The Rise of a New Industrial Landscape

“Over the past decade, the state’s industrial sector has undergone profound change. Once ranked 28th in investment friendliness, Kerala now holds the top position in India. The state stands poised to become a hub for Industrial Revolution 4.0.”

-P. Rajeeve
Minister for Law, Industries and Coir

A transformative industrial landscape has taken shape in Kerala, demonstrating that no challenge is insurmountable. Kerala has secured first-tier status in Ease of Doing Business reforms for the second consecutive year- an achievement that reflects our unwavering commitment to enterprise. In the 87-year history of the American Society for Public Administration, only one Indian project has been recognised as a Novel Innovation in Public Administration; Kerala’s Year of Enterprises initiative. That same project was also hailed as India’s best in the MSME sector at a national forum attended by the Prime Minister. Building on the visionary decisions of the first Pinarayi Vijayan government, which assumed power in 2016, we have advanced bold reforms to foster a truly business-friendly environment. The launch of K-SWIFT marked a turning point, creating a seamless single-window system that freed entrepreneurs from the burden of visiting multiple offices. Progressive amendments to laws and regulations laid a robust foundation for sustained industrial growth. As a result, Kerala has earned acclaim as India’s most investment-friendly state, a recognition that has resonated far beyond national borders. Kerala’s model was showcased as a beacon of innovation and inclusivity in governance at the prestigious World Economic Forum in Davos. Leading global companies at the forefront of cutting-edge technology have commenced operations in Kerala. Investors have consistently commended Kerala’s conducive industrial ecosystem, prompting them to establish major new offices.

Invest Kerala Global Summit

By prioritising innovative sectors outlined in the Kerala Industrial Policy, the state aims to emerge as the nation’s epicentre for Industrial Revolution 4.0 Hence, amid this global spotlight, Kerala successfully hosted the Invest Kerala Global Summit. In the run-up to this Summit, nearly 50 preparatory events were organised, including industrial road shows in cities like Chennai, Bengaluru, Mumbai, Delhi and Dubai. Highlights included India’s inaugural International Gen AI Conclave, Kerala’s first International Robotics Round Table Conclave and more than ten sectoral conclaves. Special conclaves spotlighted strategic assets such as Vizhinjam Port and the Malabar region. The summit attracted Rs. 1.96 lakh crore in commitments from more than 400 companies. Remarkably, within just 10 months, 109 of these firms have initiated construction, promising over 50,000 jobs and investments exceeding Rs. 35,000 crores.

Ease of Doing Business

Last year, Kerala led the nation in Ease of Doing Business reforms by successfully implementing 91% of mandated programmes. This year, we solidified our top position by achieving an extra ordinary 99.3% implementation rate in the highest fast-mover category. The recognition was conferred through an award by Union Commerce and Industry Minister Piyush Goyal at a meeting of industry ministers in Delhi. This steady ascent—from 28th to 1st rank— is more than statistic; it is the growing confidence of entrepreneurs and the unified resolve to empower Kerala’s business community.

Supporting the Entrepreneurs

Upon assuming office, the second Pinarayi Vijayan government swiftly introduced a Rs. 1,410 crore MSME relief package. This was followed by extensive consultations with FICCI, CII, KSSIA and trade unions, ensuring targeted actions on their concerns. A new law enabled investments up to Rs. 50 crores (excluding red-category projects) to proceed via K-SWIFT on the basis of a principle-based Memorandum of Understanding valid for 3.5 years. For larger projects exceeding ₹50 crores, composite licenses are now mandated within seven days, provided documentation is complete. To streamline operations, curb corruption and eliminate redundant processes, five key departments were integrated into the K-SIS portal enabling unified inspections. Districtand state-level statutory committees, endowed with civil court powers, now resolve entrepreneur grievances promptly; these bodies can impose fines or recommend disciplinary action against delinquent officers ensuring accountability and reinforcing Kerala’s commitment to a transparent, businessfriendly environment.

Big Investments

Beyond resolving entrepreneur challenges, the Meet the Investor program has attracted major investments worth tens of thousands of crores. More than 30 firms– including IBM, HCL Tech, Nov Inc., Strada Global, D-Space, Saffron, Acsia Technologies, Synthite, and Attaché, have committed to invest in Kerala. A flagship project endorsed at the World Economic Forum in Davos is Kerala’s Rs. 18,000-crore Hydrogen Valley. For the first time in its history, IBM launched two projects in the same city in Kerala within two years. HCL Tech, shortly after starting operations, announced and activated a new unit within months. Industry leaders such as IBM, HCL Tech, Strada Global, Infosys, IBS, Adani Group, Ernst & Young, Tata Elxsi, UST Global, Adesso Global, Agape, Nov Inc., Kongsberg, D-Space, Acsia Technologies, Systrom, Safran, Synthite, Murugappa Group, Lulu, Choice, VKC, Vitthal Cashews, Prestige Group, Attaché, Craze Biscuits, Baker Tilly Pierian, and Trasna have praised Kerala’s ecosystem and expanded here. Following the Summit, Adani Logistics, Panattoni, Highlight World Trade Center, Meridian Tech Park, and others have broken ground on new projects. With the Kochi-Bangalore Industrial Corridor now approved and Phase 1 tenders completed swiftly, we aim to advance maximum progress during this term.

Year of Enterprises

The Year of Enterprises project has brought longoverdue national and global acclaim to Kerala’s industrial sector. Recognised as India’s top MSME best practice at a Prime Minister-attended event and as a Novel Innovation in Public Administration by the American Society for Public Administration, it is now a case study in Mussoorie’s IAS training. In Kerala, where enterprises once averaged 10,000 annually, this initiative sparked the creation of more than 3.5 lakhs enterprises, generating Rs. 22,000 crores in investments, and 7.5 lakh jobs across three years—an average of 322 enterprises every day. Notably, it has empowered over one lakh women entrepreneurs.

Investment Promotion Board

To expedite approvals for investments over Rs. 100-crore—unlocking jobs and growth for Kerala’s youth— the state enacted amendments establishing the Kerala State Investment Promotion Board. Chaired by the Chief Minister, with the Industries Minister as Co-Chair and relevant departmental ministers as Vice-Chairs, the Board also includes the Chief Secretary, senior officials and industrialists as members. The board swiftly grants industrial policy concessions and evaluates special incentives ensuring that large-scale investments move forward without delay.

The Public Sector Turns Golden When the first Pinarayi government assumed office, Kerala’s public sector industries were drowning in losses. Today, 27 enterprises under the Industries Department have been operating profitably as per the latest half-yearly review. This marks 14 new profit-makers compared to last year along with seven enterprises registering profit growth. Overall turnover has risen by 9.07%, with 32 enterprises expanding revenue. Operating profit now totals Rs. 27.30 crores, while the number of net-profit earners has climbed to 17 from nine. Overall turnover hit Rs. 2,440.14-crore. Keltron has now crossed the milestone of Rs. 1,000-crore turnover; KMML continues to stand as Kerala’s industrial powerhouse. Kerala Paper Products Limited, acquired after the Union government closed down Hindustan Newsprint is thriving while absorbing displaced workers. Our Public Sector is modernising, diversifying, tapping new markets and rivalling private players—crafting a distinctive Kerala model.

Onto A New Kerala

This government has delivered both legal and technical backing to ensure seamless enterprises, reformed building rules to be entrepreneurfriendly, and pioneered a national policy for responsible investment and industry. Supporting these efforts are a fresh industrial policy, revised land lease rules, a logistics park policy, a comprehensive export strategy, and India’s first ESG policy. As India’s Ease of Doing Business leader, Kerala flings open its doors to the world —not only as God’s Own Country, but as an investors’ paradise where enterprise, sustainability, and opportunity converge.

Coir Sector

• Allocated Rs 440-crore for various projects $ Huge increase in production –from 36,771 tonnes (2011 to 2016) to 77,218 tonnes (2016-21) and 54,823 tonnes (2021-2025)
• Income support scheme implemented for workers. $ Coir geo textile worth Rs 148-crore distributed (2021-25).
• Coir products sold through online trading platforms like Amazon, Walmart, and K-Shoppe.
• New products launched; Design training provided to workers in collaboration with National Institute of Design and National Institute of Fashion Technology $ Coir Mats & Mattings exports expanded to Europe.
• Foam Mattings India expanded exports to France. $ Coir Corporation and Foam Mattings were merged.
• Fibre Bank formed to ensure supply of coir. $ Coir Revolving Fund for spinning societies and manufacturing societies.
• 1500 Automatic Spinning Machines (ASM) installed and the production process modernised. A huge increase in production capacity-140 runnage 30-50 kg increased to 160 runnage 50-65 kg.
• Income Support Scheme-Rs. 156-crore $ Price Stabilisation Fund-Rs. 459-crore $ Production and Marketing Incentive – Rs. 82-crore $ To find a market-Rs. 80-crore
• Working capital-Rs. 45-crore $ Electricity subsidy-Rs. 150-crore

Cashew Sector

• 78,182 metric tons of cashew nuts imported from various countries. 
• Rs 30-crore for the renovation of cashew factories in the private sector. 
• All 30 factories of the Cashew Development Corporation on the path of modernisation. 
• Interest subsidy and capital grant given to small and medium factories. $ Increased the minimum wage by 23 %. 
• DA paid along with the daily wage to the workers.

Handloom sector

• Distributed 1.32-crore meters of cloth to 37.33-lakh children for free school uniform scheme. Rs 626-crore spent so far. 
• Ensured permanent employment to 6,152 weavers and 1,600 allied workers. 
• Rs. Five crores allocated for the modernisation of cooperative societies and Rs. 20-crore allocated for the renovation of Hantex.
• Khadi workers included in the Income Support Scheme.

Plantation Directorate

• Formed Directorate exclusively for the plantation sector. 
• Coordination mechanism created between the departments to solve the long-standing problems.
• Rs. 479-crore KERA project formulated for the climate resilience program.