KOCHI: Kerala’s Industries Minister P. Rajeev has once again made a grand announcement of investment figures, claiming the state attracted Rs44,000 crore investments from domestic entrepreneurs over the past three and a half years.
However, the declaration, similar to one he made more than a year ago, has raised eyebrows, particularly as several public-sector industrial ventures under the state government’s ambit are grappling with survival.
Early last year, P. Rajieev announced that Kerala was experiencing unprecedented industrial investments, with over one lakh new Micro, Small, and Medium Enterprises (MSMEs) established in the fiscal year FY23, creating thousands of jobs across the state.
Rajiv’s claim sparked debate
His statement had been questioned by several from the Opposition and had said the Industries Minister was inflating figures in order to make unrealistic claims of industrial progress in the state. Two days ago, an employee of Traco Cable, a Kerala public-sector unit, allegedly took his own life due to financial distress, reportedly caused by not receiving a salary for 11 months.
The minister projected Kerala as an investment-friendly destination, highlighting that under the state government’s ‘Year of Enterprises’ initiative, more than 1.24 lakh new MSMEs had been set up in the financial year, drawing investments exceeding Rs 8,000 crore.
Today (Monday) P Rajeev shared the investment data during the inauguration of a conclave for entrepreneurs investing between Rs100 and Rs500 crore, organised by the Kerala State Industrial Development Corporation (KSIDC) as a precursor to the Invest Kerala Global Summit slated for February 21-22, 2025, in Kochi.
Highlighting Kerala’s industrial strides, Rajeev stated that since 2021, 696 new enterprises with investments exceeding Rs1 crore have been established in the state. Among them, 203 companies have invested over Rs100 crore, contributing Rs15,925.89 crore.
‘State attracted huge investments’
As part of the 2022-23 “Entrepreneurial Year,” Kerala witnessed the launch of 3,43,083 enterprises, drawing investments worth Rs 21,299 crore and generating employment for seven lakh people.
Of these, 31 per cent were led by women entrepreneurs. Rajeev also emphasized that the state achieved diversification and enhanced the activities of companies making significant investments.
“Many foreign companies are now keen to invest in Kerala, exploring new opportunities with heightened enthusiasm,” the minister said, adding that the state would initiate discussions on emerging sectors with immense investment potential.
Kerala’s State Industrial Policy 2023 identifies 22 priority sectors to attract substantial investments, and Rajiv credited the transparency of industrial procedures for a transformative shift in the state’s industrial ecosystem.
Investors’ meets
The minister stressed the importance of sustaining Kerala’s top position in the Centre’s Ease of Doing Business ranking. “Investors’ meets, sectoral conclaves, and roadshows are ongoing to identify potential areas in advance. Entrepreneurs should act as ambassadors for Kerala’s industrial growth,” he said.
Principal Secretary (Industries) APM Mohammed Hanish highlighted that Kerala offers attractive subsidies and incentives to support new ventures. “New entrepreneurs must leverage the state’s industry-friendly policies to create enterprises across all potential sectors,” he said.
KSIDC Chairman Balagopal C, delivering the keynote address, emphasised that the future sustainability of enterprises is as crucial as their initiation. He assured entrepreneurs that the government and KSIDC are committed to supporting both new and established ventures.
Despite the optimistic outlook painted by Rajeev, critics point out that this announcement comes at a time when many state-run industrial units are floundering, struggling to remain operational amid mounting financial challenges.
The juxtaposition between the soaring claims of private-sector investment and the plight of Kerala’s public-sector industries underscores the need for a more balanced approach to industrial development.
