The document outlines business opportunities and the industrial policy in Kerala. It highlights Kerala's strategic location, skilled workforce, infrastructure and natural resources as advantages for investment. Key sectors identified for growth include tourism, IT, traditional industries like coir, spices and handicrafts. The government aims to promote MSMEs, large industries, clusters and public enterprises through schemes like the Entrepreneur Support Scheme. It provides various incentives, subsidies and assistance to investors to develop the state as an attractive destination for business.

1. IDENTIFICATION OF
BUSINESS
OPPORTUNITIES

2. INTRODUCTION
 Kerala is rich in natural resources
 Offers the top quality infrastructure
support to the investors in Kerala.
 Apart from the high quality manpower, it
provides enough intelligent and well
trained personnel for all types of job.
 It has excellent transportation and
communication networks.
 It has attained worldwide approval for its
achievements

3. BUSINESS OPPORTUNITIES IN
KERALA
1. The Kerala Advantage:
a. strategic location
b. well connected road and rail network
c. International airports
d. international seaport
e. communication network
f. highest density of science and technology personnel
g. literate workforce
h. highest physical quality

4.  Advanced society
 Abundance of natural resources
 Industry
 NIP
 Pro-active government policies
 Accelerated Industrial growth is nearly 9%
 Ready made infrastructure
 A good management culture
 Necessary assistance is provided for
marketing
 Transparent procedure

5. 2. High quality human capital and social
development
3. Traditional areas of strength
4. Economically successful diaspora
5. Top quality infrastructure
6. Investment climate

6. Industrial and commercial policy
of Kerala - 2007
 The Government recognizes that there should be a basic
measure of agreement between the various stakeholders
and interest groups about the desired policy objectives,
the means of their attainment; between present and
prospective investors, the workforce and trade unions,
and informed public opinion for promoting rapid industrial
development.

7.  The vision of the Government is to convert Kerala into an
investment friendly destination and to achieve constantly
high economic growth with specific thrust to social objectives,
without adversely affecting ecology and environment and to
create employment opportunities for the people in Kerala and
ensuring them fair wages

8. OBJECTIVES
 Convert kerala into a favoured destination
 To enable growth, revival and
diversification of state level public
enterprises
 To strengthen and modernization of
traditional industries
 To accelerate the fast growing services
and commerce sector

9. To develop kerala as a global centre
of excellence with safe of the art
education and skill sets and
preparing a pool of multi skilled,
technically competent individuals
and organizations.
To create additional employment
To sustain industrial and economic
growth

10. STRATEGY
 Develop industrial facilities through KSIDC,
KINFRA, DIC, SIDCO and private sector
 To encourage industrial corridors/ cluster
development in potential locations
 To restructure and retain potentially viable
SLPEs
 To focus on Agro based industries & products
 To promote/ help facilitate establishment
 To promote local entrepreneurship through
institutional mechanism and mass
participation

11. To work in coordination with
chamber of commerce/ industry
associations
To improve investment climate
To attract FDI with specific criteria
To ensure time bound clearances
To exploit mineral wealth
To move towards a low tax, high
growth regime

12. MEASURES TO SPEED UP
INDUSTRIAL GROWTH
1.Traditional sector industries
2.SLPEs
3.MSMEs
4.Large scale enterprise
5.Manufacturing and service sectors
6.Cluster development program
7.Infrastructure development

13. 1. Traditional sector industries
A. HANDLOOMS :
i) revitalizing of handloom cooperatives
ii) Strengthening existing handloom clusters
iii) Encouraging establishment of handloom industrial units
iv) Development of regional brands
v) Development of high quality infrastructure facility
vi) Encouraging domestic use of handlooms
vii) Strengthen quality raw material distribution system
viii) Ensuring smooth credit flow

14. B)TEXTILE SECTOR:
i. The textile mills in the public
sector and cooperative sector
will be re-engineered
ii.Technical textiles
iii.Made-Ups

15. C) POWER LOOMS :
i. Special projects will be launched
ii. Clustering of facilities will be extended
iii.The demonstration cum training centre
of directorate of handlooms and
textiles will be upgraded

16. D) HANDICRAFTS, HERITAGE PRODUCTS &
SOUVENIR INDUSTRY:
i. Project based support will be rendered
ii. Cluster based development will be encouraged
iii.Skill development training and common facility
centres
iv.Heritage homes and souvenir industry will be
developed
v. Resource and market focus design for
handicraft products
vi.Industries department will work closely with
tourism sector

17. E) COIR:
i. To ensure conversion of minimum 50% husk
produced in the state into fibre and to promote
raw husk defibering mills in hinterlands
ii. Raw material and marketing consortiums of small
scale producers, cooperative societies und CDP
iii.Accumulated stock of coir and coir products will
be procured
iv.A brand image for Kerala coir will be created
v. Modern coir factory will be set up
vi.KSCMF ltd, KSCCFM ltd will be restructured
vii.Special thrust for Geo- Textiles Development
Programme

18. F) Khadi & Village Industries
G) Sericulture
H) Bamboo
I) Cashew
J) Beedi
K) Tiles
L) Plantation

19. SLPEs
 Marginal players
 Support from industrial reconstruction agencies,
banks and FI s will be facilitated
 Comprehensive enterprise specific restructuring
plans will be formulated
 Gvt will facilitate strategic tie ups
 Gvt will encourage merging of SLPEs having same
lines of business
 Gvt reiterates its commitment to protect
productive employment in SLPEs

20.  Excess or unused land of SLPEs will be utilized for industrial
and commercial purposes of the Gvt.
 Suitable profitability linked incentives schemes and profit
linked incentives scheme will be implemented
 Professionals will be appointed as CEOs in SLPEs. Selection
of CEOs will be done by the selection board
 To facilitate implementation of best practices in board level,
governance of SLPEs, the director boards will be
strengthened with representatives.
 Constitution of board level commities, as per relevant
statutes, will be ensured.
 Internet based performance monitoring system will be setup
in public sector RIAB
 Strengethening the nterface between the SLPEs and the
government.

21. MSMEs
 DIC will be made effective
 Funds from the decentralized plan devolved to the local
self government institutions will be effectively leveraged.
 Government shall focus on nurturing innovative high
growth MSMEs
 Government shall create a knowledge based pro
enterprise environment.
 A system of decentralized production, centralized
marketing, centralized designing and centralized quality
control will be actively pursued.
 Priority will be for utilisation of unused land of local
bodies

22.  preference., exemption of EMD/security deposit and free
tender forms
 DIC will be revamped
 Joined inspection by all departments/agencies on prior
notice will be enccoraged

23. LARGE SCALE ENTERPRISES
 All efforts shall be put in to attract massive investments
in the large scale enterprises
 All industrial units with a capital investments of rupees
100crores and above will be treated as mega projects
 Preference will be given to the units, which use
environment friendly technologies and creating
employment oppurtunities to local people.
 Government will offer special package of fiscal benefits
in deserving cases

24. INDUSTRIAL PROMOTION
ACTIVITIES OF GOVERNMENT OF
KERALA
A. DIRECTORATE OF INDUSTRIES AND COMMERCE
 Co-ordinates all industrial activities of the state
 Implements schemes as envisaged in the industrial
policies
 Develop small scale industries in a planned manner
 Acts as an interface between small scale industries and
government
 Monitors the implementation
 Keep data base
 Organises technology clinics, entrepreneurship
development programmes

25.  Participate in fairs, exhibiting etc.provide common
facility to enterprenuers
 Co-ordinates activities of coir development and
handloom and textiles.
 Issues essentiality certificates for controlled items of
rawmaterials
 Convenes state level committees of sales tax and state
invest subsidy.
 Acts as registrar of co-operative societies

26. B. INDUSTRIES PROMOTIONAL
INSTITUTIONS
1. Kerala State Industrial Develpoment corporation
(KSIDCs)
2. Kerala Financial Corporation (KFC)
3. Kerala Industrial Infrastructure Development Corporation
(KINFRA)
4. Technopark
5. Kerala State Export Trade Development Council
(KERAXIL)
6. Kerala Bureau Of Industrial Promotion (K-bip)

27. C. INCENTIVES AND SUBSIDIES
 Government of kerala provides various
incentives and subsidies to entreprenuers
thereby motivating them to undertake
ventures in the state.

28. ESS
 Entrepreneur support scheme
 In 2012, government of Kerala introduced
ESS with a view to assist entrepreneurs in
the state
 It aims to merge and replace all the
previous schemes

29. OBJECTIVES OF ESS
Provide extensive support to
micro small and medium
enterprises
Give one time support to
entrepreneurs

30. ROLE OF INDUSTRIES
DEPARTMENT
 Identify entrepreneurs and motivate them
 Provide project ideas/project profiles/project feasibility
advice/ business management advice/ guidance
 Give appropriate technology sourcing
 Provide information on the availability of infrastructure
 Conduct seminars / entrepreneurship programmes/
exhibition to assist stakeholders
 Issue due acknowledgement

31.  Provide all requisite handholding services
 Extend facilitation and personal
supervision service
 Act as a liaison with financial institution
 Prepare and forward technical feasibility
records
 Assist the units to get necessary
 Extend financial assistances
 Organise/assist ED club
 identify and revive sick units

32.  Assist revival of industrial clustors and co-
operative societies
 Implement other department/ government
of india schemes
 Acquire, develop land for the benefit of
investors
 Act as a sounding board
 Issue all essential documentation
 Create and extend infrastructural
requirement
 Promote entrepreneurship
 Care for the environment

33. IMPORTANT DEFINITIONS
 Entrepreneur : a person who has filed
entrepreneur memorandum as per MSMED
Act 2006 before the industry department
and has taken effective steps to setup an
industrial units
 Enterprise : An industrial unit falling under
micro, small or medium category in the
MSMED Act 2006

34.  Women enterprise: An enterprise in which at least
50% of the promoters are women
 Young entrepreneur : An entrepreneur between the
age of 18 and 45
 Scheduled cast and scheduled tribe entrepreneur:
An entrepreneur belonging to SC or ST under the
constitution amendment (SC) order, 1950/ the
constitution amendment (ST) order,1950
 Negative list: list of industries declared by
government from time to time, which are not to be
encouraged by giving any government financial
assistance
 Sanctioning authority: GM,DIC in case of
assistance for start up support. The district level
committee in case of technology support and
district/ state level committees in case of
investment support

35. Eligibility for applicants
 all micro,small and medium enterprise engaged in
manufacturing activities and set up in the state,
which had registerd under Udyog Aadhar shall be
eligible for this assistance.
The applicant has to
 Apply in the prescribed procedures
 Provide necessary documentation and accounts
 Execute an agreement which the notified authority
to avail assistance

36. AMOUNT OF SUBSIDY
 Limited to an amount of Rs 30 Lakhs per applicant
unit to be availed once
 The upper limit of RS 30 lakhs shall be enhanced
by 5% per annum during the period of operation of
the scheme
 Subject to the maximum limit the assistance shall
be limited to fixed percentage of the composite
investment upon (a) Land, (b) Land development
costs, (c) building and improvement charges, (d)
essential office infrastructure, (e) fixed cost of
plant and machinery, (f) electrification,(g)
generators and associated equipments

37. Categories of applicants
i) An assistance of 15% limited to Rs. 20
lakh will be payable on the fixed capital
investment
ii) All micro, small, medium enterprises
established by entrepreneurs belonging to
women, SC and ST and young
entrepreneurs shall be eligible for an
assistance of 20% of the fixed capital
investment limited to Rs 30 lakhs

38. iii) All micro, small, medium enterprises included under priority
sector shall be eligible for an additional assistance of 10% of FCI
subject to a ceiling of 10 lakhs
Priority sector
a) Rubber based industries b) agro based and food processing
c)Readymde garments d) industries manufacturing equi
e)Biotechnology based e) plastic waste recycling

39. iv) In the case of all micro, small, medium enterprises set up
In the district of Idukki, Wayanad, Kasargode and
Pathanamthitta there shall be an additional assistance
of 10% maximum ceiling of 10 lakhs
v) In the case of all micro, small, medium enterprises set up
after acquiring new technology there shall be an additional
assistance of 10% maximum ceiling of 10 lakhs

40. Powers and services offered by
sanctioning authority
A. District Level committee: this comprises of district
collector, lead district manager, representative of finance
dep, distric manager KFC, representative of KSSIA
district committee and general manager, district
industries centre. Cases involving eligible FCI upto Rs
200 lakhs only
B. State Level Committee: this comprises of district
industries & commerce, representative of finance dep,
managing director KSIDC, MD KFC,Director MSME,
representative of KSSIA district committee; convenor,
state level bankers committee and Cases involving
eligible FCI above Rs 200 lakhs only

41.  The recommending authority shall provide facility to
receive the application and fee of Rs 1000. SC, ST – Rs
500
a) Applicants shall provide clarification
b) Allow inspection or verification
c) Produce originals of any documents
d) Execute requisite legal agreement
e) Utilise the amount received only in the manner agreed
upon
f) Operate the units as stipulated in the agreement

42. ESS Assistance
 Startup support: 50% of the eligible
subsidy maximum 3 lakhs
 Investment support: entire subsidy
 Technology support: additional subsidy
maximum 10 lakhs

43. Other incentives and assistance
A)Marketing assistance:
 Helps in getting exemption from or concession
in the earnest money deposit and security
deposit
 Gives permission to micro and small units in
participating in the industrial fairs, exhibition
B) Guidance cell
C) micro- small industries cluster development
programme

44. Future of business in kerala
A. Tourism
B. IT
C. Entrepreneurial development
D. Channelization of income
E. Congenial atmosphere