Kerala-March-2014.Pdf

       Cultural diversity and • Kerala is known as God’s own country. It is one of the few states to have marketed its well-developed tourism natural beauty successfully to the leisure tourism sector. The state’s unique heritage and sector cultural diversity have helped attract tourists from the world over.

Highest literacy and sex • Kerala has the highest literacy rate (93.9 per cent) and sex ratio (1084 women for 1000 ratio men) in India. The literacy rate for the rural population is also the highest in the state.

Largest recipient of • Kerala received NRI remittances of US$ 13.8 billion during the six months ended June foreign remittances in 2013. The remittances received are much higher than the US$ 10.7 billion and US$ 10.4 the country billion received during 2012-13 and 2011-12, respectively.

Ranks second in • Kerala ranks second in the Investment Climate Index below Karnataka according to a Investment Climate policy research working paper by the World Bank. The state came on second position due Index to it’s world class infrastructure and well trained human resource pool.

Source: Economic Review of Kerala 2012, http://www.emergingkerala2012.org/infrastructure.php, News Articles • Kerala is a leading agricultural state in the country and the largest producer of rubber, Strong agricultural pepper, coconut and coir. In 2011-12, the state contributed 87.3 per cent and 79.1 per sector cent to India’s total rubber and pepper production, respectively.

First international • Kerala has the first international transshipment terminal in India, having a design capacity container transhipment of around 4 million TEUs and providing better connectivity between Kerala and other ports terminal in India.

Presence of world-class • Kerala has also been promoting knowledge-based industries such as IT/ITeS, computer technology park hardware and biotechnology. It is the first state having a technology park with CMMI level 4 quality certification and a world-class IT campus in Thiruvananthapuram.

• Kochi, a city in Kerala, is one of the two spots in India having landing points for submarine Best bandwidth cables (SEA-ME-WE3 and SAFE), making it one of the best states in terms of bandwidth connectivity connectivity.

Source: Economic Review of Kerala - 2012, Kerala IT Policy 2012, http://www.igtpl.com/ Note: TEU’s = Twenty-foot equivalent unit 2012 HighGrowing economic demand growth Leader in tourism industry 2021E • Kerala’s GSDP rose at a compound • Kerala has emerged as the Foreign annual growth rate (CAGR) of 13.8 country’s number one travel Foreign tourist per cent between 2004-05 and destination as per Google’s Search tourist arrivals: 2011-12. Trends for India in 2012. arrivals: • Kerala is the leader in rubber • Foreign and domestic tourist 3.0 million 0.8 million production; high demand of rubber arrivals increased by 7.4 per cent has opened up immense and 8.3 per cent, respectively, over opportunities for the state in the 2011-12. rubber industry. Advantage: Kerala Rich labour pool Policy and infrastructure support • Kerala has a large base of skilled labour, making it an ideal • Kerala has a wide range of fiscal and destination for knowledge-intensive policy incentives for businesses under sectors. the Industrial and Commercial Policy • The state has the highest literacy and has well-drafted sector-specific rate in the country. policies. • It has a large pool of semi-skilled • Besides, it has a well-developed and unskilled labourers. social, physical and industrial • The state has over 153 engineering infrastructure and virtual connectivity; colleges. and has good power, airport, IT and port infrastructure.

Source: Economic Review of Kerala - 2012, Tourism Vision 2030, www.keralatourism.com GSDP: Gross State Domestic Product There are 44 rivers flowing through Kerala, the major ones being the Periyar (244 km), the Bharathapuzha (209 km) and the Pamba (176 km).

Parameters Kerala

Thiruvananth Capital apuram Geographical area (sq km) 38,863 Administrative districts (No) 14 Source: Maps of India Population density (persons per sq 859 km)* Kerala is located along the coastline to the extreme south- Total population (million)* 33.38 west of the Indian peninsula, flanked by the Arabian Sea on the west and the mountains of the Western Ghats on the Male population (million)* 16.02 east. The state has a coastline of 580 km. Female population (million)* 17.36

Malayalam is the most commonly spoken language. Hindi, Sex ratio (females per 1,000 males)* 1,084 English and Tamil are the other languages used. Literacy rate (%)* 93.9

Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities Sources: Kerala at a glance, Government of Kerala website, www.kerala.gov.in in the state. *Provisional data – Census 2011 Parameter Kerala All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all states Planning Commission Databook, 2013, 3.8 100 100 GSDP current prices Planning Commission Databook, 2013, Average GSDP growth rate (%)* 14.9 15.9 15.6** current prices Planning Commission Databook, 2013, Per capita GSDP (US$) 1,894.4 1,434.8 1,414.7 current prices Physical infrastructure Central Electricity Authority, as of Installed power capacity (MW) 3,856.4 228,721.7 September 2013 Telecom Regulatory Authority of India, as Wireless subscribers (No) 31,000,066 870,582,006 of September 2013 Telecom Regulatory Authority of India, as Broadband subscribers (No)*** 1,707,000 15,360,000 of September 2013 Ministry of Road Transport & Highways, as National highway length (km) 1,542 79,116 of March 2013 Major and minor ports (No) 1+17 13+187 Indian Ports Association Airports (No) 3 133 Airports Authority of India

*Calculated in Indian rupee terms, **2004-05 to 2012-13, ***As of December 2012 Parameter Kerala All-States Source Social indicators

Literacy rate (%) 93.91 74.0 Provisional data – Census 2011 SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population) 14.9 21.6 September 2013 Investment

Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 0.95* 201.9 April 2000 to August 2013 Outstanding investments (US$ billion) 45.3 2,658.2 CMIE (2012-13)

Industrial infrastructure

PPP projects (No) 33 881 www.pppindiadatabase.com

SEZ (No) 24 392 Notified as of July 2013, www.sezindia.nic.in

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System *Including Lakshadweep At current prices, Kerala’s GSDP was about US$ 65.8 GSDP of Kerala at current prices billion over 2011-12. (US$ billion) 65.8 59.1 CAGR The state’s GSDP rose at a CAGR* of 14.9 per cent 14.9%* between 2004-05 and 2011-12. 48.9 44.2 43.5 Growth was mainly driven by services and tertiary sectors. 34.0 30.9

26.5

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Source: Economic Review of Kerala, 2012, http://planningcommission.gov.in Note: GSDP - Gross State Domestic Product *CAGR calculated in Indian rupee terms At current prices, Kerala’s NSDP was about US$ 58.6 billion NSDP of Kerala at current prices during 2011-12. (US$ billion) 58.6 52.5 NSDP expanded at a CAGR* of 15.1 per cent between CAGR 43.5 39.2 2004-05 and 2011-12. 15.1%* 38.3 29.8 27.2

23.3

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in Note: NSDP - Net State Domestic Product *CAGR calculated in Indian rupee terms The state’s per capita GSDP was US$ 1,894.4 over 2011- GSDP per capita of Kerala at current prices 12 compared to US$ 807.1 during 2004-05. (US$)

CAGR 1,894 Per capita GSDP increased at a CAGR of 14.0 per cent 1,716 14.0%* 1,430 between 2004-05 and 2011-12. 1,292 1,301

932 1,016

807

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in *CAGR calculated in Indian rupee terms Kerala’s per capita NSDP was US$ 1,688 over 2011-12 NSDP per capita of Kerala at current prices compared to US$ 709.0 during 2004-05. (US$) 1,688 Per capita NSDP increased at a CAGR* of 14.2 per cent CAGR 1,524 between 2004-05 and 2011-12. 14.2%* 1,270

1,136 1,155

893

709 819

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Source: Economic Review of Kerala 2012 http://planningcommission.gov.in *CAGR calculated in Indian rupee terms Over 2011-12, the tertiary sector contributed 64.5 per cent GSDP composition by sector to the state’s GSDP at current prices, followed by the secondary sector (20.4 per cent). CAGR*

The tertiary sector grew at an average rate of 16.7 per cent 16.7% 59.6% 64.5% between 2004-05 and 2011-12. Growth was driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. 22.5% 13.6% 20.4% The secondary sector rose at an average rate of 13.6 per cent between 2004-05 and 2011-12. Growth was led by 17.9% 12.7% 15.1% manufacturing, construction and electricity, gas & water 2004-05 2011-12 supply. Primary sector Secondary sector Tertiary sector The primary sector expanded at an average rate of 12.7 per cent between 2004-05 and 2011-12. Source: http://planningcommission.gov.in CAGR calculated in Indian rupee terms Annual production (P) Agriculture and allied sectors contributed 9.1 per cent to Crop Kerala’s GSDP over 2011-12. in 2011-12 (metric tonnes) Tapioca 2,567,953 Kerala is the leader in pepper production in the country. The Rubber 788,940 state accounted for around 94.3 per cent of total pepper production during 2010-11. Rice 568,993 Banana 514,054 India is the fourth largest producer of natural rubber, and Other plantations 330,634 Kerala accounts for around 87.3 per cent of total rubber production in India. Arecanut 121,623 Coffee 68,175 Total area under crops was around 2,661,757 hectares during 2011-12. In 2010-11, the agriculture income of the Tea 57,903 state was estimated to US$ 3,535.3 million. Pepper 37,989 Cashewnut 36,743 Ginger 37,130 Cardamom 10,222 Turmeric 7,946 Coconut 5,941* Pulses 3,128

Source: Economic Review of Kerala, 2012 P: Provisional, *Million nuts Exports of coastal and foreign cargo from the Kochi port Total exports from CSEZs (US$ million) increased by 23.4 per cent and 28.4 per cent, respectively, during 2011-12. 7,000 6,250 6,000 CAGR 59.3%* 5,000 4,018 While coastal cargo exports stood at 1.5 million 3,607 tonnes in 2011-12, foreign cargo exports were at 2.8 4,000 3,002 2,516 million tonnes. 3,000 2,000 1,156 1,000 During April-September 2012, exports from CSEZ stood at 0 US$ 3,002.4 million. Exports from CSEZs stood at US$

6,249.8 million during 2011-12 compared to US$ 1,155.9

2008-09 2009-10 2010-11 2011-12

million during 2007-08, implying a CAGR* of 59.3 per cent. 2007-08 2012-13** Exports break-up, CSEZ (2011-12) Source: Economic Review of Kerala 2012 Note: CSEZ - Cochin Special Economic Zone Sectors (US$ million) *CAGR calculated in Indian rupee terms ** - Data for April-September 2012 Electronic hardware 97.6 Electronic software 65.5 Garments 0.6 Gem & jewellery 5939.4 Plastic & rubber products 12.1 Engineering 15.8 Food & agro 33.7 Others 85.0 Total 6249.8 According to DIPP, FDI inflows to the state (including Mega projects conceptualised and developed in Kerala include Lakshadweep) totalled US$ 959.0 million from April 2000 to Supplementary Gas Infrastructure Project by Kerala Gail Gas August 2013. Limited, (US$ 400 million), Kochi Metro Rail Project (US$ 900 million) and a Monorail project in Thiruvananthapuram (US$ 682 Over 2012-13, outstanding investments in Kerala totalled US$ million). 45.3 billion.

The services sector accounted for around 62.6 per cent of total Break-up of outstanding investments by sectors outstanding investments, followed by the manufacturing sector (16.9 per cent). (2012-13)

Some of the recent investments in the state have been the 1.0% KINFRA International Apparel Parks Ltd (KIAP), KINFRA Film and 1.9% 8.2% Video Park, International Convention Centre Complex (ICCC) and 9.4% Technocity (Phase-IV expansion programme of Technopark) in Electricity Thiruvananthapuram; and Technopark Phase-III and a deep water 16.9% port at Vizhinjam, near Thiruvananthapuram. Manufacturing

Projects worth US$ 2.4 billion are scheduled for completion in the Services next 12 months. Irrigation

Recent investments in the state include the Puthuvypeen Real Estate LNG Terminal Phase-I (US$ 598.4 million), Lulu Shopping Mall in Kochi (US$ 294.6 million) and Cruise Terminal in 62.6% Mining Kochi (US$ 50.2 million).

Kerala government has proposed to develop manaufacturing investment zones covering Ernakulam, Source: CMIE Thrissur, Palakkad and Malappuram districts. Note: DIPP - Department of Industrial Policy & Promotion http://www.emergingkerala2012.org/mega-projects.php PWD roads constitute 15.3 per cent of total road network.

Around 6.66 km of PWD roads are made of cement concrete, 30,744.4 km are black topped and 447.3 km are water bound macadam. Nearly 97 per cent of the total roads are black topped surfaces.

The Kerala State Transport Project (KSTP) was established in June 2002 to improve the 1,600 km of state roads and 77 km of inland-canals with the use of geographic information systems.

As of September 2012, The Kerala State Road Transport Corporation (KSRTC) provides road transport services in Source: Maps of India Kerala and operates 5,803 buses.

In Kerala, the Public Works Department has a total road length of 31,811.6 km of state roads and 1,542 km of Road type Road length (km) national highways. National Highways 1,542

The state is well-connected to its neighbouring states and State Highways 4,341.65 other parts of India through nine national highways. Major District Roads 27,469.9

Agencies maintaining roads in Kerala include the Public Works Department (PWD); panchayats; municipalities, corporations; the departments of forests, irrigation, railways; Sources: Economic Review of Kerala, 2012 and the Kerala State Electricity Board (KSEB). Ministry of Road Transport & Highways Kerala is well-connected to other parts of the country via railways. As of March 2013, it had a railway network of 1,257 km, with around 200 railway stations and 13 railway routes.

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.

Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala.

Kochi Metro Rail System, High Speed Rail Corridor and Rail Coach Factory at Palakkad are ongoing projects in the state currently. Kochi Metro Rail – Phase 1 entails investments of US$ 954.1 million.

Sources: Economic Review of Kerala, 2012 Kerala State Industrial Development Corporation Ltd

Source: Maps of India Kerala has three airports handling domestic and international flights. They are located at Thiruvananthapuram, Kochi and Kozhikode.

The airports together handled 34,444 international flights, carrying 4.7 million passengers; and 30,509 domestic flights, carrying 2.9 million passengers, over 2012-13.

The Cochin International Airport Limited (CIAL) is the first greenfield airport in India to be set up in the PPP mode.

CIAL is developing 450 acre of area around the airport as an aerotropolis to support the IT/ITeS Technopark with residential and commercial space.

Construction of the proposed international airport at Kannur, spread over 2,000 acres, has started; the airport would have a runway length of 3,400 meters.

Sources: Economic Review of Kerala, 2012, Airports Authority of India Kerala State Industrial Development Corporation Ltd

Airport Source: Maps of India There are 18 ports in Kerala, of which Cochin is the major port. Furthermore, there are three intermediate and 14 Existing ports minor ports. Major ports • Cochin

• Neendakara Kerala is constructing the Vizhinjam deep-water Intermediate ports • Alappuzha international container transhipment terminal at Vizhinjam, 17 km south of Thiruvananthapuram, under the PPP mode. • Kozhikkode • Vizhinjam • Valiyathura • Vadakara • Ponnani • Thankasserry • Kayamkulam • Manakkodam Minor ports • Munambam • Beypore • Thalasserry • Manjeswaram • Neeleswaram • Kannur • Azhikkal • Kasaragode

Sources: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in For FY 2012-13, total trade volume handled at the Cochin Cochin port traffic (million tonnes) port was 19.8 million tonnes compared to 20.1 million tonnes in 2011-12. 25 CAGR 4.6% 20.1 19.8 20 The Cochin port handled 4.6 million tonnes per annum 17.4 17.9 15.8 15.2 (MTPA) of containers during 2012-13. 15

0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Sources: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in The Cochin port is a favourite port-of-call for luxury cruise Number of cruise arrivals at Cochin port liners from across the world.

50 During 2012-13, 50 cruises arrived at the Cochin port. 44 38 39 Around 58,000 cruise passengers embarked in Kochi in 2011; revenue generated from their visit has been estimated 22 at US$ 11 million. 18 19 11 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.

2002-03 2003-04 2004-05 2005-06 2006-07 2009-10 2011-12 2012-13

Source: Cochin Port Trust As of September 2013, the state had a total installed power Installed power capacity (MW) generation capacity of 3,856.4 MW, which consisted of 2,290.8 MW under state utilities, 1,369.7 MW under central 3,856.4 utilities and 195.8 MW under the private sector. CAGR 3,827.7 2.35% 3,718.8 Thermal power contributed 1,704.6 MW to total installed 3,553.7 3,514.0 power generation capacity, Hydropower (1,881.5 MW), nuclear power (95.6 MW) and renewable power (174.7 MW) are the other main sources.

Kerala’s state utilities produce 82.1 per cent of its energy through hydroelectric power plants, and the remaining 17.8 per cent through thermal and renewable power generation 2008-09 2009-10 2010-11 2011-12 2012-13 plants.

Source: Central Electricity Authority, *As of September 2013 Kerala is among the prominent Indian states to have achieved 100 per cent rural electrification. In 2009, the government had planned to set up power projects with a total capacity of 4,000 MW in the next 10 Power generating stations in Kerala years. This would help in reducing energy shortage and • Hydel plants under KSEB: 24 promoting new industrial investments. • KSEB thermal plants: 2

• Central-sector (NTPC) owned thermal plant: 1 The Energy Policy of Kerala lays down the need to develop • renewable energy sources and provides government Private hydel stations: 2 support for the same. Kerala has become the first state in the country to launch an ambitious programme to generate over 10 MW of solar power. Source: Economic Review of Kerala, 2012

27 hydel projects having an installed capacity of 539.3 MW are in the pipeline.

During 2012-13, US$ 218.2 million was earmarked for the energy sector, a rise of 3.8 per cent over the previous year.

Per capita consumption of power in the state was 567 kWh over 2011-12.

Kerala State Electricity Board’s total reported revenues per annum stood at US$ 1.4 billion during 2012-13. Telecom infrastructure Kerala had an overall tele-density of 96.4 per cent compared to an all-India average of 73 per cent, as of Wireless subscribers^ 31,000,066 September 2013. Wire-line subscribers^ 2,985,010 The state has 1,243 telephonic exchanges. About 98.0 per Broadband subscribers 1,707,000 ** cent of Kerala's telephone exchanges have internet Post offices 5,056 connectivity through the National Internet Backbone (NIB). Telephone exchanges 1,243* VSNL has an international communication gateway in Teledensity (in per cent) ^ 96.43 Kochi, with two high-speed submarine cable landings (SEA- ME-WE-3 and SAFE), offering 15 gigabytes per second (Gbps) bandwidth. Sources: Telecom Regulatory Authority of India, Department of Telecommunications Annual Report 2011-12, Ministry of Communications and Information Technology, India Post According to the Telecom Regulatory Authority of India *As of December 2011, **As of December 2012, ^As of September 2013 (TRAI), as of September 2013, Kerala had nearly 31 million wireless subscribers and 2.9 million wire-line subscribers Major telecom operators in Kerala (including Lakshadweep). Bharat Sanchar Nigam Limited (BSNL) The state is planning to build a telecom city near Bharti Airtel Technopark in Thiruvananthapuram, with an investment of Aircel Limited around US$ 208.6 million. Vodafone Essar IDEA Cellular Tata Teleservices Reliance Communications

Source: Telecom Regulatory Authority of India Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 15 projects worth US$ 238 million have been approved over 2006-2012 for the development of urban infrastructure in Thiruvananthapuram and Kochi. As on 1st November 2013, ten projects worth US$ 164.3 million are in progress.

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 improvements, community upgrading, local government infrastructure development and capacity building, and implementation assistance.

The Kerala Water Authority (KWA) is responsible for the design, construction, execution, operation and maintenance of most of the water supply schemes, and the collection and disposal of waste water in Kerala.

Construction of the first phase of SmartCity Kochi, a self-sustained industry township project that is a conglomerate promoted by Dubai Holding member TECOM Investments for knowledge-based companies, would be completed within 18 months from the launch of the construction in June 2013.

JNNURM projects have been sanctioned for the improvement of water supply, sewerage, solid-waste management and drainage, etc.

“Kudumbashree”, the State Poverty Eradication Mission, is involved in “Clean Kerala Business’’ to collect door-to-door household waste and process it for economic benefits.

Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012 Kerala has around 33 PPP projects, spread across sectors such as airports, roads, tourism, urban infrastructure and ports.

Project cost Project name Sector PPP type Contact authority (US$ million)

Cochin International Airport Airports BOO Airports Authority of India 63.2

Department of Road Transport Coimbatore Bypass Road Roads BOT-Toll 20.7 and Highways Development of water supply project Bekal Resorts Development Tourism BOT-Annuity 3.5 at Bekal Kasargod District Corporation Development of new bridge The Greater Cochin connecting Mattancherry and Roads BOT-Toll 5.6 Development Authority Willingdon Island at Cochin Development of a supermarket at Urban BOT-Annuity Vadakara Municipality 3.1 Vadakara development Bekal Resorts Development Development of resorts at Bekal Corporation (BRDC) and Kerala Tourism BOO 11.4 Kasargod District Tourism Development Corporation (KTDC) Urban Kerala Industrial Infrastructure Kochi Metro-Rail Project BOT-Annuity 663.9 development Development Corporation

Source: www.pppindiadatabase.com BOT: Build-Operate-Transfer, BOO: Build-Own-Operate Project cost Project name Sector PPP type Contact authority (US$ million)

Six-Laning of Vadakkancherry Thrissur National Highways Roads BOT-Toll 135.3 Section Authority of India (NHAI)

Thrissur-Edapalli Roads BOT-Toll NHAI 65.1

Urban Trivandrum City Road Improvement Project BOT-Annuity Kerala Road Fund Board 72.3 development

Vallarpadam Container Transhipment Ports BOT Cochin Port Trust 441.8 Terminal

Directorate of Ports, Vizhinjam Seaport International Ports BOT-Annuity 1,128.0 Government of Kerala

Four-Laning of Karnataka and Kerala Roads BOT-Toll NHAI 253.8 border to Kannur section

Four-Laning of Walayar-Vadakkancherry Roads BOT-Toll NHAI 149.6 section

Kannur-Kuttipuram Package-2 Roads BOT-Toll NHAI 287.9

Kannur-Kuttipuram Package-1 Roads BOT-Toll NHAI 299.7

Source: www.pppindiadatabse.com BOT: Build-Operate-Transfer Kerala State Information KSITI, Kasargod Technology Infrastructure Limited (KSITI), Kannur • Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)

KINFRA, Kakkancherry

Sutherland Global Services Hindustan News Print Infopark Limited Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KSITI, Pallipuram KINFRA, Kochi KSITI, Purakkad Unitech Real Estate Electronics Parsavnath Developers Technology Park Smart City Infrastructure KINFRA Carborundum Universal Limited Techno Park Sez- I KSITI, Kollam MM Tech Towers, Alwaye Technopark Pallipuram Emmar MGF, Alwaye Techno Park Sez- II

Source: www.sezindia.nic.in There are eight operational SEZs in the state

Operational SEZs in Kerala

Name/Developer Location Primary industry

Cochin SEZ Kochi Multi-product

Infopark SEZ Kochi IT/ITeS

Electronic Technology Park-SEZ-I Trivandrum IT/ITeS

Electronic Technology Park-SEZ-II Trivandrum IT/ITeS

Cochin Port Trust Vallarpadam Port-based

KINFRA Film & Video Park Trivandrum Animation & gaming

Cochin Port Trust Puthuvypeen Port-based

Kerala Industrial Infrastructure Development Pathanamthitta Food processing Corporation (KINFRA)

Source: www.sezindia.nic.in, SEZ: Special Economic Zone As on July 2013, Kerala had 29 SEZs with formal approval and 24 notified SEZs.

Some of formally approved SEZs in Kerala

Name/Developer Location Primary industry

Cochin Port Trust Puthuvypeen Port-based

Cochin Port Trust Puthuvypeen, Ernakulam Port-based

KINFRA Kazhakoottam, Trivandrum IT (Animation & gaming)

Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Kerala State Information Technology Cherthalai, Alappuzha IT/ITeS Infrastructure Ltd (KSITIL) Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS

Cochin International Airport Ltd Ernakulam Airport-based

Source: www.sezindia.nic.in, SEZ: Special Economic Zone • Kerala has sought the central government's approval for the Kochi-Palakkad National NIMZ Investment and Manufacturing Zone (NIMZ). • The NIMZ is proposed to be set up across 20 identified nodes.

• The state would develop state-of the-art industrial & commercial infrastructure across the State-of-the-art 20 identified nodes. infrastructure • Other infrastructure facilities required to be created include internal roads, drainages, water treatment plants and gas based power plants for a total capacity of 2,500 MW.

• The opportunities available in this project are industrial plots, export and import-related Opportunity opportunities, packaging services, logistic services, etc.

Total employment • Kerala expects to generate direct employment for 0.5 million people over five years and potential of around 0.5 indirect employment for 2.5 million people in 10 years. million

Note: NIMZ - National Investment and Manufacturing Zone Kerala has the highest literacy rate among all states in the country. According to the provisional data of Census 2011, Educational infrastructure (2012) the state has a literacy rate of 94 per cent; male and female Schools 12,644* literacy rates stood at 96.0 per cent and 92.0 per cent, respectively. Universities 14^ Engineering institutions 153 About 30.11 per cent of total students are enrolled in government schools, 60.48 per cent in government-aided Arts and Science colleges 191 private schools and 9.41 per cent in unaided private schools Polytechnics 49 (2012-2013).

Girl students constitute around 49.4 per cent of total student Sources: Economic Review of Kerala, 2012, University Grants Commission, enrolment in schools in the state. *During 2011-12, ^As of March 2012

Kerala had 1,836 higher secondary schools in 2012. Of these, 755 (41.2 per cent) are government schools, 668 (36.4 per cent) are aided schools, and the remaining 413 (22.5 per cent) are unaided schools. Kerala primary education statistics (2011-12)

Lower primary: 6,784 Schools (No) Upper primary: 2,986 High schools: 2,874 Lower primary: 0.47 School dropout rate (%) (2010-11) Upper primary: 0.32 High school: 0.78 Pupil-teacher ratio 26:1

Student strength Share of total student Nature of schools (in million) strength (%)

Government 1.26 29.8 Government-aided 2.593 61.3

Unaided 0.376 8.9 Total 4.230 100.0

Sources: Economic Review of Kerala, 2012, University Grants Commission Kerala is home to premier institutions such as: Technical institutions under Directorate of

Technical Education-2012 Indian Institute of Management, Kozhikode Institutions Numbers Indian Institute of Space Science and Technology, Government technical high schools 39 Thiruvananthapuram Government commercial institutes 17 National Institute of Technology, Calicut Tailoring and garment making 42 training centres National University of Advanced Legal Studies, Kaloor Vocational training centres 4

Central Institute of Fisheries Nautical and Engineering Training, Kochi Major medical colleges in Kerala - 2012

• Medical colleges: 22 Central Institute of Fisheries Technology, Cochin • Dental colleges: 21 • Central Marine Fisheries Research Institute, Nursing colleges: 111 Ernakulam • Ayurveda medical colleges: 17 • Homeopathy medical colleges: 5 Institute of Human Resource Development, • Siddha: 2 Thiruvananthapuram

Sources: Economic Review of Kerala, 2012, University Grants Commission Kerala has a good health infrastructure comprising 840* primary health centres, 25 dispensaries, 226 community Health indicators as of 2012 health centres and 5,403 sub-centres. Birth rate* 14.9 As of 2012, there were 1,255 medical institutions with Death rate* 6.9 37,388 beds under the Directorate of Health Services. Infant mortality rate** 12 Currently, of Kerala’s total healthcare institutions, 46 per cent are under Allopathic, 32.2 per cent under Ayurveda Life expectancy at birth (years) and 22 per cent under the Homoeopathy department. Male 71.4

Female 76.3 Health infrastructure as of 2012 • Primary health centres: 840 Sources: Sample Registration System (SRS) Bulletin September 2013 • Community health centres: 226 (www.censusindia.gov.in), • District/taluka/women and children hospitals: 113 Economic Review of Kerala, 2012 *Per thousand persons • Dispensaries: 25 **Per thousand live births • T.B. clinics/centres: 17 • Grant-in-aid institutions: 29 • Leprosy control units: 3 • Sub-centres: 5,403

Source: Economic Review of Kerala, 2012 Kerala has been rated as one of the Thirteen Paradises of the World by National Geographic Traveller; it has been Popular tourist locations promoted as ‘God’s Own Country’. Kovalam, Varkala, Marari, Bekal Beaches and Kannur Health and wellness tourism in Ayurvedic medicine has grown tremendously in the recent past. Kumarakom, Alappuzha, Kollam, Backwaters Kochi and Kozhikode Sri Padmanabhaswamy temple makes the state one of the Ponmudi, Munnar, Wyanad and attractive religious tourism spots in India. Hill stations Vagamon

Other major temples in Kerala, such as Guruvayoor and Periyar Wildlife Sanctuary, Sabarimala, are also major religious attractions. Eraviikulam National Park, Wildlife reserves Thattekad Bird Sanctuary Parambikulam Wildlife Sanctuary

Sources: Department of Tourism, Government of Kerala, Economic Review of Kerala 2012 Art and culture are being fostered and promoted through various bodies such as: New sports infrastructure projects in Kerala New hockey stadium at Kollam Kerala Sahitya Academy – To promote Malayalam literature. Rajiv Gandhi Indoor Stadium, Kochi Shooting range at Vattiyoorkkavu, Kerala Sangeetha Nataka Akademi – To promote Thiruvananthapuarm traditional arts. Corporation Stadium, Kollam

Kerala Lalithkala Academy – To promote painters V.K.N. Indoor Hall, Thrissur and sculptors. VKK Menon Stadium, Kozhikode

Kerala Folklore Academy – To promote Kerala CSN Stadium, Thiruvananthapuram folklore. New football stadium at medical college ground, Kozhikkode Kerala State Chalachitra Academy – Academy for motion pictures. New multipurpose hall, Kannur Kariavattom main stadium, Thiruvananathapuam Kerala Kalamandalam – To teach traditional dances. Synthetic Athletic track at University of Calicut, The cities of Kerala have modern amenities for recreation Malapuram (Approved under Urban Sports such as golf courses, shopping malls, theatres, café- Infrastructure Scheme (USIS)) lounges and resto-bars. Sources: Department of Tourism, Government of Kerala Economic Review of Kerala 2012, News Articles The state has 29 SEZs with formal approvals and 24 notified SEZs. A cyber-park, spread over a 68 acre campus, is being developed in Kozhikode.

Infrastructure Project description

• The Technopark at Thiruvananthapuram is spread over 300 acres. • Technopark currently hosts over 290 IT and ITeS companies, employing over 42,500 IT professionals. • Technopark Phase-II has been declared an SEZ by the Government of India. Technopark • Technopark will become a 14.54 million sq ft technology park, once its Phase-III is complete. Technopark’s Phase-III development is being implemented as an IT/ITeS SEZ, spread over 92 acres. • As part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km north from the main campus on the National Highway-47 to Kollam.

• The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical- cable landings. Infopark • 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.

• Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the Special Economic KINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based Zones 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/ 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 District Industries Kannur Handlooms, power looms, beedi Alappuzha Coir products Idukki Agriculture and forest-based Thiruvananthapuram Handlooms, IT Thrissur Powerlooms, handlooms, textile, timber, tile, canning Palakkad Powerlooms, sericulture Kollam Minerals and mining Kozhikode Rubber Wayanad Minerals and mining Kasargod Minerals and mining Kottayam Rubber, food products, engineering Ernakulam IT Kerala’s strategic location on the trans-national trade To make Kerala a premier global hub for economic activity corridor, rich natural resources and simple and transparent and create awareness among investors regarding potential procedures are favourably suited for investments in key in the state, a global investors meet – Emerging Kerala – sectors like tourism, IT/ITeS, manufacturing and mining. was held in Kochi in September, 2012.

Kerala’s traditional industries include handloom, cashew, In terms of industrial growth, the state’s average growth coir and handicrafts. from 2004-05 to 2011-12 was 13.6 per cent at current prices. KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited), the Key industries in Kerala Directorate of Industries and Commerce and the Small Industries Development Corporation are jointly responsible • Handlooms and powerlooms for the development of industrial infrastructure in the state. • Rubber • Bamboo Forming industrial clusters and developing infrastructure • Coir (such as rubber parks, electronic hardware park, coconut industrial park, organic industrial park and food processing • Khadi and village industry parks) have been integral to the state’s strategies to attract • Sericulture investments in various industries. • Seafood and other marine products • Cashew The total number of functional micro, small and medium • Mining enterprises - registered and unregistered - in Kerala stood at 150,000 and 2,063,000 respectively as of March 2013. • Tourism These units employed a total of 4,962,000 employees • Food processing (621,000 employed under registered sector and 4,341,000 • Spices and spice extracts employed under unregistered sector). • IT & electronics

Source: Economic Review of Kerala, 2012 Kerala accounts for approximately 57.0 per cent (in terms of value) of total coir and coir products produced in India.

The coir industry provides employment to around 400,000 people.

The state has three coir parks: two in Alappuzha, and one in Perumon (Kollam).

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.

Source: Economic Review of Kerala, 2012,Coir Board Export of curled coir, coir fibre, coir pith, coir rope, coir yarn, Exports of coir industry (‘000 tonnes) coir geo-textile, handloom matting, power loom mats and rubberised coir from India increased in terms of quantity and 500 429.5 value during 2012-13 compared to the previous year. 450 410.9 400 350 321 Kerala’s total coir exports stood at 71,284 tonnes (US$ 294.5 117.3 million) out of India’s export of 429,500 tonnes (US$ 300 238.5 205.5 million) during 2012-13. 250 187.6 199.9 200 Exports of coir and coir products from India stood at 150 238,539 tonnes (valued at US$ 103.1 million) during April- 100 September 2013. 50 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14* 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 Source: Economic Review of Kerala, 2012, Coir Board, that can help cultivate crops in saline and arid conditions. Government of India Business India, March 31, 2013 * Provisional data for the period April-September 2013 The Department of Coir Development, Government of Kerala, organised the world's largest expo on Kerala coir and natural fibre products, Coir Kerala 2013, during 01-05 February 2013 in Alappuzha.

Business worth US$ 36.8 million had taken place at the trade fair. The handloom industry employs about 51,590 people, of which 42 per cent are women. It ranks second among the traditional industries of the state in terms of providing employment (2012).

Total handloom cloth production increased by about 5 per cent to 27.9 million metres in 2011-12 from 26.7 million metres in 2010-11; the total value of production grew by around 6 per cent to US$ 42 million from US$ 40 million during the same period.

The state’s handloom industry is mainly concentrated in the districts of Thiruvananthapuram and Kannur and in some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod.

The central government granted US$ 0.8 million for setting up Indian Institute of Handloom Technology in Kaloor (Kochi), and a Handloom and Handicrafts Village in Chenamangalam (Ernakulum), which would have a government facility centre, a design bank and a museum.

At the end of March 2012, there were 591 registered Primary Handloom Weaver’s Co-operative Societies (PHWCS) in Kerala, consisting of 166 factory-type societies and 425 cottage-type societies.

Around 94.0 per cent of the total number of looms are under the cooperative sector, the remaining being under industrial entrepreneurs.

Kerala’s four integrated power loom co-operative societies in Calicut, Wayanad, Neyyattinkara and Kottayam have been expanded by providing budgetary support.

The Calicut Integrated Powerloom Co-operative Society Ltd has been converted into a textile park comprising all the segments of a composite mill (weaving, processing and garment making). At the society, semi-automatic powerlooms, automatic looms and highly sophisticated machines are operational. Source: Economic Review of Kerala, 2012 Kochi has emerged as an unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT cities including Bengaluru.

The annual plan outlay for information technology during 2012-13 is 27 per cent higher than that for 2011-12.

Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 per cent).

The state has a techno park in Thiruvananthapuram, info park in Kochi and cyber park in Kozhikode. It also has private IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Trivandrum), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi).

Over 2012-13, the state’s software exports made by registered units through Software Technology Parks of India (STPI) were valued at US$ 644.4 million.

There are three operational IT/ITeS SEZs in the state (one in Kochi and two others in Trivandrum).

Source: Kerala IT Policy 2012, Cybex, Indiaitnews Economic Review of Kerala 2012 IT exports from Kerala increased at a CAGR* of 23.8 per Exports from IT industry (US$ million) cent between 2007-08 and 2012-13. CAGR 644.4 Operational costs in the state are among the lowest in India 23.8%* (40 per cent lower as compared to other major IT locations 454.6 in India). Also, rental/real estate cost is lower than major IT 392.7 412.6 413.4 cities in the country. 298.5

Around 11 per cent of the national IT pool is contributed by skilled human resources from Kerala.

Kerala has a strong e-governance infrastructure and is a 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 leader state in e-governance.

The government’s objective is to achieve direct employment Source: Kerala IT Policy 2012 of up to 0.5 million in the ICT sector and to have 3,000 Software Technology Parks of India, Cybex, Indiaitnews Note: ICT = Information and Communication Technology technology start-ups by 2020. *CAGR calculated in Indian rupee terms • Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Tata Consultancy Outsourcing (BPO) services in India. TCS employed more than 276196 IT consultants in 44 Services countries and generated revenue of US$ 11.6 billion in 2012-13. • TCS provides IT consulting and services in banking, financial services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation, travel and hospitality, retail, utilities and energy resources sectors. It has a software development and training centre at Technopark in Thiruvananthapuram. • Established in 1981, Infosys employs more than 160,000 people. The company generated US$ Infosys 6.8 billion in revenue over 2012-13. 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.

• Collabera is a fast-growing, end-to-end information technology services and solutions provider, Collabera working with leading global 2,000 organisations from banking & financial services, communications, media, manufacturing, retail, energy and utilities domains. The company employs over 8,000 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 Technopark, Trivandrum. • Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite RR Donnelley India operation centres across nine countries and had a revenue of US$ 10.2 billion in 2012. Outsource Pvt Ltd • 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 Technopark, Trivandrum. The self-contained Electronics Technology Park at Technopark, Trivandrum, has been instrumental in attracting Key players global electronics manufacturers. • Traco Cable Company Limited The state has ample availability of skilled and semi-skilled • Transformers and Electricals Kerala Ltd (TELK) workers for the electronics industry. • Kerala State Electronics Development Corporation Ltd (Keltron) 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. Source: Economic Review of Kerala, 2012 Business Standard, November 2012 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 the production of electronic hardware items.

In November 2012, Hindustan Aeronautics Limited has set up phase-I of an electronics factory at the cost of US$ 12.1 million at Kasargud to produce advanced avionics for aircraft and helicopters.

Development of the factory will lead to the growth of subsidiary industries, which in turn will generate secondary employment opportunities and augment skill-sets in this area. • Traco Cable Company Limited commenced operations in 1964. It manufactures high quality Traco Cable Co Ltd 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, with factories in Ernakulam, Kannur and Thiruvalla.

Transformers and • TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial Development Corporation and Hitachi Limited, Japan. It manufactures Electricals Kerala Ltd transformers, bushings and tap changing gears. The factory and corporate office are located in (TELK) Angamally, near Kochi. In 2012. TELK won the Kerala Safety Award for very large factories in the engineering category. • TELK provided its first 400KV Class Transformer, 315MVA Auto Transformer and Generator Transformer for India's first 500MW Thermal Unit.

• Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800 people and has 10 production centres. It provides technical manpower to leading organisations Kerala State Electronics such as Oil and Natural Gas Corporation Limited (ONGC). The company’s products span categories including aerospace electronics, security and surveillance systems, intelligent Development Corp transportation systems, strategic electronics products, IT solutions, IT infrastructure solutions, (Keltron) process automation, ID card projects, power electronics, electronic components and TE units. Recently the company bagged an order of US$ 4.6 million from Chennai-based BGR Energy System Ltd. The order was for manufacture, supply, assembly and commissioning of sixteen UPS systems, inverters, battery and boost chargers. • Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala. Tourism is a primary economic activity in Kerala. The sector contributes about 9.0 per cent to the state’s GDP.

Total revenue (including direct and indirect) from tourism rose by around 11 per cent yoy to US$ 4 billion in 2012.

Kerala became the number one travel destination in the Google’s Search Trends for India in 2012.

Kerala Tourism bagged four of the top honors at the Pacific Asia Travel Association (PATA) Awards 2011 for outstanding achievement in tourism announced in Bangkok.

Kerala Tourism has won many national and international awards. The state has been voted the Best Asian Holiday Destination 2010 by SmartTravelAsia.com, ahead of other destinations such as Bali, Phuket and Maldives.

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 also 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.

Source: Economic Review of Kerala, 2012 www.keralatourism.org, News Articles Arrivals of domestic and foreign tourists in Kerala increased at a CAGR of 10.6 per cent and 12.9 per cent, respectively, Domestic tourist arrivals in Kerala (in million) over 2009-2012 10.7 9.38 8.6 Major initiatives of Kerala Tourism: 7.91

Responsible Tourism (RT), an innovative and far- reaching concept, is an initiative implemented at four destinations, Kovalam, Kumarakom, Thekkady and Wayanad.

Medical tourism, promoted by traditional systems of medicine such as Ayurveda and Siddha, is becoming 2009 2010 2011 2012 widely popular in the state and is attracting increasing numbers of domestic and foreign tourists. Foreign tourist arrivals in Kerala (in million)

0.79 Meetings, Incentives, Conferences and Exhibitions 0.73 (MICE) Tourism, which involves bringing a group 0.66 together for some special purpose, is now being 0.55 promoted heavily by Kerala Tourism.

Eco-Tourism, Muziris Heritage Tourism and Kerala Seaplane Services are some of the other major ongoing projects in Kerala.

th Since 15 August 2013, Visa on Arrival has been 2009 2010 2011 2012 introduced at Thiruvananthapuram airport. Source: Economic Review of Kerala, 2012, www.keralatourism.org, Ministry of Tourism, Government of India Note: Responsible Tourism is defined as tourism 'that creates better places for people to live in, and better places to visit‘ Kerala is the leader in rubber production; 87.3 percent of the Export of natural rubber from India (000’ tonnes) total rubber production in the country is from Kerala. 29.9 30.6 27.1 25.1 Natural rubber production in Kerala was 0.8 million MT during 2011-12, a 2.4 per cent increase over 2010-11.

Export of natural rubber increased at a CAGR of 6.8 per cent between 2009-10 and 2012-13. 2.1

Consumption of natural rubber in the country reached 2009-10 2010-11 2011-12 2012-13 2013-14* 972,700 tonnes during 2012-13.

KINFRA, through a JV with the Rubber Board, has Consumption of natural rubber in India (000’ tonnes) developed India’s first rubber park in Kochi. Kerala also has a major rubber cluster in Kottayam. 947.7 964.4 972.7

328.5

2010-11 2011-12 2012-13 2013-14*

Source: Economic Review of Kerala, 2012, Rubber Board, Ministry of Commerce and Industry, Government of India Note: JV = Joint Venture, MT = Metric tonnes, *Provisional data for April-July 2013 Kerala can be termed as the land of spices, considering the Exports of spices from Kerala (through Cochin large variety of spices grown in the state. and Trivandrum ports) in US$ million

The value of spices exports from Kerala increased at a 667.6 CAGR* of 26.1 per cent between 2007-08 and 2011-12. CAGR 26.1%* Kerala accounts for about 90 per cent (based on value as 413.7 well as volume) of total pepper exports from India. 314.1 320.4 307.3

The area under pepper production in the state is estimated at 85,000 hectares; pepper production is projected at 38000 MT during 2011-12. 2007-08 2008-09 2009-10 2010-11 2011-12 Kerala constituted 79.1 per cent of the country’s total pepper production in 2011-12. Source: Economic Review of Kerala, 2012 Spices Board India MT = Metric tonnes *CAGR calculated in Indian rupee terms Khadi and village industries have been an integral part of the Total sales of khadi products from sales outlets of traditions of Kerala. Kerala Khadi & Village Industries (US$ million)

6.5 There is immense scope for investments in the field of khadi, due to higher demand for khadi products such as silk sarees (Payyannur pattu and Chithali silk), cotton sarees, Kuppadam dothies, bedspreads and towels.

The Kerala Khadi and Village Industries Board is the 6.0 statutory body in the state.

Khadi goods worth US$ 6.5 million, up by 14.8* per cent over the previous year, have been sold through 216 sales 2010-11 2011-12 outlets of Kerala Khadi & Village Industries during 2011-12.

Source: Economic Review of Kerala, 2012 Expansion and modernisation of the sliver project in *Calculated in Indian rupee terms Ettukudukka, and marketing and strengthening of the weaving sector are some of the major schemes in the khadi sector to develop domestic and export markets over 2012- 13. There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products such as skin care, hair care, body care and Ayurvedic tooth paste.

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.

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.

Total sales of Oushadhi, the biggest Ayurvedic drug manufacturing unit in India, rose at a CAGR of 16.6 per cent between 2007-08 and 2011-12.

The company recorded sales of US$ 12.2 million over 2012-13 compared to US$ 9.0 million in the previous year.

The company expects to achieve total sales of US$ 36.8 million in 2015.

Source: Economic Review of Kerala 2012, News articles *CAGR calculated in Indian rupee terms The state has a long coastline of over 580 km and Total fish production in Kerala (in million tonnes) innumerable water bodies, generating a huge potential for inland and marine fishing, and providing it a prominent 0.678 0.677 0.686 0.687 0.681 0.693 position in fish cultivation. 0.633

Among maritime states in India, Kerala ranks second in marine fish production.

Total fish production in the state stood at 0.633 million tonnes in 2012-2013.

The production of marine fish in the state during 2012-13

was 0.484 million tonnes while inland fish production

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 reached 0.149 million tonnes during the same period. 2006-2007

The Government of Kerala has implemented nine fishing Source: Economic Review of Kerala, 2012 harbours so far; works for other eight harbours are in Department of Animal Husbandry, Dairying and Fisheries progress. • Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail and entertainment sector. Hospitality, leisure and • The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping malls, multiplexes, business convention centres and theme parks. entertainment • 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.

• Food processing is a sunrise sector that has gained prominence over the recent years in the state. • FPI in Kerala is constituted by organised as well as unorganised units. • Spices, pickles and marine products are the major food product exports from Kerala. Food processing • 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. • To promote food processing, agriculture and allied sectors, Kerala Agri Food Pro Meet 2013, which was a technology meet, was held in Kochi.

Note: FPI = Food Processing Industry A single-window clearance mechanism (SWM) was SWM structure in Kerala established in June 2000, with an aim to expedite clearances for new industrial projects.

A state-level board, headed by the Chief Secretary, issues State Board Chief clearances within a time frame of 45 days to medium and Secretary large scale industries.

KSIDC is the single point of contact and convenor of the State Board.

District Boards District District-level boards have been constituted for issuing Collector clearances that are required by small scale industries.

The District Collector of the respective district is Chairman and General Manager of the Board; the District Industries Centre (DIC) is the convenor for such boards. The An officer not Industrial Area stipulated time frame for clearances is 60 days. below the rank Board of District Collector 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 Source: KSIDC Industrial Area as Convenor. The stipulated time frame for obtaining the clearances is 30 days. Agency Description

• The aim of the organisation is to speed up industrial growth in Kerala through Kerala Industrial infrastructure support. • It operates industrial parks in various sectors. Infrastructure • It has three newly operational parks: Kera Park (in Thrissur), a Spices Park (Idukki) Development Corporation and a Rubber Park (Pathanamthitta). (KINFRA) • KINFRA’s four upcoming projects include a marine park (in Beypore), a technology park (Ramanattukara), a food park (at Wayanad) and an industrial park (Palakkad).

KITCO Limited (formerly, Kerala • 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 & Industrial and Technical medium enterprises (SMEs) sector by way of preparation of project reports & market Consultancy Organisation studies and by conducting training programmes for entrepreneurship development. Limited)

• It is the implementing agency for the Department of Industries, Government of Kerala. Directorate of Industries • It provides infrastructure facilities for the small scale sector by acquiring land and and Commerce developing facilities such as roads, water supply, electricity and civil works. Agency Description

Small Industries • It provides infrastructure facilities for the small scale sector through its major- and mini- Development Corporation industrial estates.

Purpose:

• Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large and medium scale industries in Kerala.

Kerala State Industrial • Acts as a promotional agency, involved in catalysing the development of physical and Development Corporation social infrastructure required for the constant growth of industry. (KSIDC): the single- window clearance and Composition: monitoring agency • 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. Agency Contact information

Vikas Bhavan P O Thiruvananthapuram Kerala-695 033 Directorate of Industries and Commerce Phone: 91-471-2302 774 Fax: 91-471-2305 493 E-mail: [email protected]

T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram-695 003 Kerala State Industrial Development Corporation Limited Phone: 91-471-2318 922 (KSIDC) Fax: 91-471-2315 893 E-mail: [email protected]

P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028 KITCO Limited Phone: 91-484 -4129 000 / 2805 033 Fax: 91-484 -2805 066 E-mail: [email protected] Agency Contact information

KINFRA HOUSE, TC 31/2312 Sasthamangalam, Trivandrum-695 010 Kerala Industrial Infrastructure Development Corporation Phone: +91-471-2726 585 (KINFRA) Fax: +91-471-2724 773 E-mail: [email protected]

Housing Board Building, 6th floor, Santhi Nagar P B No 50 Thiruvananthapuram- 695 001 Kerala Small Industries Development Corporation Phone: 91-471-2330 401, 2330 413, 2330 818, Fax: 91-471- 2330 904 E-mail: [email protected] Mechanism and estimated Approvals and clearances required Departments to be consulted time

Incorporation of the company Registrar of Companies

District Industries Centre for small scale Registration, Industrial Entrepreneurs industries and KSIDC for large and medium Memorandum, Industrial Licences industries

Allotment of land State Department of Industries/KSIDC/KINFRA Single-window clearance: The state’s single-window State Department of Industries, Permission for land use facility clears investment Kerala Town and Country Planning Department proposals in 45 to 60 days on Kerala State Pollution Control Board and Central an average; the single-window Environment approval for the site Ministry of Environment and Forests mechanism helps obtain all approvals necessary for the No-objection certificate and consent under Kerala State Pollution Control Board investment proposals within the Water and Pollution Control Act specified time frame. Approval of construction activity and building Kerala Town and Country Planning Department plan

Sanction of power Kerala State Electricity Board (KSEB)

Registration under State’s Sales Tax Act Sales Tax Department, Central and State Excise and Central and State Excise Act Departments Cost parameter Cost estimate Source

Industrial land (per sq m) US$ 33-190 (Cochin) Industry sources

Five-star hotel US$ 142-415 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 US$ 350-750 per month Industry sources ft house)

Commercial: 16 cents (US) Power (per kWh) DCH Databook October 2013 Industrial: 9 cents (US)

Labour (minimum wages per Ministry of Labour and US$ 8.3 to US$ 10.8 day) Employment, Government of India

Commercial and industrial: US 22 cents to Water (1,000 litres) Kerala Water Authority US 55 cents

Sources: Kerala Government websites and industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority Kerala Tourism Policy 2012

Objectives • To create an environment for investment. • To market Kerala as a visible global brand in domestic and international markets. • To ensure quality visitor experience. Read more

Kerala Small Hydro Power Policy 2012

Objective • To harness green and clean natural resources in the state for environmental benefits and energy security. Read more

Kerala IT Policy 2012

Objective • To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India. Read more Sports Policy 2012

Objectives • To provide equal opportunities to all citizens of the state for participation in sports. • To promote excellence in sport, with the athlete as the central character. • To develop, maintain and optimally utilise high quality sports infrastructure. • To encourage, train and support talented sports persons in large numbers.

Industrial & Commercial Policy 2011 (Draft)

Objectives • 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.