Kerala Poised to Become a Leading Investment Hub: Chief Minister Pinarayi Vijayan

Kochi: Despite the state’s high population density, the Kerala government has announced special initiatives to ensure that no investor is turned away due to land scarcity, said Chief Minister Pinarayi Vijayan while Inaugurating the Invest Kerala Global Summit on Friday. While addressing the summit at the Grand Hyatt Lulu Convention Centre in Kochi, he highlighted that the government would leverage the land pooling scheme to make land available for projects, thus encouraging further investments.

Kerala is on the cusp of a historic transformation, with the state’s leadership focused on positioning it as a premier investment hub to attract both domestic and international investors, the Chief Minister added.

Infrastructure Development at the Forefront

The Kerala government has identified infrastructure as a key pillar for attracting investment. Although fiscal constraints remain, Kerala is pushing ahead with strategic infrastructure projects, such as the National Highway 66 widening, with the state contributing 25 percentage of the cost for land acquisition. Additionally, the government is working to bring semi- high speed rail service (Silver Line) to improve connectivity, reduce travel time, and boost business efficiency.

A strong focus on improving air, rail, and road connectivity is evident, with inland waterways, such as the Kochi Water Metro, being developed as a sustainable mode of transport. The state is also focusing on emerging industries, such as aerospace, digital technologies, and green energy. Kerala's Hydrogen Valley Project has garnered recognition from the World Economic Forum, and the state is facilitating advanced research in graphene, a material with vast applications in electronics and energy.

Delegates attending Invest Kerala Global Summit

Record Achievements in Business and Employment

Kerala's push to become an investment hub has led to significant achievements. The state ranks first among Indian states in the Ease of Doing Business Index. The Year of Enterprises initiative, launched by the Kerala government, has been recognized as a national best practice.

The manufacturing sector's contribution to the state's Gross State Value Added (GSVA) has increased from 9.8 percentage in 2014–15 to 11.5 percentage in 2023–24. Regarding employment, Kerala has seen a 16 percentage growth in jobs from 2017–18 to 2023–24, reaching 1.51 crore jobs.

In terms of connectivity, Kerala is also leading in digital connectivity, with 87 percentage of its population having internet access—well above the national average of 60 percentage. The K-FON project, which provides affordable internet, plays a crucial role in the state’s digital infrastructure development.

Support for MSMEs

Chief Minister Vijayan also mentioned that Kerala's Micro, Small, and Medium Enterprises (MSME) Facilitation Act of 2019 has simplified the process for small businesses to get started. Through the online KSWIFT portal, businesses can quickly obtain an acknowledgment certificate, and other necessary licenses will be granted within three years and six months.

"A well- educated and skilled workforce is key to sustaining investment," he emphasized. To bridge the skills gap in the job market, the government has rolled out programs under the Kerala Development Innovation and Strategic Council (K-DISC) and the Additional Skill Acquisition Programme (ASAP).

Future Prospects and Vision

The government is focused on enhancing the startup ecosystem in the state. Over 6,200 startups have been established in the past eight years, generating 62,000 employment opportunities. The target for the coming years is to establish 15,000 startups and create 1 lakh jobs by 2026. The Vizhinjam Port development is progressing rapidly and is set to be completed ahead of schedule by 2028, positioning Kerala as a major transshipment hub. Additionally, the Kochi- -- Bengaluru Industrial Corridor is another key infrastructure project that will further boost the state's investment potential.

In his concluding remarks, Chief Minister Vijayan reiterated that Kerala is not only focused on economic growth but also aims to build a Knowledge Society. This vision will be supported by initiatives such as Science Parks, which foster research and innovation by connecting academic institutions with the industry. The state’s Digital University and proposed Digital Science Park will continue to nurture a thriving environment for tech and digital entrepreneurship.

In closing, Chief Minister Vijayan expressed the government’s unwavering commitment to making Kerala an attractive investment destination, promising that the state would continue to push forward with an end-to-end approach to ensure its journey toward becoming a global investment hub remains on track.

State Minister for Industries P Rajeev presided over the event. Nitin Gadkari, Union Minister of Road Transport and Highways, addressed the gathering online, while Union Minister of Commerce and Industry Piyush Goyal, Minister of State for Skill Development and Entrepreneurship Jayant Chaudhary, and UAE Minister of Economy Abdulla Bin Touq Al Marri were also present at the summit.