Kerala has the eighth largest economy in India, with high GDP and productivity figures, Kerala is a role model dubbed
the "Kerala Phenomenon" or the "Kerala Model" of development by economists, political scientists, and sociologists.
This phenomenon arises mainly from Kerala's land reforms, reforms for social upliftment of entire communities
implemented by the Government. Kerala is also one of India's most progressive states in terms of social welfare
and quality of life. The literacy rate for women in Kerala is one of the highest in all of Asia. Enjoying a unique
cosmopolitan viewpoint, the people here, at all levels of society, have greater access to services and opportunities
- as well as a greater say in their governance. Kerala is one of India’s most globalized states, with a high
dependence on service sector, exports, industries, remittances and tourism.
Kerala, with its excellent infrastructure has four international airports and railway lines spread across the
State, two international transshipment terminals, having a design capacity of over 4 million TEUs each and
providing rail, road and air connectivity to other ports in India and globally.
Around three million Keralite are working abroad, mainly in Persian Gulf; owing to the Gulf Boom and in the
Europe and US. With footprints of Keralite expanding globally, in 2016-17 alone, the state was the highest
receiver of overall remittances to India.
Kerala holds second rank in the Investment Climate Index after 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. Kerala is a leading agricultural state in the country & the largest producer of rubber,
pepper, coconut & coir. The Government has made it a priority to boost the traditional priority sectors of
the State thereby generating considerable employment and revenue alike
Kerala also known as God’s own country, is one of the few states to have marketed its natural beauty
successfully to the tourism sector. Tourism has emerged as Kerala’s core competency sector and contributes
to large share of the State’s GDP. Kerala has been promoting knowledge-based industries such as IT/ITeS,
computer hardware and biotechnology. Kerala has a strong e-governance infrastructure and is a leading state
in e-governance. Around 11% of the national IT pool is contributed by skilled human resources from Kerala.
Now, Government has taken proactive steps towards replicating the success in the Tourism, IT/ ITeS sectors
in the traditional Industrial sector as well. The need for improving the economic growth with a specific
focus on improving the industrial scenario of the State has been identified as the need of the hour.
It is in this scenario that Ease of doing business in Kerala gains importance. It is a necessary factor
for job creation. The state has the capacity for tremendous economic growth backed by private investments.
The private sector can play a key role in creating the required jobs and sustainable income opportunities.
Keeping in mind the key role to be played in improving overall business climate, Government of Kerala (GoK)
had laid emphasis on simplification and rationalization of the existing rules and introduction of information
technology to make governance more efficient, effective, simple and user-friendly. Government has undertaken
reforms to help place the State on an equal footing amongst other top ranked States and identified specific
areas for improvement in various aspects of doing business in the State. It was also decided to adopt the
best practices of other States to improve the ease of doing business environment in the State.
The state cabinet had recently approved the amendments/modifications to be made in the 10 rules and 7 Acts
related to the existing industrial clearance procedures. The reforms have been implemented with an aim to
improve micro and macro factors contributing to the successful running of business in the State.
The reforms have been made to satisfy the purposes of domains of digitization, delegation and disclosures.
As a part of the reforms, an Investment Promotion and Facilitation Cell constituted on behalf of Kerala
State Single Window Board and will be responsible for smooth interaction with applicants and issuing
Kerala, has identified priority sectors viz., Petrochemical, Life science, Electronics, Food processing and
Defence as the key drivers of growth for the years to come. The State Government has already ensured the
setting up of dedicated industrial parks for each of the priority sectors, thereby creating an enabling
environment for industries in these sectors to thrive upon. The industrial parks would be the most
prestigious projects of the State Government, promoting manufacturing, assembling units and R&D centers.
Government of Kerala have taken earnest and proactive steps to improve the business environment in the State.
The amendments / modification made as a part of the Ease of Doing Business initiatives and the industrial
infrastructure will create an enabling environment for establishing, running and winding up enterprises in
the State. Kerala is now transforming itself as an emerging destination for setting up industries and doing
business. It tops the chart in many social indices, and stands as the safest and secure State with peaceful
and harmonious living. The State become a center point for investors, with its advantages of abundant
skilled labour and educated human resources. The State could facilitate more industries and production
centers given its industrial infrastructure across the state.
All the above positive factors help to accelerate the brand Kerala and to make it shine and prosper by
ensuring a warm and healthy industrial environment and to make it a most sought after industrial destination
in the Country.
Setting up a business
Guide to identify clearance / permit for your project .