Kerala State Report - April-2018

For updated information, please visit www.ibef.org April 2018
KERALA
GOD’S OWN COUNTRY
BEKAL FORT IN KASARGOD, KERALA

Table of Content
Executive Summary……………….….…….3
Advantage State …………………..….…….5
Kerala Vision 2030 …………………..……..6
Kerala – An Introduction……….…….……..7
Budget 2016-17…………...………………..18
Infrastructure Status...................................19
Key Industries…….……….......…………….46
Doing Business in Kerala…….……….........65
State Acts & Policies…….……….......……..73

For updated information, please visit www.ibef.orgKERALA3
EXECUTIVE SUMMARY … (1/2)
 Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty
successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped
attract tourists from the world over.
Cultural diversity and
well developed tourism
sector
Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala
 As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men,
in India. Male literacy rate in the state stands at 96.10%, among all states.
Highest literacy and sex
ratio
 In 2016-17, Kerala received NRI remittances of US$ 22.71 billion. Remittances to the state are estimated at
36.3% of the net state domestic product in 2016.
Largest recipient of
foreign remittances in
the country
 Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research
working paper by the World Bank. The state stands second due to its world-class infrastructure and well-
trained human resource pool.
Ranks second in
Investment Climate
Index

 Kerala has the 1st international transhipment terminal in India, having a design capacity of around 4 million
TEUs & providing better connectivity between Kerala & other ports in India.
EXECUTIVE SUMMARY … (2/2)
 Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir.
As per budget 2018-19, Government of Kerala has proposed an outlay of US$ 1,131.75 million for the
Agriculture, Animal Husbandry and Co-operation.
Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department
of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2018-19
 The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of
13.16% against 22.09 million tonnes for the year 2015-16. Cargo Traffic during April 2017-March 2018
reached 29.14 million tonnes.
 Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware &
biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a world-
class IT campus in Thiruvananthapuram.
First international
container transhipment
terminal
Cargo Traffic in Cochin
Port
Presence of world class
technology park
Strong agricultural
sector

Advantage
Kerala
ADVANTAGE: KERALA
Leader in tourism
 In 2015, Kerala was rewarded as the winner of PATA
awards by Macau Government Tourism Office (MGTO)
 BBC Travel survey has rated Kerala as the top favourite
tourist destination among foreign travellers.
 Foreign tourist arrivals increased by 5.11% during 2017
over 2016.
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.
2017
Foreign
tourist
arrivals:
1.09 million
2021E
Foreign
tourist
arrivals:
3 million
High economic growth
 Kerala’s gross state domestic product (GSDP) surged at
a compound annual growth rate (CAGR) of 11.13%
between 2011-12 and 2016-17.
 Kerala is the leader in rubber production; high demand
of rubber has opened up immense opportunities for the
state in the rubber industry.
Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism

KERALA VISION 2030
Vision
2030
Energy
Education
Health
Transport
Labour
Industry
Forestry
Agriculture &
livestock
 Green, sustainable and safe
transport.
 Provide high quality education at
affordable rates.
 Create a global brand name in
education and develop into a
knowledge hub by 2030.
 Shift from subsistence farming to
highly knowledge intensive,
competitive farming.
 Self sufficiency in supply of fish,
meat, milk and other dairy products
to the local market.
 Increase health expenditure to
GSDP ratio from 0.6% in 2012 to 4-
5% by 2027−31.
 Set up three medical cities by 2030.
 Provide health insurance cover to
all.
 Increase the share of forestry in
GSDP to 0.5%.
 Increase the productivity of forests
through improved management of
resources.
 Growth oriented labour welfare policy.
 Connecting labour supply with
demand.
 Increasing employment opportunities.
 Increase the share of manufacturing
to 10% of the GSDP by 2030.
 Sustained increase in employment
in manufacturing.
 Affordable and clean power to all.
 Exploit the full potential of hydro-electric
generation.
 100% electrified households with 24*7
availability.
Source: Government of Kerala

 Kerala is located along the coastline to the extreme south-west of the
Indian peninsula, flanked by the Arabian Sea on the west and the
mountains of the Western Ghats on the east. The state has a 580 km
long coastline.
 Malayalam is the most commonly spoken language. Hindi, English
and Tamil are the other languages used.
 Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad,
Thalassery, Ponnani and Manjeri are some of the key cities in the
state.
KERALA FACT FILE
 There are 44 rivers flowing through Kerala, the major ones being
Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km).
Out of these 44 rivers 41 are west flowing and 3 are east flowing.
Source: Maps of India
Parameters Kerala
Capital Thiruvananthapuram
Geographical area (sq km) 38,863
Administrative districts (No) 14
Population density (persons per sq km) 860
Total population (million) 33.41
Male population (million) 16.02
Female population (million) 17.38
Sex ratio (females per 1,000 males) 1,084
Literacy rate (%) 94.6
Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office

KERALA IN FIGURES … (1/2)
Parameter Kerala All states Source
Economy 2016-17 2016-17
GSDP as a percentage of all states’ GSDP 4.05 100.0
“Advanced Estimates” provided by Directorate of
Economics and Statistics of Kerala
GSDP growth rate (%) 10.59 10.8
Per capita GSDP (US$) 1,181.15 1,750.29
Physical Infrastructure
Installed power capacity (MW) 5,074.72 344,002.39 Central Electricity Authority, as of March 2018
Wireless subscribers (No) 41,354,707 1,156,867,852
Telecom Regulatory Authority of India, as of
February 2018
Internet subscribers (No) 18,930,000 445,960,000
Telecom Regulatory Authority of India, as of
December 2017
National highway length (km) 1,782 115,435 NHAI & Roads and Building Department
Major and minor ports (No) 1+17 13+187 India Ports Association
Airports (No) 3 125 Airports Authority of India

KERALA IN FIGURES … (2/2)
Parameter Kerala All states Source
Social Indicators
Literacy rate (%) 94.6 73.0 Census, 2011
Birth rate (per 1,000 population) 14.3 20.4 SRS Bulletin September 2017
Investments
FDI equity inflows (US$ billion) 1.93 368.053
Department of Industrial Policy & Promotion, From
April 2000 to December 2017
Industrial Infrastructure
PPP projects completed & operational (No) 152 9,066
DEA, Ministry of Finance, Government of India,
April 2018
Exporting SEZs (No) 19 222 SEZ India, as of December 2017
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

ECONOMIC SNAPSHOT – GSDP
GSDP of Kerala at current prices (US$ billion)
 At current prices, Kerala’s GSDP was about Rs 6.17 trillion
(US$ 37.23 billion) in 2016-17.
 The state’s GSDP recorded a CAGR of 11.13 per cent
between 2011-12 and 2016-17.
 Growth was mainly driven by secondary and tertiary sectors.
Per Capita GSDP of Kerala at current prices (US$)
 The state’s per capita GSDP^ stood at Rs 72,535 (US$ 1,081)
during 2016-17 as compared to Rs 45,538 (US$ 971) during
2011-12.
 Per capita GSDP increased at a CAGR of 10.69 per cent
between 2011-12 and. 2016-17
Source: Directorate of Economics and Statistics of Kerala, Per Capita GSDP^ - calculated using GSDP million US$/Population in million
30.54
28.89
29.49
32.47
34.52
37.23
3.64
4.12
4.65
5.13
5.58
6.17
0
1
2
3
4
5
6
7
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17US$ billion Rs trillion
CAGR 11.13%
971
907
914
994
1,044
1,081
45,538
49,254
55,098
59,894
68,359
72,535
0
10000
20000
30000
40000
50000
60000
70000
80000
800
850
900
950
1,000
1,050
1,100
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
US$ Rs
CAGR (In Rs) 10.69%

ECONOMIC SNAPSHOT – NSDP
NSDP of Kerala at current prices (US$ billion)
 At current prices, Kerala’s NSDP# was about Rs 5.58 trillion
(US$ 83.24 billion) in 2016-17.
 NSDP of the state grew at a CAGR of 11.23 per cent between
2011-12 and 2016-17.
NSDP per capita of Kerala at current prices (US$)
 Kerala’s per capita NSDP& was Rs 162,717.91 (US$ 2,425.37)
in 2016-17 compared to Rs 2,041.9 (US$ 2041.9) during 2011-
12.
 Per capita NSDP of the state grew a CAGR of 10.69 per cent
between 2011-12 and 2016-17.
Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala,
68.41
68.21
68.97
75.33
76.98
83.24
3.28
3.71
4.17
4.61
5.04
5.58
0
1
2
3
4
5
6
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17US$ billion Rs trillion
CAGR (In Rs) 11.23%
2,041.97
2,025.96
2,039.47
2,216.48
2,254.09
2,425.37
97,912.42
110,313.73
123,387.70
135,537.49
147,552.48
162,717.91
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1,800.00
1,900.00
2,000.00
2,100.00
2,200.00
2,300.00
2,400.00
2,500.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
US$ Rs
CAGR (In Rs) 10.69%

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSDP
 In 2016-17, the tertiary sectorµ contributed 56.13% to the state’s
GSDP at current prices, followed by the secondary sector
contributing 20.85%.
 The tertiary sector grew at a CAGR of 12.38% between 2011-12 and
2016-17. Growth was driven by storage, transport, financial and real
estate segments.
 The secondary sector grew at an average rate of 6.94%, between
2011-12 and 2016-17. Growth was led by manufacturing,
construction, electricity, gas & water supply.
 The primary sector expanded at an average rate of 7.46% between
2011-12 and 2016-17, mainly supported by growth across agriculture
and mining & quarrying segments.
Visakhapatnam port traffic (million tonnes)GSDP composition by sector
14.04% 11.87%
25.26%
20.85%
53.08% 56.13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2016-17
Primary Sector Secondary Sector Tertiary sector
7.46%
12.38%
6.94%
CAGR
Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise%share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
 Agriculture, Forestry and Fishing contributed 12.24% to Kerala’s
gross state value added in 2015-16. Kerala is one of the leading
pepper and rubber producers in the country.
 As per budget 2017-18, the state government allocated US$ 326.88
million for agricultural sector, US$ 15.83 million for soil and water
conservation sector, US$ 47.81 million for animal husbandry, US$
15.06 million for dairy development and US$ 90.91 million for
fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46
billion was allocated for agriculture and allied sectors in the state.
 In November 2016, Kerala agreed to implement Food Security Law
in the state. As per the law, the government will make available 5
kg of highly subsidized food grain at Rs 1-3 per kg, to each person
in the state per month.
 Production of fruits, plantation and vegetables in 2017-2018 was
5,158.35, 4,659.30 and 5,656.99 thousand million tonnes
respectively.
 Production of tea was 59,600 million tonnes between April 2017-
February 2018.
Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare
Crop Annual production – 2016-17 (‘000 MT)
Onion 0.28
Total food
grains
450.3
Fruits* 5,158.35 Rice 448.4
Plantation* 4,659.30 Pulses 1.7
Mango 376.08 Nutmeg 14.19
Grapes 15.50 Vegetables* 5,656.99
Pepper 30.47 Cocoa 7.15
Tea^ 59.65 Turmeric 6.50
Note: (2)m.kg 2017E, *2nd advance estimates for 2017-18, ^ - April 2017-February 2018

ECONOMIC SNAPSHOT – EXPORTS
 Value exports from Kerala increased from US$ 4,028 million in 2013-
14 to US$ 4,220 million in 2014-15.
 Exports of non-basmati rice from the state increased from US$ 28.96
million in 2015-16 to US$ 33.52 million in 2016-17, and were US$
25.21 million for the period April-November, 2017. In 2015-16,
exports of non-basmati rice from Cochin SEZ were valued at US$
28.92 million.
Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016
2,532.19
3,709.03
4,109.16
6,108.64
5,998.80
740.06
334.17
1,486.54
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Total exports turnover from CSEZs (US$ million)
Sectors (US$ million)
Agricultural products 252.22
(1)
Electronics hardware 76.84
Engineering 4.39
Gem & jewellery 47.25
IT and ITeS 77.73
Miscellaneous 59.16
Plastic and rubber products 14.36
Textiles & garments 15.21
Trading 11.25
 Exports of basmati rice from the state, in value terms, increased from US$
112.44 thousand in 2014-15 to US$ 175.82 thousand in 2015-16, and were
US$ 36.17 thousand for the period April-November, 2017. Exports of
floriculture products from the state stood at US$ 3.64 million in 2016-17
and were US$ 2.30 million for the period April-November, 2017, while
exports of fruits and vegetable seeds from the state was recorded at US$
0.83 million during the same period.
 Exports from Electronics Technology Parks – Kerala, increased 22.55% in
2015-16 to reach US$ 970 million.
Exports break-up, Cochin Special Economic Zone Port (2014-
15)

ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
 According to DIPP, during April 2000 to December 2017, FDI
inflows into the state (including Lakshadweep) reached US$ 1.93
billion.
 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 US$ 446.23 million in, Infopark Phase-II &
generate employment for around 20000 IT professionals
 In January 2018, the Chief Minister of Kerala proposed a
chamber of commerce using which expatriate businessmen will
be able to invest funds into profitable and job-generating
mercantile ventures in Kerala.
Visakhapatnam port traffic (million tonnes)FDI equity inflows, 2008-09 to 2016-17 (US$ million)
82
128
37
471
72 70
230
90
454
171
0
100
200
300
400
500
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18*
Note #: Public-private partnership, 2017-18* - April – December 2017
Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,
 Further, the state government has also decided to propose a tax
reduction from 14.5% to 5% for attracting investments across
automated robotic car parking system, during 2016-17.
 In March 2017, Kerala Infrastructure Investment Board (KIIB)
cleared basic development projects worth US$ 1.19 billion, which
include development projects for physical infrastructure such as
roads, bridges, potable water, health, education, SC/ST
development and power transmission grid.

KERALA STATE BUDGET 2018-19
Source: Finance Department, Government of Kerala, India, Converted using 1USD=64.74Rs
Sector Investment (US$ million) Sector Investment (US$ million)
Education 3,170.82 Roads and bridges 224.59
Medical and Public Health 1,339.51 Ports Department 16.99
Other Social Services 1,892.07 Electricity Sector 286.38
Agriculture, Animal Husbandry and Co-
operation
1,131.75 Arts and Cultural Field 22.24
Irrigation 194.08 Coir Industry 32.59
Public Works 754.24 Fishery Sector 92.68
Industries, Labour and Employment 362.79 Forest 110.14
Transport and Communication 68.83 Others 1,224.31
Annual Budget 2018-19

PHYSICAL INFRASTRUCTURE – ROADS … (1/2)
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2017-18
 Road development activities in the state are undertaken under
three broad categories of roads and bridges, road transport and
other transport services. In the annual budget 2017-18, a total
outlay of US$ 209.69 million has been proposed by the state
government for improving roads and bridge infrastructure.
 An outlay of US$ 3.81 million was proposed by the state
government for development and improvement of state
highways including relaying of a 600 km length road during
2016-17.
 As per the state budget 2016-17, under the scheme of PPP annuity
model and loan from NABARD, construction work on 20 mega
projects was 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.
 Under the ambitious Bharatmala scheme, which aims to improve
connectivity particularly on economic corridors, border areas and far
flung areas and quicken movement of cargo, two new road
construction projects were added in Kerala. The projects will involve
167 km and 218 km long development on NH 85 and NH 213,
respectively. Also, the Kerala Infrastructure Investment Board
(KIIFB) has alloted US$ 50.66 million for construction of a bypass at
Angamaly and Perumbavoor.
Road type Road length (km)
National highways 1,782
State highways 4,341.65
Major district roads 27,470.45

PHYSICAL INFRASTRUCTURE – ROADS … (2/2)
 Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in
2000 with the objective of connecting eligible rural habitants. As of
February 2017, about 590,104.62 km of road network was
completed across India, of which 3,534.89 km was completed in
Kerala.
 To improve efficiency of transportation to Kannur International
Airport, the state government has decided to convert six roads into
four-lane highways. The preparation of a Detailed Project Report
(DPR) is currently underway.
 In the Budget 2018-19, a new scheme is being formulated to
renovate 155 dilapidated bridges and culverts within a period of 5
years. Another mega scheme is the construction of 42 new rail
over bridges beginning in 2018-19.
Habitations benefitted 371
Length completed 2,964.32
Total expenditure (US$ million) 19.47*
5.72
21.40
29.00
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2012-13 2013-14 2014-15
National highway length completed (km)
18.51
29.12
24.86
34.75
19.47
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2013-14 2014-15 2015-16 2016-17 2017-18^
Expenditure on road works under PMGSY in Kerala
(US$ million)
Source: NHAI, omms.nic.in
Pradhan Mantri Gram Sadak Yojana (PMGSY)
(as of December 2017)
Source: PMGSY
Note: * till March 2018

PHYSICAL INFRASTRUCTURE – RAILWAYS
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget
 Kerala is well connected to other parts of the country via railways.
The State Government has appointed Kerala State Industrial
Development Corporation Ltd (KSIDC) as the nodal agency for
developing a project to establish a north-south High-speed Rail
Corridor (HSRC) to facilitate smooth and speedy passenger
movement between various cities and towns in the state. As per
state budget 2016-17, the state government approved US$ 10.88
billion for constructing a 570-km corridor from Thiruvananthapuram
to Kasaragod. As per budget 2017-18, the Kerala Rail Development
Corporation is going to undertake construction work of nine rail lines
and detailed project reports of Thiruvananthapuram Light Metro for
US$ 654.84 million and Kozhikode Metro for US$ 389.43 million
have been prepared.
 Railway divisions in Thiruvananthapuram, Palakkad and Madurai
jointly carry out railway operations in Kerala.
 Under the major infrastructure development projects, for ongoing
and new projects, including Kochi Metro, Suburban Rail Corridor,
and various others, the state government provided these projects
with a common pooled amount of US$ 387.42 million during 2016-
17.
 The government announced the launch of Kochi Metro Rail’s
commercial services of the 13-km Aluva-Palarivattom section of the
27-km Line-1. Over 600 women from the ‘Kudumbasree Mission’
have been employed & trained for smooth run of the 1st phase of
the metro.

PHYSICAL INFRASTRUCTURE – AIRPORTS
Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd.
 Kerala has 3 airports handling domestic & international flights,
located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft
movement from Cochin airport increased from 56,180 in 2015-16 to
61,688 in 2016-17. Aircraft movement from Thiruvananthapuram
airport increased from 26,001 in 2015-16 to 29,117 in 2016-17.
During April-February 2017-2018, aircraft movement from Cochin &
Thiruvananthapuram airports stood at 63,023 & 30,859,
respectively.
 Passenger traffic from Cochin airport increased from 7,749,901 in
2015-16 to 8,955,441 in 2016-17, while passenger traffic from
Thiruvananthapuram airport increased from 3,470,788 in 2015-16 to
3,881,509 in 2016-17. During April-February 2017-2018, passenger
traffic from Cochin & Thiruvananthapuram airport stood at 9.23
million & 4.02million, respectively.
 Freight traffic from Cochin airport increased from 79,233 tonnes in
2015-16 to 81,485 tonnes in 2016-17, while freight traffic from
Thiruvananthapuram airport decreased from 35,570 tonnes in 2015-
16 to 28,450 tonnes in 2016-17. During April-February 2017-2018,
freight traffic from Cochin & Thiruvananthapuram airports stood at
68,896 tonnes & 26,241 tonnes, respectively.
 An international airport at Kannur is upcoming and is expected to be
operational by September 2018. This airport will be the 4th to have a
runway of 4,000 metres. Kannur is airport at the final stage of
completion and inauguration to be announced soon.
 In February 2017, Government of Kerala approved setting up of an
airport at Erumely. This step is expected to benefit religious tourism
as lakhs of devotees visit Pathanamthitta district every year.

PHYSICAL INFRASTRUCTURE – PORTS … (1/4)
 Kerala has 18 ports, of which, Cochin is the major one. Furthermore,
there are three intermediate and 14 minor ports.
 The development activities of the port are taken care of by the
Department of Ports, Harbour Engineering Department and Harbour
Engineering Department.
 Under the 12th Five Year Plan from 2012 to 2017, the State
Government approved an investment of US$ 364.9 million for
development of port infrastructure facilities for handling cargo and
passenger transport.
 Vizhinjam International Port Phase-I, with an outlay of US$ 1.05
billion, is the largest harbour project in Kerala.
Head Budget 2018-19
Ports US$ 16.99 million
Major ports Cochin
Intermediate ports
Neendakara
Alappuzha
Kozhikode
Minor ports
Vizhinjam
Valiyathura
Vadakara
Ponnani
Thankasserry
Kayamkulam
Manakkodam
Munambam
Beypore
Thalasserry
Manjeswaram
Neeleswaram
Kannur
Azhikkal
Kasaragode
Source: Cochin Port Trust, Kerala Ports, Kerala Budget 2016-17, 2017-18, 2018-19
Existing Ports

 During 2016-17, the cargo traffic handled by Cochin port was 25
million tonnes. The Cochin Port handled 12.078 million tonnes of
crude oil, 816 thousand tonnes of cement 491,087 Twenty Foot
Equivalent Units (TEUs) in 2016-17.
 The cargo traffic handled by Cochin port was 29.14 million tonnes
between April-March 2017-18.
 In addition, the state government has been focussing on
development of minor ports.
Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port
Association
Ports to be developed Budget 2017-18 (US$ million)
Vizhinjam cargo port 3.42
Thankassery, Munambam,
Beypur and Azheekkal ports
7.16
Alappuzha Mareena Port 1.14
Other small ports 0.62
Cochin port traffic (million tonnes)
15.80
15.20
17.40
17.90
20.10
19.80
20.90
21.60
22.09
25.00
29.14
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18*
Source: State Budget 2016-17
Source: * - between April-March 2017-18

 The Cochin port is a favourite port-of-call for luxury cruise liners from
around the world.
 During 2016-17, total number of cargo vessels that entered Cochin
port were recorded to be 1,666.
 Around 28,342 cruise passengers embarked in Kochi in 2014-15.
 The arrival of a cruise vessel has an added impact on the regional
economy as cruise tourists are high end passengers. On an average,
each tourist is estimated to spend US$ 200 during the stopover of
less than a day.
Year Passenger
2011-12 34,768
2012-13 37,389
2013-14 24,535
2014-15 28,342
Number of cruise vessel arrivals at Cochin port
26
38
43
36
45
41
44
42
34
39
33
44
0
10
20
30
40
50
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: Cochin Port Trust

Source: Cochin Port Trust, New Indian Express
Year Number of Vessels
Containers Coal Fertilizers & raw materials Others Food Grains
General
Cargo
Tankers Total Vessels
2005-06 421 4 38 8 0 109 383 1225
2006-07 382 7 27 15 5 92 382 225
2007-08 350 6 15 11 2 73 352 269
2008-09 334 6 22 23 0 63 305 293
2009-10 390 5 17 36 0 45 381 359
2010-11 360 2 18 28 0 39 372 396
2011-12 390 2 15 33 0 37 361 504
2012-13 439 1 12 47 0 24 354 449
2013-14 501 0 11 62 0 41 382 399
2014-15 529 2 15 62 0 33 356 440
2015-16 643 2 8 73 3 42 398 418
2016-17 696 1 9 83 7 29 394 403
Category Wise Distribution Of Vessels Entering The Cochin Port

PHYSICAL INFRASTRUCTURE – POWER … (1/3)
 As of March 2018, the state had a total installed power generation
capacity of 5,074.72 MW, of which 2,192.48 MW was accounted for
by state utilities, 1,914.80 MW by central utilities and 967.44 MW
under private sector.
 Thermal power contributed 2,451.76 MW to total installed power
generation capacity. Hydropower (1,881.50 MW), nuclear power
(362.00 MW), and renewable power (379.46 MW) are the other main
energy sources.
 Kerala’s state utilities, which account for 41.96% of overall capacity,
generate 85.82% of the energy through hydroelectric power plants,
7.30% through thermal and 6.89% renewable power generation
plants.
Installed power capacity (MW)
3,514.00
3,553.70
3,718.80
3,827.70
3,856.40
3,892.00
4,106.00
4,172.00
4,998.94
5,074.72
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
Source: State Budget 2016-17, Central Electricity Authority
Sub Sectors Budget 2017-18 (US$ million)
Agency for Non-conventional
Energy and Rural Technology
7.45
Energy Management Centre 1.24

 Kerala is among the prominent Indian states to have achieved 100%
rural electrification.
 The rural areas or villages in the state were electrified under a
scheme launched in 2015, “Deendayal Upadhyaya Gram Jyoti
Yojana”. The operational electrification scheme, that is, Rural
Electricity infrastructure and Household. Electriﬁcation, was
subsumed in the new scheme.
 As on July 31 2017, a total sum of US$ 33.8 million was sanctioned
and US$ 32.97 million was disbursed under the DDUGJY scheme
for rural electrification of 29 projects in the state.
 Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new
projects have been sanctioned for US$ 76.16 million as of July 2017.
Area type Nos.
Intensively electrified villages 1,087
Electrified BPL households 1,50,305
Area type Nos.
Total villages 1,017
Electrified villages 1,017
Total rural households 71,03,000
Electrified rural households 71,03,000
Un-electrified rural households Nil
Status of rural electrification in Kerala (100 per cent electrified
since May 2017)
Source: Deendayal Upadhyaya Gram Jyoti Yojana
Status of rural electrification in Kerala under DDUGJY scheme
(as of July 2017)

 Budget Highlights - 2018-19:
• Total outlay for electricity sector is US$ 286.38 million.
• The annual scheme includes 49 Hydro Electric Projects, 2 Thermal Projects, 2 Windmill Projects and 1 Solar Project.
• Transgrid 2.0 with project cost of US$ 803.21 million being implemented through KIIFB, is the largest project in the transmission sector.
• Battery operated auto rikshaws will be introduced for connected journeys from Kochi Metro stations. For the recharging of these, bulk charging
stations will be setup under the control of Electricity Board. It will be started in 2018-19.
• A new scheme is being launched to encourage inventions to reduce the electricity misuse and to expand them on an entrepreneurial basis. It
will be implemented under the leadership of Energy Saving and Co-ordination Team of Electricity Board and US$ 4.32 million is allocated for
this scheme.
Source: Finance Department, Government of Kerala, India Converted using 1USD=64.74Rs

PHYSICAL INFRASTRUCTURE – TELECOM
 As of February 2018, Kerala had an overall tele-density of 119.87%
as against an all-India average of 90.61%.
 According to the Telecom Regulatory Authority of India (TRAI), as of
February 2018, Kerala had 41.35 million wireless subscribers and
1.97 million wire-line subscribers.
 By the end of February 2018, 8,956,962 subscribers had submitted
requests for mobile number portability in Kerala.
 As per state budget 2017-18, free internet connections will be
provided to two million poor families in Kerala under the Kerala Fibre
Optic Network (K-FON). WiFi transmission centres will be
established at Akshaya Centres, Friends Janasevana Kendras,
government offices, libraries, and public places under the control of
government.
Source: Telecom Regulatory Authority of India, 2As of March 2016
Wireless subscribers 41,354,707
Wire-line subscribers 1,972,585
Internet subscribers^ 18,930,000
Post offices 5,067(2)
Tele density (in%) 119.87
No. of GPs in Phase-I 977
Cables laid (km) 830
GPs for which cable laid 1,129
No. of GPs Lit 1,129
Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat
Telecom Infrastructure (As of February 2018)
Performance status of Bharat Net Project
(As of December 2017)
Note: ^ - data upto December 2017

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE
 The Kerala urban area comprises of five Municipal Corporations and
60 Municipalities for which the State Government proposed an outlay
of US$ 11.2 billion under the 12th five year plan 2012-17. The Kerala
Sustainable Urban Development Project (KSUDP) is an Asian
Development Bank-assisted project covering the five municipalities
of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With
an investment of US$ 221.2 million, the project focuses on urban
infrastructure improvement, community upgrading, local government
infrastructure development and capacity building, and
implementation assistance.
 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).
 In August 2017, Kerala Infrastructure Investment Board (KIIFB) gave
nod to four infrastructure projects. One of the major projects is the
Kerala Fibre Optic Network (K-FON) project which aims to transform
the state into an intelligent, innovative and inclusive society. The
state government is going to lay KSEB transmission lines and
distribution poles which will connect 30,000 government and
educational institutions and 2 million economically backward
households will get free Internet through it.
Source: JNNURM, Ministry of Urban Development, State Budget 2016-17, 2017-18, Business Standard
Projects & Programmes
Cumulative expenditure (US$
million)*
Urban Transport Improvement 22.15
Solid Waste Management Project 4.23
Water Supply 14.50
Sewage and Sanitation 21.97
Community Development Fund 11.12
 The state government launched Haritha Keralam Mission in
December 2016, to make Kerala clean and protect its water
resources and soil. As per budget 2017-18, US$ 23.28 million will be
invested for establishing 14 septage units, one in each district.
 Major infrastructure projects such as Kannur Air Port, GAIL Pipeline,
Kochi-Edamon Electric line and Bypasses at Kollam and Alappuzha
will be inaugurated in 2018-19.
Note*- as on August 31 2017

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (1/2)
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOLT: Build-Own-Lease-Transfer, BOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build-
Finance-Operate-Transfer,
Project name PPP type Sector Stage Project cost (US$ million)
Road Upgradation (Kottayam-
Thiruvananthapuram) Project
(DBFOT)
Annuity
Transport Under construction 20
LNG Port & Terminal Facility (Puthuvypeen)
Project
(BOT) Annuity Transport
Operation and
maintenance stage
649.1
Multi-User Liquid Terminal (Puthuvypeen)
Project
(BOLT) Transport Under construction 26.38
Clinker handling jetty at Azhicode/Kodungallur
Port
(BOOT) Transport Pre-construction 7.76
Ponnani Port Project - Phase I (BOT) Transport Under construction 118.43
Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport
Operation and
maintenance stage
16.29
Development and operation of an international
ship repair facility at W/island with private sector
participation
(BOT) Transport Under construction 77.6
International Container Transhipment Terminal
(Cochin Port) Project
(DBFOT) Transport Under construction 328.74
Vizhinjam International Deepwater Multipurpose
Seaport
(DBFOT) Transport Under construction 634.67
Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport
Operation and
maintenance stage
137.75

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (2/2)
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOO: Build-Own-Operate, DBFOT: Design-Build-Finance-Operate-Transfer
Project name Sector PPP type Stage Project cost (US$ million)
Thavakkara Bus Station (BOT) Transport
Operation and
maintenance stage
5.12
Road Upgradation (Walayar-Vadakkancherry)
Project
(DBFOT) Transport
Operation and
maintenance stage
122.62
Crude Oil Handling for Kochi Refineries Ltd (Lease) Transport
Operation and
maintenance stage
109.168
Cochin International Airport (BOO) Transport
Operation and
maintenance stage
47.03
Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.42
Bus Terminal (Angamaly) Project (BOT) Transport
Operation and
maintenance stage
5.18
Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction 18.62

DEVELOPMENT PROJECTS: SEZS … (1/3)
Source: Ministry of Commerce & Industry, Government of India,
Sutherland Global Services
Infopark
Cochin Port Trust, Puthuvypeen
Cochin Port Trust, Vallapadom
KINFRA, Kochi
Unitech Real Estate
Parsavnath Developers
Smart City Infrastructure
Carborundum Universal Limited
MM Tech Towers, Alwaye
Emmar MGF, Alwaye
Electronics
Technology Park
KINFRA
Techno Park SEZ - I
Technopark
Pallipuram
Techno Park SEZ - II
KINFRA, Kakkancherry
KSITI, Pallipuram
KSITI, Purakkad
 Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)
KSITI, Kasargod
Kerala State
Information
Technology
Infrastructure Limited
(KSITI), Kannur
Hindustan News Print
Limited
KSITI, Kollam

Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
 As of December 2017, Kerala has 19 exporting SEZs.
Name/Developer Location Primary industry
Cochin SEZ Cochin Multi-product
Cochin Port Trust Vallapadom Port-based
Cochin Port Trust Puthuvypeen Port-based
Infopark Kakkanad IT/ITeS
Electronics Technology Parks - Kerala Attipura IT/ITeS
KINFRA Ayiroopara Animation & Gaming
KINFRA Chelembra Agro-based food processing
Electronics Technology Parks- Kerala Thiruvanthapuram IT/ITeS
KINFRA Thrikkakara Electronics industries
Kerala State Information Technology Infrastructure Limited Pallipuram IT/ITeS
Electronics Technology Parks Kerala (Technopark) Attipura IT/ITeS
Kerala State Information Technology Infrastructure Limited Mulavana IT/ITeS
Carborundum Universal Ltd. Thrikkakara North Solar Photovoltaic
Sutherland Global Services Private Limited Thrikkakara North IT/ITeS
Kerala State Information Technology Infrastructure Limited (KSITIL) Pantheerankavu and Nellikode IT/ITeS
Infoparks Kerala Puthencruz and Kunnathunadu IT/ITeS
Smart City (Kochi) Infrastructure Limited Kakkanad IT/ITeS
Kerala State IT Infrastructure Ltd. (KSITIL) Thrissur IT/ITeS
Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD) Kozhikode IT/ITeS

Some of formally approved SEZs in Kerala
 As of December 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs.
Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
Name/Developer Location Primary industry
Cochin Port Trust Vallarpadam Port-based
Cochin Port Trust Puthuvypeen, Ernakulam Port-based
KINFRA
Kazhakoottam,
Thiruvananthapuram
Electronics Industries
Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS
Kerala State Information Technology Infrastructure Ltd (KSITIL)
Pantheerankavu
and Nellikode, Kozhikode
IT/ITeS
Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS
Cochin International Airport Ltd Ernakulam Airport-based

SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
 Kerala has the highest literacy rate among all states in the country.
As of 2016, the state has a literacy rate of 94.57%; male & female
literacy rates stood at 96.61% & 92.52%, respectively.
 Kerala has 3,021 higher secondary schools as of 2016. Of these,
1,162 (38.46%) were government schools, 1,406 (46.54%) aided
schools & the remaining 453 (15%) unaided schools.
 As per budget 2018-19, 45,000 hi-tech class rooms and IT labs will
be established in 4,775 schools. The digitalisation will be completed
in 3 phases with 20,000 class rooms being completed before the end
of February, 10,000 class rooms in March and remaining 15,000
class rooms in the months of April – May.
 In Budget 2018-19 US$ 5.10 million is allocated for ‘Kerala
Infrastructure and Technology for Education’ which is heading the
digitalisation programme.
 In June 2017, the University of Kerala decided to restore private
registrations at undergraduate level. A University Institute of
Management (UIM) and eight University Institutes of Technology
(UITs) are to be established in various cities of the state this fiscal
year.
Source: State Budget 2017-18, (1) 2016-17, Converted 1USD=64.74Rs
Schools 12,981
Universities 14
Engineering institutions 183
Arts and science colleges 213
Polytechnics 51
Sub sectors Budget 2018-19 (US$ million)
School education 149.83
Higher education 121.87
Technical education 38.31
Total 3,170.82
Educational infrastructure (2016)
Source: Economic Review of Kerala

SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
Source: Economic Survey of Kerala 2014-15, 2016-17
Schools (No)
Lower primary: 6,882
Upper primary: 2,979
High schools: 3,021
School dropout rate (%) (2013-14)
Lower primary: 0.35
Upper primary: 0.21
High school: 0.44
Pupil-teacher ratio 22.5:1
Nature of schools (2016-17P) Student strength (in million) Share of total student strength (%)
Government 1.12 30.42
Government-aided 2.15 58.27
Unaided 0.41 11.30
Total 3.70 100.0
Kerala primary education statistics (2014-15)
P: Provisional

SOCIAL INFRASTRUCTURE – HEALTH
 The departments that offer health services in the state & are
responsible for development activities are namely, Health Services
Department, Medical Education Department, Ayurveda Department
(ISM), Ayurveda Medical Education Department, Homoeopathy
Department & Homoeopathy Medical Education Department.
 In Budget 2018-19, the state government allocated US$ 1,339.51
million for medical and public health department.
 Under the 12th Five Year Plan, the state proposed an outlay of US$
650.71 million for health sector, of which US$ 295.05 million was
proposed for the Directorate of Health Services, US$ 272.61 million for
Directorate of Medical Education & US$ 28.02 million for Indian
System of Medicines.
 Government of Kerala announced plans to invest US$ 1.68 million for
the establishment of a cath lab in the district hospital at Kollam & the
general hospital of Kozhikode as per the annual state budget 2016-17.
Further, the state government also allocated US$ 79.7 million to the
Directorate of Health Services to facilitate implementation of different
schemes.
 As of November 2016, the state was declared as the 3rd Open
Defecation Free state in the country.
 In March 2017, True North, a leading PE fund, announced plans to
invest over US$ 200 million in Kerala Institute of Medical Sciences.
Note: (1)Per thousand persons, (2)Per thousand live births
Birth rate
(1)
14.3
Death rate
(1)
7.6
Infant mortality rate
(2)
10
Primary health centres 955
Sub-centres 5,841
Community health centres 233
District hospitals 58
Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)
Health indicators (2017)
Male 71.4
Female 76.3
Life expectancy at birth (years) (2014-15)
Health infrastructure (as of April 2018)

CULTURAL INFRASTRUCTURE … (1/2)
 Kerala has been rated as one of the 13 Paradises of the World by
National Geographic Traveller; it has been promoted as ‘God’s Own
Country’.
 Sri Padmanabhaswamy temple makes the state one of the attractive
religious tourism spots in India. Other temples in Kerala, such as
Guruvayoor & Sabarimala, are also major religious attractions.
 US4 2.32 million was allocated in budget 2017-18 for the promotion
of Nishagandhi dance and music festivals, Onam celebration, tribal
dance festival, Pooram, Theyyam festivals and boat race etc.
 In June 2015, Kerala organized a road show in Shanghai &
participated in Beijing International Tourism Expo (BITE) 2015. The
BITE 2015 witnessed participation of 70 buyers from the Chinese
travel & tourism industry. The main objective of the initiative was to
strengthen the Spice Route heritage with other countries & promote
sustainable tourism aimed at achieving world peace.
 In June 2017, the state government started a campaign ‘Anuyatra’,
for people with special needs. In this campaign, 23 children suffering
from various challenges will become brand ambassadors of the
initiative.
Departments
Budget 2018-19
(US$ million)
Sahithya Academy, Kerala Sangeetha Nadaka
Academy, Kerala Lalithakala Academy and
Kerala Folklore Academy
2.46
Arts and Cultural fields 22.24
State Central Library 0.56
Kerala State Science and Technology Museum 2.63
Development of Zoos 1.78
Beaches Kovalam, Varkala, Marari, Bekal and Kannur
Backwaters
Kumarakom, Alappuzha, Kollam, Kochi and
Kozhikode
Hill stations Ponmudi, Munnar, Wyanad and Vagamon
Wildlife reserves
Periyar Wildlife Sanctuary,
Eraviikulam National Park,
Thattekad Bird Sanctuary
Parambikulam Wildlife Sanctuary
Popular tourist locations
Source: State budget, Converted 1USD=64.74Rs

CULTURAL INFRASTRUCTURE … (2/2)
 Art and culture are being fostered and promoted through various
bodies such as:
• Kerala Sahitya Academy – To promote Malayalam literature.
• Kerala Sangeetha Nataka Akademi – To promote traditional arts.
• Kerala Lalithkala Academy – To promote painters and sculptors.
• Kerala Folklore Academy – To promote Kerala folklore.
• Kerala State Chalachitra Academy – Academy for motion
pictures.
• Kerala Kalamandalam – To teach traditional dances.
 The state government proposed an outlay of US$ 22.24 for art and
culture million under annual budget 2018-19.
 On November 1, 2016, the state celebrated the 60th year of its
formation.
Source: Department of Tourism, Government of Kerala, Economic Review of Kerala 2014-15
New sports infrastructure projects in Kerala
 New hockey stadium at Kollam
 Rajiv Gandhi Indoor Stadium, Kochi
 Shooting range at Vattiyoorkkavu, Thiruvananthapuarm
 Corporation Stadium, Kollam
 V.K.N. Indoor Hall, Thrissur
 VKK Menon Stadium, Kozhikode
 CSN Stadium, Thiruvananthapuram
 New football stadium at medical college ground, Kozhikkode
 New multipurpose hall, Kannur
 Kariavattom main stadium, Thiruvananathapuam
 Synthetic Athletic track at University of Calicut, Malapuram (Approved under
Urban Sports Infrastructure Scheme (USIS))

INDUSTRIAL INFRASTRUCTURE … (1/3)
Infrastructure Project description
Technopark
 The Technopark at Thiruvananthapuram is spread over 760 acres.
 It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals.
 Technopark Phase-II has been declared an SEZ by the Government of India.
 The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-in-
progress)
 As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km
north of the main campus on the National Highway-47 to Kollam.
Infopark
 The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings.
 The total land available with Infopark is 98.25 acres, of which 75 acres has been notified as an SEZ by the Ministry
of Commerce, Government of India.
Special Economic Zones
 Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park
SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen at
Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy
sources SEZ at Kalamassery.
Source: http://www.technopark.org/ , sezindia.nic.in
 As of December 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being
developed in Kozhikode.

INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL
CLUSTERS … (2/3)
Symbol Industries
IT
Engineering
Minerals and mining
Handlooms and power looms
Textile
Tiles
Canning
Coir products
Agriculture and forest-based
Sericulture
Rubber
Food products
Beedi

INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL
CLUSTERS … (3/3)
District Industries
Kannur Handlooms, power looms, beedi
Alappuzha Coir products
Idukki Agriculture and forest based
Thiruvananthapuram Handlooms, IT
Thrissur Power looms, handlooms, textile, timber, tile, canning
Palakkad Power looms, sericulture
Kollam Minerals and mining
Kozhikode Rubber
Wayanad Minerals and mining
Kasargod Minerals and mining
Kottayam Rubber, food products, engineering
Ernakulam IT

SMART CITIES
 As of June 2017, Kochi and Thiruvananthapuram are proposed to be
developed as smart cities in Kerala. The Kochi smart city would be
spread over an area of 246 acres.
 Along with smart cities, 9 cities of Kerala have also been selected for
infrastructure development. The infrastructure development will be
done under the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) scheme. In July 2015, the state
government allocated US$ 1.47 million for administrative and office
expenses for service level improvement plan or capacity building
under AMRUT scheme.
 As per budget 2016-17, the state government is planning to
inaugurate 650,000 square feet space in Kochi smart city, for
providing employment to around 90,000 unemployed youth of Kerala.
 Smart City Kochi has set a revenue target of US$ 41.79 million for
2017, and US$ 2.40 billion by 2021.
Cities Area (sq. km)
Kochi 94.88
Kollam 58.18
Kozhikode 128
Thiruvananthapuram 2,192
Thrissur 101.4
Alappuzha 1,414
Palakkad 1,363
Guruvayur 29.66
Kannur 2,961
Thiruvananthapuram
Kollam
Ernakulam
Thrissur
Kochin
Tiruvalla
List of cities in Kerala covered under AMRUT

KEY INDUSTRIES
 Kerala’s strategic location on the trans-national trade corridor, rich
natural resources & simple & transparent procedures are favourably
suited for investments in key sectors like tourism, IT/ITeS,
manufacturing & mining.
 Kerala’s traditional industries include handloom, cashew, coir and
handicrafts.
 KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical
Consultancy Organisation Limited), the Directorate of Industries &
Commerce & the Small Industries Development Corporation are jointly
responsible for the development of industrial infrastructure in the state.
 Around US$ 35.53 million has been earmarked in the budget 2018-19
for the main parks under KINFRA & KSIDC.
 Forming industrial clusters & developing infrastructure (such as rubber
parks, electronic hardware park, coconut industrial park, organic
industrial park & food processing parks) have been integral to the
state’s strategies to attract investments in various industries.
 As per budget 2016-17, the MSME sector accounted for higher growth
rate in comparison with other industrial sectors during 2015-16. For
the development of MSME infrastructure, an amount of US$ 6.96
million was allocated by the state government during 2016-17
 The amount allocated to small scale industries by the state
government during 2018-19 is US$ 25.02 million.
Source: Economic Review of Kerala, 2014-15, News articles, State budget 2017-18
Key industries in Kerala
 Handlooms and power looms
 Rubber
 Bamboo
 Coir
 Khadi and village industry
 Sericulture
 Seafood and other marine products
 Cashew
 Mining
 Tourism
 Food processing
 Spices and spice extracts
 IT & electronics

KEY INDUSTRY – COIR AND COIR PRODUCTS … (1/2)
 Kerala accounts for 85% of total coir production in India and its coir
industry provides employment to around 375,000 people.
 The Coir Co-operative Marketing Federation (COIRFED) is the apex
federation of 842 primary coir co-operatives societies.
 The US is the largest importer of coir products from India, followed
by the Netherlands, the UK, Germany, Italy and Spain.
 The Coir Kerala trade fair held in February 2015 witnessed the
participation of around 170 foreign buyers from over 53 countries.
 The Coir Board of India facilitates setting up of coir defibering units
and coir manufacturing industries in each of the states under various
schemes such as Coir Udyami Yojana, Development of Production
Infrastructure and Mahila Coir Yojana.
 As per budget 2017-18, defibering machines will be provided to coir
co-operative societies at 90% subsidy, to self help groups at 75%
subsidy and to individuals at 50% subsidy. The state has a target of
opening 100 husk processing mills in 2017-18.
 As part of the second restructuring scheme the coir cooperative
societies taken up for revival will be provided with working capital
and managerial subsidy.
 Under state budget 2018-19, US$ 32.59 million is allocated for the
coir sector.
No. of coir units registered in Kerala as on March 2015
8,814 8,811
3
0.0
2000.0
4000.0
6000.0
8000.0
10000.0
Total Private Public
Growth trend of coir units registered in Kerala
8,744
8,773
8,790
8,814
9,108
8500.0
8600.0
8700.0
8800.0
8900.0
9000.0
9100.0
9200.0
2011-12 2012-13 2013-14 2014-15 2015-16
Source: Economic Review of Kerala, 2014-15, Government of Kerala, Coir Board, News articles, State Budget 2017-18

KEY INDUSTRY – COIR AND COIR PRODUCTS … (2/2)
 Exports of curled coir, coir fibre, coir pith, coir rope, coir yarn, coir
geo-textile, handloom matting, power loom mats and rubberised coir
from India increased in terms of quantity and value over past years.
During 2015-16 value exports from the state was recorded at US$
282.82 million.
 Total outlay of US$ 17.87 million was proposed under the Annual
Plan of 2016-17 for the development of coir industry in the state with
implementation of 12 schemes through Coir Geo-textiles
Development Programme, Margin Money Loan to Entrepreneurs,
Production and Marketing Incentives (PMI), 8 Cluster Development
Programme in coir sector, etc.
 The National Coir Research & Management Institute (NCRMI), a
State Government organisation, is following up on a potential deal
with Saudi Aramco for a new technology that can help cultivate crops
in saline and arid conditions. In the budget 2015-16, the State
Government announced plans to invest US$ 0.16 million for
facilitating scholarships to the coir worker’s children who secure
admission in professional courses.
 Coir pith and coir fibre are the major contributors in export of coir
products with over 80% share. China is the major customer for
India’s coir products with 28.6% share in value and 39% share in
volume.
 With an allocation of US$ 2.2 million in December 2016, for procuring
raw material and carrying out repair works, public sector spinning
mills in Kerala are anticipated to be operational soon. This would in
turn propel growth in the textile sector of the state.
Exports of coir industry of India (‘000 metric tonnes)
187.60
199.90
294.50
321.00
410.90
429.50
537.00
626.60
752.02
957.00
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: Economic Review of Kerala, 2014-15, Coir Board, Government of India, Business Line

KEY INDUSTRIES – HANDLOOM AND POWER LOOM
 Among the traditional industries of Kerala, the handloom sector
stands second to the coir sector in providing employment. The
industry is concentrated in Thiruvananthapuram and Kannur
districts and in some parts of Kozhikode, Palakkad, Thrissur,
Ernakulam, Kollam and Kasaragod districts.
 Under the Budget Scheme 2018-19, the state government has
allocated a sum of US$ 7.11 million for the handloom industries and
US$ 2.93 million for khadi and village industries.
Source: Economic Review of Kerala, 2014-15, Kerala State Handloom Development Corporation Ltd, Office of the Development Commissioner, State budget
Funds released by central and State government for assistance
and development of Handloom industry in Kerala (in US$
million)
Central Government Loan 9.78
N.C.D.C, NAMBARD, HUDCO 11.08
State Government grant 79.42
Central Government Grant 1.05
N.C.D.C, NAMBARD, HUDCO
Grant
3.75
Funds released under handicraft schemes (2016-17)
(in US$ ‘000)
Ambedkar Hastshilp Vikas Yojna 31.64
Design 44.7
Human Resource Development Scheme 23.12
Total 99.46
Exports of textile & garments from Cochin SEZ
(US$ million)
17.44
15.03
12.61
15.21
-
4.0
8.0
12.0
16.0
20.0
2011-12 2012-13 2013-14 2014-15

KEY INDUSTRIES – IT … (1/3)
Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15, State Annual Plan, sezindia.nic.in, State budget 2017-18, Business Standard
 Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT
cities, including Bengaluru. According to 2017-18 Annual Plan, an outlay of US$ 85.26 million has been allocated for the development of
information technology.
 As per state budget 2017-18, almost all government transactions are expected to become IT-based.
 In June 2017, Kerala government signed a memorandum of understanding (MoU) with India Electronics and Semiconductor Association (IESA) in
a bid to attract more investments from IT and electronics.
 Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5%).
 The state has a techno park in Thiruvananthapuram, an info park in Kochi, and a cyber park in Kozhikode. It also has private IT parks such as
Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi).
 Software exports from registered units in Kerala through Software Technology Parks of India (STPI) reached US$ 467 million in 2015-16.
 As of December 2017, Kerala had twelve operational IT/ITeS SEZs which are located in Kakkanad, Thiruvanthapuram, Pallipuram Village, etc.
 The IT industry of the state is growing at a higher pace. Leading IT companies such as TCS, Infosys and UST are providing job opportunities and
the industry is expected to add 23,500 new jobs by 2017.
 Exports of IT and ITeS products from Cochin Special Economic Zone increased from US$ 55.5 million in 2010-11 to US$ 77.7 million in 2014-15.
 As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states.
 In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup the country’s first
UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals.

Source: Economic Survey of Kerala, 2014-15, sezindia.nic.in
 IT exports from Kerala increased at a CAGR of 11.2% between
2007-08 and 2014-15.
 Operational costs in the state are among the lowest in India (40%
lower as compared to other major IT locations in India). Also,
rental/real estate costs are lower than major IT cities in the country.
 Around 11% of the national IT pool is contributed by skilled human
resources from Kerala.
 Kerala has a strong e-governance infrastructure and is a leading
state in e-governance.
 The state government is planning to provide job opportunities to 0.5
million people in the IT sector by 2020.
 As of June 2017, the state has 19 notified IT/ITeS SEZs.
 In December 2016, since demonetisation, Kerala government has
taken steps for enabling online payment of land registration fees.
The National Informatics Centre (NIC) has been tasked with the
process of automation of the same, by the state's Chief Minister.
Exports from IT industry (US$ million)
298.3
392.7
412.6
454.6
413.4
644.4
676.6
626.5
0
100
200
300
400
500
600
700
800
2007-
08
2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
CAGR 11.2%
Exports of IT & ITeS from Cochin SEZ (US$ million)
55.45
82.85 85.57 87.26
77.73
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2010-11 2011-12 2012-13 2013-14 2014-15

Tata Consultancy
Services
Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO)
services in India. TCS employed more than 315,000 IT consultants in 122 countries and generated revenue of US$
18.3 billion in 2016-17 and US$ 4.21 billion during Q4 FY 18. TCS provides IT consulting and services in financial
services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation etc. It has a
software development and training centre at Technopark in Thiruvananthapuram and plans to set up the world’s
largest corporate learning centre in Thiruvananthapuram.
Established in 1981, Infosys employs more than 176,187 people. The company generated US$ 9.68 billion in
revenue in 2016-17 and US$ 2.58 billion during Q4 2017-18. It is engaged in IT consulting, modular global sourcing,
process re-engineering, and BPO services. The company has operations in Australia, China and the US, and
marketing and technological alliances with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30
countries and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre at
Technopark, Thiruvananthapuram.
Infosys
Collabera is a fast-growing, end-to-end information technology services and solutions provider, working with leading
global 2,000 organisations from banking & financial services, communications, media, manufacturing, retail, energy
and utilities domains. The company employs over 9,000 professionals across more than 25 offices and four world-
class delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at
Collabera
Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite operation centres
across nine countries and had a revenue of US$ 6.896 billion in 2016. It is a subsidiary of RR Donnelley (RRD), a
global provider of integrated communications, business services and supply chain solutions. RR Donnelley is a US$
11 billion Fortune 300 company, with around 65,000 employees across the world. The company has an office at
RR Donnelley India
Outsource Pvt Ltd Co
India

KEY INDUSTRIES – ELECTRONICS … (1/2)
Source: Economic Review of Kerala, 2014-15, 2016 Government of Kerala,
 The self contained Electronics Technology Park at Technopark,
Thiruvananthapuram, has been instrumental in attracting global
electronics manufacturers.
 Exports from Electronics Technology Parks – Kerala, increased
22.55% in 2015-16 to reach US$ 970 million.
 The state has ample availability of skilled and semi-skilled workers
for the electronics industry.
 The electronic hub proposed at Kochi is a prestigious project of the
Government of Kerala to promote electronic hardware manufacturing
and assembling units and R&D centres, and to support infrastructure
for the same.
 As per Budget 2017-18, US$ 240.89 million is allocated for mega
projects in the state, which include Kochi Electronic Hardware Park.
 This hub is a high-priority area, which would promote a large number
of small-, medium- and large-scale industries in the state. It would
also form a National Investment & Manufacturing Zone (NIMZ) for
manufacturing electronic hardware items.
 Between 2010-11 and 2014-15, electronic hardware exports from
Cochin Special Economic Zone grew at a CAGR of 8.86% to reach
US$ 76.8 million in 2014-15.
Exports of electronic hardware from Cochin SEZ
(US$ million)
54.72
66.47 64.73
70.67
76.84
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2010-11 2011-12 2012-13 2013-14 2014-15
Key players
 Traco Cable Company Limited
 Transformers and Electricals Kerala Ltd (TELK)
 Kerala State Electronics Development Corporation Ltd (Keltron)

KEY INDUSTRIES – ELECTRONICS … (2/2)
Source: Company website and annual report
Traco Cable Company Limited commenced operations in 1964. It manufactures high-quality cables and wires in
technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO currently meets the needs of public sector
undertakings in India such as railways and the electricity boards of various states. The company is headquartered in
Kochi and has factories in Ernakulam, Kannur and Thiruvalla.
TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial
Development Corporation, and Hitachi Limited, Japan. It manufactures transformers, bushings and tap changing
gears. The factory and corporate office are located in Angamally, near Kochi.
TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator Transformer to India's
first 500 MW Thermal Unit.
Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800 people and has 10
manufacturing centres. It provides technical manpower to leading organisations such as Oil and Natural Gas
Corporation Limited (ONGC). The company’s products span categories including aerospace electronics, security and
surveillance systems, intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure
solutions, process automation, ID card projects, power electronics, electronic components and TE units.
Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala with a strong
infrastructure spread over 700,000 sq ft of built up area.
Traco Cable Co Ltd
Transformers and
Electricals Kerala Ltd
(TELK)
Kerala State Electronics
Development Corp
(Keltron)

KEY INDUSTRIES – TOURISM … (1/2)
 The tourism sector of Kerala is a significant contributor to the state economy. As per Kerala’s economic review 2016, revenue from the tourism
sector accounted for 10% share of the state’s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to US$ 4.1
billion in 2014. Kerala earned US$ 4.14 billion from tourism in 2015.
 Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters of Kumarakom, Alappuzha,
Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon.
 Kerala has a number of well-known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam National Park, the Thattekkad Bird
Sanctuary and the Parambikulam Wildlife Sanctuary.
 The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and Muziris heritage circuit.
 Under state budget 2018-19, US$ 6.18 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery,
Alappuzha spice route are being implemented.
 Under the State Budget 2018-19, US$ 12.67 million is allocated for Tourism marketing and US$ 4.05 million for Kerala Tourism Development
Corporation, Kerala Tourism Infrastructure Ltd, Bekal Resort Development Corporation, District Tourism Promotion Councils etc.
 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.
 To increase the number of tourist arrivals, Kerala Tourism will participate in the Arabian Travel Mart in Dubai in April 2018.
Source: Economic Review of Kerala, 2014-15, 2016-17, State Budget 2016-17, 2017-18

KEY INDUSTRIES – TOURISM … (2/2)
 Major initiatives of Kerala Tourism - 12th FYP:
• An investment of US$ 0.67 million was announced for Kerala
waste free destination scheme.
• An investment of US$ 2.47 million was announced for the
promotion and marketing activity of Kerala tourism sector.
• For the sea plane project, an investment of US$ 1 million was
announced.
• For the strengthening and modernisation of tourism institutions an
investment of US$ 0.24 million was announced.
Source: Kerala Economic Review, Kerala Tourism
Description Budget 2017-18 (US$ million)
Alappuzha spice route 5.94
Kerala Tourism Development
Corporation (KTDC) Ltd.
3.27
District Tourism Promotion
Councils (DTPC) and DMC
1.78
Domestic tourist arrivals in Kerala (in million)
9.4
10.1
10.9
11.7
12.5
13.2
14.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2011 2012 2013 2014 2015 2016 2017
Foreign tourist arrivals in Kerala (in million)
0.73
0.79
0.86
0.92
0.98
1.04
1.09
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2011 2012 2013 2014 2015 2016 2017

KEY INDUSTRIES – RUBBER INDUSTRY
 Kerala is the leader in rubber production in the country. State
accounted for about 65.94% share in the total natural rubber
production in 2016-17.
 Rubber production in Kerala stood at 540.4 thousand MT during
2016-17, in comparison with 507.77 thousand MT during 2014-15.
 The area under rubber production in Kerala increased from 548.2
thousand hectares in 2013-14 to 549.9 thousand hectares in 2014-
15. The production of natural rubber in Kerala was 455 thousand MT
in 2016-17.
 In the budget 2017-18, the state government allocated US$ 77.6
million for Rubber Production Incentive Scheme of Government of
Kerala.
 In June 2015, the state government announced the launch of a price
support scheme to offer an assured price of US$ 2.48 per kg, to the
small rubber producers who grow rubber in an area of 2 hectares or
less. The state government allocated US$ 49.76 million for
implementation of this scheme.
 In December 2016, All India Rubber Industries Association (AIRIA)
collaborated with Tripura University (TU) for imparting education for
programs in Rubber Technology to improve rubber education, rubber
skills training and research co-operation.
Exports of natural rubber from India (‘000 tonnes)
30.59
1.00 0.86
20.03
0
5
10
15
20
25
30
35
2012-13 2014-15 2015-16 2016-17
Exports of rubber & plastic products from Cochin SEZ
(US$ million)
7.46 7.30
9.33
12.45 12.51 12.44
14.36
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Economic Review of Kerala, 2015-16, 2016-17, Rubber, Board, Ministry of Commerce and Industry, Government of India, state annual budget 2017-18

KEY INDUSTRIES – SPICES … (1/2)
Source: Economic Review of Kerala, 2015-16, 2016, Department of Agriculture Cooperation & Farmers Welfare, State budget
 Kerala can be termed as the land of spices, considering the large
variety of spices grown in the state. During 2016-17, overall
production of spices in Kerala stood at 140.7 thousand tonnes.
 Kerala is the largest producer of pepper in India and accounts for a
lion’s share in India’s production.
 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$ 48.26
million in 2015-16.
 As per the Budget 2018-19, government has allocated funds worth
US$ 1.70 million for cultivation of pepper in the state.
 The state also plans to setup a spices park each in Idukki and
Wayanad.
Exports of spices from Kerala
(through Cochin ports) in US$ million
148.05
61.40
103.99
88.95
48.26
0
20
40
60
80
100
120
140
160
2011-12 2012-13 2013-14 2014-15 2015-16

KEY INDUSTRIES – SPICES…(2/2)
Source: Economic Review of Kerala, 2014-15, 2016, Spice Board of India News articles, indianspices.com
 As of 2013-14, the overall exports of spices from India was recorded
as 8,17,250 tons that reached 8,93,920 tons in 2014-15, with Kerala
being the major contributor. In 2016-17 the figure was 947,790
tonnes.
 In terms of value, pepper exports from Cochin port were recorded at
US$ 183.6 million during 2014-15. For the same period of time, the
export values of cardamom, nutmeg, ginger and turmeric were
recorded as US$ 20.56 million, US$ 16.30 million, US$ 7.93 million
and US$ 7.57 million respectively.
 In 2015-16, 49,706 MT of spices worth US$ 49.03 million were
exported from the Cochin port.
Volume of exports through Cochin Port (tons)
Spices 2013-14 2014-15
Ginger 2,125.3 1,750.8
Cardamom 858.3 1,607.7
Chilies 4,425.3 5,565.4
Nutmeg 1,822.9 1,997.9
Pepper 15,978.7 16,203.6
Turmeric 3,607.7 4,444.6

KEY INDUSTRIES – KHADI INDUSTRY
 Khadi and village industries have been an integral part of the
traditions of Kerala. The Kerala Khadi and Village Industries Board is
the statutory body in the state. As per budget 2016-17, the State
Government proposed an outlay of US$ 2.13 million for khadi and
village industries. Moreover, the Kerala Khadi and Village Industries
Board has been provided with a financial assistance of US$ 152.76
thousand for the establishment of Gandhi-Khadi Museum at
Payyannur. As per budget 2018-19, the state government has
allocated US$ 2.92 million for khadi and village industries.
 As of 2013-14, under Income Support Scheme, an investment of
US$ 0.21 million had been approved to 6,274 khadi spinners and
4,014 weavers. This investment was approved as a production
incentive. The scheme also supports 11,193 khadi artisans with an
investment of US$ 3 million in order to ensure minimum wages.
 The State Budget 2018-19 has allotted Rs 19 crore (US$ 29.35
million) for the revival of Khadi industry in Kerela
Production in Khadi and village industries sector of Kerala
(in US$ million)
24.53 24.29
22.18
20.82 20.72
18.00
19.00
20.00
21.00
22.00
23.00
24.00
25.00
2011-12 2012-13 2013-14 2014-15 2015-16
Khadi sales value from Kerala (in US$ thousands)
28.38
28.00 28.28
26.98
24.64
22.00
23.00
24.00
25.00
26.00
27.00
28.00
29.00
2011-12 2012-13 2013-14 2014-15 2015-16
Source: Ministry of Micro, Small & Medium Enterprises, State budget 2017-18

KEY INDUSTRIES – AYURVEDA
 There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products for skin, hair, body and
dental care.
 Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity and consistency of Ayurvedic
medicines needed for effective treatment procedures.
 Kerala has the highest number of Ayurveda colleges and practitioners in the world. As per budget 2016-17, the state government allocated an
amount of US$ 1.09 million for the development of global Ayurveda in Thiruvanthapuram. As per state budget 2018-19, the government has
allocated US$ 7.11 million for Ayurveda education and US$ 3.55 million for homoeopathy.
 Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country.
 Kerala has 850 Ayurvedic drug manufacturing units, including some major ones such as Oushadhi, Vaidyaratnam Oushadhasala and KP
Namboodiris. There are 815 dispensaries, 127 hospitals and 20 sub centres active for Ayurvedic treatment under ISM Department and the state
government has proposed an amount of US$ 5.21 million for the development and strengthening of ISM Department of the state under the annual
budget 2016-17. Another US$ 381.91 thousand and US$ 2.02 million were proposed for the strengthening of Ayurveda dispensaries and
upgradation of ISM institutions, in the state, respectively.
 Under annual budget 2016-17, the state government proposed an investment of US$ 458.29 thousand for expansion of Oushadhi Kerala Ltd. (The
Pharmaceutical Corporation (IM) Kerala Ltd.). Oushadhi Kerala is the 65th largest manufacturer of Ayurveda medicines in India.
Source: Economic Review of Kerala, 2014-15, State budget 2017-18, News articles
Note: ISM- Indian Systems of Medicine Department, Government of Kerala

KEY INDUSTRIES – FISHERY
 The state has a long coastline of over 580 km & innumerable water
bodies, generating a huge potential for inland & marine fishing &
providing it a prominent position in fish cultivation.
 Among maritime states in India, Kerala ranks 2nd in marine fish
production. In 2015-16, total fish production in the state stood at 0.73
million tonnes.
 As of 2016, the state government had finished construction of 14
fishing harbours and 10 are in progress.
 As per state budget 2016-17, the Government of Kerala proposed
allocations of US$ 6.04 million and US$ 5.87 million for the
implementation of social security schemes for fishermen as well as
for inland fisheries, respectively.
 Further, an allocation of US$ 4.58 million for the University of
Fisheries & Ocean Studies, US$ 4.12 million for NABARD assisted
RIDF schemes and US$ 4 million for ‘Development of Marine
Fisheries Infrastructure & Post-harvest Operations’, has also been
proposed by the state government during 2016-17.
 The state government has allocated US$ 92.68 million for fisheries
sector and coastal area development under annual budget 2018-19.
 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.
 In April 2018, Fish Farmers Development Agency for Aquaculture
Development in Kerala will be implementing umbrella project
‘Development of Inland Fisheries’ worth Rs 69.90 core (US$ 1.08
million) launched by Fisheries Department .
Total fish production in Kerala (in million tonnes)
0.678
0.677
0.686
0.687
0.681
0.693
0.68
0.708
0.632
0.730
0.66
0.58
0.6
0.62
0.64
0.66
0.68
0.7
0.72
0.74
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17(P)
Source: Economic Review of Kerala, 2015-16, 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget 2016-17, 2017-18
Note: P - Provisional

KEY INDUSTRIES – RICE
 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.
 Further, as per budget 2016-17, the state government also decided
to provide free rice through ration shops to the BPL/AAY families in
the state. Due to this initiative, the total subsidy granted was
expected to reach US$ 76.38 million during 2016-17.
 In state budget 2017-18, US$ 108.65 million has been allocated for
procurement of paddy.
 In 2017-18, the total rice production amounted to 418,700 tonnes.
Total rice production in Kerala (in ‘000 tonnes)
590.3
598.3
522.7
569.0
508.3
509.2
558.3
549.3
448.4
418.7
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
Source: Economics & Statistics Department, Kerala, State Budget 2016-17, 2017-18
Funds allocated in budget 2016-17 (US$ million)
Rice development 5.34
Operational support to padasekhara
samithies for group farming
0.68

KEY INDUSTRIES – OTHER GROWTH SECTORS
Source: State Annual Budget 2016-17
 Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail and entertainment
sector.
 The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping
malls, multiplexes, business convention centres and theme parks.
 The state has world-class infrastructure and perfect climate for Ayurveda health centres.
 Hotel projects under development include Mfar Hotels and Resorts Ltd’s 5-star hotel and Banyan Tree Hotels &
Resorts.
 UAE based Western Marine Service and Techlink Systems plans to invest US$ 10.41 million in hospitality sector
of Kerala, by setting up a hotel chain under the brand name - Springstay.
 The Kerala State Film Development Corporation will build 100 more theatres in the state using funds from
Kerala Infrastructure Investment Fund Board
Hospitality, leisure and
entertainment
 Food processing is a sunrise sector that has gained prominence over the years in the state.
 FPI in Kerala constituted organised as well as unorganised units.
 Spices, pickles and marine products are the major food product exports from Kerala.
 Kerala has India’s first food processing industrial park in Malappuram and seafood processing park in
Alappuzha. The state also has a coconut-based food processing plant in Kinalur.
 An amount of US$ 2.44 million was sanctioned to establish a mega food park at Cherthala for processing of
seafood products as per budget 2016-17.
 During 2015-16, under the plan scheme for technology modernisation/ upgradation/ establishment of food
processing units in the state, 20 units were assisted in the state of Kerala with an outlay of US$ 4.48 thousand.
 Further, under National Mission on Food Processing (NMFP) scheme, 23 projects were sanctioned during 2015-
16, by the state government. Moreover, a total of 2 projects each were sanctioned under the Mega Food Parks
scheme, Food Testing Laboratory Scheme as well as Research & Development Scheme, during 2015-16.
Food processing
Note: FPI - Food Processing Industry

SINGLE-WINDOW APPROVAL MECHANISM
 A Single-Window Clearance Mechanism (SWM) was established in
June 2000, with an aim to expedite clearances for new industrial
projects.
 A state-level board, headed by the Chief Secretary, issues
clearances within a time frame of 45 days to medium and large scale
industries.
 KSIDC is the single point of contact and convenor of the state board.
 District-level boards have been constituted for issuing clearances
required by small scale industries.
 The District Collector of each district is the Chairman and General
Manager of the Board; the District Industries Centre (DIC) is the
convenor for such boards. The stipulated time frame for clearances
is 60 days.
 Industrial Area Boards have been set up in various industrial areas of
the state for the clearance of projects. An officer, not below the rank
of District Collector, is Chairman of each Board, with the Designated
Authority of the Industrial Area as Convenor. The stipulated time
frame for obtaining the clearances is 30 days.
State Board Chief
Secretary
District Boards District
Collector
Industrial Area
Board
An officer not
below the rank
of District
Collector
SWM structure in Kerala
Source: KSIDC

KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description
Kerala Industrial Infrastructure Development
Corporation
(KINFRA)
 The aim of the organisation is to speed up industrial growth in Kerala through infrastructure
support.
 It operates industrial parks in various sectors.
 It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and Rubber
Park (Pathanamthitta).
 KINFRA’s four upcoming projects include a marine park in Beypore, a technology park in
Ramanattukara, a food park at Wayanad and an industrial park in Palakkad.
KITCO Limited
(formerly, Kerala Industrial and Technical
Consultancy Organisation Limited)
 The organisation is involved in providing technical consultancy assistance to banks by
appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium
Enterprises (SMEs) sector by way of preparation of project reports and market studies and by
conducting training programmes for entrepreneurship development.
Directorate of Industries and Commerce
 It is the implementing agency for the Department of Industries, Government of Kerala.
 It provides infrastructure facilities for the small scale sector by acquiring land and developing
facilities such as roads, water supply, electricity and civil works.

KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description
Small Industries Development Corporation
 It provides infrastructure facilities to the small-scale sector through its major and mini industrial
estates.
 It owns and operates production units, raw materials depots, industrial estates/mini industrial
estates, marketing cell/emporia/centres, civil construction division, IT&TC division, export &
import/project division and industrial parks.
Kerala State Industrial Development
Corporation (KSIDC): the single-window
clearance and monitoring agency
 Purpose:
 Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the
development of large- and medium-scale industries in Kerala.
 Acts as a promotional agency, involved in catalysing the development of physical and social
infrastructure required for the constant growth of industry.
 Composition:
 Consists of a group of professionals from various fields including engineering, management,
finance and law.
 Services offered include project lending, single-window clearance, equipment purchase loans
and consultancies.

CONTACT LIST … (1/2)
Agency Contact information
Directorate of Industries and Commerce
Vikas Bhavan P O Thiruvananthapuram
Kerala-695 033
Phone: 91-471-2302 774
Fax: 91-471-2305 493
E-mail: tvm_dindust@sancharnet.in
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: ksidc@vsnl.com
KITCO Limited
P B No 4407, Puthiya Road,
NH Bypass, Vennala, Cochin-682 028
Phone: 91-484 -4129 000 / 2805 033
Fax: 91-484 -2805 066
E-mail: mail@kitco.in
Kerala Industrial Infrastructure Development
Corporation (KINFRA)
KINFRA HOUSE, TC 31/2312
Sasthamangalam, Thiruvananthapuram - 695 010
Phone: +91-471-2726 585
Fax: +91-471-2724 773
E-mail: kinfra@vsnl.com
Kerala Small Industries Development
Corporation
Housing Board Building, 6th floor, Santhi Nagar, P B No 50
Thiruvananthapuram- 695 001
Phone: 91-471-2330 401, 2330 413, 2330 818,
Fax: 91-471- 2330 904
E-mail: sidcoho@yahoo.com

KEY APPROVALS REQUIRED … (1/2)
Approvals and clearances required Department Estimated time
Incorporation of the company Registrar of Companies
Single window clearance:
The state’s single-window facility clears
investment proposals in 45 to 60 days on an
average; the single-window mechanism helps
obtain all approvals necessary for the
investment proposals within the specified time
frame.
Registration, Industrial Entrepreneurs
Memorandum, Industrial Licences
District Industries Centre for small scale
industries and KSIDC for large and medium
industries
Allotment of land State Department of Industries/KSIDC/KINFRA
Permission for land use
State Department of Industries,
Kerala Town and Country Planning Department
Environment approval for the site
Kerala State Pollution Control Board and Central
Ministry of Environment and Forests
No-objection certificate and consent under
Water and Pollution Control Act
Kerala State Pollution Control Board
Approval of construction activity and building
plan
Kerala Town and Country Planning Department
Sanction of power Kerala State Electricity Board (KSEB)
Registration under State’s Sales Tax Act and
Central and State Excise Act
Sales Tax Department, Central and State Excise
Departments

KEY APPROVALS REQUIRED … (2/2)
Approvals and clearances required Time to Complete (Days)
Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1
Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs
(National)
3
Approval for reserve a company name with the Registrar of Companies (ROC) (National)-online 2
Stamp the company documents at the State Treasury (State) 5
Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National
Securities Depository Ltd (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd, as
outsourced by the Income Tax Department (National)
15
Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or
agent appointed
14
Register with the Office of Inspector, Shops and Establishment Act (State/ Municipal) 14
Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 25
Register for Profession Tax at the Profession Tax Office (State) 9
Source: Kerala Economic Review 2014-15, World Bank Group

COST OF DOING BUSINESS IN KERALA
Cost parameter Cost estimate Source
Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources
Five-star hotel US$ 120–300 per room per night Leading hotels in the state
Office space rent (per sq ft) US$ 0.6–3 per month Industry sources
Residential space rent (2,000 sq ft house) US$ 350–750 per month Industry sources
Fixed Power Tariff (per kWh)
Domestic: 1.1 to 3.3 cents (US)
Commercial: 3.3 to 13 cents (US)
Industrial: 5.5-6.9 cents (US)
Kerala State Electricity Regulatory Commission, as of
March 2015
Labour (minimum wages per day) US$ 6.8–15 Ministry of Labour and Employment, Government of India
Water (1,000 litres)
Commercial and industrial: US 22
cents to US 55 cents
Kerala Water Authority
Source: Kerala Government websites and Industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority

STATE ACTS & POLICIES … (1/5)
Objectives
Kerala Sports Policy
2015
 To ensure the development of athletes as leaders and role models in sports and society.
 Sports related sectors to incorporate sports intentionally to achieve social development.
 To ensure that sports events are designed to benefit the host community and local economics. Read more
Kerala Industrial &
Commercial Policy
Amended 2015
 To promote Kerala as a prime destination for industrial investments with environmental protection.
 Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors, particularly agro
processing, services and commerce, and new emerging sectors.
Read more
Kerala Agricultural
Development Policy
2015
 The farm lands are to be protected and should not be put for any other use than farming activities
 The agriculturally potential land is to be identified and demarcated using modern technologies such as remote
sensing, satellite imagery, etc., and a database is to be made.
Read more
 Target installed capacity of 2,500 MW by 2030.
 Set up floating and off-shore generation units.
 Make use of solar energy compulsory for industries; incentive to be provided for solar power
Kerala Solar Energy
Policy 2013
Read more
 Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the
state.
 Government also aims to attract foreign investments.
Read more
Kerala Technology
Startup Policy 2014

Objectives
Kerala Tourism Policy
2012
 To create an environment for investment.
 To market Kerala as a visible global brand in domestic and international markets.
 To ensure quality visitor experience.
Kerala Small Hydro
Power Policy 2012
 To harness green and clean natural resources in the state for environmental benefits and energy security.
Kerala IT Policy 2012  To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India.
 To make Kerala’s economy more export-oriented by granting various exemptions and concessions.SEZ Policy 2008
 To offer affordable and adequate housing for the state’s citizens
 To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state
Kerala State Housing
Policy- 2011
Read more
Read more
Read more
Read more
Read more

Objectives
The Micro, Small And
Medium Enterprises
Development Act, 2006
 The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is
also enhancing the competitiveness between micro,
 Small and medium enterprises.
Kerala Biotechnology
Policy 2003
 The policy focuses on catalysing the development and application of biotechnology while taking advantage of the
state’s resources and keeping global requirements in perspective.
Kerala State Training
Policy
 To strengthen governance in the state by building capacity amongst various categories of civil servants
 To impart training to every state civil servant once in every five years
 Purpose of the policy is to legalize the production, transportation and consumption value of liquor in the state. The
policy also covers transparent licensing system for intoxicating products.
Kerala liquor policy
Read more
Read more
Read more
Read more

EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve bank of India, Average for the year

DISCLAIMER
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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
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Kerala State Report - April-2018

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Kerala State Report - April-2018