Kerala Attracted Rs 91,575 crore Investment Projects in Five Financial Years

NEW DELHI:
Kerala has successfully attracted over Rs.91575 crore new investment projects during 2018-19 to 2022-23, completed projects worth Rs.33815 cr (source:CMIE) generating new job opportunities direct and indirect for about 5 lakh people, according to the just concluded study.

The study on “Kerala Investment, Growth & Development 2018-19 to 2022-23” undertaken by the MSME Export Promotion Council jointly with Confederation of Organic Food Producers & Marketing Agencies was released today by the MSME EPC Chairman Dr D S Rawat, (former Secretary General of ASSOCHAM).

The study has stated that the total investment projects outstanding in 2022-23 were of Rs.403770 crore and under implementation worth Rs.277957 crore, and once these projects are completed, direct and indirect new employment opportunities are expected to be created for over seven lac people.

During the period (2018-19 to 2022-23), the pending projects were revived of Rs.12240 crore. The Chairman Dr Rawat stressed the need for setting up a high powered committee under the chairmanship of Chief Secretary to expedite the clearances of the projects languishing for clearances from different departments and avoid the escalation in cost.

Dr Rawat said, Kerala which accounts for 2.8 per cent of India’s population and 1.2 per cent of land area contributes more than 4 per cent to the GDP of India. Thus, the southern states per capita income is 60 per cent higher than India’s average. This has fuelled internal migration to Kerala especially for low-end jobs, even as a large number of Keralites have immigrated mostly to Gulf countries.

The study says, Kerala has recorded an impressive industrial growth rate of 17.3 per cent in the financial year 2021-22; the achievement of the manufacturing sector is even more impressive recording a growth rate of 18.9 per cent, higher than the national average. These achievements helped the state register an economic growth of over 12 per cent in 2021-22.

The new investment projects announced by the private sector between the FY 2018-19 to 2022-23 were of Rs.23232 crore and completed projects of Rs. 9590 crore. During the period 2022-23, the private sector total investment projects outstanding were of Rs.67271 crore and under implementation of Rs.41369 crore.

As per the CMIE data information on 13 October 2023, during 2022-23, the new investment projects announced by the private sector were of Rs.398 crore only and completed the projects worth Rs.1825 crore and revived the old projects of Rs.3216 crore.

Kerala, a front runner in the promotion, adoption and usage of information technology, has also become home to over 250,000 IT professionals in 2023, and this number has grown significantly from 78,000 in 2016 registering a growth rate of 31 per cent during the last six years. It is expected that Indian software product industry will touch US$100 billion by 2025, and the state government is focusing on to tap the opportunity. The companies are focusing on investing internationally to expand their global footprint and enhance their global delivery center. It may be mentioned that Kerala’s digital eco-system is supported by a strong government commitment to digital transformation, a growing start-up and strong industry participation in the economy.

The ambitious project launched by the state government with the aim of starting one lakh micro, small and medium enterprises (MSMEs) has led to the formation of around 1.34 lakh enterprises with an investment of Rs.8110crore and 2.87 lakh employment. Currently, there are about 300 large and medium industries and 1,66,000 small scale units.