Kerala-August-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 (94.0 per cent) and sex ratio (1084 women for 1000 ratio men) in India. Literacy rate for its rural population is also the highest at 93.0 per cent.

Largest recipient of foreign remittances in • Kerala received NRI remittance of US$ 2.3 billion during 2013, up 10 per cent compared to 2012. During 2014, remittance is expected to increase 10 -15 per cent. the country

Ranks second in • Kerala ranks second in the Investment Climate Index below Karnataka, as per a policy Investment Climate research working paper by the World Bank. The state stands second due to its world-class Index infrastructure and well-trained human resource pool.

Source: Economic Review of Kerala 2012, http://www.emergingkerala2012.org/infrastructure.php, News articles, Census 2011 • 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 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 only two locations in India having landing points for Best bandwidth submarine cables (SEA-ME-WE3 and SAFE), making Kerala one of the best states in connectivity terms of bandwidth connectivity.

Source: Economic Review of Kerala - 2012, Kerala IT Policy 2012, http://www.igtpl.com/ TEU‟s = Twenty-foot Equivalent Unit 2013 HighGrowing economic demand growth Leader in tourism 2021E • Kerala‟s Gross State Domestic • Kerala has emerged as the country‟s Foreign Product (GSDP) rose at a compound top travel destination as per Google‟s Foreign tourist annual growth rate (CAGR) of 14.4 Search Trends for India in 2012. tourist per cent between 2004-05 and 2012- arrivals: • BBC Travel survey has rated Kerala arrivals: 13. as the top favourite tourist destination 0.86 million • Kerala is the leader in rubber among foreign travellers. 3.0 million production; high demand of rubber • Foreign and domestic tourist arrivals has opened up immense opportunities rose 8.1 per cent and 7.8 per cent for the state in the rubber industry. during 2013 over 2012, respectively.

Advantage Kerala Rich labour pool Policy and infrastructure

• Kerala has a large base of skilled support labour, making it an ideal destination for knowledge-intensive sectors. • Kerala has a wide range of fiscal and policy incentives for businesses under • The state has the highest literacy rate the Industrial and Commercial Policy in the country. and has well-drafted sector-specific • It has a large pool of semi-skilled and policies. unskilled labourers. • It has a well-developed social, physical • The state has over 153 engineering and industrial infrastructure and virtual colleges. connectivity, and good power, airport, IT, and port infrastructure.

Source: Economic Review of Kerala - 2012, Tourism Vision 2030, www.keralatourism.org, ecostat.kerala.gov.in; GSDP: Gross State Domestic Product • Affordable and clean power to all. • Exploit the full potential of hydro- • Green, sustainable and safe electric generation. transport. • 100 per cent electrified households with 24*7 availability.

• Growth oriented labour • Provide high quality welfare policy. education at affordable rates. Transport Energy • Connecting labour supply • Create a global brand name with demand. in education and develop into • Increasing employment Labour Education a knowledge hub by 2030. opportunities. Vision 2030 • Increase health expenditure Health to GSDP ratio from 0.6 per • Increase the share of Industry cent in 2012 to 4−5 per cent manufacturing to 10 per cent by 2027−31. of the GSDP by 2030. Forestry Agriculture & • Set up three medical cities • Sustained increase in Livestock by 2030. employment in manufacturing. • Provide health insurance cover to all. • Shift from subsistence farming to • Increase the share of forestry highly knowledge intensive, in GSDP to 0.5 per cent. competitive farming. • Increase the productivity of • Self sufficiency in supply of fish, forests through improved meat, milk and other dairy management of resources. products to the local market.

Source: Government of Kerala There are 44 rivers flowing through Kerala, the major ones being Periyar (244 km), Bharathapuzha (209 km) and 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 860 km) Kerala is located along the coastline to the extreme south- Total population (million) 33.41 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 580 km long coastline. Female population (million) 17.38

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 (%) 94.0

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

Economy 2012-13 2012-13

Planning Commission Databook, June 2014, GSDP as a percentage of all states‟ GSDP 3.7 100.0 current prices Planning Commission Databook, June 2014, Average GSDP growth rate (%)* 14.4 15.5 current prices, from 2004-05 Planning Commission Databook, June 2014, Per capita GSDP (US$) 1,840.7 1,414.4 current prices Physical Infrastructure

Installed power capacity (MW) 3,891.96 249,488.31 Central Electricity Authority, as of June 2014

Telecom Regulatory Authority of India, as of Wireless subscribers (No) 30,650,924 910,157,975 May 2014 Telecom Regulatory Authority of India, as of Broadband subscribers (No)** 1,707,000 65,330,000 May 2014 Ministry of Road Transport & Highways, as of National highway length (km) 1,542 79,116 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, **As of December 2012 Parameter Kerala All states Source

Social Indicators

Literacy rate (%) 94.0 73.0 Census 2011

SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population each year) 14.9 21.6 September 2013 Investment

Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion) 0.99* 223.0 April 2000 to May 2014

Outstanding investments (US$ billion) 48.0 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 33 1,339 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$ 64.3 GSDP of Kerala at current prices billion in 2012-13. (US$ billion) 65.7 64.3 The state‟s GSDP recorded at a CAGR* of 14.4 per cent CAGR 57.8 between 2004-05 and 2012-13. 14.4%* 48.9 Growth was mainly driven by secondary and tertiary 43.5 43.9 sectors. 34.1 31.0

26.6

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Planning Commission Databook, June 2014, current prices GSDP - Gross State Domestic Product *CAGR calculated in Indian Rupee terms At current prices, Kerala‟s NSDP was about US$ 57.0 billion NSDP of Kerala at current prices in 2012-13. (US$ billion) 58.0 57.0 51.1 CAGR NSDP expanded at a CAGR* of 14.5 per cent between 43.5 14.5%* 39.0 2004-05 and 2012-13. 38.2 29.9 27.2

23.4

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Planning Commission Databook, June 2014, current prices NSDP - Net State Domestic Product *CAGR calculated in Indian Rupee terms The state‟s per capita GSDP was US$ 1,841 during 2012- GSDP per capita of Kerala at current prices 13 compared with US$ 810 during 2004-05. (US$)

1,892 Per capita GSDP increased at a CAGR of 13.5 per cent CAGR 1,678 1,841 between 2004-05 and 2012-13. 13.5%* 1,430 1,291 1,294

935 1,019

810

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Planning Commission Databook, June 2014, current prices GSDP - Gross State Domestic Product *CAGR calculated in Indian Rupee terms Kerala‟s per capita NSDP was US$ 1,630 in 2012-13 NSDP per capita of Kerala at current prices compared with US$ 711 during 2004-05. (US$) 1,672 1,630 Per capita NSDP registered a CAGR* of 13.6 per cent CAGR 1,483 between 2004-05 and 2012-13. 1,270 13.6%*

1,135 1,150

895

711 822

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Planning Commission Databook, June 2014, current prices NSDP - Net State Domestic Product *CAGR calculated in Indian Rupee terms In 2012-13, the tertiary sector contributed 59.9 per cent to GSDP composition by sector the state‟s GSDP at current prices, followed by the secondary sector at 25.0 per cent. CAGR*

The tertiary sector grew at an average rate of 14.5 per cent 59.6% 14.5% 59.9% between 2004-05 and 2012-13. Growth was driven by storage, transport, financial and real estate segments.

The secondary sector grew at an average rate of 15.9 per 22.5% 15.9% 25.0% cent between 2004-05 and 2012-13. Growth was led by manufacturing, construction, and electricity, gas & water 17.9% 12.0% 15.1% supply segments. 2004-05 2012-13 (Q)

The primary sector expanded at an average rate of 12.0 per Primary Secondary Tertiary cent between 2004-05 and 2012-13, mainly supported by growth across agriculture and mining & quarrying segments. Source: ecostat.kerala.gov.in, CAGR calculated in Indian Rupee terms Q- Quick Estimates Agriculture and allied sectors contributed 9.1 per cent to Annual production Kerala‟s GSDP in 2011-12. Crop in 2012-13 (metric tonnes) Kerala is one of the leading pepper producers in the Tapioca 2,458,515 country. During 2012-13, production increased by 21.9 per Rubber 800,050 cent to 46,298 metric tonnes compared to 2011-12. Banana 515,607 The state is also one of the largest producers of natural Rice 508,299 rubber in India. Production increased by 1.4 per cent to 800,050 metric tonnes during 2012-13. Areca nut 118,233 Coffee 68,175 Total area under crops was around 2,591,734 hectares in Tea 62,963 2012-13. In 2010-11, the state‟s agriculture income was estimated at US$ 3,535.3 million. Pepper 46,298 Cashew nut 37,919 Ginger 22,064 Sugarcane 16,572 Cardamom 10,222 Turmeric 6,904 Coconut 5,799 Sweet potato 4,780

Source: Directorate of Economics and Statistics Exports from Cochin port rose at a CAGR of 2.2 per cent to Total exports turnover from CSEZs 3.8 million MT from 2009-10 to 2012-13. In value terms, (US$ million) exports from Cochin port increased at a CAGR* of 20.8 per 6,391 cent to US$ 4,045.4 million. 5,892 CAGR 29.0%* Exports from CSEZs rose at a CAGR* of 29.0 per cent to 4,014 US$ 5,892 million in 2012-13 from US$ 2,503 million during 3,611 2008-09. 2,503 The increase in exports from CSEZs in recent years can be attributed to a substantial rise in gem and jewellery exports.

Exports break-up, Cochin Port (2012-13)

2008-09 2009-10 2010-11 2011-12 2012-13 Sectors (US$ million)

Tea 95.0 Source: Economic Review of Kerala 2012 Cashew Kernels 365.0 CSEZ - Cochin Special Economic Zone *CAGR calculated in Indian Rupee terms Sea Foods 516.2 Coir Products 102.5 Spices 69.0 Coffee 166.1 Miscellaneous 2,731.6 According to DIPP, FDI inflows to the state (including Mega projects conceptualised and developed in Kerala Lakshadweep) totalled US$ 988.0 million during 2000 to include Supplementary Gas Infrastructure Project by Kerala May 2014. Gail Gas Limited (US$ 400 million), Kochi Metro Rail Project

Over 2013-14, outstanding investments in Kerala totalled (US$ 900 million), and a monorail project in US$ 48.0 billion. Thiruvananthapuram (US$ 682 million).

The services sector accounted for around 54.5 per cent of total outstanding investments, followed by the Break-up of outstanding investments by sectors manufacturing sector (28.0 per cent). (2013-14)

Some of the recent investments in the state have been the KINFRA International Apparel Parks Ltd (KIAP), KINFRA 1.6% Film and Video Park, International Convention Centre Electricity 8.0% 7.1% Complex (ICCC) and Technocity (Phase-IV expansion programme of Technopark) in Thiruvananthapuram, and Services Technopark Phase-III and a deep water port at Vizhinjam, near Thiruvananthapuram. 28.0% Mining

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

Recent investments in the state include the 54.5% Real Estate Puthuvypeen LNG Terminal Phase-I (US$ 598.4 million), Lulu Shopping Mall in Kochi (US$ 294.6 0.9% Irrigation million) and Cruise Terminal in Kochi (US$ 50.2 million).

Kerala government has proposed to develop manufacturing investment zones covering Source: CMIE DIPP - Department of Industrial Policy & Promotion Ernakulam, Thrissur, Palakkad and Malappuram http://www.emergingkerala2012.org/mega-projects.php districts. The Government of Kerala announced a number of measures in its 2014-15 budget to accelerate growth in the primary sector. It also unveiled measures for the welfare of farmers, including an income guarantee insurance scheme.

The budget offered several tax concessions to the tourism industry.

The state government anticipates the state‟s growth rate to reach 9.58 per cent during the current financial year.

• An amount of US$ 8.3 million has been allocated for an insurance scheme which offers income to the farmers having two hectares of land. The scheme insures the farmers if they fail to get For the farmers adequate returns from the crops they reared. • The government would remit half of the loan (up to US$ 829.5) if the employed person of an agricultural family dies.

• The government plans to form an Agriculture Mission to promote hi-tech farming, with the help of agencies such as M S Swaminathan Foundation • The government would offer technological support for vegetable storage and green house For agriculture mission construction; US$ 5 million would be granted for encouraging the fishing sector. • Cooperatives would be set up for marketing agriculture produce at the block level. • Interest less loans of up to US$ 8,294.6 would be provided for hi-tech cultivation. • Agricultural loans of US$ 8,294.6 at 4 per cent interest would be provided to farmers having Agri cards.

• The budget has allocated US$ 29.4 million to KSRTC. For KSRTC • This would be utilised for garage construction, e-governance and computer projects, and other development works.

*Assumed exchange rate of 1 US$= 60.00 INR for 2014-15 • Taxation on motor vehicles was hiked, and this is expected to provide US$ 5.6 billion revenue to the state government. • The tax on autos and taxis has been hiked. • Luxury tax will be charged on vehicles above 1500 cc. Tax on motor vehicles • A tax of 7 per cent will be levied on vehicles costing US$ 8,294.6 and below; imported cars in the same range will attract a tax of 13 per cent. • Vehicles priced at Rs. 5-10 lakh will be taxed at 10 per cent; imported version will be charged 18 per cent tax.

• Maida and wheat have been exempted from tax. • A tax of 14.5 per cent will be levied on inverters and UPS. • LED lights will be taxed 5 per cent. For essential goods • Large clothing showrooms will be charged a 2 per cent additional tax. • Price of LPG has been decreased.

• Luxury tax on hotels has been reduced to 5 per cent during June-August to promote off season tourism. • Luxury tax on convention centres and auditoriums with a daily rent exceeding US$ 331.8 has For tourism been decreased to 10 per cent from the existing 20 per cent. • There has been substantial increase in allocation for marketing destinations and implementing special tourism projects.

*Assumed exchange rate of 1 US$= 60.00 INR for 2014-15 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) provided road transport services in Source: Maps of India Kerala and operated 5,803 buses.

In Kerala, the Public Works Department (PWD) 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, Source: Economic Review of Kerala, 2012 corporations; the departments of forests, irrigation, railways; Ministry of Road Transport & Highways and the Kerala State Electricity Board (KSEB). 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.

Works for Kochi Metro Rail System Phase 1 is underway. It involves investment of US$ 864 million and is expected to be completed in mid-2016.

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

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

The Cochin International Airport Limited (CIAL) has displayed consistent growth in both passenger traffic and aircraft movements since it opened in 1999.

The airport handled 5.39 million passengers in 2013-14, an increase of 10 per cent from the previous fiscal year.

Nearly 3.27 million international travellers chose the airport in 2013-14 along with 2.12 million domestic passengers. The CIAL has recorded 11.5 per cent growth in international and 7.8 per cent in domestic fliers.

The airport recorded 47,072 aircraft movements during the year, 13.32 per cent higher compared to the previous year.

CIAL‟s cargo division turnover increased 17 per cent as total cargo handled stood at 54,440 tonnes in 2013-14 against the previous year‟s 46,530.3 tonnes.

Source: Economic Review of Kerala, 2012, Airports Authority of India Kerala State Industrial Development Corporation Ltd, News articles Airport Source: Maps of India Kerala has 18 ports, of which, Cochin is the major one. Furthermore, there are three intermediate and 14 minor Existing ports 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

Source: Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in For FY 2013-14, total trade volume handled at the Cochin Cochin port traffic (million tonnes) port rose to 20.9 million tonnes from 19.8 million tonnes in 2012-13. CAGR 4.8% 20.9 20.1 19.8 This is the highest cargo throughput at the port in a year, 17.4 17.9 supported by increase in bulk, container and oil cargo. 15.8 15.2

Bulk cargo handling during 2013-14 rose by 17.2 per cent compared with 2012-13, whereas oil cargo handling increased 3.1 per cent and container cargo edged up by 3.4 per cent.

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: 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 around the world.

50 During 2012-13, 50 cruise liners 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.

2003-04 2004-05 2005-06 2006-07 2009-10 2011-12 2012-13 2002-03 During February and March 2014, the port handled 18 cruise vessels (nine in February and nine in March). Source: Cochin Port Trust, New Indian Express As of June 2014, the state had total installed power Installed power capacity (MW) generation capacity of 3,891.96 MW, which consisted of 2,274.52 MW under state utilities, 1,386.37 MW under 3,892.0 central utilities, and 231.07 MW under the private sector. 3,892.0 3,856.4 CAGR 3,827.7 Thermal power contributed 1,721.21 MW to total installed 2.1% 3,718.8 power generation capacity. Hydropower (1,881.50 MW), nuclear power (95.60 MW), and renewable power (193.65 3,553.7 MW) are the other main energy sources. 3,514.0

Kerala‟s state utilities, which account for 58.4 per cent of overall capacity, generate 82.7 per cent of the energy through hydroelectric power plants, and the remaining 17.3 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15* per cent through thermal and renewable power generation plants. Source: Central Electricity Authority, Business Standard, *As of June 2014 Kerala is among the prominent Indian states to have achieved 100 per cent rural electrification.

Recently, NHPC and Kerala State Electricity Board (KSEB) signed an agreement for the development of solar power projects. As per the agreement, NHPC would take up the implementation of a 50 MW grid linked solar power project at West Kallada Panchayat in Kollam District in the first phase. 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 • Private hydel stations: 2 renewable energy sources and provides government 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

There is a pipeline of 27 hydel projects having an installed The state is setting up three mega projects and a small capacity of 539.3 MW. hydro project with a total capacity of 2,742 MW in Ernakulam district.

During 2012-13, US$ 218.2 million was earmarked for the energy sector, a rise of 3.8 per cent over the previous year. The projects, which are in various stages and nearing completion, are expected to meet nearly 60 per cent of the

power requirement of the state by 2017, which is expected The amount was further raised during 2013-14 to US$ 252.4 to be 4,669 MW. million.

The KSEB is working on a project called the Restructured Per capita consumption of power in the state was 567 kWh Accelerated Power Development and Reforms Program, over 2011-12. which is intended to reduce interruptions and power outages. Kerala State Electricity Board‟s total reported revenues per annum stood at US$ 1.4 billion during 2012-13. Kerala had an overall tele-density of 94.68 per cent as against an all-India average of 75.51 per cent, as of May Telecom infrastructure 2014. Wireless subscribers^ 30,650,924 Wire-line subscribers^ 2,856,066 The state has 1,243 telephonic exchanges. About 98.0 per cent of Kerala's telephone exchanges have internet Broadband subscribers 1,707,000 ** connectivity through the National Internet Backbone (NIB). Post offices^ 5,057

Telephone exchanges 1,243* VSNL has an international communication gateway in Kochi, with two high-speed submarine cable landings (SEA- Teledensity (in per cent) ^ 94.68 ME-WE-3 and SAFE), offering 15 gigabytes per second (Gbps) bandwidth. Source: 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 May 2014 (TRAI), as of May 2014, 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) Currently, Kerala is the largest revenue contributing state of Bharti Airtel BSNL and accounts for nearly 25 per cent of the company‟s Aircel Limited national revenue. During 2012-13, BSNL posted a profit of Vodafone Essar US$ 52.8 million from Kerala, the highest in the country. IDEA Cellular The company expects to post a record profit of around US$ Tata Teleservices 66.4 million during 2013-14. Reliance Communications

Source: Telecom Regulatory Authority of India Under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM), ten projects worth US$ 238 million have been approved during 2005-2012 for the development of urban infrastructure in Thiruvananthapuram and Kochi. As on 31st March 2014, 10 projects with a total cost of US$ 160.9 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 improvement, 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 start of construction in June 2013.

“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.

A Rural Water Supply and Environmental Sanitation Project had been implemented by the World Bank in September 2008; another similar project is under implementation and is expected to be completed by June 2017, with an estimated cost of US$ 222.3 million.

The World Bank has approved a US$ 216 million loan for the Kerala State Transport Project II to support the Government of Kerala improve the condition, traffic flow, and safety of its road network.

Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012, World Bank By the end of 2013, Kerala had around 15 PPP projects, spreading across various 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 Airport Authority of India 50.3

Vallarpadam Container Transshipment Ports BOT-Toll Cochin Port Trust 351.4 Terminal

LNG Regasification Terminal at Cochin Port Ports NA Ministry of Shipping 530.0

Crude Oil Handling for Kochi Refineries Ltd Ports Lease Cochin Port Trust 116.6

Thrissur-Edapalli Roads BOT-Toll National Highways Authority of India 51.8

Six laning of Vadakkancherry-Thrissur Roads BOT-Toll National Highways Authority of India 102.4 section Four laning of Walayar-Vadakkancherry Roads BOT-Toll National Highways Authority of India 113.1 section

Source: Overseas Indian Facilitation Centre BOT: Build-Operate-Transfer, BOO: Build-Own-Operate Project cost Project name Sector PPP type Contact authority (US$ million)

Four-laning of Karnataka & Kerala Border to Roads BOT-Toll National Highways Authority of India 191.9 Kannur section

Kannur -Kuttipuram Package- 2 Roads BOT-Toll National Highways Authority of India 217.7

Kannur-Kuttipuram Package – 1 Roads BOT-Toll National Highways Authority of India 226.6

BOT - Directorate of Ports, Government of Vizhinjam Port International Ports 887.2 Annuity Kerala

Development of a new bridge connecting The Greater Cochin Development Mattancherry and Willingdon Island at Roads BOT-Toll 4.5 Authority Cochin

Development of resorts at Bekal Kasaraode Bekal Resorts Development Tourism BOO 9.1 Dist Corporation BRDC KTDC

Urban BOT - Kerala Industrial Infrastructure Kochi Metro Rail Project 505.6 development Annuity Development Corporation

Urban Trivandrum City Road Improvement BOT-Toll Kerala Road Fund Board 18.6 development

Source: Overseas Indian Facilitation Centre BOT: Build-Operate-Transfer, BOO: Build-Own-Operate 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 Kerala has eight operational SEZs.

Operational SEZs in Kerala

Name/Developer Location Primary industry

Cochin SEZ Cochin Multi-product

Infopark SEZ Kochi IT/ITeS

Electronic Technology Park-SEZ-I Thiruvananthapuram IT/ITeS

Electronic Technology Park-SEZ-II Thiruvananthapuram IT/ITeS

Cochin Port Trust Vallarpadam Port-based

KINFRA Film & Video Park Thiruvananthapuram Animation & gaming

Kerala State Information Technology Infrastructure Ltd Cherthala IT/ITeS

Kerala Industrial Infrastructure Development Corporation Pathanamthitta Food processing (KINFRA)

Source: www.sezindia.nic.in, SEZ: Special Economic Zone 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 Vallarpadam Port based

Cochin Port Trust Puthuvypeen, Ernakulam Port based

Kazhakoottam, KINFRA IT (Animation & gaming) Thiruvananthapuram

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 • The Central Government has granted in-principle approval to the Kochi-Palakkad National NIMZ Investment and Manufacturing Zone (NIMZ) in 2013. • The NIMZ is proposed to be set up in an area of 6,000 acres across 20 identified nodes.

• The state was exempted from the provisions related to geographical continuity in the National Investment and Manufacturing Zone. State-of-the-art • Other infrastructure facilities required to be created include internal roads, drainages, infrastructure water treatment plants, and gas-based power plants for a total capacity of 2,500 MW. • The cost of infrastructure development will exceed US$ 8.8 billion including the cost of land.

• The opportunities available in these projects 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 in five years and potential of around 0.5 indirect employment for 2.5 million people in 10 years. million

NIMZ - National Investment and Manufacturing Zone, The Hindu 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 12,638* literacy rates stood at 96.1 per cent and 92.1 per cent, respectively. Universities 17^ Engineering institutions 158 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 Polytechnics 49 schools (2012-13).

Girl students constitute around 49.4 per cent of total student Source: Director of Technical Education, Kerala, enrolment in schools in the state. University Grants Commission, General Education Department, Kerala, Kerala had 2,915 higher secondary schools in 2012-13. Of *During 2012-13, ^As of March 2013 these, 1,107 (38.0 per cent) were government schools, 1,407 (48.3 per cent) aided schools, and the remaining 401 (13.8 per cent) unaided schools. Kerala primary education statistics (2012-13)

Lower primary: 6,760 Schools (No) Upper primary: 2,963 High schools: 2,915

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

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

Technical Education-2013 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 training 42 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

• Central Institute of Fisheries Technology, Cochin. Medical colleges: 22 • 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.

Source: Economic Review of Kerala, 2012, Director of Technical Education, Kerala, University Grants Commission Kerala has good health infrastructure with 681 primary health centres, 25 dispensaries, 233 community health Health indicators as of 2012 centres, and 5,403 sub-centres. Birth rate* 14.9 Currently, of Kerala‟s total healthcare institutions, 1,281 are Death rate* 6.9 Allopathic, three Ayurvedic and 661 under Homoeopathic. Infant mortality rate** 12 As of 2013, the 1,281 health institutions under the Allopathic segment contained 37,415 beds under the Health Services Life expectancy at birth (years) Department. Male 71.4

Female 76.3 Health infrastructure as of 2013 - Allopathy • Primary health centres: 681 Source: Sample Registration System (SRS) Bulletin September 2013 • Community health centres: 233 (www.censusindia.gov.in), • District/taluka hospitals: 93 Economic Review of Kerala, 2013 • General hospital: 15 *Per thousand persons **Per thousand live births • TB clinics/centres: 17 • Specialty: 19 • 24x7 PHC: 174 • Total: 1,281

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 Hill stations attractive religious tourism spots in India. Vagamon

Other 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

Source: 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, Thiruvananthapuarm Kerala Sangeetha Nataka Akademi – To promote traditional arts Corporation Stadium, Kollam V.K.N. Indoor Hall, Thrissur Kerala Lalithkala Academy – To promote painters VKK Menon Stadium, Kozhikode and sculptors CSN Stadium, Thiruvananthapuram Kerala Folklore Academy – To promote Kerala New football stadium at medical college ground, folklore Kozhikkode

Kerala State Chalachitra Academy – Academy for New multipurpose hall, Kannur motion pictures Kariavattom main stadium, Thiruvananathapuam

Kerala Kalamandalam – To teach traditional dances Synthetic Athletic track at University of Calicut, Malapuram (Approved under Urban Sports The cities in Kerala have modern amenities for recreation Infrastructure Scheme (USIS)) such as golf courses, shopping malls, theatres, café- lounges and resto-bars. Source: 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. • It 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 would 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 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.

• 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 KINFRA Special Economic Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Zones 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

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 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 Kerala‟s strategic location on the trans-national trade The total number of SSIs/MSMEs registered in Kerala by corridor, rich natural resources, and simple and transparent the end of March 2013 stood at 219,444 against 205,987 in procedures are favourably suited for investments in key the previous year, indicating a growth of about 7 per cent. sectors such as tourism, IT/ITeS, manufacturing and mining. In terms of industrial growth, the state‟s average growth Kerala‟s traditional industries include handloom, cashew, from 2004-05 to 2011-12 was 13.6 per cent at current coir and handicrafts. 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 • Handlooms and power looms Industries Development Corporation are jointly responsible • Rubber for the development of industrial infrastructure in the state. • Bamboo

Forming industrial clusters and developing infrastructure • Coir (such as rubber parks, electronic hardware park, coconut • Khadi and village industry industrial park, organic industrial park and food processing • Sericulture parks) have been integral to the state‟s strategies to attract • Seafood and other marine products investments in various industries. • Cashew

• Mining The total number of functional micro, small and medium enterprises (both registered and unregistered) in Kerala • Tourism stood at 150,000 and 2,063,000, respectively, as of March • Food processing 2013. These units employed a total of 4,962,000 people • Spices and spice extracts (621,000 employed under registered sector and 4,341,000 • IT & electronics employed under unregistered sector).

Source: Economic Review of Kerala, 2013 Kerala accounts for approximately 52.0 per cent (in terms of value) and about 85.0 per cent (in terms of volume) of total coir and coir products produced in India.

The coir industry provides employment to around 375,000 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, 2013, Coir Board Export of curled coir, coir fibre, coir pith, coir rope, coir yarn, Exports of coir industry of India („000 tonnes) coir geo-textile, handloom matting, power loom mats and rubberised coir from India increased in terms of quantity and 537.0 value during 2012-13 compared with the previous year. 429.5 410.9 Kerala‟s total coir exports stood at US$ 117.7 million during 2013-14. In terms of quantity, out of the total 537,040 321 tonnes of coir and coir products exported from India, Kerala 294.5 accounted for 73,665 tonnes. 199.9 187.6 In percentage terms, the state‟s share of total coir exports stood at 14 per cent in quantity terms and 52 per cent in value terms during 2013-14.

The National Coir Research & Management Institute 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 (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 Line The Department of Coir Development, Government of Kerala, organised the world's largest expo on Kerala coir and natural fibre products, called Coir Kerala 2014, on February 1-15, 2014 in Alappuzha.

Transactions worth US$ 24.8 million occurred at the trade fair. 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.

Around 94.0 per cent of the total number of looms are under the cooperative sector (consists of factory type and cottage type societies), the remaining being under industrial entrepreneurs.

During 2012-13, the state government granted US$ 2.7 million to the sector, whereas the central government and the financial institution group (NCDC, NABARD & HUDCO) granted US$ 0.3 million and US$ 0.1 million, respectively.

At the end of March 2013, Kerala had 664 registered Primary Handloom Weavers Co-operative Societies (PHWCS), consisting of 153 factory type societies and 511 cottage type societies.

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 power looms, automatic looms and highly sophisticated machines are operational.

The total value of handloom production rose 10 per cent* to US$ 41.0 million in 2012-13 compared with 2011-12. The total number of weavers employed increased from 49,930 to 50,433 during the year.

The number of women employed increased from 20,784 in 2011-12 to 21,434 in 2012-13. Total employment generated increased from 9.0 million person days in 2011-12 to 10.6 million person days in 2012-13.

Source: Economic Review of Kerala, 2013, *In INR terms 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.

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, 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).

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

Kerala has three operational IT/ITeS SEZs, one in Kochi and the other two in Thiruvananthapuram.

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 leading 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 300,000 IT consultants in 46 Services countries and generated revenue of US$ 13.44 billion in 2013-14. • 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 160,000 people. The company generated US$ Infosys 8.4 billion in revenue in 2013-14. 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 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 Technopark, Thiruvananthapuram. In 2012, it generated US$ 510 million in revenue. • 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, Thiruvananthapuram. The self contained Electronics Technology Park at Technopark, Thiruvananthapuram, has been instrumental in Key players attracting global electronics manufacturers. • Traco Cable Company Limited

• Transformers and Electricals Kerala Ltd (TELK) The state has ample availability of skilled and semi-skilled 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 Source: Economic Review of Kerala, 2012 centres, and to support infrastructure for the same. 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 manufacturing 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 Kasaragod to manufacture 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 and has factories in Ernakulam, Kannur and Thiruvalla.

• TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala Transformers and 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 to India's first 500MW 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 Kerala State Electronics organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company‟s Development Corp products span categories including aerospace electronics, security and surveillance systems, (Keltron) 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. Tourism is a primary economic activity in Kerala and revenues from the segment account for 10 per cent of the state‟s GDP.

Total revenue (including direct and indirect) from tourism rose about 9.1 per cent* to US$ 4.0 billion in 2013-14.

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

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

Recently, a survey conducted by BBC World News has rated Kerala as the most popular tourist in India spot among foreign travellers.

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 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 *Growth calculated in INR terms Arrivals of domestic and foreign tourists in Kerala increased Domestic tourist arrivals in Kerala (in million) at a CAGR of 8.2 per cent and 11.4 per cent, respectively, 10.1 10.9 over 2009-2013. 9.4 8.6 Major initiatives of Kerala Tourism: 7.9

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

Medical tourism, promoted by traditional systems of medicine such as Ayurveda and Siddha, is becoming widely popular in the state and is 2009 2010 2011 2012 2013 attracting increasing numbers of domestic and foreign tourists. Foreign tourist arrivals in Kerala (in million)

Meetings, Incentives, Conferences and Exhibitions 0.86 (MICE) tourism is now being promoted heavily by 0.73 0.79 Kerala Tourism. 0.66 0.56 Eco-tourism, Muziris Heritage Tourism and Kerala Seaplane Services are other major ongoing projects.

Since August 2013, Visa on Arrival has been introduced at Thiruvananthapuram and Kochi airports, which will allow citizens from 11 countries to obtain tourist visas upon arrival in Kerala. 2009 2010 2011 2012 2013

Source: The Hindu, www.keralatourism.org, Ministry of Tourism, Government of India 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; more than 90 per Export of natural rubber from India (000‟ tonnes) cent of the total rubber production in the country is from Kerala. 29.9 30.6 25.1 27.1 Natural rubber production in Kerala was 0.9 million MT during 2012-13, a 1.1 per cent increase over 2011-12.

Export of natural rubber increased at a CAGR of 6.8 per cent between 2009-10 and 2012-13. 3.5

Consumption of natural rubber in the country reached 2009-10 2010-11 2011-12 2012-13 2013-14* 972,700 tonnes during 2012-13 from 947,700 tonnes during 2010-11. Consumption of natural rubber in India (000‟ tonnes)

KINFRA, through a JV with the Rubber Board, has developed India‟s first rubber park in Kochi. Kerala also has 947.7 964.4 972.7 a major rubber cluster in Kottayam.

491.6

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

Source: Economic Review of Kerala, 2012, Rubber Board, Ministry of Commerce and Industry, Government of India JV = Joint Venture, MT = Metric Tonnes, *Provisional data for April-September 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 Thiruvananthapuram ports) in US$ million

Kerala is one of the largest producer of pepper in India. 667.6 CAGR The area under pepper production in the state is 26.1%* estimated at 84,000 hectares; pepper production stood at 46,298 MT during 2012-13. 413.7 314.1 320.4 307.3 Global pepper production has dropped drastically, which led to increase in pepper prices.

In line with the global trend, the price surge has been sharp in India considering the substantial 2007-08 2008-09 2009-10 2010-11 2011-12 domestic consumption compared with other pepper producing countries. Source: Economic Review of Kerala, 2013 Horticulture 2012-13, Spices Board India MT = Metric tonnes Apart from pepper, other spices produced in the state *CAGR calculated in Indian Rupee terms include ginger, cardamom, nutmeg, tamarind, etc.

The value of spices exports from Kerala increased at a CAGR* of 26.1 per cent between 2007-08 and 2011-12. Khadi and village industries have been an integral part of Total sales of khadi products from sales outlets of the traditions of Kerala. Kerala Khadi & Village Industries (US$ million)

There is immense scope for investments in the field of 6.4 khadi, due to higher demand for khadi products such as khadi silk sarees (Payyannur pattu and Chithali silk), cotton sarees, Kuppadam dothies, bedspreads and towels. 6.0

The Kerala Khadi and Village Industries Board is the statutory body in the state. 2010-11 2012-13

Khadi goods worth US$ 6.4 million, up by 3.1 per cent over Source: Economic Review of Kerala, 2013 2010-11, were sold through 216 sales outlets of Kerala Khadi & Village Industries during 2012-13. Under the Prime Ministers Employment Generation Programme, an amount of US$ 1.5 million was disbursed as Expansion and modernisation of the sliver project in margin money grant for 374 projects during 2012-13. Ettukudukka, and marketing and strengthening of the weaving sector are some of the major schemes to develop domestic and export markets over 2012-13 in the khadi This generated 335 jobs under special employment sector. generation programmes and 2,365 units were set up at a total cost of US$ 4.9 million. During 2012-13, the state government provided a sum of US$ 2.2 million to the sector. In addition, an amount of US$ During 2012-13, goods worth US$ 53.5 million were 3.7 million was received from the state government towards produced, whereas goods worth US$ 62.3 million were sold. the Income Support Scheme. The industry provided employment of 248,528 people. 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.

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, recorded 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$ 9.2 million in the previous year.

It has set up a state-of-the-art facility with an investment of US$ 3.3 million; this would help it increase its production of Ayurvedic medicines threefold.

The company expects to achieve total sales of US$ 33.2 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

As per Census 2011, the state has a fisherfolk population of nearly 1 million, of which 0.8 million is in coastal areas and 0.2 million in inland areas.

They contribute about 9 per cent to the GSDP from the agriculture sector.

Among maritime states in India, Kerala ranks second in

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 marine fish production. 2006-2007

Total fish production in the state stood at 0.633 million Source: Economic Review of Kerala, 2013 tonnes in 2012-2013. Department of Animal Husbandry, Dairying and Fisheries

The production of marine fish in the state during 2012-13 was 0.484 million tonnes, whereas inland fish production reached 0.149 million tonnes during the same period.

The Government of Kerala has set up nine fishing harbours so far; work on other eight harbours is in 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 constituted 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.

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 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 An officer not Industrial Area 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 infrastructure support.

Kerala Industrial • It operates industrial parks in various sectors. Infrastructure Development Corporation • It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and (KINFRA) 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 • The organisation is involved in providing technical consultancy assistance to banks by (formerly, Kerala Industrial appraisal of projects for priority sector lending and to entrepreneurs in the small & medium and Technical Consultancy enterprises (SMEs) sector by way of preparation of project reports and market studies and Organisation Limited) by conducting training programmes for entrepreneurship development.

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

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

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, Thiruvananthapuram - 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 ft US$ 350–750 per month Industry sources house)

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

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

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

Source: 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. Read more

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. Read more

Kerala Solar Energy Policy 2013

Objectives • 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 usage. Read more SEZ Policy 2008

• To make Kerala‟s economy more export-oriented by granting various exemptions and Objective concessions.

Kerala Biotechnology Policy 2003

Objective • 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 Health Policy 2013 (Draft)

Objective • The policy focusses on positioning good health as the product of the development agenda including water supply, nutrition, sanitation, prevention of ecological degradation, respect for citizen rights and gender sensitivity.