Cultural diversity and well-developed tourism sector

Kerala is known as Gods own country. It is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The states unique heritage and cultural diversity have helped attract tourists from the world over.

Highest literacy and sex ratio

Kerala has the highest literacy rate (93.9 per cent) and sex ratio (1084 women for 1000 men) in India. The literacy rate for the rural population is also the highest in the state.

Largest recipient of foreign remittances in the country

During 2011-12, Kerala received NRI remittances of US$ 10.4 billion; accounting for 14.6 per cent of the total NRI remittances the highest in the country. During 2012-13*, NRI remittances for the state reached US$ 10.7 billion.

Ranks second in Investment Climate Index

Kerala ranks second in the Investment Climate Index below Karnataka according to a policy research working paper by the World Bank. The state came on second position due to its world class infrastructure and well trained human resource pool.

Source: Economic Review of Kerala 2012, http://www.emergingkerala2012.org/infrastructure.php, http://newindianexpress.com/states/kerala/article1412291.ece, *Data till September 2012

Strong agricultural sector

Kerala is a leading agricultural state in the country and the largest producer of rubber, pepper, coconut and coir. In 2011-12, the state contributed 87.3 per cent and 79.1 per cent to Indias total rubber and pepper production, respectively.

First international container transhipment terminal

Kerala has the first international transhipment terminal in India, having a design capacity of around 4 million TEUs and providing better connectivity between Kerala and other ports in India.

Presence of world-class technology park

Kerala has also been promoting knowledge-based industries such as IT/ITeS, computer hardware and biotechnology. It is the first state having a technology park with CMMI level 4 quality certification and a world-class IT campus in Thiruvananthapuram.

Best bandwidth connectivity

Kochi, a city in Kerala, is one of the two spots in India having landing points for submarine cables (SEA-ME-WE3 and SAFE), making it one of the best states in terms of bandwidth connectivity.

Source: Economic Review of Kerala 2012, Kerala IT Policy 2012, http://www.igtpl.com/ Note: TEUs = Twenty-foot equivalent unit

2011

High economic growth Growing demand

Keralas GSDP rose at a compound annual growth rate (CAGR) of 13.8 per cent between 2004-05 and 201112. 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 industry

Kerala has emerged as the countrys number one travel destination as per Googles Search Trends for India in 2012. Foreign and domestic tourist arrivals increased by 11 per cent and 9 per cent, respectively, over 2011-12.

2021E
Foreign tourist arrivals: 3.0 million

Foreign tourist arrivals: 0.7 million

Advantage: Kerala

Rich labour pool

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. The state has over 153 engineering colleges.

The engineering sector is delicensed; support 100 per cent FDI is allowed in the sector has a wide range of fiscal and Kerala
policy incentives for businesses under the Commercial Policy DueIndustrial to policy and support, there was and has well-drafted sector-specific cumulative FDI of USD14.0 billion into policies. the sector over April 2000 February Besides, it hasup a well-developed 2012, making 8.6 per cent of social, total physical and country industrial FDI into the ininfrastructure that period and virtual connectivity; and has good power, airport, IT and port infrastructure.

Policy and infrastructure

Source: Economic Review of Kerala 2012, Tourism Vision 2030, www.keralatourism.com GSDP: Gross State Domestic Product

There are 44 rivers flowing through Kerala, the major ones being the Periyar (244 km), the Bharathapuzha (209 km) and the Pamba (176 km).

Parameters
Capital Geographical area (sq km) Administrative districts (No)
Source: Maps of India

Kerala
Thiruvananth apuram 38,863 14 859

Population density (persons per sq km)*

Kerala is located along the coastline to the extreme southwest 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 coastline of 580 km. Malayalam is the most commonly spoken language. Hindi, English and Tamil are the other languages used.

Total population (million)*

Male population (million)* Female population (million)* Sex ratio (females per 1,000 males)* Literacy rate (%)*

33.38
16.02 17.36 1,084 93.9

Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the state.

Sources: Kerala at a glance, Government of Kerala website, www.kerala.gov.in *Provisional data Census 2011

Parameter Economy
GSDP as a percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP (US$)

Kerala 2011-12
3.8 14.9 1,894.4

All-States 201112
100 15.9 1,434.8

Source

201213
100 15.6** 1,414.2 Planning Commission Databook, 2013, current prices Planning Commission Databook, 2013, current prices Planning Commission Databook, 2013, current prices

Physical Infrastructure
Installed power capacity (MW) Wireless subscribers (No) Broadband subscribers (No)*** National highway length (km) 3,856.4 30,692,668 931,560 1,457 225,133.1 867,803,583 15,050,000 79,116 Central Electricity Authority, as of May 2013

Telecom Regulatory Authority of India, as of March 2013

Telecom Regulatory Authority of India, as of March 2013 Ministry of Road Transport & Highways, as of March 2013

Major and minor ports (No)

Airports (No)

1+17
3

13+187
133

Indian Ports Association

Airports Authority of India

*Calculated in Indian rupee terms, **2004-05 to 2012-13, ***As of December 2011

Parameter Social Indicators

Literacy rate (%) Birth rate (per 1,000 population)

Kerala

All-States

Source

93.91 15.2

74.0 21.8

Provisional data Census 2011 SRS Bulletin (www.censusindia.gov.in), October 2012

Investment
FDI equity inflows (US$ billion) Outstanding investments (US$ billion) 0.9* 169.7 193.3 10,499.2 Department of Industrial Policy & Promotion, April 2000 to March 2013 CMIE (2012-13)

Industrial Infrastructure
PPP projects (No) SEZ (No) 33 21 881 385 www.pppindiadatabase.com Notified as of March 2013, www.sezindia.nic.in

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

At current prices, Keralas GSDP was about US$ 65.8 billion over 2011-12. The states GSDP rose at a CAGR* of 14.9 per cent between 2004-05 and 2011-12. Growth was mainly driven by services and tertiary sectors.
26.5

GSDP of Kerala at current prices (US$ billion)

59.1

65.8

CAGR 14.9%*
34.0

48.9 43.5 44.2

30.9

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Economic Review of Kerala, 2012, http://planningcommission.gov.in Note: GSDP - Gross State Domestic Product *CAGR calculated in Indian rupee terms

2011-2012

At current prices, Keralas NSDP was about US$ 58.6 billion during 2011-12. NSDP expanded at a CAGR* of 15.1 per cent between 2004-05 and 2011-12.
23.3

NSDP of Kerala at current prices (US$ billion)

CAGR 15.1%*
27.2 29.8

58.6

52.5

43.5
38.3 39.2

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in Note: NSDP - Net State Domestic Product *CAGR calculated in Indian rupee terms

2011-2012

The states per capita GSDP was US$ 1,894.4 over 201112 compared to US$ 807.1 during 2004-05. Per capita GSDP increased at a CAGR of 14.0 per cent between 2004-05 and 2011-12.

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

CAGR 14.0%*
932 1,016 1,430 1,292 1,301 1,716 1,894

807

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in *CAGR calculated in Indian rupee terms

2011-2012

Keralas per capita NSDP was US$ 1,688 over 2011-12 compared to US$ 709.0 during 2004-05. Per capita NSDP increased at a CAGR* of 14.2 per cent between 2004-05 and 2011-12.

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

1,688

CAGR 14.2%*
1,136 709 819 893 1,155

1,524 1,270

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in *CAGR calculated in Indian rupee terms

2011-2012

Over 2011-12, the tertiary sector contributed 64.5 per cent to the states GSDP at current prices, followed by the secondary sector (20.4 per cent). The tertiary sector grew at an average rate of 16.7 per cent between 2004-05 and 2011-12. Growth was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The secondary sector rose at an average rate of 13.6 per cent between 2004-05 and 2011-12. Growth was led by manufacturing, construction and electricity, gas & water supply. The primary sector expanded at an average rate of 12.7 per cent between 2004-05 and 2011-12.

GSDP composition by sector

CAGR*
59.6% 16.7% 64.5%

22.5% 17.9% 2004-05 Primary sector

13.6% 12.7%

20.4% 15.1% 2011-12

Secondary sector

Tertiary sector

Source: http://planningcommission.gov.in CAGR calculated in Indian rupee terms

Agriculture and allied sectors contributed 9.1 per cent to Keralas GSDP over 2011-12. Kerala is the leader in pepper production in the country. The state accounted for around 94.3 per cent of total pepper production during 2010-11. India is the fourth largest producer of natural rubber, and Kerala accounts for around 87.3 per cent of total rubber production in India. Total area under crops was around 2,661,757 hectares during 2011-12. In 2010-11, the agriculture income of the state was estimated to US$ 3,535.3 million.

Crop
Tapioca

Annual production (P) in 2011-12 (metric tonnes)

2,567,953

Rubber
Rice Banana Other plantations Arecanut

788,940
568,993 514,054 330,634 121,623

Coffee
Tea Pepper Cashewnut Ginger

68,175
57,903 37,989 36,743 37,130

Cardamom
Turmeric Coconut Pulses

10,222
7,946 5,941* 3,128
Source: Economic Review of Kerala, 2012 P: Provisional, *Million nuts

Exports of coastal and foreign cargo from the Kochi port increased by 23.4 per cent and 28.4 per cent, respectively, during 2011-12. While coastal cargo exports stood at 1.5 million tonnes in 2011-12, foreign cargo exports were at 2.8 million tonnes.

Total exports from CSEZ (US$ million)

6,249.8

CAGR 59.3%*
3,606.6 4,018.4

Exports from CSEZs stood at US$ 6,249.8 million over 2011-12 compared to US$ 1,155.9 million during 2007-08, implying a CAGR* of 59.3 per cent.

2,515.6 1,155.9

Exports break-up, CSEZ (2011-12)

2007-08 2008-09 2009-10 2010-11 2011-12

Sectors
Electronic hardware Electronic software Garments Gem & jewellery Plastic & rubber products Engineering Food & agro Others Total

(US$ million)
97.6 65.5 0.6 5939.4 12.1 15.8 33.7 85.0 6249.8
Source: Economic Review of Kerala 2012 Note: CSEZ - Cochin Special Economic Zone *CAGR calculated in Indian rupee terms

According to DIPP, FDI inflows to the state (including Lakshadweep) totalled US$ 911.0 million from April 2000 to March 2013. Over 2012-13, outstanding investments in Kerala totalled US$ 169.7 billion. The services sector accounted for around 61 per cent of total outstanding investments, followed by the manufacturing sector (17.4 per cent). Some of the recent investments in the state have been the KINFRA International Apparel Parks Ltd (KIAP), KINFRA Film and Video Park, International Convention Centre Complex (ICCC) and Technocity (Phase-IV expansion programme of Technopark) in Thiruvananthapuram; and Technopark Phase-III and a deep water port at Vizhinjam, near Thiruvananthapuram. Projects worth US$ 2.4 billion are scheduled for completion in the next 12 months. Recent investments in the state include the Puthuvypeen LNG Terminal Phase-I (US$ 598.4 million), Lulu Shopping Mall in Kochi (US$ 294.6 million) and Cruise Terminal in Kochi (US$ 50.2 million).

Break-up of outstanding investments by sectors (2012-13)

1.1% 2.1% 9.9% 8.5% 17.4% Electricity

Manufacturing
Services Irrigation Real Estate

61.0%

Mining

Source: CMIE Note: DIPP - Department of Industrial Policy & Promotion

PWD roads constitute 15.3 per cent of total road network. Around 6.66 km of PWD roads are made of cement concrete, 30,744.4 km are black topped and 447.3 km are water bound macadam. Nearly 97 per cent of the total roads are black topped surfaces. The Kerala State Transport Project (KSTP) was established in June 2002 to improve the 1,600 km of state roads and 77 km of inland-canals with the use of geographic information systems. As of September 2012, The Kerala State Road Transport Corporation (KSRTC) provides road transport services in Kerala and operates 5,803 buses.

Source: Maps of India

In Kerala, the Public Works Department has a total road length of 31,811.6 km of state roads and 1,457 km of national highways. The state is well-connected to its neighbouring states and other parts of India through nine national highways. Agencies maintaining roads in Kerala include the Public Works Department (PWD); panchayats; municipalities, corporations; the departments of forests, irrigation, railways; and the Kerala State Electricity Board (KSEB).

Road type
National highways State highways Major district roads

Road length (km)

1,457 4,341.65 27,469.9

Sources: Economic Review of Kerala, 2012 Ministry of Road Transport & Highways

Kerala is well-connected to other parts of the country via railways. As of March 2013, it had a railway network of 1,257 km, with around 200 railway stations and 13 railway routes. The state government has appointed Kerala State Industrial Development Corporation Ltd (KSIDC) as the nodal agency for developing a project to establish a northsouth high speed rail corridor (HSRC) to facilitate smooth and speedy passenger movement between various cities and towns in the state. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala.

Kochi Metro Rail System, High Speed Rail Corridor and Rail Coach Factory at Palakkad are ongoing projects in the state currently. Kochi Metro Rail Phase 1 entails investments of US$ 954.1 million.

Sources: Economic Review of Kerala, 2012 Kerala State Industrial Development Corporation Ltd

Source: Maps of India

Kerala has three airports, handling domestic international flights. They are located Thiruvananthapuram, Kochi and Kozhikode.

and at

The airports together handled 34,444 international flights, carrying 4.7 million passengers; and 30,509 domestic flights, carrying 2.9 million passengers, over 2012-13.

The Cochin International Airport Limited (CIAL) is the first greenfield airport in India, set up in the PPP mode.
CIAL is developing 450 acre of area around the airport as an aerotropolis to support the IT/ITeS Technopark with residential and commercial space. Construction of the proposed international airport at Kannur, spread over 2,000 acres, has started; the airport would have a runway length of 3,400 meters.

Sources: Economic Review of Kerala, 2012, Airports Authority of India Kerala State Industrial Development Corporation Ltd

Airport

Source: Maps of India

There are 18 ports in Kerala, of which Cochin is the major port. Furthermore, there are three intermediate and 14 minor ports. Kerala is constructing the Vizhinjam deep-water international container transhipment terminal at Vizhinjam, 17 km south of Thiruvananthapuram, under the PPP mode.

Ports
Major Ports Intermediate ports

Cochin Neendakara Alappuzha Kozhikkode Vizhinjam Valiyathura Thankasserry Kayamkulam Manakkodam Munambam Ponnani Beypore Vadakara Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode

Minor ports

Sources: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in

Over 2011-12, total trade volume handled at the Cochin port was 20 million tonnes, an increase of 12.4 per cent compared to the previous year. The Cochin port handled 4.7 million tonnes per annum (MTPA) of containers during 2011-12.
15.8

Cochin port traffic (million tonnes)

CAGR 6.2%
15.2 17.4 20.1

17.9

2007-08

2008-09

2009-10

2010-11

2011-12

Sources: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in

The Cochin port is a favourite port-of-call for luxury cruise liners from across the world. During 2012-13, 50 cruises arrived at the Cochin port.

Cruise arrivals at Cochin port

50 44 38

39

Around 58,000 cruise passengers embarked in Kochi in 2011; revenue generated from their visit has been estimated at US$ 11 million.
11

18

19

22

2002-03

2003-04

2004-05

2005-06

2006-07

2009-10

2011-12

Source: Cochin Port Trust

2012-13

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.

As of May 2013, the state had a total installed power generation capacity of 3,856.4 MW, which consisted of 2,290.8 MW under state utilities, 1,369.7 MW under central utilities and 195.8 MW under the private sector. Thermal power contributed 1,704.6 MW to total installed power generation capacity, Hydropower (1,881.5 MW), nuclear power (95.6 MW) and renewable power (174.7 MW) are the other main sources. Keralas state utilities produce 82.1 per cent of its energy through hydroelectric power plants, and the remaining 17.8 per cent through thermal and renewable power generation plants.

Installed power capacity (MW)

CAGR 2.35%
3,514.0 3,553.7 3,827.7 3,718.8 3,856.4

2008-09

2009-10

2010-11

2011-12

2012-13

Source: Central Electricity Authority, As of May 2013

Kerala is among the prominent Indian states to have achieved 100 per cent rural electrification.

In 2009, the government had planned to set up power projects with a total capacity of 4,000 MW in the next 10 years. This would help in reducing energy shortage and promoting new industrial investments. The Energy Policy of Kerala lays down the need to develop renewable energy sources and provides government support for the same. Kerala has become the first state in the country to launch an ambitious programme to generate over 10 MW of solar power. 27 hydel projects having an installed capacity of 539.3 MW are in the pipeline. During 2012-13, US$ 218.2 million was earmarked for the energy sector, a rise of 3.8 per cent over the previous year. Per capita consumption of power in the state was 567 kWh over 2011-12. Kerala State Electricity Boards total reported revenues per annum were US$ 1.7 billion during 2011-12.

Power generating stations in Kerala

Hydel plants under KSEB: 24 KSEB thermal plants: 2 Central-sector (NTPC) owned thermal plant: 1 Private hydel stations: 2

Source: Economic Review of Kerala, 2012

Kerala had an overall tele-density of 96.1 per cent compared to an all-India average of 73.3 per cent, as of March 2013. The state has 1,243 telephonic exchanges. About 98.0 per cent of Kerala's telephone exchanges have internet connectivity through the National Internet Backbone (NIB).

Telecom infrastructure (March 2013)

Wireless subscribers
# #

30,692,668 3,064,818 931,560* 5,067^

Wire-line subscribers

Broadband subscribers Post offices

VSNL has an international communication gateway in Kochi, with two high-speed submarine cable landings (SEAME-WE-3 and SAFE), offering 15 gigabytes per second (Gbps) bandwidth.
According to the Telecom Regulatory Authority of India (TRAI), as of March 2013, Kerala had nearly 30.7 million wireless subscribers and 3.1 million wire-line subscribers (including Lakshadweep). The state is planning to build a telecom city near Technopark in Thiruvananthapuram, with an investment of around US$ 208.6 million.

Telephone exchanges
Teledensity (in per cent)#

1,243*
96.20

Sources: Telecom Regulatory Authority of India, Department of Telecommunications Annual Report 2011-12, Ministry of Communications and Information Technology, India Post *As of December 2011, ^As of January 2013, #Including Lakshadweep

Major telecom operators in Kerala

Bharat Sanchar Nigam Limited (BSNL) Bharti Airtel Aircel Limited Vodafone Essar IDEA Cellular Tata Teleservices Reliance Communications
Source: Telecom Regulatory Authority of India

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 15 projects worth US$ 238 million have been approved over 2006-2012 for the development of urban infrastructure in Thiruvananthapuram and Kochi. 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 improvements, 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.
Construction of the first phase of SmartCity Kochi, a self-sustained industry township project that is a conglomerate promoted by Dubai Holding member TECOM Investments for knowledge-based companies, would be completed within 18 months from the launch of the construction in June 2013. JNNURM projects have been sanctioned for the improvement of water supply, sewerage, solid-waste management and drainage, etc. Kudumbashree, the State Poverty Eradication Mission, is involved in Clean Kerala Business to collect door-to-door household waste and process it for economic benefits.
Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012

Kerala has around 33 PPP projects, spread across sectors such as airports, roads, tourism, urban infrastructure and ports.

Project name
Cochin International Airport

Sector
Airports

PPP type
BOO

Contact authority
Airports Authority of India Department of Road Transport and Highways Bekal Resorts Development Corporation The Greater Cochin Development Authority Vadakara Municipality Bekal Resorts Development Corporation (BRDC) and Kerala Tourism Development Corporation (KTDC) Kerala Industrial Infrastructure Development Corporation

Project cost (US$ million)

63.2

Coimbatore Bypass Road

Development of water supply project at Bekal Kasargod District Development of new bridge connecting Mattancherry and Willingdon Island at Cochin Development of a supermarket at Vadakara Development of resorts at Bekal Kasargod District

Roads
Tourism

BOT-Toll
BOT-Annuity

20.7
3.5

Roads Urban development

BOT-Toll

5.6

BOT-Annuity

3.1

Tourism

BOO

11.4

Kochi Metro-Rail Project

Urban development

BOT-Annuity

663.9

Source: www.pppindiadatabase.com BOT: Build-Operate-Transfer, BOO: Build-Own-Operate

Project name
Six-Laning of Vadakkancherry Thrissur Section Thrissur-Edapalli Trivandrum City Road Improvement Project Vallarpadam Container Transhipment Terminal Vizhinjam Seaport International Four-Laning of Karnataka and Kerala border to Kannur section Four-Laning of Walayar-Vadakkancherry section Kannur-Kuttipuram Package-2 Kannur-Kuttipuram Package-1

Sector
Roads Roads Urban development Ports

PPP type
BOT-Toll BOT-Toll BOT-Annuity

Contact authority
National Highways Authority of India (NHAI) NHAI Kerala Road Fund Board

Project cost (US$ million)

135.3 65.1 72.3

BOT

Cochin Port Trust Directorate of Ports, Government of Kerala

441.8

Ports

BOT-Annuity

1,128.0

Roads
Roads Roads Roads

BOT-Toll
BOT-Toll BOT-Toll BOT-Toll

NHAI
NHAI NHAI NHAI

253.8
149.6 287.9 299.7
Source: www.pppindiadatabse.com BOT: Build-Operate-Transfer

Kerala State Information Technology Infrastructure Limited (KSITI), Kannur

KSITI, Kasargod

Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)

KINFRA, Kakkancherry
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 KSITI, Kollam Electronics Technology Park KINFRA Techno Park Sez- I Technopark Pallipuram Techno Park Sez- II
Source: www.sezindia.nic.in

Hindustan News Print Limited

KSITI, Pallipuram

KSITI, Purakkad

There are seven operational SEZs in the state as of December 2012.

Operational SEZs in Kerala Name/Developer

Cochin SEZ Infopark SEZ Electronic Technology Park-SEZ-I Electronic Technology Park-SEZ-II Cochin Port Trust KINFRA Film & Video Park Cochin Port Trust

Location
Kochi Kochi Trivandrum Trivandrum Vallarpadam Trivandrum Puthuvypeen

Primary industry
Multi-product IT/ITeS IT/ITeS IT/ITeS Port-based Animation & gaming Port-based

Source: www.sezindia.nic.in, SEZ: Special Economic Zone

As of March 2013, Kerala had 29 SEZs with formal approval and 21 notified SEZs.

Some of formally approved SEZs in Kerala Name/Developer

Cochin Port Trust Cochin Port Trust KINFRA Smart City (Kochi) Infrastructure Pvt Ltd Kerala State Information Technology Infrastructure Ltd (KSITIL) Infoparks, Kerala Cochin International Airport Ltd

Location
Puthuvypeen Puthuvypeen, Ernakulam Kazhakoottam, Trivandrum Kakkanad, Ernakulam Cherthalai, Alappuzha Kunnathunad, Ernakulam Ernakulam

Primary industry
Port-based Port-based IT (Animation & Gaming) IT/ITeS IT/ITeS IT/ITeS Airport-based
Source: www.sezindia.nic.in, SEZ: Special Economic Zone

NIMZ

Kerala has sought the central government's approval for the Kochi-Palakkad National Investment and Manufacturing Zone (NIMZ). The NIMZ is proposed to be set up across 20 identified nodes.

State-of-the-art infrastructure

The state would develop state-of the-art industrial & commercial infrastructure across the 20 identified nodes. Other infrastructure facilities required to be created include internal roads, drainages, water treatment plants and gas based power plants for a total capacity of 2,500 MW.

Opportunity

The opportunities available in this project are industrial plots, export and import-related opportunities, packaging services, logistic services, etc.

Total employment potential of around 0.5 million

Kerala expects to generate direct employment for 0.5 million people over five years and indirect employment for 2.5 million people in 10 years.

Note: NIMZ - National Investment and Manufacturing Zone

Kerala has the highest literacy rate among all states in the country. According to the provisional data of Census 2011, the state has a literacy rate of 94 per cent; male and female literacy rates stood at 96.0 per cent and 92.0 per cent, respectively. About 30.0 per cent of total students are enrolled in government schools, 57.0 per cent in government-aided private schools and 13.0 per cent in unaided private schools. Girl students constitute around 49.2 per cent of total student enrolment in schools in the state. Kerala had 1,836 higher secondary schools in 2012. Of these, 755 (41.2 per cent) are government schools, 668 (36.4 per cent) are aided schools, and the remaining 413 (22.5 per cent) are unaided schools.

Educational Infrastructure (2012)

Schools Universities Engineering institutions 12,644* 13^ 153

Arts and Science colleges

Polytechnics

191
49

Sources: Economic Review of Kerala, 2012, University Grants Commission, *As of March 2011, ^As of August 2011

Kerala primary education statistics (2011-12)

Schools (No) Lower primary: 6,784 Upper primary: 2,986 High schools: 2,874 Lower primary: 0.47 Upper primary: 0.32 High school: 0.78 26:1

School dropout rate (%) (2010-11)

Pupil-teacher ratio

Nature of schools
Government Government-aided Unaided

Student strength (in million)

1.26 2.593 0.376

Share of total student strength (%)

29.8 61.3 8.9

Total

4.230

100.0

Sources: Economic Review of Kerala, 2012, University Grants Commission

Kerala is home to premier institutions such as: Indian Institute of Management, Kozhikode Indian Institute of Space Science and Technology, Thiruvananthapuram National Institute of Technology, Calicut National University of Advanced Legal Studies, Kaloor Central Institute of Fisheries Engineering Training, Kochi Nautical and

Technical institutions under Directorate of Technical Education-2012

Institutions
Government technical high schools Government commercial institutes Tailoring and garment making training centres Vocational training centres

Numbers
39 17 42 4

Major medical colleges in Kerala - 2012

Central Institute of Fisheries Technology, Cochin Central Marine Ernakulam Fisheries Research Institute,

Institute of Human Thiruvananthapuram

Resource

Development,

Medical colleges: 22 Dental colleges: 21 Nursing colleges: 111 Ayurveda medical colleges: 17 Homeopathy medical colleges: 5 Siddha: 2

Sources: Economic Review of Kerala, 2012, University Grants Commission

Kerala has a good health infrastructure comprising 840* primary health centres, 25 dispensaries, 226 community health centres and 5,403 sub-centres. As of 2012, there were 1,255 medical institutions with 37,388 beds under the Directorate of Health Services. Currently, of Keralas total healthcare institutions, 46 per cent are under Allopathic, 32.2 per cent under Ayurveda and 22 per cent under the Homoeopathy department.

Health indicators as of 2012

Birth rate* Death rate* 15.2 7.0

Infant mortality rate**

12

Life expectancy at birth (years)

Male Female 71.4 76.3

Health infrastructure as of 2012

Primary health centres: 840 Community health centres: 226 District/taluka/women and children hospitals: 113 Dispensaries: 25 T.B. clinics/centres: 17 Grant-in-aid institutions: 29 Leprosy control units: 3 Sub-centres: 5,403

Sources: Sample Registration System (SRS) Bulletin October 2012 (www.censusindia.gov.in), Economic Review of Kerala, 2012 *Per thousand persons **Per thousand live births

Source: Economic Review of Kerala, 2012

Kerala has been rated as one of the Thirteen Paradises of the World by National Geographic Traveller; it has been promoted as Gods Own Country.
Beaches

Popular tourist locations

Kovalam, Varkala, Marari, Bekal and Kannur Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode Ponmudi, Munnar, Wyanad and Vagamon Periyar Wildlife Sanctuary, Eraviikulam National Park, Thattekad Bird Sanctuary Parambikulam Wildlife Sanctuary

Health and wellness tourism in Ayurvedic medicine has grown tremendously in the recent past. Sri Padmanabhaswamy temple makes the state one of the attractive religious tourism spots in India. Other major temples in Kerala, such as Guruvayoor and Sabarimala, are also major religious attractions.

Backwaters

Hill stations

Wildlife reserves

Sources: Department of Tourism, Government of Kerala, Economic Review of Kerala 2012

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 cities of Kerala have modern amenities for recreation such as golf courses, shopping malls, theatres, caflounges and resto-bars.

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

Sources: Department of Tourism, Government of Kerala Economic Review of Kerala 2012

The state has 29 SEZs with formal approvals and 21 notified SEZs. A cyber-park, spread over a 68 acre campus, is being developed in Kozhikode.

Infrastructure

Project Description
The Technopark at Thiruvananthapuram is spread over 300 acres. Technopark currently hosts over 270 IT and ITeS companies, employing over 40,000 IT professionals. Technopark Phase-II has been declared an SEZ by the Government of India. Technopark will become a 14.54 million sq ft technology park, once its Phase-III is complete. Technoparks Phase-III development is being implemented as an IT/ITeS SEZ, spread over 92 acres. As part of the Phase-IV, named Technocity, Technopark is developing 450 acres of land in Pallippuram, 5 km north from the main campus on the National Highway-47 to Kollam. 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. Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen, at Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam and a non-conventional energy sources SEZ at Kalamassery.
Source: http://www.technopark.org/

Technopark

Infopark

Special Economic Zones

Symbol

Industries
IT Engineering Minerals and mining Handlooms and powerlooms Textile Tiles Canning Coir products Agriculture and forest-based Sericulture Rubber Food products Beedi

District
Kannur Alappuzha Idukki Thiruvananthapuram Thrissur Palakkad Kollam Kozhikode Wayanad

Industries
Handlooms, power looms, beedi Coir products Agriculture and forest-based Handlooms, IT Powerlooms, handlooms, textile, timber, tile, canning Powerlooms, sericulture Minerals and mining Rubber Minerals and mining

Kasargod
Kottayam Ernakulam

Minerals and mining

Rubber, food products, engineering IT

Strategic location on the trans-national trade corridor, rich natural resources, and simple and transparent procedures are favourably suited for investments in major sectors such as tourism and IT/ITeS, manufacturing and mining. Keralas traditional industries include handloom, cashew, coir and handicrafts. KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited), the Directorate of Industries and Commerce and the Small Industries Development Corporation are jointly responsible for the development of industrial infrastructure in the state. Forming industrial clusters and developing infrastructure (such as rubber parks, electronic hardware park, coconut industrial park, organic industrial park and food processing parks) have been integral to the states strategies to attract investments in various industries. The total number of functional micro, small and medium enterprises registered in Kerala was 205,987 as of March 2012. With a total investment of US$ 2.3 billion, these units employed 1,021,162 people and produced goods and services worth US$ 1.2 billion.

To make Kerala a premier global hub for economic activity and create awareness among the investors regarding potential in the state, a global investors meet Emerging Kerala was held in Kochi in September, 2012. In terms of industrial growth, the states average growth from 2004-05 to 2011-12 was 13.6 per cent at current prices.

Key industries in Kerala

Handlooms and powerlooms Rubber Bamboo Coir Khadi and village industry Sericulture Seafood and other marine products Cashew Mining Tourism Food processing Spices and spice extracts IT & electronics
Source: Economic Review of Kerala, 2012

Kerala accounts for approximately 57.0 per cent (in terms of value) of total coir and coir products produced in India. The coir industry provides employment to 375,000 people. The state has three coir parks: two in Alappuzha, and one in Perumon (Kollam). 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.

Export 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 during 2012-13 compared to the previous year.
Keralas total coir exports stood at 71,284 tonnes in 2012-13, which translated to a total value of US$ 117.3 million.

Source: Economic Review of Kerala, 2012,Coir board

Exports of coir and coir products from India reached 429,500 MT (valued at US$ 205.5 million) during 2012-13. 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.
187.6

Exports of coir industry (000 tonnes)

410.9 321.0 429.5

294.5 199.9

The Department of Coir Development, Government of Kerala, organised the world's largest expo on Kerala coir and natural fibre products, Coir Kerala 2013, during 01-05 February 2013 in Alappuzha.
2007-08 2008-09 2009-10 2010-11 2011-12

Business worth US$ 36.8 million had taken place at the trade fair.

Source: Economic Review of Kerala, 2012, Coir Board, Government of India Business India, March 31, 2013

2012-13

The handloom industry employs about 500,000 people, of which 40 per cent are women. It ranks second among the traditional industries of the state in terms of providing employment. Total handloom cloth production increased by about 5 per cent to 27.9 million metres in 2011-12 from 26.7 million metres in 2010-11; the total value of production grew by around 6 per cent to US$ 42 million from US$ 40 million during the same period. The states handloom industry is mainly concentrated in the districts of Thiruvananthapuram and Kannur and in some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod. The central government granted US$ 0.8 million for setting up Indian Institute of Handloom Technology in Kaloor (Kochi), and a Handloom and Handicrafts Village in Chenamangalam (Ernakulum), which would have a government facility centre, a design bank and a museum. At the end of March 2011, there were 648 registered Primary Handloom Weavers Co-operative Societies (PHWCS), consisting of 167 factory-type societies and 481 cottage-type societies. Around 94.0 per cent of the total number of looms are under the cooperative sector, the remaining being under industrial entrepreneurs. Keralas four integrated powerloom co-operative societies in Calicut, Wayanad, Neyyattinkara and Kottayam have been expanded by providing budgetary support.

The Calicut Integrated Powerloom Co-operative Society Ltd has been converted into a textile park comprising all the segments of a composite mill (weaving, processing and garment making). At the society, semi-automatic powerlooms, automatic looms and highly sophisticated machines are operational.
Source: Economic Review of Kerala, 2012

Kochi has emerged as an unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT cities including Bengaluru. The annual plan outlay for information technology during 2012-13 is 27 per cent higher than that for 2011-12. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 per cent). The state has a techno park in Thiruvananthapuram, info park in Kochi and cyber park in Kozhikode. It also has private IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Trivandrum), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi). Over 2012-13, the states software exports made by registered units through Software Technology Parks of India (STPI) were valued at US$ 644.4 million. There are three operational IT/ITeS SEZs in the state (one in Kochi and two others in Trivandrum).

Source: Kerala IT policy 2012, Cybex, Indiaitnews Economic Review of Kerala 2012

IT exports from Kerala increased at a CAGR* of 23.8 per cent between 2007-08 and 2012-13. Operational costs in the state are among the lowest in India (40 per cent lower as compared to other major IT locations in India). Also, rental/real estate cost is lower than major IT cities in the country.

Exports from IT industry (US$ million)

CAGR 23.8%*
392.7 298.5 412.6 454.6 413.4 644.4

Around 11 per cent of the national IT pool is contributed by skilled human resources from Kerala.
Kerala has a strong e-governance infrastructure and is a leader state in e-governance. The governments objective is to achieve direct employment of up to 0.5 million in the ICT sector and to have 3,000 technology start-ups by 2020.
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Kerala IT Policy 2012 Software Technology Parks of India, Cybex, Indiaitnews Note: ICT = Information and Communication Technology *CAGR calculated in Indian rupee terms

Tata Consultancy Services

Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO) services in India. TCS employed more than 276196 IT consultants in 42 countries and generated revenue of US$ 11.6 billion in 2012-13. TCS provides IT consulting and services in banking, financial services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation, travel and hospitality, retail, utilities and energy resources sectors. It has a software development and training centre at Technopark in Thiruvananthapuram.

Infosys

Established in 1981, Infosys employs around 156,688 people. The company generated US$ 6.8 billion in revenue over 2012-13. 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 29 countries and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre at Technopark, Thiruvananthapuram.

Collabera

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 8,000 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, Trivandrum.

RR Donnelley India Outsource Pvt Ltd

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$ 10.2 billion in 2012. 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, Trivandrum.

The self-contained Electronics Technology Park at Technopark, Trivandrum, has been instrumental in attracting global electronics manufacturers.

Key players

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 the production of electronic hardware items. In November 2012, Hindustan Aeronautics Limited has set up phase-I of an electronics factory at the cost of US$ 12.1 million at Kasargud to produce advanced avionics for aircraft and helicopters. Development of the factory will lead to the growth of subsidiary industries, which in turn will generate secondary employment opportunities and augment skill-sets in this area.

Traco Cable Company Limited Transformers and Electricals Kerala Ltd (TELK) Kerala State Electronics Development Corporation Ltd (Keltron)

Source: Economic Review of Kerala, 2012 Business Standard, November 2012

Traco Cable Co Ltd

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, with factories in Ernakulam, Kannur and Thiruvalla.

Transformers and Electricals Kerala Ltd (TELK)

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. In 2012. TELK won the Kerala Safety Award for very large factories in the engineering category. TELK provided its first 400KV Class Transformer, 315MVA Auto Transformer and Generator Transformer for India's first 500MW Thermal Unit.

Kerala State Electronics Development Corp (Keltron)

Founded in 1973, Keltron is a state-owned electronic enterprise, employing around 1,800 people and has 10 production centres. It provides technical manpower to major organisations such as Oil and Natural Gas Corporation Limited (ONGC). The companys 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. Recently the company bagged an order of US$ 4.6 million from Chennai-based BGR Energy System Ltd. The order was for manufacture, supply, assembly and commissioning of sixteen UPS systems, inverters, battery and boost chargers. Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala.

Tourism is a primary economic activity in Kerala. The sector contributes about 9.0 per cent to the states GDP. Total revenue (including direct and indirect) from tourism rose by around 10 per cent yoy to US$ 4.0 billion during 2011-12. Kerala became the number one travel destination in the Googles Search Trends for India in 2012. Kerala Tourism bagged four of the top honors at the Pacific Asia Travel Association (PATA) Awards 2011 for outstanding achievement in tourism announced in Bangkok. Kerala Tourism has won many national and international awards. The state has been voted the Best Asian Holiday Destination 2010 by SmartTravelAsia.com, ahead of other destinations such as Bali, Phuket and Maldives. 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 also 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.

Source: Economic Review of Kerala, 2012 www.keralatourism.org

Arrival of domestic and foreign tourists in Kerala increased at a CAGR of 8.8 per cent and 15.5 per cent, respectively, over 2009-2011. Major initiatives of Kerala Tourism: Responsible Tourism (RT), an innovative and farreaching concept, is an initiative implemented at four destinations, Kovalam, Kumarakom, Thekkady and Wayanad. Medical tourism, promoted by traditional systems of medicine such as Ayurveda and Siddha, is becoming widely popular in the state and is attracting increasing numbers of domestic and foreign tourists. Meetings, Incentives, Conferences and Exhibitions (MICE) Tourism, which involves bringing a group together for some special purpose, is now being promoted heavily by Kerala Tourism. Eco-Tourism, Muziris Heritage Tourism and Kerala Seaplane Services are some of the other major ongoing projects in Kerala.

Domestic tourist arrivals in Kerala (in million)

9.38

8.60 7.91

2009

2010

2011

Foreign tourist arrivals in Kerala (in million)

0.73 0.66 0.55

2009

2010

2011

Source: Economic Review of Kerala, 2012, www.keralatourism.org, Ministry of Tourism, Government of India Note: Responsible Tourism - Responsible Tourism is tourism 'that creates better places for people to live in, and better places to visit

Kerala is the leader in rubber production; 87.3 percent of the total rubber production in the country is from Kerala. Natural rubber production in Kerala was 0.8 million MT during 2011-12, a 2.4 per cent increase over 2010-11. Export of natural rubber increased at a CAGR of 4.1 per cent between 2009-10 and 2011-12. Consumption of natural rubber in the country rose by 1.8 per cent during 2011-12 compared to that in the previous year. KINFRA, through a JV with the Rubber Board, has developed Indias first rubber park in Kochi. Kerala also has a major rubber cluster in Kottayam.

Export of natural rubber from India (000 tonnes)

29.9 25.1 27.1

15.6

2009-10

2010-11

2011-12

2012-13*

Consumption of natural rubber in India (000 tonnes)

947.7 964.4

818.3

2010-11

2011-12

2012-13*

Source: Economic Review of Kerala, 2012, Rubber Board, Ministry of Commerce and Industry, Government of India Note: JV = Joint Venture, MT = Metric tonnes, *April 2012 to January 2013

Kerala can be termed as a land of spices, considering the large variety of spices grown in the state. The value of spices exports from Kerala increased at a CAGR* of 26.1 per cent between 2007-08 and 2011-12. Kerala accounts for about 90 per cent (based on value as well as volume) of total pepper exports from India. The area under pepper production in the state is estimated at 85,000 hectares; pepper production is projected at 38000 MT during 2011-12.

Exports of spices from Kerala (through Cochin and Trivandrum ports) in US$ million
667.6

CAGR 26.1%*
413.7 314.1 320.4 307.3

2007-08

2008-09

2009-10

2010-11

2011-12

Kerala constituted 79.1 per cent of the countrys total pepper production in 2011-12.

Source: Economic Review of Kerala, 2012 Spices Board India MT = Metric tonnes *CAGR calculated in Indian rupee terms

Khadi and village industries have been an integral part of the traditions of Kerala. There is immense scope for investments in the field of khadi, due to higher demand for khadi products such as silk sarees (Payyannur pattu and Chithali silk), cotton sarees, Kuppadam dothies, bedspreads and towels. The Kerala Khadi and Village Industries Board is the statutory body in the state. Khadi goods worth US$ 6.5 million, up by 14.8* per cent over the previous year, have been sold through 216 sales outlets of Kerala Khadi & Village Industries during 2011-12. Expansion and modernisation of the sliver project in Ettukudukka, and marketing and strengthening of the weaving sector are some of the major schemes in the khadi sector to develop domestic and export markets over 201213.

Total sales of khadi products from sales outlets of Kerala Khadi & Village Industries (US$ million)
6.5

6.0

2010-11

2011-12

Source: Economic Review of Kerala, 2012 *Calculated in Indian rupee terms

There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products such as skin care, hair care, body care and ayurvedic tooth paste. 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. 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 majors such as Oushadhi, Vaidyaratnam Oushadhasala and KP Namboodiris. Total sales of Oushadhi, the biggest ayurvedic drug manufacturing unit in India, rose at a CAGR of 16.6 per cent between 2007-08 and 2011-12. The company recorded sales of US$ 12.2 million over 2012-13 compared to US$ 9.0 million in the previous year. The company expects to achieve total sales of US$ 36.8 million in 2015.
Source: Economic Review of Kerala 2012, News articles *CAGR calculated in Indian rupee terms

The state has a long coastline of over 580 km and innumerable water bodies, generating a huge potential for inland and marine fishing, and providing it a prominent position in fish cultivation. Among maritime states in India, Kerala ranks second in marine fish production. Total fish production in the state increased by 1.8 per cent year-on-year to 0.693 million tonnes in 2012. The production of marine fish in the state during 2011-12 was 0.553 million. The Government of Kerala has implemented nine fishing harbours so far; works of other eight harbours are in progress.

Total fish production in Kerala (in million tonnes)

0.693 0.687 0.686 0.678 0.677 0.681

2007

2008

2009

2010

2011

2012

Source: Economic Review of Kerala, 2012

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 Ltds 5-star hotel and Banyan Tree Hotels & Resorts.

Food processing

Food processing is a sunrise sector that has gained prominence over the recent years in the state. FPI in Kerala is constituted by organised as well as unorganised units. Spices, pickles and marine products are the major food product exports from Kerala. Kerala has Indias 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. To promote food processing, agriculture and allied sectors, Kerala Agri Food Pro Meet 2013, which was a technology meet, was held in Kochi.

Note: FPI = Food Processing Industry

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 that are required by small scale industries. The District Collector of the respective district is Chairman and General Manager of the Board; the District Industries Centre (DIC) is the convenor for such boards. 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.

SWM structure in Kerala

State Board

Chief Secretary

District Boards

District Collector

Industrial Area Board

An officer not below the rank of District Collector

Source: KSIDC

Agency

Description
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), a Spices Park (Idukki) and a Rubber Park (Pathanamthitta). KINFRAs four upcoming projects include a marine park (in Beypore), a technology park (Ramanattukara), a food park (at Wayanad) and an industrial park (Palakkad). 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 & market studies and by conducting training programmes for entrepreneurship development. 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.

Kerala Industrial Infrastructure Development Corporation (KINFRA)

KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) Directorate of Industries and Commerce

Agency
Small Industries Development Corporation

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

Purpose:

Formed in 1961 with an objective of promoting, stimulating, financingand facilitating the development of large and medium scale industries in Kerala. Acts as a promotional agency, involved in catalysing the development of physical and social infrastructure required for the constant growth of industry.

Kerala State Industrial Development Corporation (KSIDC): the singlewindow clearance and monitoring agency

Composition:

Consists of a group of professionals from various fields including engineering, management, finance and law. Services offered include project lending, single-window clearance, equipment purchase loans and consultancies.

Agency

Contact information
Vikas Bhavan P O Thiruvananthapuram Kerala-695 033 Phone: 91-471-2302 774 Fax: 91-471-2305 493 E-mail: tvm_dindust@sancharnet.in T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram-695 003 Phone: 91-471-2318 922 Fax: 91-471-2315 893 E-mail: ksidc@vsnl.com P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028 Phone: 91-484 -4129 000 / 2805 033 Fax: 91-484 -2805 066 E-mail: mail@kitco.in

Directorate of Industries and Commerce

Kerala State Industrial Development Corporation Limited (KSIDC)

KITCO Limited

Agency

Contact information
KINFRA HOUSE, TC 31/2312 Sasthamangalam, Trivandrum-695 010 Phone: +91-471-2726 585 Fax: +91-471-2724 773 E-mail: kinfra@vsnl.com Housing Board Building, 6th floor, Santhi Nagar P B No 50 Thiruvananthapuram- 695 001 Phone: 91-471-2330 401, 2330 413, 2330 818, Fax: 91-471- 2330 904 E-mail: sidcoho@yahoo.com

Kerala Industrial Infrastructure Development Corporation (KINFRA)

Kerala Small Industries Development Corporation

Approvals and clearances required

Incorporation of the company Registration, Industrial Entrepreneurs Memorandum, Industrial Licences Allotment of land Permission for land use Environment approval for the site No-objection certificate and consent under Water and Pollution Control Act Approval of construction activity and building plan Sanction of power Registration under States Sales Tax Act and Central and State Excise Act

Departments to be consulted
Registrar of Companies District Industries Centre for small scale industries and KSIDC for large and medium industries State Department of Industries/KSIDC/KINFRA State Department of Industries, Kerala Town and Country Planning Department Kerala State Pollution Control Board and Central Ministry of Environment and Forests Kerala State Pollution Control Board Kerala Town and Country Planning Department Kerala State Electricity Board (KSEB) Sales Tax Department, Central and State Excise Departments

Mechanism and estimated time

Single-window clearance: The states 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 timeframe.

Cost parameter
Industrial land (per sq m) Five-star hotel Office space rent (per sq ft) Residential space rent (2,000 sq ft house) Power (per kWh) Labour (minimum wages per day)

Cost estimate
US$ 33-190 (Cochin) US$ 142-415 per room per night US$ 0.6-3 per month US$ 350-750 per month Commercial and industrial: US 6.5 cents to US 16 cents US$ 2.3 6.8 Commercial and industrial: US 22 cents to US 55 cents

Source
Industry sources Leading hotels in the state Industry sources Industry sources Kerala State Electricity Board Ministry of Labour and Employment, Government of India Kerala Water Authority

Water (1,000 litres)

Sources: Kerala Government websites and industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority

Kerala Tourism Policy 2012

Objectives

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

Kerala Small Hydro Power Policy 2012 Objective

To harness green and clean natural resource in the state for environmental benefits and energy security.

Read more

Kerala IT Policy 2012

Objective

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

Read more

Sports Policy 2012

Objectives

To provide equal opportunities to all citizens of the state for participation in sports. To promote excellence in sport, with the athlete as the central character. To develop, maintain and optimally utilise high quality sports infrastructure. To encourage, train and support talented sports persons in large numbers.

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Industrial & Commercial Policy 2011 (Draft) Objectives

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.

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SEZ Policy 2008 Objective

To make Keralas economy more export-oriented by giving various exemptions and concessions.

Read more

Kerala Biotechnology Policy 2003 Objective

The policy focuses on catalysing the development and application of biotechnology while taking advantage of the states resources and keeping global requirements in perspective.

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Exchange rates Year

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

INR equivalent of one US$

44.95 44.28 45.28 40.24 45.91 47.41 45.57 47.94 54.31
Average for the year

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