KERALA - IBEFJUNE 2017 For updated information, please visit 3 EXECUTIVE SUMMARY … (1/2) Source:...

11JUNE 2017JUNE 2017 (As of 16 June 2017) For updated information, please visit www.ibef.org

KERALA GOD'S OWN COUNTRY

22JUNE 2017

❖ 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

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JUNE 2017

33JUNE 2017 For updated information, please visit www.ibef.org

EXECUTIVE SUMMARY … (1/2)

Source: Economic Review of Kerala 2014-15

NRI Achievers Bureau


Cultural diversity and

well developed tourism

sector

• 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.

Highest literacy and sex

ratio

• 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.

Largest recipient of

foreign remittances in

the country

• 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%.

Ranks second in

Investment Climate

Index

• 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.



EXECUTIVE SUMMARY … (2/2)

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

Strong agricultural

sector

• Kerala is a leading agricultural state in the country & the largest producer of rubber,

pepper, coconut & coir. As per budget 2016-17, Government of Kerala has proposed an

outlay of US$ 116.74 million for the agriculture sector,

First international

container transhipment

terminal

• 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.

Presence of world class

technology park

• 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.

Cargo Traffic in Cochin

Port• The total cargo traffic handled by Cochin port during 2015-16 was 220.98 lakh tonnes,

recording an increase of 2.33 per cent against 215.95 lakh tonnes for the year 2014-15.


Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, GSDP: Gross State Domestic Product


Growing demandHigh 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.

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 5.86% during 2015-16 over 2014-15.

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.

2015

Foreign

tourist

arrivals:

0.97 million

2021E

Foreign

tourist

arrivals:

3 million

Advantage

Kerala

ADVANTAGE: KERALA


KERALA VISION 2030


Forestry

Energy

Agriculture &

livestock

Transport

EducationLabour

Industry

• Increase the share of forestry

in GSDP to 0.5%.

• Increase the productivity of

forests through improved

management of resources.

• 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.

• Affordable and clean power to all.

• Exploit the full potential of hydro-

electric generation.

• 100% electrified households with

24*7 availability.

• 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.

• 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.

Health

• 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.

Vision

2030

Source: Government of Kerala


KERALA FACT FILE

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.

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: Kerala at a glance, Economic Review of Kerala,2014-15

Government of Kerala website, Census 2011

Central Statistics Office

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: Maps of India

88JUNE 2017

Parameter Kerala All states Source

Economy 2015-16 2015-16

GSDP as a percentage of all states’

GSDP4.31 100.0

TechSci Estimates based on “Advanced Estimates”

provided by Directorate of Economics and Statistics

of Kerala

GSDP growth rate (%) 2.85 8.71TechSci Estimates based on “Advanced Estimates”


of Kerala

Per capita GSDP (US$) 2,677 1,546

TechSci Estimates based on “Advanced Estimates”


of Kerala

Physical Infrastructure

Installed power capacity (MW) 4,998.94 326,848.53 Central Electricity Authority, as of March 2017

Wireless subscribers (No) 38,812,518 1,164,200,000Telecom Regulatory Authority of India, as of

February 2017

Internet subscribers (No) 16,150,000 391,500,000Telecom Regulatory Authority of India, as of

December 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 … (1/2)

99JUNE 2017

Parameter Kerala All states Source

Social Indicators

Literacy rate (%) 94.6 73.0 Census, 2011

Birth rate (per 1,000 population each year) 15.2 21.6 SRS Bulletin

Investment

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

April 2000 to March 2017

Industrial Infrastructure

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

July 2016

Operational SEZs (No) 16 186Ministry of Commerce & Industry, Department

of Commerce, July 2016

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


KERALA IN FIGURES … (2/2)


1010JUNE 2017

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.

Source: TechSci Estimates based on “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

GSDP of Kerala at current prices

(US$ billion)


ECONOMIC SNAPSHOT – GSDP


CAGR

11.18%

31 34.143.5 43.9 48.9

57.865.7 64.3 66.6 68.5

89.44

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1111JUNE 2017

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 of Kerala at current prices

(US$ billion)


ECONOMIC SNAPSHOT – NSDP


Source: TechSci Estimates based on “Advanced Estimates” provided

by Directorate of Economics and Statistics of Kerala

NSDP# - calculated using per capita NSDP x Population in million

CAGR

11.34%

23.4 27.2 29.938.2 39 43.5

51.158 57.0 58.3

68.5

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1212JUNE 2017

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.

GSDP per capita of Kerala at current prices

(US$)


ECONOMIC SNAPSHOT – PER CAPITA GSDP


Source: TechSci Estimates based on “Advanced Estimates” provided

by Directorate of Economics and Statistics of Kerala

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

million

CAGR

11.09%

935 10191291 1294 1430

1678.01892 18411907.01961

2677

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1313JUNE 2017

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.

NSDP per capita of Kerala at current prices

(US$)


ECONOMIC SNAPSHOT – PER CAPITA NSDP


Source: TechSci Estimates based on “Advanced Estimates” provided by

Directorate of Economics and Statistics of Kerala

per capita NSDP& - Geometric mean of YoY calculation from 2004-05 to 2014-15

CAGR

9.57%

822 8951135 1150 1270

1483.01672 16301668.01713

2049.9

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1414JUNE 2017

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.

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

GSDP composition by sector


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP


17.90% 12.69%

22.50%19.51%

59.60% 67.80%

2004-05 2015-16

Primary Sector Secondary Sector Tertiary Sector

CAGR

10.92%

15.55%

12.53%

1515JUNE 2017

Source: Department of Economics and Statistics, Kerala(1)2014-15; (2)m.kg.

Agriculture and allied sectors contributed 13.41% to Kerala’s GSDP in 2014-15. Kerala is one of the leading pepper and rubber

producers in the country.

As per budget 2016-17, the state government allocated US$246.90 million for agriculture and allied sectors, out of which 116.74

million has been allocated for the agriculture sector, US$ 13.78 million for soil and water conservation sector, US$ 44.3 million for

animal husbandry, US$ 14.13 million for dairy development, US$ 25.86 million for fisheries and US$ 32.08 million for forest & wildlife

sector.

On other hand, under the 12th Five Year Plan, US$ 1.46 billion was the amount 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.


ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION


CropAnnual production in

2015-16

(metric tonnes)

Crop

Annual production

in 2015-16

(metric tonnes)

Crop

Annual production in

2015-16

(metric tonnes)

Onion 200 Grapes 1,880 Drumstick 15,976(1)

Rubber 655,000(1) Coffee 68,650 Groundnut 500

Total food grains 698,600 Tea 4.51(2) Cane gur 14,853(1)

Rice 697,300 Pepper 40,690(1) Vegetables 1,645,100

Fruits 2,554,100 Wheat 37,300(1) Cocoa 14,186(1)

Plantation 4,171,630 Raw cashew 29,715(1) Turmeric 6,820(1)

Mango 386,380 Pulses 1,000 Nutmeg 14,193(1)

1616JUNE 2017

2,5323,709 4,109

6,109 5,999

740 334

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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$ 27.14 million in 2014-15 to US$ 28.96 million in 2015-

16. 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

Total exports turnover from CSEZs

(US$ million)

Exports break-up, Cochin Special Economic Zone

Port (2014-15)

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$ 3.62 million in 2015-16 while

exports of fruits and vegetable seeds from the state was

recorded at US$ 931.86 thousand, during the same period.

1717JUNE 2017

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.

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

Lakshadweep, Government of Kerala,

Note #: Public-private partnership

FDI equity inflows, 2008-09 to 2015-17 (US$ million)


ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS


82128

37

471

72 70

230

90

454

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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.



ANNUAL BUDGET 2016-17

Source: Finance Department, Government of Kerala, India

Annual Budget 2016-17

Sector Investment (US$ million)

Agriculture 116.74

Soil and water conservation 13.79

Animal husbandry 44.30

Dairy development 14.13

Fisheries 25.86

Forest & wildlife 32.08

Urban development 106.02

Rural development and allied sectors 619.83

Small scale industries 33732.05

Irrigation and flood control 75.08


Sector Investment (US$ million)

Water supply & sewerage 152.29

Energy 247.89

Housing 10.83

Science, technology &

environment15.24

General education 203.30

Roads and bridges 184.27

Information Technology and

e-Governance73.77

Tourism 47.60

Art & culture 13.94

Museums & zoos 2.80


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 2016-17, a total outlay of

US$ 184.26 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 will 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.

Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development

Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala

Road type Road length (km)

National highways 1,811.52

State highways 4,341.65

Major district roads 27,469.9


PHYSICAL INFRASTRUCTURE – ROADS…(1/2)

Source: Maps of India



PHYSICAL INFRASTRUCTURE – ROADS…(1/2)

National highway length completed (km)

5.72

21.40

29.00

2012-13 2013-14 2014-15

Expenditure on road works under PMGSY in Kerala

(US$ million)

Pradhan Mantri Gram Sadak Yojana (PMGSY) was

launched in 2000 with the objective of connecting eligible

rural habitants. As of March 2016, about 4,70,573.8 km of

road network was completed across India, of which

2,569.238 km was completed in Kerala.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

(as of March 2016)

Habitations benefitted 1,330

Length completed 2,569.24

Total expenditure (US$

million)178.49

Source: NHAI

Source: PMGSY

Source: NHAI

As per budget 2016-17, construction work on Seaport

Airport Road between Kalamassery NAD junction as well as

Nedumbassery airport is in its completion phase, with the

construction of 3rd phase expected to be initiated during

2016-17. The state government has allocated an amount of

US$ 53.46 million for the construction of 3rd phase.

18.51

29.12

3.62

2013-14 2014-15 2015-16¹



PHYSICAL INFRASTRUCTURE – RAILWAYS

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.

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.

Source: Maps of IndiaSource: Economic Review of Kerala, 2014-15

Kerala State Industrial Development Corporation Ltd, Government of Kerala



PHYSICAL INFRASTRUCTURE – AIRPORTS

Kerala has 3 airports handling domestic & international flights, located at

Thiruvananthapuram, Kochi & Kozhikode. Aircraft movement from Cochin airport

increased from 51,502 in 2014-15 to 56,180 in 2015-16. Aircraft movement from

Thiruvananthapuram airport increased from 23,719 in 2014-15 to 26,001 in 2015-

16. During March 2016, aircraft movement from Cochin & Thiruvananthapuram

airports stood at 4,841 & 2,342, respectively.

Passenger traffic from Cochin airport increased from 6,407,302 in 2014-15 to

7,749,901 in 2015-16, while, passenger traffic from Thiruvananthapuram airport

increased from 3,174,018 in 2014-15 to 3,470,788 in 2015-16. During March 2016,

passenger traffic from Cochin & Thiruvananthapuram airport stood at 668,808 &

134,940, respectively.

Freight traffic from Cochin airport increased from 70,787 tonnes in 2014-15 to

79,233 tonnes in 2015-16, while, freight traffic from Thiruvananthapuram airport

increased from 29,904 tonnes in 2014-15 to 35,570 tonnes in 2015-16. During

March 2016, freight traffic from Cochin & Thiruvananthapuram airports stood at

7,449 tonnes & 2,530 tonnes, respectively.

As per budget 2016-17, international flights from Kannur International Airport are

expected to be operational very soon. 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.Source: Maps of IndiaSource: Airports Authority of India,

Kerala State Industrial Development Corporation Ltd.

Airport

2323JUNE 2017

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.

Source: Cochin Port Trust, Kerala Ports,

Kerala Budget 2016-17


PHYSICAL INFRASTRUCTURE – PORTS … (1/4)


Existing ports

Major ports • Cochin

Intermediate ports

• Neendakara

• Alappuzha

• Kozhikkode

Minor ports

• Vizhinjam

• Valiyathura

• Vadakara

• Ponnani

• Thankasserry

• Kayamkulam

• Manakkodam

• Munambam

• Beypore

• Thalasserry

• Manjeswaram

• Neeleswaram

• Kannur

• Azhikkal

• Kasaragode

Sub Sectors Budget 2016-17

Port department US$ 19.24 million

2424JUNE 2017

15.8 15.217.4 17.9

20.1 19.8 20.9 21.6 22.09

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During 2015-16, the cargo traffic handled by Cochin port was 22.09

million tonnes. However, in 2014-15, the total traffic handled at

Cochin port was 21.60 million tonnes.

During 2016-17, Cochin Port Trust has set a target of handling 25

million tonnes of cargo. Moreover, during April-May 2016, 3,945

thousand tonnes of commodity traffic was handled at the Cochin

port.

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 1up to December 2015




Cochin port traffic (million tonnes)

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 harbour2.39

Kodungallur port 1.75

Azhikkal port 1.54

Source: State Budget 2016-17

2525JUNE 2017

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

liners from around the world.

During 2015-16, total number of cargo vessels that sailed

from Cochin Port Trust were recorded to be 1169.

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.

Source: Cochin Port Trust, New Indian Express




Number of cruise vessel arrivals at Cochin

port

26

38

43

36

4541

4442

34

39

33

44

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

20

16-1

7

Cruise passenger in Kerala

Year Passenger

2011-12 34,768

2012-13 37,389

2013-14 24,535

2014-15 28,342

2626JUNE 2017

Source: Cochin Port Trust, New Indian Express




CATEGORY WISE DISTRIBUTION OF VESSELS ENTERING THE COCHIN PORT

Year Number of Vessel

Containers CoalFertilizers &

raw materialsOthers

Food

Grains

General

CargoTankers

Passenger

cum No Cargo

2005-06 421 4 38 8 0 109 383 236

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

2727JUNE 2017

As of March 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)


PHYSICAL INFRASTRUCTURE – POWER … (1/3)


Sub SectorsBudget 2016-17

(US$ million)

Agency for Non-conventional Energy

and Rural Technology6.70

Energy Management Centre 1.13


Source: Central Electricity Authority

3,514.0 3,553.7 3,718.8 3,827.7 3,856.4 3,892.0 4,106.0 4,172.0

4,998.9

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

20

16-1

7




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 May 31 2016, a total sum of US$ 36.23 million was

sanctioned and US$ 27.21 million was disbursed under the

DDUGJY scheme for rural electrification of 29 projects in the

state.

Status of rural electrification in Kerala

(FY16)

Area type Nos.

Total villages 1,017

Electrified villages 1,017

Total rural households 70,89,000

Electrified rural households 70,18,000

Un-electrified rural

households71,000

Status of rural electrification in Kerala under

DDUGJY scheme

(as of May 2016)

Area type Nos.

Intensively electrified villages 1,087

Electrified BPL households 1,50,305

Source: Deendayal Upadhyaya Gram Jyoti Yojana

Under Deendayal Upadhyaya Gram Jyoti Yojana scheme,

14 new projects have been sanctioned for US$ 79.57

million as of May 2016.

Source: Deendayal Upadhyaya Gram Jyoti Yojana




Budget Highlights-2016-17:

Total amount of US$ 562.02 million provided for the transmission system in Kerala.

An investment of US$ 24.22 million has been sanctioned for the implementation of IPDS works.

For KSBL, an amount of US$ 4.58 million has been allocated.

For completion of normal distribution works as well as transmission works of new substations and lines being undertaken

by KSEBL, the state government has allocated an amount of US$ 29.02 million and US$ 42.77 million, respectively.

Source: Finance Department, Government of Kerala, India

3030JUNE 2017

Telecom infrastructure (February 2017)

Wireless subscribers 38,812,518

Wire-line subscribers 2,108,858

Internet subscribers 16,150,0001

Post offices 5,0542

Teledensity (in%) 113.81

Source: Telecom Regulatory Authority of India, 1As of December 2016, 2As of January 2016

As of February 2017, Kerala had an overall tele-density of

113.81% as against an all-India average of 92.59%.

According to the Telecom Regulatory Authority of India

(TRAI), as of February 2017, Kerala had nearly 38.82

million wireless subscribers and 2.10 million wire-line

subscribers.

As of April 2016, the state recorded 6,022 new telephone

wireless connections of Tata, 17,444 new connections of

Vodafone and 34,973 new wireless connections of

Reliance.

By the end of February 2017, 7,415,614 subscribers had

submitted requests for mobile number portability in Kerala.

As of January 2016, there were 5,054 post offices in Kerala.


PHYSICAL INFRASTRUCTURE – TELECOM


Performance Status of NOFN Project (April 2016)

No. of GPs in Phase-I 977

Pipe laid (km) 746

Cable laid (km) 810

GPs for which cable laid 1,129

No. of GPs lit 1,129s

Source: Ministry Of Communications And Information Technology

GP-Gram Panchayat

3131JUNE 2017

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).


DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE


Source: JNNURM, Ministry of Urban Development, State Budget 2016-17

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

3232JUNE 2017

Project name Sector PPP type StatusProject cost

(US$ million)

Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport Operation and maintenance stage 16.05

LNG Port & Terminal Facility (Puthuvypeen)

Project(BOT) Annuity Transport Operation and maintenance stage 565.49

Multi-User Liquid Terminal (Puthuvypeen) Project (BOLT) Transport Under construction 25.98

Clinker handling jetty at Azhicode/Kodungallur

Port(BOOT) Transport Not available 7.64

Ponnani Port Project - Phase I (BOT) Transport Under construction 116.61

Vallarpadam Container Transhipment Terminal (BOT) Transport Under construction 489.07

Development and operation of an international

ship repair facility at W/island with private sector

participation

(BOT) Transport Not available 76.42

International Container Transhipment Terminal

(Cochin Port) Project(DBFOT) Transport Under construction 323.70

Trivandrum City Road Improvement Project (BOT) Annuity Transport Operation and maintenance stage 53.03

Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport Operation and maintenance stage 73.36

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,


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (1/2)


3333JUNE 2017

Project name Sector PPP type StatusProject cost

(US$ million)

Thavakkara Bus Station (BOT) Transport Operation and maintenance stage 5.04

Roadways between Kundapur - Surathkal &

Mangalore - Kerala Border(BOT) Transport Under construction 102.55

Padalur to Trichy on NH-45 Road (BOT) Transport Operation and maintenance stage 62.82

Kannur Airport Project (BOO) Transport Not available 142.06

International Animation School Project Lease

Social and

commercial

infrastructure

Operation and maintenance stage 2.15

Cochin International Airport (BOO) Transport Operation and maintenance stage 46.31

Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.32

Bus Terminal (Angamaly) Project (BOT) Transport Operation and maintenance stage 4.44

Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction 18.34

Walayar-Vadakkancherry NH-47 Road

Project(DBFOT) Transport Under construction 120.74


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



DEVELOPMENT PROJECTS: SEZs … (1/3)

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

3535JUNE 2017Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

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




As of July 2016, Kerala had 16 operational 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

KINFRAKazhakoottam,

Thiruvananthapuram Electronics Industries

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

Kerala State Information Technology

Infrastructure Ltd (KSITIL)

Pantheerankavu

and Nellikode, KozhikodeIT/ITeS

Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS

Cochin International Airport Ltd Ernakulam Airport-based

Some of formally approved SEZs in Kerala

As of July 2016, Kerala had 29 SEZs with formal approval and 25 notified SEZs.

3737JUNE 2017

Educational infrastructure (2015-16)

Schools 12,626

Universities 14

Engineering institutions 160

Arts and science colleges 199

Polytechnics 49


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)


Source: Economic Review of Kerala, 2014-15

Sub sectors12

thFive Year Plan

(US$ million)

School education 401.0

Higher education 306.9

Technical education 163.2


Sub sectorsBudget 2016-17

(US$ million)

School education 76.76

Higher education 90.56

Technical education 35.96

Total 203.29

Kerala has the highest literacy rate among all states in the

country. As of 2014-15, the state has a literacy rate of 94.6

per cent; male & female literacy rates stood at 96.67 per

cent & 92.65 per cent, respectively.

Kerala has 2,964 higher secondary schools as of 2015. Of

these, 1,216 (41.02 per cent) were government schools,

1,210 (40.83 per cent) aided schools & the remaining 538

(18.15 per cent) unaided schools.

As of February 2017, the state is 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.


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)


Kerala primary education statistics (2014-15)

Schools (No)

Lower primary: 6,749

Upper primary: 2,913

High schools: 2,964

School dropout rate (%) (2013-14)

Lower primary: 0.60

Upper primary: 0.27

High school: 0.56

Pupil-teacher ratio 26:1

Nature of schools (2014-

15)

Student strength

(in million)

Share of total student

strength (%)

Government 1.17 30.7

Government-aided 2.27 59.7

Unaided 0.35 9.21

Total 3.80 100.0

Source: Economic Survey of Kerala 2014-15

3939JUNE 2017

Source: Sample Registration System (SRS) Bulletin, Economic Review of Kerala,

2014-15, 1Per thousand persons, 2Per thousand live births, 32015-16

Health indicators (2015-16)

Birth rate(1)

15.2

Death rate(1)

7.0

Infant mortality rate2

12

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

Male 71.4

Female 76.3


SOCIAL INFRASTRUCTURE – HEALTH


Source: Economic Review of Kerala, 2014-15,

State Budget 2016-17

Health infrastructure as of November 2015

Primary health centres 939

Sub-centres 5,4033

Community health centres 224

District hospitals 49

Sub-Divisional hospitals 343

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 2016-17, the state government announced plans to

invest USD154.76 million for development of medical & public

health sector, of which, an amount of USD43.25 million has been

allocated for centrally sponsored schemes under the health sector.

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.

In June 2017, the Kerala government announced its

collaboration with United Nations' World Food Program

(WFP) to make the state 'hunger & malnutrition-free’.

UN has selected Kerala to implement its initiative as a

part of its sustainable development programme.


CULTURAL INFRASTRUCTURE … (1/2)


Popular tourist locations

BeachesKovalam, Varkala, Marari, Bekal

and Kannur

BackwatersKumarakom, Alappuzha, Kollam,

Kochi and Kozhikode

Hill stationsPonmudi, Munnar, Wyanad and

Vagamon

Wildlife reserves

Periyar Wildlife Sanctuary,

Eraviikulam National Park,

Thattekad Bird Sanctuary

Parambikulam Wildlife Sanctuary

Source: Economic Review of Kerala, 2014-15, State Budget 2015-16

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

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.

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.

4141JUNE 2017

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$

13.93 million under annual budget 2016-17.

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

its formation.


CULTURAL INFRASTRUCTURE … (2/2)


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))

Source: Department of Tourism, Government of Kerala,

Economic Review of Kerala 2014-15

4242JUNE 2017

As of July 2016, the state has 29 SEZs with formal approvals and 25 notified SEZs. A cyber-park spread over a 68 acre

campus is being developed in Kozhikode.


INDUSTRIAL INFRASTRUCTURE … (1/3)


Source: http://www.technopark.org/

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.


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


As of September 2015, Kochi is proposed to be developed as a smart city in

Kerala. The Kochi smart city would be spread over an area of 246 acres.

In 2015, along with the smart cities, 18 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

SMART CITIES


Source: TechSci Research

Thiruvananthapuram

Kollam

Ernakulam

Thrissur

Kochin

Tiruvalla

List of cities in Kerala covered under AMRUT

Cities Area (sq. km)

Kochi 94.88

Kollam 58.18

Kozhikode 128

Thiruvananthapuram 2,192

Thrissur 101.4

Alappuzha 1,414

Palakkad 1,363

4646JUNE 2017

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

has been allocated by the state government during

2016-17.


KEY INDUSTRIES


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

However, the amount allocated to small scale industries by

the state government during 2016-17 is US$ 16.88 million.

Source: Economic Review of Kerala, 2014-15, News articles

4747JUNE 2017

As of 2014-15, Kerala accounts for approximately 51.7% (in terms

of value) and about 84.8% (in terms of volume) of total coir and coir

products produced in India.

The 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.

During 2015-16, the Government of Kerala announced plans to

establish 150 production units with financial assistance of US$ 0.48

million under Coir Udyami Yojana, 600 units with financial

assistance of US$ 49.76 thousand under Mahila Coir Yojana and 5

units with financial assistance of US$ 16.58 thousand under the

Development of Production Infrastructure scheme.

Under the Budget Scheme 2016-17, the government allocated a

sum of US$ 35.44 million for the development of coir industry in the

state. An additional subsidy of 10%, apart from the subsidy given by

Coir Board, will be provided by the state government to the new

mechanised factories in the production sector.


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


Source: Economic Review of Kerala, 2014-15,

Government of Kerala, Coir Board, News articles

Growth trend of coir units registered in Kerala

8,814.0 8,811.0

3.0

Total Private Public

No. of coir units registered in Kerala

as on March 2015

8744.08773.0 8790.0 8814

9108.0

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


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.

Source: Economic Review of Kerala, 2014-15, Coir Board,

Government of India, Business Line

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

187.6 199.9

294.5 321.0

410.9 429.5

537.0626.6

752.0

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

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.


KEY INDUSTRIES – HANDLOOM AND POWER LOOM



Kerala State Handloom Development Corporation Ltd, Office of the

Development Commissioner

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 2016-17 the state government has

allocated sum of US$ 10.85 million for the handloom and power

loom industries; US$ 2.14 million each for khadi and village

industries and US$ 1.22 million for handicrafts industries.

Funds released under handicraft schemes (2015-16)

(in US$ ‘000)

Ambedkar Hastshilp Vikas Yojna 8.10

Design and Technological Up-gradation 8.25

Human Resource Development Scheme 28.77

Total 45.11

Exports of textile & garments from Cochin SEZ

(US$ million)

17.415.0

12.615.2

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

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

5050JUNE 2017

Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that directlysupport major IT cities, including Bengaluru. According to 2016-17 Annual Plan, an outlay of US$ 73.76 million has been allocatedfor the development of information technology.

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 ITparks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and MuthootPappachan Techno Polis (Kochi).

In 2007-08, the state’s software exports from registered units through Software Technology Parks of India (STPI) were valued atUS$ 298.3 million that reached US$ 626.5 million by 2014-15.

As of July 2016, Kerala has nine 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 jobopportunities 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$ 77.7million in 2014-15.

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

In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup thecountry’s first UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals.


KEY INDUSTRIES – IT … (1/3)


Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15

State Annual Plan

5151JUNE 2017

298.3392.7 412.6 454.6 413.4

644.4 676.6626.5

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15




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 July 2016, 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.

Source: Economic Survey of Kerala, 2014-15

Exports from IT industry (US$ million)

CAGR

11.2%

55.5

82.9 85.6 87.3 77.7

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

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




Tata Consultancy

Services

Infosys

Collabera

RR Donnelley India

Outsource Pvt Ltd

• 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$ 16.59 billion in 2015-16 and US$ 4.37 billion during April-June 2016. 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$ 9.53 billion in

revenue in 2015-16. 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.

• 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.

• 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$ 11.6 billion in 2014-15. 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.



KEY INDUSTRIES – ELECTRONICS … (1/2)

The self contained Electronics Technology Park at

Technopark, Thiruvananthapuram, has been instrumental in

attracting global electronics manufacturers.

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.

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.

As per the budget 2015-16, the tax rate on government

notified electronic goods and systems which is meant for

defence purposes has been reduced to 5%.

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.

Key players

• Traco Cable Company Limited

• Transformers and Electricals Kerala Ltd (TELK)

• Kerala State Electronics Development Corporation

Ltd (Keltron)

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

54.7 66.5 64.7

70.7 76.8

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

Exports of electronic hardware from Cochin SEZ

(US$ million)



KEY INDUSTRIES – ELECTRONICS … (2/2)

Traco Cable Co Ltd

Transformers and

Electricals Kerala Ltd

(TELK)

Kerala State Electronics

Development Corp

(Keltron)

• 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.

Source: Company website and annual report



KEY INDUSTRIES – TOURISM … (1/2)

The tourism sector of Kerala is a significant contributor to the state economy. As of 2014-15, revenue from the tourism sector

accounted for 9.84% share of the state’s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to

US$ 4,106.5 million in 2014.

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 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, State Budget 2016-17

5656JUNE 2017


KEY INDUSTRIES – TOURISM … (2/2)

Source: Economic Survey 2015-16

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.

Domestic tourist arrivals in Kerala (in

million)

Foreign tourist arrivals in Kerala (in million)


8.69.4

10.110.9

11.613.1

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

0.560.66 0.73 0.79 0.86 0.92

1.03

2009-102010-112011-122012-132013-142014-152015-16

DescriptionBudget 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



KEY INDUSTRIES – RUBBER INDUSTRY

Source: Economic Review of Kerala, 2015-16, Rubber Board, Ministry of Commerce and Industry, Government of India

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

accounted for about 69% share in the total rubber production.

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 5.482 lakh hectares in 2013-14 to 5.499 lakh

hectares in 2014-15.

In the budget 2015-16, the state government allocated US$

76.38 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.

Exports of natural rubber from India (‘000 tonnes)

Exports of rubber & plastic products from Cochin SEZ

(US$ million)

30.59

1.00 0.86

20.03

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

7.46 7.30 9.33

12.45 12.51 12.44 14.36

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

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.

5858JUNE 2017

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

variety of spices grown in the state. During 2015-16, overall

production of spices in Kerala stood at 130.44 thousand tonnes and

area under cultivation was recorded at 167.25 thousand hectares.

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

lion’s share in India’s production.

In 2014-15, the state accounted for a pepper production of

40,690 tonnes with only 85,431 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$

46.98 million.

As per the Budget 2016-17, government has allocated funds worth

US$ 1.64 million each for increasing the production of pepper and

cardamom in the state. The state also plans to setup a spices park

each in Idukki and Wayana.

During 2015-16, the state estimates to produce 22000 tons of

pepper and 19500 tons of Cardamom (small).


KEY INDUSTRIES – SPICES…(1/2)


Exports of spices from Kerala

(through Cochin ports) in US$ million


148.05

61.4

103.9988.95

46.98

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

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.

5959JUNE 2017

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 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.


KEY INDUSTRIES – SPICES…(2/2)



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

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

4,014 weavers. This investment is 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.

Source: Ministry of Micro, Small & Medium Enterprises

Production in Khadi and village industries sector

of Kerala (in US$ million)

24.53 24.29

22.18

20.82 20.72

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

Khadi sales value from Kerala (in US$

thousands)

28.38 28.00 28.2826.98

24.64

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

Source: Ministry of Micro, Small & Medium Enterprises

6161JUNE 2017

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.

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.


KEY INDUSTRIES – AYURVEDA



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

6262JUNE 2017

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 0.68 million tonnes.

As of 2015, state has 10 major fishing harbours.

Moreover, the government is planning to sanction

13 new proposals.

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.


KEY INDUSTRIES – FISHERY



Department of Animal Husbandry, Dairying and Fisheries,


Total fish production in Kerala (in million tonnes)

0.68 0.68 0.69 0.69 0.68 0.69 0.680.71

0.63

0.68

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

The state government proposed an outlay of US$ 25.86 million for

the fisheries sector under annual budget 2016-17.

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.


KEY INDUSTRIES – RICE


Total rice production in Kerala (in ‘000 tonnes)

590.24 598.34 522.74 568.99 508.30 564.33 562.09697.30

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

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 is expected to reach US$ 76.38

million during 2016-17.

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

Rice development 5.34

Operational support to padasekhara

samithies for group farming0.68

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


KEY INDUSTRIES – OTHER GROWTH SECTORS


Hospitality, leisure and

entertainment

• 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

Food processing

• 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.

FPI = Food Processing Industry

Source: State Annual Budget 2016-17

6565JUNE 2017

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.



SINGLE-WINDOW APPROVAL MECHANISM

State Board Chief

Secretary

District Boards District

Collector

Industrial Area

Board

An officer not

below the rank

of District

Collector

Source: KSIDC

SWM structure in Kerala

6666JUNE 2017

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 … (1/2)

6767JUNE 2017

Agency Description

Small Industries

Development Corporation

• It provides infrastructure facilities to the small-scale sector through its major and miniindustrial estates.

• It owns and operates production units, raw materials depots, industrial estates/miniindustrial estates, marketing cell/emporia/centres, civil construction division, IT&TCdivision, 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 thedevelopment of large- and medium-scale industries in Kerala.

• Acts as a promotional agency, involved in catalysing the development of physical andsocial 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 purchaseloans and consultancies.



KEY INVESTMENT PROMOTION OFFICES … (2/2)

6868JUNE 2017

Agency Contact information

Directorate of Industries and Commerce

Vikas Bhavan P O ThiruvananthapuramKerala-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

E-mail: [email protected]

KITCO Limited

P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028Phone: 91-484 -4129 000 / 2805 033

Fax: 91-484 -2805 066E-mail: [email protected]



CONTACT LIST … (1/2)

6969JUNE 2017

Agency Contact information

Kerala Industrial Infrastructure Development Corporation (KINFRA)

KINFRA HOUSE, TC 31/2312Sasthamangalam, Thiruvananthapuram - 695 010

Phone: +91-471-2726 585Fax: +91-471-2724 773E-mail: [email protected]

Kerala Small Industries Development Corporation

Housing Board Building, 6th floor, Santhi NagarP B No 50

Thiruvananthapuram- 695 001Phone: 91-471-2330 401, 2330 413, 2330 818,

Fax: 91-471- 2330 904E-mail: [email protected]



CONTACT LIST … (2/2)



KEY APPROVALS REQUIRED…(1/2)

Approvals and clearances required Departments to be consultedMechanism and 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 useState Department of Industries,

Kerala Town and Country Planning Department

Environment approval for the siteKerala State Pollution Control Board and Central

Ministry of Environment and Forests

No-objection certificate and consent under

Water and Pollution Control ActKerala State Pollution Control Board

Approval of construction activity and building

planKerala 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)-Online1

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

7272JUNE 2017

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$ 6.8–15Ministry of Labour and Employment,

Government of India

Water (1,000 litres)Commercial and industrial: US 22 cents to

US 55 centsKerala Water Authority



COST OF DOING BUSINESS IN KERALA

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 … (1/4)

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

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

Objectives

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

Objectives

http://www.keralaagriculture.gov.in/pdf/kn_2015.pdf

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

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




Kerala Technology Startup Policy 2014

• 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

Objectives

Kerala Solar Energy Policy 2013

• 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

Read more

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.Read more

Objectives

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

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

http://www.keralatourism.org/tourism-policy-2012-english.pdf




Kerala Small Hydro Power Policy 2012

• To harness green and clean natural resources in the state for environmental benefits and energy

security.Read more

Objectives

Kerala IT Policy 2012

• To plan, develop and market the state as the most preferred IT/ITeS investment/business

destination in India. Read moreObjective

Kerala State Housing Policy- 2011

• 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 stateRead more

Objective

http://www.kerala.gov.in/docs/pdf/3942_12.pdf

http://www.kerala.gov.in/docs/pdf/3918_12.pdf

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

Objectives

Read more

SEZ Policy 2008

• To make Kerala’s economy more export-oriented by granting various exemptions and

concessions.

Read more

Objective

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.

Read more

Objective

http://www.msmeodisha.gov.in/PDF/MSMED_Act.pdf

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

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

7777JUNE 2017

Kerala liquor policy

• 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. Read more

Objectives

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 Read more

Objectives




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


SUMMITS/CONFERENCES FOR 2016-17

Source: India Conference Alerts


Summit / ConferenceVenue of Summit /

Conference/ExhibitionDate

NIER-International Symposium on Recent Trends in Social Science, Environmental

and Biology (ISRTSSEB-16)Ernakulam 28th August, 2016

International Congress on Advances Nanotechnology and Mechanical

Engineering(ICNTME-16)Thiruvananthapuram 18th September, 2016

IFERP-International Congress on Advances Nanotechnology and Mechanical

Engineering(ICANME-16)Thiruvananthapuram 8th October, 2016

SAIRAP- International Summit on Biotechnology and Environmental Management

(ISBEM-16)Munnar 27th November, 2016

International Conference on Electrical, Electronics, Computer , Civil and

Mechanical Engineering(ICEECCME-16)Thiruvananthapuram 11th December, 2016

7979JUNE 2017

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 67.23

Average exchange rates


ANNEXURE


Source: Reserve Bank of India

8080JUNE 2017

India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been prepared

by TechSci in consultation with IBEF.

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medium by electronic means and whether or not transiently or 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 TechSci and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever as a substitute for professional advice.

TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

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Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission

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