kerala - ibef kozhikode, kollam, thrissur, alappuzha, palakkad, thalassery, ponnani and manjeri are...

For updated information, please visit www.ibef.org September 2017

KERALA

GOD’S OWN COUNTRY

Table of Content

Executive Summary……………….….…….3

Advantage State …………………..….…….5

Kerala Vision 2030 …………………..……..6

Kerala – An Introduction……….…….……..7

Budget 2016-17…………...………………..18

Infrastructure Status...................................19

Key Industries…….……….......…………….46

Doing Business in Kerala…….……….........65

State Acts & Policies…….……….......……..73

For updated information, please visit www.ibef.org KERALA 3

EXECUTIVE SUMMARY … (1/2)

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.

Cultural diversity and

well developed tourism

sector

Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala

As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men,

in India. Male literacy rate in the state stands at 96.10%, among all states.

Highest literacy and sex

ratio

In 2015-16, Kerala received NRI remittances of US$ 20.17 billion. In 2014-15, NRI remittances of the state

were US$ 16.50 billion, up by 24%. Remittances to the state are estimated at 36.3% of the net state domestic

product. As of December 2016, Kerala had US$ 22.98 billion of non-resident deposits.

Largest recipient of

foreign remittances in

the country

Kerala holds second rank in the Investment Climate Index followed by 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.

Ranks second in

Investment Climate

Index


Kerala has the 1st international transshipment terminal in India, having a design capacity of around 4 million

TEUs & providing better connectivity between Kerala & other ports in India.

EXECUTIVE SUMMARY … (2/2)

Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir.

As per budget 2017-18, Government of Kerala has proposed an outlay of US$ 326.88 million for the

agriculture sector,

Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department

of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2017-18

The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of

13.16% against 22.09 million tonnes for the year 2015-16.

Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware &

biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a world-

class IT campus in Thiruvananthapuram.

First international

container transhipment

terminal

Cargo Traffic in Cochin

Port

Presence of world class

technology park

Strong agricultural

sector


Advantage

Kerala

ADVANTAGE: KERALA

Leader in tourism

In 2015, Kerala was rewarded as the winner of PATA

awards by Macau Government Tourism Office (MGTO)

BBC Travel survey has rated Kerala as the top favourite

tourist destination among foreign travellers.

Foreign tourist arrivals increased by 5.71% during 2016

over 2015.

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 pool of skilled labour

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.

2016

Foreign

tourist

arrivals:

1.04 million

2021E

Foreign

tourist

arrivals:

3 million

High economic growth

Kerala’s gross state domestic product (GSDP) surged at

a compound annual growth rate (CAGR) of 11.18%

between 2005-06 and 2015-16.

Kerala is the leader in rubber production; high demand

of rubber has opened up immense opportunities for the

state in the rubber industry.

Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism


KERALA VISION 2030

Vision

2030

Energy

Education

Health

Transport

Labour

Industry

Forestry Agriculture &

livestock

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.

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.

Increase health expenditure to

GSDP ratio from 0.6% in 2012 to 4-

5% by 2027−31.

Set up three medical cities by 2030.

Provide health insurance cover to

all.

Increase the share of forestry in

GSDP to 0.5%.

Increase the productivity of forests

through improved management of

resources.

Growth oriented labour welfare policy.

Connecting labour supply with

demand.

Increasing employment

opportunities.

Increase the share of

manufacturing to 10% of the GSDP

by 2030.

Sustained increase in employment

in manufacturing.

Affordable and clean power to all.

Exploit the full potential of hydro-electric

generation.

100% electrified households with 24*7

availability.

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.

KERALA FACT FILE

There are 44 rivers flowing through Kerala, the major ones being

Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km).

Out of these 44 rivers 41 are west flowing and 3 are east flowing.

Source: Maps of India

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 (%) 94.6

Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office


KERALA IN FIGURES … (1/2)

Parameter Kerala All states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’ GSDP 4.31 100.0 “Advanced Estimates” provided by Directorate of

Economics and Statistics of Kerala

GSDP growth rate (%) 2.85 8.71 “Advanced Estimates” provided by Directorate of


Per capita GSDP (US$) 2,677 1,546 “Advanced Estimates” provided by Directorate of


Physical Infrastructure

Installed power capacity (MW) 4,998.94 329,226.27 Central Electricity Authority, as of August 2017

Wireless subscribers (No) 39,823,618 1,186,840,884 Telecom Regulatory Authority of India, as of June

2017

Internet subscribers (No) 16,550,000 422,190,000 Telecom Regulatory Authority of India, as of March

2016

National highway length (km) 1,811.52 100,087.08 NHAI & Roads and Building Department

Major and minor ports (No) 1+17 13+187 India Ports Association

Airports (No) 3 125 Airports Authority of India


KERALA IN FIGURES … (2/2)

Parameter Kerala All states Source

Social Indicators

Literacy rate (%) 94.6 73.0 Census, 2011

Birth rate (per 1,000 population) 14.8 20.8 SRS Bulletin December 2016

Investments

FDI equity inflows (US$ billion) 1.75 332.11 Department of Industrial Policy & Promotion, From

April 2000 to March 2017

Industrial Infrastructure

PPP projects completed & operational (No) 29 1,246 DEA, Ministry of Finance, Government of India,

July 2016

Exporting SEZs (No) 19 222 SEZ India, as of September 2017

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System


ECONOMIC SNAPSHOT – GSDP

GSDP of Kerala at current prices (US$ billion)

At current prices, Kerala’s GSDP* was about US$ 89.44 billion

in 2015-16.

The state’s GSDP was recorded at a CAGR of 11.18%

between 2005-06 and 2015-16.

Growth was mainly driven by secondary and tertiary sectors.

31

34

.1

43

.5

43

.9

48

.9

57

.8

65

.7

64

.3

66

.6

68

.5

89

.4

0

10

20

30

40

50

60

70

80

90

100

200

5-0

6

200

6-0

7

200

7-0

8

200

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9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

CAGR 11.18%

Per Capita GSDP of Kerala at current prices (US$)

93

5

1,0

19

1,2

91

1,2

94

1,4

30

1,6

78

1,8

92

1,8

41

1,9

07

1,9

61

2,6

77

0

500

1000

1500

2000

2500

3000

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

201

4-1

5

201

5-1

6

CAGR 11.09%

The state’s per capita GSDP^ stood at US$ 2677 during 2015-

16 as compared to US$ 935 during 2005-06.

Per capita GSDP increased at a CAGR of 11.09% between

2005-06 and 2015-16.

Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala, GSDP* - Government of Kerala – With Medium Term Fiscal Plan for Kerala 2016-17 to 2018-

19 , Per Capita GSDP^ - calculated using GSDP million US$/Population in million


ECONOMIC SNAPSHOT – NSDP

NSDP of Kerala at current prices (US$ billion)

23

.4

27

.2

29

.9 38

.2

39

43

.5 51

.1 5

8

57

58

.3 6

8.5

0

10

20

30

40

50

60

70

80

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

201

4-1

5

201

5-1

6

CAGR 11.34%

At current prices, Kerala’s NSDP# was about US$68.5 billion in

2015-16.

NSDP of the state grew at a CAGR of 11.34% between 2005-

06 and 2015-16.

NSDP per capita of Kerala at current prices (US$)

82

2

89

5

1,1

35

1,1

50

1,2

70

1,4

83

1,6

72

1,6

30

1,6

68

1,7

13

2,0

50

0

500

1,000

1,500

2,000

2,500

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

201

4-1

5

201

5-1

6

CAGR 9.57%

Kerala’s per capita NSDP& was US$ 2,049.9 in 2015-16

compared to US$822 during 2005-06.

Per capita NSDP of the state grew a CAGR of 9.57% between

2005-06 and 2015-16.

Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala, NSDP# - calculated using per capita NSDP x Population in million, per capita NSDP& -

Geometric mean of YoY calculation from 2004-05 to 2014-15


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSDP

In 2015-16, the tertiary sectorµ contributed 67.8% to the state’s

GSDP at current prices, followed by the secondary sector

contributing 19.51%.

The tertiary sector grew at a CAGR of 15.55% between 2004-05 and

2015-16. Growth was driven by storage, transport, financial and real

estate segments.

The secondary sector grew at an average rate of 12.53%, between

2004-05 and 2015-16. Growth was led by manufacturing,

construction, electricity, gas & water supply.

The primary sector expanded at an average rate of 10.92% between

2004-05 and 2015-16, mainly supported by growth across agriculture

and mining & quarrying segments.

Visakhapatnam port traffic (million tonnes) GSDP composition by sector

17.90%

12.69%

22.50%

19.51%

59.60% 68.70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004-05 2015-16

Primary Sector Secondary Sector Tertiary sector

10.92%

15.55%

12.53%

CAGR

Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15


ECONOMIC SNAPSHOT – AGRICULTURAL

PRODUCTION

Agriculture, Forestry and Fishing contributed 12.24 per cent to

Kerala’s gross state value added in 2015-16. Kerala is one of the

leading pepper and rubber producers in the country.

As per budget 2017-18, the state government allocated US$ 326.88

million for agricultural sector, US$ 15.83 million for soil and water

conservation sector, US$ 47.81 million for animal husbandry, US$

15.06 million for dairy development and US$ 90.91 million for

fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46

billion was allocated for agriculture and allied sectors in the state.

In November 2016, Kerala agreed to implement Food Security Law

in the state. As per the law, the government will make available 5

kg of highly subsidized food grain at Rs 1-3 per kg, to each person

in the state per month.

Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare

Crop Annual production – 2015-16 (‘000 MT)

Onion 200 Wheat 37,300(1)

Rubber 655,000(1)

Raw cashew 29,715(1)

Total food grains 698,600 Pulses 1,000

Rice 697,300 Drumstick 15,976(1)

Fruits* 2,467.92 Groundnut 500

Plantation* 5,347.87 Cane gur 14,853(1)

Mango 386,380 Vegetables* 1,907.72

Grapes 1,880 Cocoa 14,186(1)

Coffee 68,650 Turmeric 6,820(1)

Tea 4.51(2)

Nutmeg 14,193(1)

Pepper 40,690(1)

Note: (1)2014-15; (2)m.kg, *2nd advance estimates for 2016-17


ECONOMIC SNAPSHOT – EXPORTS

Value exports from Kerala increased from US$ 4,028 million in 2013-

14 to US$ 4,220 million in 2014-15.

Exports of non-basmati rice from the state increased from US$ 28.96

million in 2015-16 to US$ 33.52 million in 2016-17. In 2015-16,

exports of non-basmati rice from Cochin SEZ were valued at US$

28.92 million.

Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016

2,5

32

.19

3,7

09

.03

4,1

09

.16

6,1

08

.64

5,9

98

.80

740.06 334.17

1,486.54

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

Total exports turnover from CSEZs (US$ million)

Sectors (US$ million)

Agricultural products 252.22(1)

Electronics hardware

76.84

Engineering 4.39

Gem & jewellery 47.25

IT and ITeS 77.73

Miscellaneous 59.16

Plastic and rubber products 14.36

Textiles & garments 15.21

Trading 11.25

Exports of basmati rice from the state, in value terms, increased

from US$ 112.44 thousand in 2014-15 to US$ 175.82 thousand in

2015-16. Exports of floriculture products from the state stood at

US$ 3.64 million in 2016-17 while exports of fruits and vegetable

seeds from the state was recorded at US$ 11.53 million, during

the same period.

Exports from Electronics Technology Parks – Kerala, increased

22.55% in 2015-16 to reach US$ 970 million.

Exports break-up, Cochin Special Economic Zone Port (2014-

15)


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to DIPP, during April 2000 to March 2017, FDI inflows

into the state (including Lakshadweep) totaled to US$ 1.75

billion.

As per budget 2016-17, the Kerala Infrastructure Investment

Fund Board will be provided with an envisioned resource

envelope of US$ 4.58 million during 2016-17, in order to enable

and provide more investments in the state.

The state government has sanctioned investments of US$ 100

million, US$ 156 million & US$ 8.3 million for the Vizhinjam

International Seaport project, Kochi Metro Rail Project & for land

acquisition for Kozhikode & Thiruvananthapuram international

airports respectively.

The Government of Kerala is also planning to launch

“Magnificent Canals” program during 2016-17, for controlling the

investments & capitalising on the potential of tourism sector in

the state. The program would deal with the development of

select canal stretches under the PPP# model in order to boost

tourism in the state.

In January 2017, several companies have planned to make

investments worth USD446.23 million in, Infopark Phase-II &

generate employment for around 20000 IT professionals

Visakhapatnam port traffic (million tonnes) FDI equity inflows, 2008-09 to 2016-17 (US$ million)

82

12

8

37

47

1

72 70

23

0

90

45

4

0

100

200

300

400

500

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Note #: Public-private partnership

Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,

Further, the state government has also decided to propose a tax

reduction from 14.5% to 5% for attracting investments across

automated robotic car parking system, during 2016-17.

In March 2017, Kerala Infrastructure Investment Board (KIIB)

cleared basic development projects worth US$ 1.19 billion, which

include development projects for physical infrastructure such as

roads, bridges, potable water, health, education, SC/ST

development and power transmission grid.


KERALA STATE BUDGET 2017-18

Source: Finance Department, Government of Kerala, India

Sector Investment (US$ million) Sector Investment (US$ million)

Agriculture 326.88 Small scale modern industries 19.87

Soil and water conservation 15.83 Drinking water 164.22

Animal husbandry 47.81 Public Health 112.37

Dairy development 14.59 Science, technology & environment 21.73

Fisheries 90.91 School education 133.95

Soil and water conservation 15.83 Roads and bridges 209.69

Handloom and Powerloom sector 11.18 Information Technology and e-Governance 85.21

Rural development and allied sectors 602.07 Medical Education 72.95

Education 3136.24 Public works 2017.78

Heavy and Medium Industries 74.81 Khadi and Village Industries 2.64

Annual Budget 2017-18


PHYSICAL INFRASTRUCTURE – ROADS … (1/2)

Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2017-18

Road development activities in the state are undertaken under

three broad categories of roads and bridges, road transport and

other transport services. In the annual budget 2017-18, a total

outlay of US$ 209.69 million has been proposed by the state

government for improving roads and bridge infrastructure.

An outlay of US$ 3.81 million was proposed by the state

government for development and improvement of state

highways including relaying of a 600 km length road during

2016-17.

As per the state budget 2016-17, under the scheme of PPP annuity

model and loan from NABARD, construction work on 20 mega

projects was to be initiated in the state during 2016-17. Some of

these projects include: Cherupuzha–Payyavur–Ulickal–Vallithod –

59.42 km hill highway, construction of 1st phase of Kodimatha,

Kundannoor flyover, Ramanattukara Flyover, etc.

During 12th Five Year Plan the state government proposed to

develop 290 kilometers of roads under various scheme. As per the

state budget 2016-17, under Kerala State Road Transportation

Corporation, the state government has planned an allocation of US$

2.99 million for purchasing new single/multi axle buses which are

energy efficient during 2016-17. Further, US$ 1.37 million and US$

1.68 million have been allocated for modernisation of depots &

workshops and infrastructure development as well as

computerisation purpose, respectively.

Road type Road length (km)

National highways 1,811.52

State highways 4,341.65

Major district roads 27,469.9



PHYSICAL INFRASTRUCTURE – ROADS … (2/2)

Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in

2000 with the objective of connecting eligible rural habitants. As of

February 2017, about 590,104.62 km of road network was

completed across India, of which 3,534.89 km was completed in

Kerala.

As per budget 2016-17, construction work on Seaport Airport Road

between Kalamassery NAD junction as well as Nedumbassery

airport was in its completion phase, with the construction of 3rd

phase was expected to be initiated during 2016-17. The state

government had allocated an amount of US$ 53.46 million for the

construction of 3rd phase.

Habitations benefitted 380

Length completed 2,917.81

Total expenditure (US$ million) 225.32

5.72

21.40

29.00

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2012-13 2013-14 2014-15

National highway length completed (km)

18.51

29.12

24.86

34.75

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2013-14 2014-15 2015-16 2016-17

Expenditure on road works under PMGSY in Kerala

(US$ million)

Source: NHAI, omms.nic.in

Pradhan Mantri Gram Sadak Yojana (PMGSY) (2017)

Source: PMGSY


PHYSICAL INFRASTRUCTURE – RAILWAYS

Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget


Kerala is well connected to other parts of the country via railways.

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. As per

state budget 2016-17, the state government approved US$ 10.88

billion for constructing a 570-km corridor from Thiruvananthapuram

to Kasaragod. As per budget 2017-18, the Kerala Rail Development

Corporation is going to undertake construction work of nine rail lines

and detailed project reports of Thiruvananthapuram Light Metro for

US$ 654.84 million and Kozhikode Metro for US$ 389.43 million

have been prepared.

Railway divisions in Thiruvananthapuram, Palakkad and Madurai

jointly carry out railway operations in Kerala.

Under the major infrastructure development projects, for ongoing

and new projects, including Kochi Metro, Suburban Rail Corridor,

and various others, the state government has decided to provide

these projects with a common pooled amount of US$ 387.42 million

during 2016-17.

The government announced the launch of Kochi Metro Rail’s

commercial services of the 13-km Aluva-Palarivattom section of the

27-km Line-1. Over 600 women from the ‘Kudumbasree Mission’

have been employed & trained for smooth run of the 1st phase of

the metro.


PHYSICAL INFRASTRUCTURE – AIRPORTS

Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd.

Kerala has 3 airports handling domestic & international flights,

located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft

movement from Cochin airport increased from 56,180 in 2015-16 to

61,688 in 2016-17. Aircraft movement from Thiruvananthapuram

airport increased from 26,001 in 2015-16 to 29,117 in 2016-17.

During March 2017, aircraft movement from Cochin &

Thiruvananthapuram airports stood at 5,461 & 2,412, respectively.

Passenger traffic from Cochin airport increased from 7,749,901 in

2015-16 to 8,955,441 in 2016-17, while passenger traffic from

Thiruvananthapuram airport increased from 3,470,788 in 2015-16 to

3,881,509 in 2016-17. During March 2017, passenger traffic from

Cochin & Thiruvananthapuram airport stood at 709,717 & 306,591,

respectively.

Freight traffic from Cochin airport increased from 79,233 tonnes in

2015-16 to 81,485 tonnes in 2016-17, while freight traffic from

Thiruvananthapuram airport decreased from 35,570 tonnes in 2015-

16 to 28,450 tonnes in 2016-17. During March 2016, freight traffic

from Cochin & Thiruvananthapuram airports stood at 6,828 tonnes &

2,696 tonnes, respectively.

An international airport at Kannur is upcoming and is expected to be

operational by mid-2018. This airport will be the 4th to have a

runway of 4,000 metres.

In February 2017, Government of Kerala approved setting up of an

airport at Erumely. This step is expected to benefit religious tourism

as lakhs of devotees visit Pathanamthitta district every year.



PHYSICAL INFRASTRUCTURE – PORTS … (1/4)

Kerala has 18 ports, of which, Cochin is the major one. Furthermore,

there are three intermediate and 14 minor ports.

The development activities of the port are taken care of by the

Department of Ports, Harbour Engineering Department and Harbour

Engineering Department.

Under the 12th Five Year Plan from 2012 to 2017, the State

Government approved an investment of US$ 364.9 million for

development of port infrastructure facilities for handling cargo and

passenger transport.

Vizhinjam International Port Phase-I, with an outlay of US$ 1.05

billion, is the largest harbour project in Kerala.

Head Budget 2017-18

Ports US$ 29.83 million

Major ports Cochin

Intermediate ports

Neendakara

Alappuzha

Kozhikode

Minor ports

Vizhinjam

Valiyathura

Vadakara

Ponnani

Thankasserry

Kayamkulam

Manakkodam

Munambam

Beypore

Thalasserry

Manjeswaram

Neeleswaram

Kannur

Azhikkal

Kasaragode

Source: Cochin Port Trust, Kerala Ports, Kerala Budget 2016-17, 2017-18

Existing Ports



During 2016-17, the cargo traffic handled by Cochin port was 25

million tonnes. However, in 2015-16, the total traffic handled at

Cochin port was 22.90 million tonnes.

The Cochin Port handled 12.078 million tonnes of crude oil, 816

thousand tonnes of cement 491,087 Twenty Foot Equivalent Units

(TEUs) in 2016-17.

In addition, the state government has been focussing on

development of minor ports.

Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port

Association

Ports to be developed Budget 2016-17 (US$ million)

Beypore and Kozhikode ports 1.97

Ponnani port 0.25

Vizhinjam cargo harbour 3.75

Thangassery (Kollam) port/cargo

harbour 2.39

Kodungallur port 1.75

Azhikkal port 1.54

Cochin port traffic (million tonnes)

15

.80

15

.20

17

.40

17

.90

20

.10

19

.80

20

.90

21

.60

22

.09

25

.00

0

5

10

15

20

25

30

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

201

4-1

5

201

5-1

6

201

6-1

7

Source: State Budget 2016-17



The Cochin port is a favourite port-of-call for luxury cruise liners from

around the world.

During 2016-17, total number of cargo vessels that entered Cochin

Port were recorded to be 1,666.

Around 28,342 cruise passengers embarked in Kochi in 2014-15.

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.

Year Passenger

2011-12 34,768

2012-13 37,389

2013-14 24,535

2014-15 28,342

Number of cruise vessel arrivals at Cochin port

26

38

43

36

45

41

44

42

34

39

33

46

0

10

20

30

40

50

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

201

4-1

5

201

5-1

6

201

6-1

7

Source: Cochin Port Trust



Source: Cochin Port Trust, New Indian Express

Year Number of Vessels

Containers Coal Fertilizers & raw materials Others Food Grains General

Cargo Tankers Total Vessels

2005-06 421 4 38 8 0 109 383 1225

2006-07 382 7 27 15 5 92 382 225

2007-08 350 6 15 11 2 73 352 269

2008-09 334 6 22 23 0 63 305 293

2009-10 390 5 17 36 0 45 381 359

2010-11 360 2 18 28 0 39 372 396

2011-12 390 2 15 33 0 37 361 504

2012-13 439 1 12 47 0 24 354 449

2013-14 501 0 11 62 0 41 382 399

2014-15 529 2 15 62 0 33 356 440

2015-16 643 2 8 73 3 42 398 418

2016-17 696 1 9 83 7 29 394 403

Category Wise Distribution Of Vessels Entering The Cochin Port


PHYSICAL INFRASTRUCTURE – POWER … (1/3)

As of August 2017, the state had a total installed power generation

capacity of 4,998.94 MW, of which 2,168.48 MW was accounted for

by state utilities, 1,829.76 MW by central utilities and 982.70 MW

under private sector.

Thermal power contributed 2,416.72 MW to total installed power

generation capacity. Hydropower (1,881.50 MW), nuclear power

(362.00 MW), and renewable power (338.72 MW) are the other main

energy sources.

Kerala’s state utilities, which account for 53.21% of overall capacity,

generate 83.99% of the energy through hydroelectric power plants,

and the remaining 16.01% through thermal and renewable power

generation plants.

Under the 12th Five Year Plan valid from 2012 to 2017, the State

Government proposed an outlay of US$ 1,380.72 million for the

state’s energy sector, which is taken care of by the Kerala State

Electricity Board (KSEB), Agency for Non-conventional Energy and

Rural Technology (ANERT), Meter Testing and Standards

Laboratory (MTSL) and Energy Management Centre (EMC).

Installed power capacity (MW)

3,5

14

.00

3,5

53

.70

3,7

18

.80

3,8

27

.70

3,8

56

.40

3,8

92

.00

4,1

06

.00

4,1

72

.00

4,9

98

.94

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Source: State Budget 2016-17, Central Electricity Authority

Sub Sectors Budget 2017-18 (US$ million)

Agency for Non-conventional

Energy and Rural Technology 7.45

Energy Management Centre 1.24



Kerala is among the prominent Indian states to have achieved 100%

rural electrification.

The rural areas or villages in the state were electrified under a

scheme launched in 2015, “Deendayal Upadhyaya Gram Jyoti

Yojana”. The operational electrification scheme, that is, Rural

Electricity infrastructure and Household. Electrification, was

subsumed in the new scheme.

As on July 31 2017, a total sum of US$ 33.8 million was sanctioned

and US$ 32.97 million was disbursed under the DDUGJY scheme

for rural electrification of 29 projects in the state.

Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new

projects have been sanctioned for US$ 76.16 million as of July 2017.

Area type Nos.

Intensively electrified villages 1,087

Electrified BPL households 1,50,305

Area type Nos.

Total villages 1,017

Electrified villages 1,017

Total rural households 71,03,000

Electrified rural households 71,03,000

Un-electrified rural households Nil

Status of rural electrification in Kerala (As of July 2017)

Source: Deendayal Upadhyaya Gram Jyoti Yojana

Status of rural electrification in Kerala under DDUGJY scheme

(as of July 2017)



Budget Highlights - 2017-18:

• Total amount of US$ 242.91 million provided for Kerala State Electricity Board (KSEB).

• New 15 small scale hydroelectric power projects to be taken up in FY18 and US$ 41.59 million allocated for hydroelectric projects.

• Transgrid 2.0 with project cost of US$ 1.46 billion, waiting to be sanctioned by KIFB.

• US$ 46.56 million allocated for revamping the transmission networks in urban areas under integrated power development.

• Hydel Tourism Centre will be restructured as a subsidiary company of KSEB and the scope of hydel tourism will be effectively utilized.

• The 200 MW solar plant in Kasargode district expected to be completed in FY18.

• US$ 6.2 million allocated for solar and windmill projects.

Source: Finance Department, Government of Kerala, India


PHYSICAL INFRASTRUCTURE – TELECOM

As of May 2017, Kerala had an overall tele-density of 115.67% as

against an all-India average of 93.61%.

According to the Telecom Regulatory Authority of India (TRAI), as of

June 2017, Kerala had 39.82 million wireless subscribers and 2.08

million wire-line subscribers.

As of April 2017, the state recorded 46,164 new telephone wireless

connections of Idea, 6,868 new connections of Vodafone and 7,590

new wireless connections of Reliance.

By the end of May 2017, 7,656,724 subscribers had submitted

requests for mobile number portability in Kerala.

As per state budget 2017-18, free internet connections will be

provided to two million poor families in Kerala under the Kerala Fibre

Optic Network (K-FON). WiFi transmission centres will be

established at Akshaya Centres, Friends Janasevana Kendras,

government offices, libraries, and public places under the control of

government.

Source: Telecom Regulatory Authority of India, 1As of March 2017, 2As of March 2016

Wireless subscribers 39,823,618

Wire-line subscribers 2,080,498

Internet subscribers 16,550,000(1)

Post offices 5,067(2)

Tele density (in %) 115.67

No. of GPs in Phase-I 977

Pipe laid (km) 746

Cables laid (km) 830

GPs for which cable laid 1,129

No. of GPs Lit 1,129

Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat

Telecom Infrastructure (As of June 2017)

Performance status of NOFN Project (As of August 2017)


DEVELOPMENT PROJECTS: URBAN

INFRASTRUCTURE

The Kerala urban area comprises of five Municipal Corporations and

60 Municipalities for which the State Government proposed an outlay

of US$ 11.2 billion under the 12th five year plan 2012-17. 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. As per state budget 2016-17, in addition to the 12th

Five Year Plan, the state government proposed an outlay of US$

106.01 million for urban development sector.

In May 2017, the state government proposed to spend about US$

2.97 billion for various urban development projects. The package will

include construction of big roads, IT parks and welfare schemes for

poor and backward sections of the society. The funds are to be

arranged by the Kerala Infrastructure Investment Fund Board

(KIIFB).

Source: JNNURM, Ministry of Urban Development, State Budget 2016-17, 2017-18, Business Standard

Projects & Programmes Budget 2016-17 (US$ million)

Solid Waste Management Project 2.76

Kannur City Improvement

Programme 1.53

Swachh Bhavanam 0.15

Suchithwa Mission 3.82

Operation Anantha 3.82

The state government launched Haritha Keralam Mission in

December 2016, to make Kerala clean and protect its water

resources and soil.

As per budget 2017-18, US$ 23.28 million will be invested for

establishing 14 septage units, one in each district.


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE

PARTNERSHIP (PPP) PROJECTS … (1/2)

Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOLT: Build-Own-Lease-Transfer, BOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build-

Finance-Operate-Transfer,

Project name PPP type Sector Stage Project cost (US$ million)

Road Upgradation (Kottayam-

Thiruvananthapuram) Project (DBFOT)

Annuity Transport Under construction 20

LNG Port & Terminal Facility (Puthuvypeen)

Project (BOT) Annuity Transport

Operation and

maintenance stage 649.1

Multi-User Liquid Terminal (Puthuvypeen)

Project (BOLT) Transport Under construction 26.38

Clinker handling jetty at Azhicode/Kodungallur

Port (BOOT) Transport Pre-construction 7.76

Ponnani Port Project - Phase I (BOT) Transport Under construction 118.43

Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport Operation and


Development and operation of an international

ship repair facility at W/island with private sector

participation (BOT) Transport Under construction 77.6

International Container Transhipment Terminal

(Cochin Port) Project (DBFOT) Transport Under construction 328.74

Vizhinjam International Deepwater Multipurpose

Seaport (DBFOT) Transport Under construction 634.67

Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport Operation and



DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE

PARTNERSHIP (PPP) PROJECTS … (2/2)

Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOO: Build-Own-Operate, DBFOT: Design-Build-Finance-Operate-Transfer

Project name Sector PPP type Stage Project cost (US$ million)

Thavakkara Bus Station (BOT) Transport Operation and


Road Upgradation (Walayar-Vadakkancherry)

Project (DBFOT) Transport

Operation and


Crude Oil Handling for Kochi Refineries Ltd (Lease) Transport Operation and


Cochin International Airport (BOO) Transport Operation and


Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.42

Bus Terminal (Angamaly) Project (BOT) Transport Operation and


Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction 18.62


DEVELOPMENT PROJECTS: SEZS … (1/3)

Source: Ministry of Commerce & Industry, Government of India,

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: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

As of September, Kerala has 19 exporting SEZs.

Name/Developer Location Primary industry

Cochin SEZ Cochin Multi-product

Cochin Port Trust Vallapadom Port-based

Cochin Port Trust Puthuvypeen Port-based

Infopark Kakkanad IT/ITeS

Electronics Technology Parks - Kerala Attipura IT/ITeS

KINFRA Ayiroopara Animation & Gaming

KINFRA Chelembra Agro-based food processing

Electronics Technology Parks- Kerala Thiruvanthapuram IT/ITeS

KINFRA Thrikkakara Electronics industries

Kerala State Information Technology Infrastructure Limited Pallipuram IT/ITeS

Electronics Technology Parks Kerala (Technopark) Attipura IT/ITeS

Kerala State Information Technology Infrastructure Limited Mulavana IT/ITeS

Carborundum Universal Ltd. Thrikkakara North Solar Photovoltaic

Sutherland Global Services Private Limited Thrikkakara North IT/ITeS

Kerala State Information Technology Infrastructure Limited (KSITIL) Pantheerankavu and Nellikode IT/ITeS

Infoparks Kerala Puthencruz and Kunnathunadu IT/ITeS

Smart City (Kochi) Infrastructure Limited Kakkanad IT/ITeS

Kerala State IT Infrastructure Ltd. (KSITIL) Thrissur IT/ITeS

Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD) Kozhikode IT/ITeS



Some of formally approved SEZs in Kerala

As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs.

Source: Ministry of Commerce & Industry, Department of Commerce, 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 Electronics Industries

Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS

Kerala State Information Technology Infrastructure Ltd (KSITIL) Pantheerankavu

and Nellikode, Kozhikode IT/ITeS

Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS

Cochin International Airport Ltd Ernakulam Airport-based


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

Kerala has the highest literacy rate among all states in the country.

As of 2016, the state has a literacy rate of 94.57%; male & female

literacy rates stood at 96.61% & 92.52%, respectively.

Kerala has 3,021 higher secondary schools as of 2016. Of these,

1,162 (38.46%) were government schools, 1,406 (46.54%) aided

schools & the remaining 453 (15%) unaided schools.

As of February 2017, the state was planning to equip its 4,775

government & aided schools with hi-tech ICT (Information

Communication Technology) facilities, at an estimated budget of

US$ 79.28 million.

In June 2017, the University of Kerala decided to restore private

registrations at undergraduate level. A University Institute of

Management (UIM) and eight University Institutes of Technology

(UITs) are to be established in various cities of the state this fiscal

year.

Source: State Budget 2017-18, (1) 2016-17

Schools 12,882

Universities 14

Engineering institutions 183

Arts and science colleges 213

Polytechnics 51

Sub sectors Budget 2017-18 (US$ million)

School education 133.95

Higher education 90.56(1)

Technical education 22.11

Total 203.29(1)

Educational infrastructure (2016)

Sub sectors 12th Five Year Plan (US$ million)

School education 401.0

Higher education 306.9

Technical education 163.2

Source: Economic Review of Kerala


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

Source: Economic Survey of Kerala 2014-15, 2016-17

Schools (No)

Lower primary: 6,882

Upper primary: 2,979

High schools: 3,021

School dropout rate (%) (2013-14)

Lower primary: 0.35

Upper primary: 0.21

High school: 0.44

Pupil-teacher ratio 22.5:1

Nature of schools (2016-17P) Student strength (in million) Share of total student strength (%)

Government 1.12 30.42

Government-aided 2.15 58.27

Unaided 0.41 11.30

Total 3.70 100.0

Kerala primary education statistics (2014-15)

P: Provisional


SOCIAL INFRASTRUCTURE – HEALTH

The departments that offer health services in the state & are

responsible for development activities are namely, Health Services

Department, Medical Education Department, Ayurveda Department

(ISM), Ayurveda Medical Education Department, Homoeopathy

Department & Homoeopathy Medical Education Department.

In budget 2017-18, the state government announced plans to invest

US$ 112.37 million for development of public health and US$ 72.95

million for medical education. Also, an amount of US$ 0.31 was

provided for setting up of a modern blood bank in Trivandrum.

Under the 12th Five Year Plan, the state proposed an outlay of US$

650.71 million for health sector, of which US$ 295.05 million was

proposed for the Directorate of Health Services, US$ 272.61 million for

Directorate of Medical Education & US$ 28.02 million for Indian

System of Medicines.

Government of Kerala announced plans to invest US$ 1.68 million for

the establishment of a cath lab in the district hospital at Kollam & the

general hospital of Kozhikode as per the annual state budget 2016-17.

Further, the state government also allocated US$ 79.7 million to the

Directorate of Health Services to facilitate implementation of different

schemes.

As of November 2016, the state was declared as the 3rd Open

Defecation Free state in the country.

In March 2017, True North, a leading PE fund, announced plans to

invest over US$ 200 million in Kerala Institute of Medical Sciences.

Note: (1)Per thousand persons, (2)Per thousand live births

Birth rate(1)

14.8

Death rate(1)

6.6

Infant mortality rate(2)

12

Primary health centres 824

Sub-centres 4,575

Community health centres 225

District hospitals 18

Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)

Health indicators (2016)

Male 71.4

Female 76.3

Life expectancy at birth (years) (2014-15)

Health infrastructure (as of March 2017)


CULTURAL INFRASTRUCTURE … (1/2)

Kerala has been rated as one of the 13 Paradises of the World by

National Geographic Traveller; it has been promoted as ‘God’s Own

Country’.

Sri Padmanabhaswamy temple makes the state one of the attractive

religious tourism spots in India. Other temples in Kerala, such as

Guruvayoor & Sabarimala, are also major religious attractions.

US$ 2.32 million was allocated in budget 2017-18 for the promotion

of Nishagandhi dance and music festivals, Onam celebration, tribal

dance festival, Pooram, Theyyam festivals and boat race etc.

US$ 15.52 million will be invested by Kerala Infrastructure

Investment Fund Board in Kerala State Film Development

Corporation for the construction of modern theatre complexes on

commercial basis.

In June 2015, Kerala organized a road show in Shanghai &

participated in Beijing International Tourism Expo (BITE) 2015. The

BITE 2015 witnessed participation of 70 buyers from the Chinese

travel & tourism industry. The main objective of the initiative was to

strengthen the Spice Route heritage with other countries & promote

sustainable tourism aimed at achieving world peace.

In June 2017, the state government started a campaign ‘Anuyatra’,

for people with special needs. In this campaign, 23 children suffering

from various challenges will become brand ambassadors of the

initiative.

Departments Budget 2016-17

(US$ million)

Construction of cultural complex as

headquarters of various cultural institutions at

Vyloppilly Bhavan compound.

1.52

Kerala State Film Development Corporation 0.61

State Central Library, Thiruvananthapuram 0.55

Museums and zoos 2.80

5 historical museums 0.15

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

Popular tourist locations

Source: State budget


CULTURAL INFRASTRUCTURE … (2/2)

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 state government proposed an outlay of US$ 90.40 million for

art and culture under the 12th Five Year Plan, 2012-17, and on the

other hand proposed an outlay of US$ 40.44 million under annual

budget 2017-18.

On November 1, 2016, the state celebrated the 60th year of its

formation.

Source: Department of Tourism, Government of Kerala, Economic Review of Kerala 2014-15

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))


INDUSTRIAL INFRASTRUCTURE … (1/3)

Infrastructure Project description

Technopark

The Technopark at Thiruvananthapuram is spread over 760 acres.

It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals.

Technopark Phase-II has been declared an SEZ by the Government of India.

The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-in-

progress)

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.

Source: http://www.technopark.org/ , sezindia.nic.in

As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being developed

in Kozhikode.


INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL

CLUSTERS … (2/3)


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


INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL

CLUSTERS … (3/3)

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


SMART CITIES

As of June 2017, Kochi and Thiruvananthapuram are proposed to be

developed as smart cities in Kerala. The Kochi smart city would be

spread over an area of 246 acres.

Along with the smart cities, 9 cities of Kerala have also been selected

for infrastructure development. The infrastructure development will be

done under the Atal Mission for Rejuvenation and Urban

Transformation (AMRUT) scheme. In July 2015, the state

government allocated US$ 1.47 million for administrative and office

expenses for service level improvement plan or capacity building

under AMRUT scheme.

As per budget 2016-17, the state government is planning to

inaugurate 650 thousand square feet space in Kochi smart city, for

providing employment to around 90,000 unemployed youth of Kerala.

SmartCity Kochi has set a revenue target of US$ 41.79 million for

2017, and US$ 2.40 billion by 2021

Cities Area (sq. km)

Kochi 94.88

Kollam 58.18

Kozhikode 128

Thiruvananthapuram 2,192

Thrissur 101.4

Alappuzha 1,414

Palakkad 1,363

Guruvayur 29.66

Kannur 2,961

Thiruvananthapuram

Kollam

Ernakulam

Thrissur

Kochin

Tiruvalla

List of cities in Kerala covered under AMRUT


KEY INDUSTRIES

Kerala’s strategic location on the trans-national trade corridor,

rich natural resources & simple & transparent procedures are

favourably suited for investments in key sectors like tourism,

IT/ITeS, manufacturing & 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 & Commerce & the Small Industries Development

Corporation are jointly responsible for the development of

industrial infrastructure in the state.

Forming industrial clusters & developing infrastructure (such as

rubber parks, electronic hardware park, coconut industrial park,

organic industrial park & food processing parks) have been

integral to the state’s strategies to attract investments in various

industries.

As per budget 2016-17, the MSME sector accounted for higher

growth rate in comparison with other industrial sectors during

2015-16. For the development of MSME infrastructure, an

amount of US$ 6.96 million was allocated by the state

government during 2016-17

The amount allocated to small scale modern industries by the

state government during 2017-18 is US$ 19.86 million.

Source: Economic Review of Kerala, 2014-15, News articles, State budget 2017-18

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


KEY INDUSTRY – COIR AND COIR PRODUCTS … (1/2)

Kerala accounts for 85% of total coir production in India and its coir

industry provides employment to around 375,000 people.

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.

The Coir Kerala trade fair held in February 2015 witnessed the

participation of around 170 foreign buyers from over 53 countries.

The Coir Board of India facilitates setting up of coir defibering units

and coir manufacturing industries in each of the states under various

schemes such as Coir Udyami Yojana, Development of Production

Infrastructure and Mahila Coir Yojana.

As per budget 2017-18, defibering machines will be provided to coir

co-operative societies at 90% subsidy, to self help groups at 75%

subsidy and to individuals at 50% subsidy. The state has a target of

opening 100 husk processing mills in 2017-18

As part of the second restructuring scheme, the coir cooperative

societies taken up for revival will be provided with working capital

and managerial subsidy.

Under state budget 2017-18, US$ 19.87 million is allocated for the

coir sector.

No. of coir units registered in Kerala as on March 2015

8,814 8,811

3 0.0

2000.0

4000.0

6000.0

8000.0

10000.0

Total Private Public

Growth trend of coir units registered in Kerala

8,7

44

8,7

73

8,7

90

8,8

14

9,1

08

8500.0

8600.0

8700.0

8800.0

8900.0

9000.0

9100.0

9200.0

2011-12 2012-13 2013-14 2014-15 2015-16

Source: Economic Review of Kerala, 2014-15, Government of Kerala, Coir Board, News articles, State Budget 2017-18


KEY INDUSTRY – COIR AND COIR PRODUCTS … (2/2)

Exports 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 over past years.

During 2015-16 value exports from the state was recorded at US$

282.82 million.

Total outlay of US$ 17.87 million was proposed under the Annual

Plan of 2016-17 for the development of coir industry in the state with

implementation of 12 schemes through Coir Geo-textiles

Development Programme, Margin Money Loan to Entrepreneurs,

Production and Marketing Incentives (PMI), 8 Cluster Development

Programme in coir sector, etc.

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. In the budget 2015-16, the State

Government announced plans to invest US$ 0.16 million for

facilitating scholarships to the coir worker’s children who secure

admission in professional courses.

Coir pith and coir fibre are the major contributors in the export of coir

products with more than 80% share. China is the major customer

base for India’s coir products with 28.6% share in value and 39%

share in volume.

With an allocation of US$ 2.2 million in December 2016, for procuring

raw material and carrying out repair works, public sector spinning

mills in Kerala are anticipated to be operational soon. This would in

turn propel growth in the textile sector of the state.

Exports of coir industry of India (‘000 metric tonnes)

18

7.6

0

19

9.9

0

29

4.5

0

32

1.0

0

41

0.9

0

42

9.5

0

53

7.0

0

62

6.6

0 75

2.0

2

95

7.0

0

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

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

201

4-1

5

201

5-1

6

201

6-1

7

Source: Economic Review of Kerala, 2014-15, Coir Board, Government of India, Business Line


KEY INDUSTRIES – HANDLOOM AND POWER LOOM

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.

Under the Budget Scheme 2017-18, the state government has

allocated a sum of US$ 11.75 million for the handloom and power

loom industries and US$ 2.64 million for khadi and village

industries.

Source: Economic Review of Kerala, 2014-15, Kerala State Handloom Development Corporation Ltd, Office of the Development Commissioner, State budget

Funds released for Upliftment of Handloom Sector under

National Handloom Development Programme (2014-16)

(in US$ ‘000)

2014-15 31.52

2015-16 400.24

Budget Allocated for Weaver Service Centres (WSCs)

(2014-16) (in US$ ‘000)

2014-15 176.06

2015-16 171.09

Funds released under handicraft schemes (2016-17)

(in US$ ‘000)

Ambedkar Hastshilp Vikas Yojna 31.64

Design 44.7

Human Resource Development Scheme 23.12

Total 99.46

Exports of textile & garments from Cochin SEZ

(US$ million)

17.44

15.03

12.61

15.21

-

4.0

8.0

12.0

16.0

20.0

2011-12 2012-13 2013-14 2014-15


KEY INDUSTRIES – IT … (1/3)

Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15, State Annual Plan, sezindia.nic.in, State budget 2017-18, Business Standard

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. According to 2017-18 Annual Plan, an outlay of US$ 85.26 million has been allocated for the development of

information technology.

As per state budget 2017-18, almost all government transactions are expected to become IT-based.

In June 2017, Kerala government signed a memorandum of understanding (MoU) with India Electronics and Semiconductor Association (IESA) in

a bid to attract more investments from IT and electronics.

Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5%).

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).

Software exports from registered units in Kerala through Software Technology Parks of India (STPI) reached US$ 467 million in 2015-16.

As of April 2017, Kerala had twelve operational IT/ITeS SEZs which are located in Kakkanad, Thiruvanthapuram, Pallipuram Village, etc.

The IT industry of the state is growing at a higher pace. Leading IT companies such as TCS, Infosys and UST are providing job opportunities and

the industry is expected to add 23,500 new jobs by 2017.

Exports of IT and ITeS products from Cochin Special Economic Zone increased from US$ 55.5 million in 2010-11 to US$ 77.7 million in 2014-15.

As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states.

In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup the country’s first

UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals.



Source: Economic Survey of Kerala, 2014-15, sezindia.nic.in

IT exports from Kerala increased at a CAGR of 11.2% between

2007-08 and 2014-15.

Operational costs in the state are among the lowest in India (40%

lower as compared to other major IT locations in India). Also,

rental/real estate costs are lower than major IT cities in the country.

Around 11% 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 state government is planning to provide job opportunities to 0.5

million people in the IT sector by 2020.

As of June 2017, the state has 19 notified IT/ITeS SEZs.

In December 2016, since demonetisation, Kerala government has

taken steps for enabling online payment of land registration fees.

The National Informatics Centre (NIC) has been tasked with the

process of automation of the same, by the state's Chief Minister.

Exports from IT industry (US$ million)

29

8.3

39

2.7

41

2.6

45

4.6

41

3.4

64

4.4

67

6.6

62

6.5

0

100

200

300

400

500

600

700

800

200

7-

08

200

8-

09

200

9-

10

201

0-

11

201

1-

12

201

2-

13

201

3-

14

201

4-

15

CAGR 11.2%

Exports of IT & ITeS from Cochin SEZ (US$ million)

55.45

82.85 85.57 87.26 77.73

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2010-11 2011-12 2012-13 2013-14 2014-15



Tata Consultancy

Services

Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO)

services in India. TCS employed more than 315,000 IT consultants in 122 countries and generated revenue of US$

18.3 billion in 2016-17 and US$ 4.74 billion during April-June 2017. 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 176,187 people. The company generated US$ 9.68 billion in

revenue in 2016-17. 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. Infosys

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. Collabera

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$ 6.896 billion in 2016. 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.

RR Donnelley India

Outsource Pvt Ltd Co

India


KEY INDUSTRIES – ELECTRONICS … (1/2)

Source: Economic Review of Kerala, 2014-15, 2016 Government of Kerala,

The self contained Electronics Technology Park at Technopark,

Thiruvananthapuram, has been instrumental in attracting global

electronics manufacturers.

Exports from Electronics Technology Parks – Kerala, increased

22.55% in 2015-16 to reach US$ 970 million.

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.

As per Budget 2017-18, US$ 240.89 million is allocated for mega

projects in the state, which include Kochi Electronic Hardware Park.

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.

Between 2010-11 and 2014-15, electronic hardware exports from

Cochin Special Economic Zone grew at a CAGR of 8.86% to reach

US$ 76.8 million in 2014-15.

Exports of electronic hardware from Cochin SEZ

(US$ million)

54.72

66.47 64.73 70.67

76.84

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

2010-11 2011-12 2012-13 2013-14 2014-15

Key players

Traco Cable Company Limited

Transformers and Electricals Kerala Ltd (TELK)

Kerala State Electronics Development Corporation Ltd (Keltron)


KEY INDUSTRIES – ELECTRONICS … (2/2)

Source: Company website and annual report

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.

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.

Traco Cable Co Ltd

Transformers and

Electricals Kerala Ltd

(TELK)

Kerala State Electronics

Development Corp

(Keltron)


KEY INDUSTRIES – TOURISM … (1/2)

The tourism sector of Kerala is a significant contributor to the state economy. As per Kerala’s economic review 2016, revenue from the tourism

sector accounted for 10% share of the state’s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to US$ 4.1

billion in 2014. Kerala earned US$ 4.14 billion from tourism in 2015.

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.

Under state budget 2017-18, US$ 3.41 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery,

Alappuzha spice route are being implemented.

Under budget 2016-17, the state government made a total allocation of US$ 47.59 million for 24 schemes for development of Tourism sector in

the state. Further, an allocation of US$ 2.74 million and US$ 420.10 thousand has been proposed by the state government for the Heritage and

Spice Route project as well as Infrastructure Development of Varkala, respectively, during 2016-17.

Total outlay of US$ 11.89 million was proposed under the Annual Plan of 2017-18 for the infrastructure development of the tourist destinations at

Kovalam, Kumarakam, Thekkady, Munnar, Fort Kochi, Athirappally, Wayanad, Varkala, Neyyar, Ashtamudi, Thenmala, Sabarimala, Vembanad,

Vagamon, Cherai, Peechi, etc. and US$ 4.46 million for the construction of new blocks at Guruvayoor, Thiruvananthapuram, Sulthanbathery,

Peerumedu, Kozhikkode, Ponmudi and Munnar and for the upgradation of tourism guest houses

Kerala Blog Express (KBE), a campaign initiative from Kerala Tourism, was flagged off in Ernakulum, comprising 30 online bloggers from 29

countries such as Modova, Gibraltar, UK, Italy and Spain, Germany, etc,. The group will be visiting numerous destinations in the state for a

fortnight to share their experiences with the audience, internationally. The destinations would include backwaters, beaches, hills & experience the

life in cities & the villages.

Source: Economic Review of Kerala, 2014-15, 2016-17, State Budget 2016-17, 2017-18


KEY INDUSTRIES – TOURISM … (2/2)

Major initiatives of Kerala Tourism - 12th FYP:

• An investment of US$ 0.67 million was announced for Kerala

waste free destination scheme.

• An investment of US$ 2.47 million was announced for the

promotion and marketing activity of Kerala tourism sector.

• For the sea plane project, an investment of US$ 1 million was

announced.

• For the strengthening and modernisation of tourism institutions an

investment of US$ 0.24 million was announced.

Source: Kerala Economic Review, Kerala Tourism

Description Budget 2017-18 (US$ million)

Alappuzha spice route 5.94

Kerala Tourism Development

Corporation (KTDC) Ltd. 3.27

District Tourism Promotion

Councils (DTPC) and DMC 1.78

Domestic tourist arrivals in Kerala (in million)

9.4 10.1

10.9 11.7

12.5 13.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2011 2012 2013 2014 2015 2016

Foreign tourist arrivals in Kerala (in million)

0.73 0.79

0.86 0.92

0.98 1.04

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2011 2012 2013 2014 2015 2016


KEY INDUSTRIES – RUBBER INDUSTRY

Kerala is the leader in rubber production in the country. State

accounted for about 77.9% share in the total natural rubber

production in 2015-16.

Rubber production in Kerala stood at 507.70 thousand MT during

2014-15, in comparison with 648.220 thousand MT during 2013-14.

The area under rubber production in Kerala increased from 548.2

thousand hectares in 2013-14 to 549.9 thousand hectares in 2014-

15. The production of natural rubber in Kerala was 438 thousand MT

in 2015-16.

In the budget 2017-18, the state government allocated US$ 77.6

million for Rubber Production Incentive Scheme of Government of

Kerala.

In June 2015, the state government announced the launch of a price

support scheme to offer an assured price of US$ 2.48 per kg, to the

small rubber producers who grow rubber in an area of 2 hectares or

less. The state government allocated US$ 49.76 million for

implementation of this scheme.

In December 2016, All India Rubber Industries Association (AIRIA)

collaborated with Tripura University (TU) for imparting education for

programs in Rubber Technology to improve rubber education, rubber

skills training and research co-operation.

Exports of natural rubber from India (‘000 tonnes)

30.59

1.00 0.86

20

.03

0

5

10

15

20

25

30

35

2012-13 2014-15 2015-16 2016-17

Exports of rubber & plastic products from Cochin SEZ

(US$ million)

7.46 7.30

9.33

12.45 12.51 12.44

14.36

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Source: Economic Review of Kerala, 2015-16, 2016-17, Rubber, Board, Ministry of Commerce and Industry, Government of India, state annual budget 2017-18


KEY INDUSTRIES – SPICES … (1/2)

Source: Economic Review of Kerala, 2015-16, 2016, Department of Agriculture Cooperation & Farmers Welfare, State budget

Kerala can be termed as the land of spices, considering the large

variety of spices grown in the state. During 2016-17, overall

production of spices in Kerala stood at 140.7 thousand tonnes and

area under cultivation was recorded at 166.7 thousand hectares.

Kerala is the largest producer of pepper in India and accounts for a

lion’s share in India’s production.

• In 2015-16, the state accounted for a pepper production of 42,132

tonnes with only 85,948 hectares of land under pepper

cultivation.

Apart from pepper, other spices produced in the state include ginger,

cardamom, nutmeg, tamarind, etc.

Spices exports from Kerala (through Cochin port) stood at US$ 49.03

million in 2015-16 .

As per the Budget 2017-18, government has allocated funds worth

US$ 1.55 million for cultivation of pepper and cardamom in the state.

The state also plans to setup a spices park each in Idukki and

Wayana.

Under State Budget 2016-17, the state government allocated an

amount of US$ 3.05 million in order to produce and distribute various

quality planting materials.

Exports of spices from Kerala

(through Cochin ports) in US$ million

148.05

61.40

103.99

88.95

49.03

0

20

40

60

80

100

120

140

160

2011-12 2012-13 2013-14 2014-15 2015-16


KEY INDUSTRIES – SPICES…(2/2)

Source: Economic Review of Kerala, 2014-15, 2016, Spice Board of India News articles, indianspices.com

As of 2013-14, the overall exports of spices from India was recorded

as 8,17,250 tons that reached 8,93,920 tons in 2014-15, with Kerala

being the major contributor. In 2016-17 the figure was 947,790

tonnes.

In terms of value, pepper exports from Cochin port were recorded at

US$ 183.6 million during 2014-15. For the same period of time, the

export values of cardamom, nutmeg, ginger and turmeric were

recorded as US$ 20.56 million, US$ 16.30 million, US$ 7.93 million

and US$ 7.57 million respectively.

In 2015-16, 49,706 MT of spices worth US$ 49.03 million were

exported from the Cochin port.

Volume of exports through Cochin Port (tons)

Spices 2013-14 2014-15

Ginger 2,125.3 1,750.8

Cardamom 858.3 1,607.7

Chilies 4,425.3 5,565.4

Nutmeg 1,822.9 1,997.9

Pepper 15,978.7 16,203.6

Turmeric 3,607.7 4,444.6


KEY INDUSTRIES – KHADI INDUSTRY

Khadi and village industries have been an integral part of the

traditions of Kerala. The Kerala Khadi and Village Industries Board is

the statutory body in the state. As per budget 2016-17, the State

Government proposed an outlay of US$ 2.13 million for khadi and

village industries. Moreover, the Kerala Khadi and Village Industries

Board has been provided with a financial assistance of US$ 152.76

thousand for the establishment of Gandhi-Khadi Museum at

Payyannur. As per budget 2017-18, the state government has

allocated US$ 2.64 million for khadi and village industries and a new

scheme called ‘Khadi Grama Programme’ will be launched.

As of 2013-14, under Income Support Scheme, an investment of

US$ 0.21 million had been approved to 6,274 khadi spinners and

4,014 weavers. This investment was approved as a production

incentive. The scheme also supports 11,193 khadi artisans with an

investment of US$ 3 million in order to ensure minimum wages.

Production in Khadi and village industries sector of Kerala

(in US$ million)

24.53 24.29

22.18

20.82 20.72

18.00

19.00

20.00

21.00

22.00

23.00

24.00

25.00

2011-12 2012-13 2013-14 2014-15 2015-16

Khadi sales value from Kerala (in US$ thousands)

28.38 28.00 28.28

26.98

24.64

22.00

23.00

24.00

25.00

26.00

27.00

28.00

29.00

2011-12 2012-13 2013-14 2014-15 2015-16

Source: Ministry of Micro, Small & Medium Enterprises, State budget 2017-18


KEY INDUSTRIES – AYURVEDA

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. As per budget 2016-17, the state government allocated an

amount of US$ 1.09 million for the development of global Ayurveda in Thiruvanthapuram. As per state budget 2017-18, the government has

allocated US$ 7.6 million for Ayurvedic system of medicine and US$ 4.81 million for homoeopathy.

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. There are 815 dispensaries, 127 hospitals and 20 sub centres active for Ayurvedic treatment under ISM Department and the state

government has proposed an amount of US$ 5.21 million for the development and strengthening of ISM Department of the state under the annual

budget 2016-17. Another US$ 381.91 thousand and US$ 2.02 million were proposed for the strengthening of Ayurveda dispensaries and

upgradation of ISM institutions, in the state, respectively.

Under annual budget 2016-17, the state government proposed an investment of US$ 458.29 thousand for expansion of Oushadhi Kerala Ltd. (The

Pharmaceutical Corporation (IM) Kerala Ltd.). Oushadhi Kerala is the 65th largest manufacturer of Ayurveda medicines in India.

Source: Economic Review of Kerala, 2014-15, State budget 2017-18, News articles

Note: ISM- Indian Systems of Medicine Department, Government of Kerala


KEY INDUSTRIES – FISHERY

The state has a long coastline of over 580 km & innumerable water

bodies, generating a huge potential for inland & marine fishing &

providing it a prominent position in fish cultivation.

Among maritime states in India, Kerala ranks 2nd in marine fish

production. In 2015-16, total fish production in the state stood at 0.73

million tonnes.

As of 2016, the state government had finished construction of 14

fishing harbours and 10 are in progress.

As per state budget 2016-17, the Government of Kerala proposed

allocations of US$ 6.04 million and US$ 5.87 million for the

implementation of social security schemes for fishermen as well as

for inland fisheries, respectively.

Further, an allocation of US$ 4.58 million for the University of

Fisheries & Ocean Studies, US$ 4.12 million for NABARD assisted

RIDF schemes and US$ 4 million for ‘Development of Marine

Fisheries Infrastructure & Post-harvest Operations’, has also been

proposed by the state government during 2016-17.

The state government has allocated US$ 90.95 million for the

fisheries sector and coastal area development under annual budget

2017-18.

The budget includes schemes such as conservation & management

of fish resources, motorisation of traditional fishing crafts & insurance

coverage to fishing implements, integrated fisheries development,

inland fish production, fishing harbours, modernisation of fish

markets & value addition, etc.

Total fish production in Kerala (in million tonnes)

0.6

78

0.6

77

0.6

86

0.6

87

0.6

81

0.6

93

0.6

8

0.7

08

0.6

32

0.7

30

0.58

0.6

0.62

0.64

0.66

0.68

0.7

0.72

0.74

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

201

4-1

5

201

5-1

6

Source: Economic Review of Kerala, 2015-16, 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget 2016-17, 2017-18


KEY INDUSTRIES – RICE

Under the 12th Five Year Plan (2012-17), the Government of Kerala

targeted to increase the production of rice to 650 thousand tonnes.

For the same, a comprehensive State Food Production project was

sanctioned with the help of an investment of US$ 18.4 million in

2012-13 and US$ 18.6 million in 2013-14. Further during, 2015-16,

an outlay of US$ 17.2 million was proposed by the state government

for the same scheme.

As per budget 2016-17, for rice development, the state government

allocated an amount of US$ 5.34 million during 2016-17.

Further, as per budget 2016-17, the state government also decided

to provide free rice through ration shops to the BPL/AAY families in

the state. Due to this initiative, the total subsidy granted was

expected to reach US$ 76.38 million during 2016-17.

In state budget 2017-18, US$ 108.65 million has been allocated for

procurement of paddy.

Total rice production in Kerala (in ‘000 tonnes)

59

0.2

4

59

8.3

4

52

2.7

4

56

8.9

9

50

8.3

0

56

4.3

3

56

2.0

9

69

7.3

0

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

200

8-

09

200

9-

10

201

0-

11

201

1-

12

201

2-

13

201

3-

14

201

4-

15

201

5-

16

Source: Economics & Statistics Department, Kerala, State Budget 2016-17, 2017-18

Funds allocated in budget 2016-17 (US$ million)

Rice development 5.34

Operational support to padasekhara

samithies for group farming 0.68


KEY INDUSTRIES – OTHER GROWTH SECTORS

Source: State Annual Budget 2016-17

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.

UAE based Western Marine Service and Techlink Systems plans to invest US$ 10.41 million in hospitality sector

of Kerala, by setting up a hotel chain under the brand name - Springstay.

The Kerala State Film Development Corporation will build 100 more theatres in the state using funds from

Kerala Infrastructure Investment Fund Board

Hospitality, leisure and

entertainment

Food processing is a sunrise sector that has gained prominence over the 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.

An amount of US$ 2.44 million was sanctioned to establish a mega food park at Cherthala for processing of

seafood products as per budget 2016-17.

During 2015-16, under the plan scheme for technology modernisation/ upgradation/ establishment of food

processing units in the state, 20 units were assisted in the state of Kerala with an outlay of US$ 4.48 thousand.

Further, under National Mission on Food Processing (NMFP) scheme, 23 projects were sanctioned during 2015-

16, by the state government. Moreover, a total of 2 projects each were sanctioned under the Mega Food Parks

scheme, Food Testing Laboratory Scheme as well as Research & Development Scheme, during 2015-16.

Food processing

Note: FPI - Food Processing Industry


SINGLE-WINDOW APPROVAL MECHANISM

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

SWM structure in Kerala

Source: KSIDC


KEY INVESTMENT PROMOTION OFFICES … (1/2)

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.


KEY INVESTMENT PROMOTION OFFICES … (2/2)

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.


CONTACT LIST … (1/2)

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


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


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


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


mailto:[email protected]

mailto:[email protected]


KEY APPROVALS REQUIRED … (1/2)

Approvals and clearances required Department 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


KEY APPROVALS REQUIRED … (2/2)

Approvals and clearances required Time to Complete (Days)

Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1

Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs

(National) 3

Approval for reserve a company name with the Registrar of Companies (ROC) (National)-online 2

Stamp the company documents at the State Treasury (State) 5

Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National

Securities Depository Ltd (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd, as

outsourced by the Income Tax Department (National)

15

Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or

agent appointed 14

Register with the Office of Inspector, Shops and Establishment Act (State/ Municipal) 14

Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 25

Register for Profession Tax at the Profession Tax Office (State) 9

Source: Kerala Economic Review 2014-15, World Bank Group


COST OF DOING BUSINESS IN KERALA

Cost parameter Cost estimate Source

Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources

Five-star hotel US$ 120–300 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

Fixed Power Tariff (per kWh)

Domestic: 1.1 to 3.3 cents (US)

Commercial: 3.3 to 13 cents (US)

Industrial: 5.5-6.9 cents (US)

Kerala State Electricity Regulatory Commission, as of

March 2015

Labour (minimum wages per day) US$ 6.8–15 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


STATE ACTS & POLICIES … (1/5)

Objectives

Kerala Sports Policy

2015

To ensure the development of athletes as leaders and role models in sports and society.

Sports related sectors to incorporate sports intentionally to achieve social development.

To ensure that sports events are designed to benefit the host community and local economics. Read more

Kerala Industrial &

Commercial Policy

Amended 2015

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

Kerala Agricultural

Development Policy

2015

The farm lands are to be protected and should not be put for any other use than farming activities

The agriculturally potential land is to be identified and demarcated using modern technologies such as remote

sensing, satellite imagery, etc., and a database is to be made. Read more

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

Kerala Solar Energy

Policy 2013

Read more

Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the

state.

Government also aims to attract foreign investments. Read more

Kerala Technology

Startup Policy 2014

http://kerala.gov.in/docs/policies/2015/sportspolicy_15.pdf

http://www.ksidc.org/pdfs/Kerala-Industrial-and-Commerce-Policy-2015-English.pdf

http://www.ksidc.org/pdfs/Kerala-Industrial-and-Commerce-Policy-2015-English.pdf

http://kerala.gov.in/docs/policies/2013/8555_13.pdf

http://itmission.kerala.gov.in/attachments/newsandupdates/kerala_innovation_and_technology_startup_draft_policy_2014.pdf



Objectives

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.

Kerala Small Hydro

Power Policy 2012 To harness green and clean natural resources in the state for environmental benefits and energy security.

Kerala IT Policy 2012 To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India.

To make Kerala’s economy more export-oriented by granting various exemptions and concessions. SEZ Policy 2008

To offer affordable and adequate housing for the state’s citizens

To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state Kerala State Housing

Policy- 2011

Read more

Read more

Read more

Read more

Read more

http://circle.forest.kerala.gov.in/tckollam/images/docs/policies/tourism/kerala tourism policy english.pdf

http://www.hsgcomr.kerala.gov.in/pdf/final_policy_kshp.pdf

https://www.ksidc.org/pdfs/it-policy-2012.pdf

http://www.indiaenvironmentportal.org.in/files/file/KERALA SMALL HYDRO DEVELOPMENT POLICY.pdf

http://www.sezindia.nic.in/writereaddata/statePolicies/kerala policy.pdf



Objectives

The Micro, Small And

Medium Enterprises

Development Act, 2006

The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is

also enhancing the competitiveness between micro,

Small and medium enterprises.

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.

Kerala State Training

Policy

To strengthen governance in the state by building capacity amongst various categories of civil servants

To impart training to every state civil servant once in every five years

Purpose of the policy is to legalize the production, transportation and consumption value of liquor in the state. The

policy also covers transparent licensing system for intoxicating products. Kerala liquor policy

Read more

Read more

Read more

Read more

http://www.biotechcommission.kerala.gov.in/index.php?option=com_content&view=article&id=57&Itemid=63

http://www.dic.kerala.gov.in/web/pdffiles/micro_small.pdf

http://kerala.gov.in/index.php?option=com_docman&task=doc_download&gid=3854&Itemid=2702

http://www.img.kerala.gov.in/docs/downloads/trainingpolicy.doc


ANNEXURE

Source: Reserve Bank of India

Exchange Rates (Fiscal Year)

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 60.28

2015-16 65.46

2016-17 67.09

Q1 2017-18 64.46


DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with

IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,

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incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of

IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the

information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a

substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do

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