up area.
Tourism is a primary economic activity in Kerala and revenues from the segment account for 10 per cent of the state‟s GDP.
Total revenue (including direct and indirect) from tourism rose about 9.1 per cent* to US$ 4.0 billion in 2013-14.
Kerala became the number one travel destination in the Google‟s Search Trends for India in 2012.
Kerala Tourism bagged four of the top honours at the Pacific Asia Travel Association (PATA) Awards 2011, announced in
Bangkok, for outstanding achievement in tourism.
Recently, a survey conducted by BBC World News has rated Kerala as the most popular tourist in India spot among foreign
travellers.
Kerala Tourism has won many national and international awards. The state has been voted the Best Asian Holiday
Destination 2010 by SmartTravelAsia.com, ahead of other destinations such as Bali, Phuket and Maldives.
Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters of
Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon.
Kerala has a number of well-known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam National Park,
the Thattekkad Bird Sanctuary and the Parambikulam Wildlife Sanctuary.
The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and
Muziris heritage circuit.
Kerala accounted for 4.3 per cent of total foreign tourist visitors in the country in 2013.
Source: Economic Review of Kerala, 2012, www.keralatourism.org, News articles
*Growth calculated in INR terms
Source: The Hindu, www.keralatourism.org, Ministry of Tourism, Government of India
Responsible Tourism is defined as tourism 'that creates better places for people to live in, and better places to visit„
Arrivals of domestic and foreign tourists in Kerala increased
at a CAGR of 8.2 per cent and 11.4 per cent, respectively,
over 2009-2013.
Major initiatives of Kerala Tourism:
Responsible Tourism (RT), an innovative and far-
reaching concept, is an initiative implemented at
Kovalam, Kumarakom, Thekkady and Wayanad.
Medical tourism, promoted by traditional systems of
medicine such as Ayurveda and Siddha, is
becoming widely popular in the state and is
attracting increasing numbers of domestic and
foreign tourists.
Meetings, Incentives, Conferences and Exhibitions
(MICE) tourism is now being promoted heavily by
Kerala Tourism.
Eco-tourism, Muziris Heritage Tourism and Kerala
Seaplane Services are other major ongoing projects.
Since August 2013, Visa on Arrival has been
introduced at Thiruvananthapuram and Kochi
airports, which will allow citizens from 11 countries
to obtain tourist visas upon arrival in Kerala.
Domestic tourist arrivals in Kerala (in million)
Foreign tourist arrivals in Kerala (in million)
7.9 8.6
9.4 10.1 10.9
2009 2010 2011 2012 2013
0.56
0.66
0.73 0.79 0.86
2009 2010 2011 2012 2013
Source: Economic Review of Kerala, 2012, Rubber Board, Ministry of Commerce and Industry, Government of India
JV = Joint Venture, MT = Metric Tonnes, *Provisional data for April-September 2013
Kerala is the leader in rubber production; more than 90 per
cent of the total rubber production in the country is from
Kerala.
Natural rubber production in Kerala was 0.85 million MT
during 2013-14, a 7.6 per cent increase over 2012-13.
Consumption of natural rubber in the country reached
981,520 tonnes during 2013-14 from 947,700 tonnes during
2010-11.
KINFRA, through a JV with the Rubber Board, has
developed India‟s first rubber park in Kochi. Kerala also has
a major rubber cluster in Kottayam.
Exports of natural rubber from India (000‟ tonnes)
Consumption of natural rubber in India (000‟ tonnes)
25.1 29.9
27.1 30.6 30.6
2009-10 2010-11 2011-12 2012-13 2013-14
947.7
964.4 972.7
981.5
2010-11 2011-12 2012-13 2013-14
Kerala can be termed as the land of spices, considering the
large variety of spices grown in the state.
Kerala is one of the largest producer of pepper in India.
The area under pepper production in the state is
estimated at 84,000 hectares; pepper production
stood at 46,298 MT during 2012-13.
Global pepper production has dropped drastically,
which led to increase in pepper prices.
In line with the global trend, the price surge has
been sharp in India considering the substantial
domestic consumption compared with other pepper
producing countries.
Apart from pepper, other spices produced in the state
include ginger, cardamom, nutmeg, tamarind, etc.
The value of spices exports from Kerala increased at a
CAGR* of 26.1 per cent between 2007-08 and 2011-12.
Exports reached a volume of 421,570 tonnes in total from
India, with Kerala being the chief contributor.
Exports of spices from Kerala (through Cochin
and Thiruvananthapuram ports) in US$ million
Source: Economic Review of Kerala, 2013,
Horticulture 2012-13, Spices Board India
MT = Metric Tonnes,
*CAGR calculated in Indian Rupee terms, News articles
314.1 320.4 307.3
413.7
667.6
2007-08 2008-09 2009-10 2010-11 2011-12
CAGR
26.1%*
Khadi and village industries have been an integral part of
the traditions of Kerala.
There is immense scope for investments in the field of
khadi, due to higher demand for khadi products such as
khadi silk sarees (Payyannur pattu and Chithali silk), cotton
sarees, Kuppadam dothies, bedspreads and towels.
The Kerala Khadi and Village Industries Board is the
statutory body in the state.
Khadi goods worth US$ 7.5 million, were sold through 216
sales outlets of Kerala Khadi & Village Industries during
2013-14.
Expansion and modernisation of the sliver project in
Ettukudukka, and marketing and strengthening of the
weaving sector are some of the major schemes to develop
domestic and export markets over 2012-13 in the khadi
sector.
During 2012-13, the state government provided a sum of
US$ 2.2 million to the sector. In addition, an amount of US$
3.7 million was received from the state government towards
the Income Support Scheme.
Total sales of khadi products from sales outlets of
Kerala khadi & village industries (US$ million)
Source: Economic Review of Kerala, 2013
Under the Prime Ministers Employment Generation
Programme, an amount of US$ 1.5 million was disbursed as
margin money grant for 374 projects during 2012-13.
This generated 335 jobs under special employment
generation programmes and 2,365 units were set up at a
total cost of US$ 4.9 million.
During 2012-13, goods worth US$ 53.5 million were
produced, whereas goods worth US$ 62.3 million were sold.
The industry provided employment of 248,528 people.
6.0
7.5
2010-11 2013-14
There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products for
skin, hair, body and dental care.
Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity and
consistency of Ayurvedic medicines needed for effective treatment procedures.
Kerala has the highest number of Ayurveda colleges and practitioners in the world.
Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country.
Kerala has 850 Ayurvedic drug manufacturing units, including some major ones such as Oushadhi, Vaidyaratnam
Oushadhasala and KP Namboodiris.
Total sales of Oushadhi, the biggest Ayurvedic drug manufacturing unit in India, recorded a CAGR of 16.6 per cent between
2007-08 and 2011-12.
The company recorded sales of US$ 12.2 million over 2012-13 compared to US$ 9.2 million in the previous year.
It has set up a state-of-the-art facility with an investment of US$ 3.3 million; this would help it increase its production
of Ayurvedic medicines threefold.
The company expects to achieve total sales of US$ 33.2 million in 2015.
Source: Economic Review of Kerala 2012, News articles
*CAGR calculated in Indian Rupee terms
The state has a long coastline of over 580 km and
innumerable water bodies, generating a huge potential for
inland and marine fishing, and providing it a prominent
position in fish cultivation.
As per Census 2011, the state has a fisherfolk population of
nearly 1 million, of which 0.8 million is in coastal areas and
0.2 million in inland areas.
They contribute about 9 per cent to the GSDP from the
agriculture sector.
Among maritime states in India, Kerala ranks second in
marine fish production.
Total fish production in the state stood at 0.633 million
tonnes in 2012-2013.
The production of marine fish in the state during 2012-13
was 0.484 million tonnes, whereas inland fish production
reached 0.149 million tonnes during the same period.
The Government of Kerala has set up nine fishing harbours
so far; work on other eight harbours is in progress.
There were 21,781 fishing crafts in the state as per 2012-
13.
Source: Economic Review of Kerala, 2013
Department of Animal Husbandry, Dairying and Fisheries
Total fish production in Kerala (in million tonnes)
0.678 0.677 0.686 0.687 0.681 0.693 0.633
200
6-2
00
7
200
7-2
00
8
200
8-2
00
9
200
9-2
01
0
201
0-2
01
1
201
1-2
01
2
201
2-2
01
3
Hospitality, leisure and
entertainment
• Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail
and entertainment sector.
• The sector is attracting investments in projects such as world-class spas, entertainment
centres, mega shopping malls, multiplexes, business convention centres and theme parks.
• The state has world-class infrastructure and perfect climate for Ayurveda health centres.
• Hotel projects under development include Mfar Hotels and Resorts Ltd‟s 5-star hotel and
Banyan Tree Hotels & Resorts.
Food processing
• Food processing is a sunrise sector that has gained prominence over the recent years in
the state.
• FPI in Kerala constituted organised as well as unorganised units.
• Spices, pickles and marine products are the major food product exports from Kerala.
• Kerala has India‟s first food processing industrial park in Malappuram and seafood
processing park in Alappuzha. The state also has a coconut-based food processing plant
in Kinalur.
• To promote food processing, agriculture and allied sectors, Kerala Agri Food Pro Meet
2013, which was a technology meet, was held in Kochi.
FPI = Food Processing Industry
A Single-Window Clearance Mechanism (SWM) was
established in June 2000, with an aim to expedite
clearances for new industrial projects.
A state-level board, headed by the Chief Secretary, issues
clearances within a time frame of 45 days to medium and
large scale industries.
KSIDC is the single point of contact and convenor of the
state board.
District-level boards have been constituted for issuing
clearances required by small scale industries.
The District Collector of each district is the Chairman and
General Manager of the Board; the District Industries Centre
(DIC) is the convenor for such boards. The stipulated time
frame for clearances is 60 days.
Industrial Area Boards have been set up in various
industrial areas of the state for the clearance of projects. An
officer, not below the rank of District Collector, is Chairman
of each Board, with the Designated Authority of the
Industrial Area as Convenor. The stipulated time frame for
obtaining the clearances is 30 days.
State Board Chief
Secretary
District Boards District
Collector
Industrial Area
Board
An officer not
below the rank
of District
Collector
Source: KSIDC
SWM structure in Kerala
Agency Description
Kerala Industrial
Infrastructure Development
Corporation
(KINFRA)
• The aim of the organisation is to speed up industrial growth in Kerala through
infrastructure support.
• It operates industrial parks in various sectors.
• It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and
Rubber Park (Pathanamthitta).
• KINFRA‟s four upcoming projects include a marine park in Beypore, a technology park in
Ramanattukara, a food park at Wayanad and an industrial park in Palakkad.
KITCO Limited
(formerly, Kerala Industrial
and Technical Consultancy
Organisation Limited)
• The organisation is involved in providing technical consultancy assistance to banks by
appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium
Enterprises (SMEs) sector by way of preparation of project reports and market studies and
by conducting training programmes for entrepreneurship development.
Directorate of Industries
and Commerce
• It is the implementing agency for the Department of Industries, Government of Kerala.
• It provides infrastructure facilities for the small scale sector by acquiring land and
developing facilities such as roads, water supply, electricity and civil works.
Agency Description
Small Industries
Development Corporation
• It provides infrastructure facilities to the small-scale sector through its major and mini industrial estates.
• It owns and operates production units, raw materials depots, industrial estates/mini industrial estates, marketing cell/emporia/centres, civil construction division, IT&TC division, export & import/project division and industrial parks.
Kerala State Industrial
Development Corporation
(KSIDC): the single-
window clearance and
monitoring agency
Purpose:
• Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large- and medium-scale industries in Kerala.
• Acts as a promotional agency, involved in catalysing the development of physical and social infrastructure required for the constant growth of industry.
Composition:
• Consists of a group of professionals from various fields including engineering, management, finance and law.
• Services offered include project lending, single-window clearance, equipment purchase loans and consultancies.
Agency Contact information
Directorate of Industries and Commerce
Vikas Bhavan P O Thiruvananthapuram Kerala-695 033
Phone: 91-471-2302 774 Fax: 91-471-2305 493
E-mail: [email protected]
Kerala State Industrial Development Corporation Limited (KSIDC)
T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram-695 003
Phone: 91-471-2318 922 Fax: 91-471-2315 893
E-mail: [email protected]
KITCO Limited
P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028 Phone: 91-484 -4129 000 / 2805 033
Fax: 91-484 -2805 066 E-mail: [email protected]
Agency Contact information
Kerala Industrial Infrastructure Development Corporation (KINFRA)
KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram - 695 010
Phone: +91-471-2726 585 Fax: +91-471-2724 773 E-mail: [email protected]
Kerala Small Industries Development Corporation
Housing Board Building, 6th floor, Santhi Nagar P B No 50
Thiruvananthapuram- 695 001 Phone: 91-471-2330 401, 2330 413, 2330 818,
Fax: 91-471- 2330 904 E-mail: [email protected]
Approvals and clearances required Departments to be consulted Mechanism and estimated
time
Incorporation of the company Registrar of Companies
Single window clearance:
The state‟s single-window
facility clears investment
proposals in 45 to 60 days on
an average; the single-window
mechanism helps obtain all
approvals necessary for the
investment proposals within the
specified time frame.
Registration, Industrial Entrepreneurs
Memorandum, Industrial Licences
District Industries Centre for small scale
industries and KSIDC for large and medium
industries
Allotment of land State Department of Industries/KSIDC/KINFRA
Permission for land use State Department of Industries,
Kerala Town and Country Planning Department
Environment approval for the site Kerala State Pollution Control Board and Central
Ministry of Environment and Forests
No-objection certificate and consent under
Water and Pollution Control Act Kerala State Pollution Control Board
Approval of construction activity and building
plan Kerala Town and Country Planning Department
Sanction of power Kerala State Electricity Board (KSEB)
Registration under State‟s Sales Tax Act
and Central and State Excise Act
Sales Tax Department, Central and State Excise
Departments
Cost parameter Cost estimate Source
Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources
Five-star hotel US$ 142–415 per room per night Leading hotels in the state
Office space rent (per sq ft) US$ 0.6–3 per month Industry sources
Residential space rent (2,000 sq ft
house) US$ 350–750 per month Industry sources
Power (per kWh) Commercial: 16 cents (US)
Industrial: 9 cents (US) DCH Databook October 2013
Labour (minimum wages per day) US$ 8.3–10.8 Ministry of Labour and Employment,
Government of India
Water (1,000 litres) Commercial and industrial: US 22 cents to
US 55 cents Kerala Water Authority
Source: Kerala Government websites and Industry sources,
Ministry of Labour and Employment, Government of India,
Kerala Electricity Regulatory Commission,
Kerala Water Authority
Kerala Small Hydro Power Policy 2012
• To harness green and clean natural resources in the state for environmental benefits and energy
security. Read more
Objective
Kerala Tourism Policy 2012
• To create an environment for investment.
• To market Kerala as a visible global brand in domestic and international markets.
• To ensure quality visitor experience. Read more
Objectives
Kerala IT Policy 2012
• To plan, develop and market the state as the most preferred IT/ITeS investment/business
destination in India.
Read more
Objective
Industrial & Commercial Policy 2011 (Draft)
• To promote Kerala as a prime destination for industrial investments with environmental
protection.
• Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors,
particularly agro processing, services and commerce, and new emerging sectors. Read more
Objectives
Sports Policy 2012
• To provide equal opportunities to all citizens of the state for participation in sports.
• To promote excellence in sport, with the athlete as the central character.
• To develop, maintain and optimally utilise high quality sports infrastructure.
• To encourage, train and support talented sports persons in large numbers. Read more
Objectives
Kerala Solar Energy Policy 2013
• Target installed capacity of 2,500 MW by 2030.
• Set up floating and off-shore generation units.
• Make use of solar energy compulsory for industries; incentive to be provided for solar power
usage. Read more
Objectives
Kerala Biotechnology Policy 2003
• The policy focuses on catalysing the development and application of biotechnology while taking
advantage of the state‟s resources and keeping global requirements in perspective.
Read more
Objective
SEZ Policy 2008
• To make Kerala‟s economy more export-oriented by granting various exemptions and
concessions.
Read more
Objective
• The policy focusses on positioning good health as the product of the development agenda
including water supply, nutrition, sanitation, prevention of ecological degradation, respect for
citizen rights and gender sensitivity.
Objective
Read more
Kerala Health Policy 2013 (Draft)
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15* 60.6
Average exchange rates
*Average of first three quarters
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