Kerala's Investment Policies Will Continue Despite Government Change: Minister Shri P. K. Kunhalikutty

Thiruvananthapuram, July 28: Kerala's industrial investment policies will continue despite change in government, Minister for Industries, Commerce, IT and AI, Shri P K Kunhalikutty said today, while affirming the state's commitment to providing policy stability for investors.

"Ministries may come and go, but policies will stay," Shri Kunhalikutty said, addressing leading industry representatives from across the state during a ‘consultation with industry stakeholders’ organised by the Kerala State Industrial Development Corporation (KSIDC) Ltd., under the aegis of the Department of Industries & Commerce, Government of Kerala, here.

The projects announced under the Invest Kerala initiative would continue as planned, the minister said.

The government is all set to roll out three major initiatives - the Investment Advisory Council, Invest Kerala Cell, and Kerala Desks abroad - as part of the government's 100-day programme.

The government is also working on a comprehensive investment ecosystem aimed at transforming the state from a remittance-dependent economy to an investment-led growth model, he said.

The industry feedback will be sought before finalising the initiatives, which are expected to be implemented through executive orders and legislative measures, he said.

About the state's investment agenda, Shri Kunhalikutty said the government is taking steps to establish a Board and a Council for investment promotion, while according the highest priority to Ease of Doing Business reforms.

He stressed that the government's approach and policies will remain favourable towards entrepreneurs and investors, underlining Kerala's growing reputation as an investment destination.

"Kerala is now widely regarded as one of the most suitable destinations for starting businesses and making investments. The state is the go-to destination for industries in India now," he said.

According to the minister, investor grievances have come down significantly, aided by improvements in technology and infrastructure across the state. He noted that Kerala has witnessed substantial growth in the IT and technology sectors and has the potential to emerge as one of India's leading investment destinations if it further strengthens skill development initiatives.

"If we can further strengthen skill development in these sectors, Kerala can emerge as one of India's most important investment destinations," he said.

Highlighting the ongoing technological transformation, he said Kerala has made considerable progress in embracing new technologies.

"Investments will be welcomed irrespective of political affiliations, whether they come from supporters of the ruling party or the opposition," he said.

Seeking to reassure the business community, the Minister said the government will give serious consideration to the suggestions and demands put forward by industrialists and investors. He added that certain issues relating to the plantation sector and the availability of land required for industrial development would require further discussions and consultations.

Welcoming the participants, Shri Arun K. Vijayan, Managing Director, KSIDC, and Director, Department of Industries & Commerce, said the proposed industrial framework is aimed at making Kerala an attractive destination for investments across all segments, from large industrial projects to MSMEs, besides encouraging Non-resident Keralites (NRKs) to participate in the state's economic growth.

The proposed Investment Advisory Council, to be chaired by the Chief Minister, will provide strategic policy guidance and serve as a structured platform for industry leaders to present recommendations directly to the government. The council will include ministers, senior bureaucrats and representatives from industry and academia, he said.

The Invest Kerala Cell, to be housed within KSIDC, will act as a single-point contact for investors for offering end-to-end handholding through dedicated relationship managers. The cell will assist investors with land identification, statutory clearances, financing support, project facilitation and coordination across government departments. It will also develop a pipeline of investment-ready projects and create a database of available public land and business opportunities, Shri Arun K Vijayan said.

To strengthen overseas engagement, the government plans to establish Kerala Desks abroad in Dubai, London, New York, Singapore and Tokyo. These offices will promote Kerala as an investment destination and encourage the state's global diaspora to channel capital into investments rather than supporting the state solely by remittances.

Shri APM Mohammed Hanish, Additional Chief Secretary, Industries & Commerce, said the Kerala desks abroad need to be restructured to serve as channels for directing investments to Kerala. The proposed Investment Promotion Board, chaired by the Chief Minister, will have statutory powers, helping address concerns and streamline approvals across various government departments, he added.

During the interaction with the Minister, industry stakeholders urged the Government to take the lead in creating a Land Bank to promote industrial development and attract investments.

Among the key suggestions made by the stakeholders were granting statutory status to KSIDC, ensuring time-bound approvals from the Pollution Control Board and the Department of Mining and Geology and addressing shortcomings in the K-SWIFT portal to enable faster clearances from all departments.

Industry representatives also favoured establishing a specialised unit for industry and information technology under the Industries Department as part of the Mission Samudra initiative announced in the budget. They called for greater clarity on the implementation of labour codes in Kerala and the formulation of a master plan for the cashew industry.

Other suggestions included transferring the licensing authority for industries from local self-government institutions to the Industries Department to streamline approvals and improve ease of doing business.