Kerala Attracts ₹70,916 Crore in Investment, Boosts MSME Growth

Kerala has successfully attracted investment projects valued at ₹70,916 crore between the fiscal years 2021-22 and 2024-25, according to a recent study by the MSME Export Promotion Council. The findings highlight significant advancements in various sectors, including tourism, information technology, and the micro, small, and medium enterprises (MSMEs), reinforcing the state’s trajectory towards a progressive and knowledge-driven economy.

In a report released on March 15, 2024, Dr D S Rawat, chairman of the MSME EPC, confirmed that during this reporting period, Kerala completed projects worth ₹23,728 crore and revived projects valued at ₹10,780 crore. Additionally, ongoing projects under implementation total ₹3,03,720 crore. The data was sourced from the Centre for Monitoring of Indian Economy (CMIE), illustrating Kerala’s sustained growth across critical sectors.

Human development and sustainability are central to Kerala’s economic strategy, resulting in balanced progress that aligns economic growth with social welfare. The state’s focus on human-centric policies has seen notable advancements in healthcare, education, and a burgeoning green energy sector. The tourism industry, in particular, has rebounded post-pandemic, with over 2.20 crore tourists visiting in 2024, contributing approximately 10-12 percent to the state’s GDP and creating jobs for around 15 lakh individuals, or 24 percent of the workforce.

Investment Landscape and Future Challenges

For the fiscal year 2024-25 alone, new projects announced in both the government and private sectors were valued at ₹11,544 crore. Completed projects amounted to ₹2,944 crore, while revived projects were worth ₹867 crore. The private sector played a significant role, contributing ₹8,119 crore in new projects, with completed initiatives of ₹675 crore and revived projects totaling ₹430 crore.

Despite these successes, challenges remain. Dr Rawat emphasized the necessity for the state government to establish a high-powered committee to address hurdles faced by ongoing projects. This initiative aims to ensure timely implementation and prevent cost escalations.

The MSME sector has seen rapid growth, with over 2,40,000 new enterprises established over the past two years, attracting investments of approximately ₹15,000 crore and generating jobs for nearly 2.20 lakh people. However, many MSMEs face significant challenges, particularly in accessing timely and affordable credit. A gap in the implementation of governmental schemes has also been noted, along with a growing number of new MSMEs focused on services or retail rather than high-value manufacturing.

To foster a more resilient economic landscape, Kerala must promote manufacturing MSMEs and diversify its efforts beyond retail and services. Enhancing support in areas such as marketing, export orientation, and technology adoption will be crucial for sustained growth and development in the sector.

As Kerala continues to solidify its position as one of India’s most socially advanced states, the focus on inclusive policies and human development will remain key to achieving balanced progress in the years ahead.