Kerala no more a difficult state for investment: Minister

6 Jun 2009

PUNE: Elamaram Kareem, the industries minister of Kerala, said here on Thursday that Kerala is emerging as an attractive investment destination among the south Indian states, with focus on investments in services and manufacturing sectors. He said an extensive campaign is being undertaken across the country to bring about a change in the old perspective that Kerala is a difficult destination for investment.

Kareem said that the government has come up with major projects for the development of the tourism sector. This sector contributes to a major section of activities in the state. Some of these projects include a campaign called responsible tourism and exploration of new destinations and developing Kerala as an international tourist hub. This will attract more number of foreign tourists, Kareem said. "Things have changed in the last decade. With the significant development in infrastructure and education, and with the reforms in labour policies, Kerala is no more a difficult state for investment. The state has registered a significant growth in GDP, which is even more than the country's growth."

Reacting to the criticism that industry in Kerala often face problems due to strong labour unions, Kareem said the government has brought considerable reforms in the labour sector. The number of man-days lost in Kerala due to strikes nowadays are much lower than the national average. It was brought almost to nil last year, Kareem said.

The minister was in the city to address a programme, Investment opportunities in Kerala,' organised by the World Malayalee Council, Pune province, in association with the Kerala government. "Similar events will be undertaken in different cities across the country. These programmes will help establish a communication network between the Kerala government and investors keen on investing in Kerala, Kareem said.

Earlier, T Balakrishnan, principal secretary for industries and commerce, Kerala, said that the Kerala government is focusing on cluster formation for IT and SMB sectors. The government is also following a policy to being growth with social equality and employment generation.