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IBEF Presentataion KERALA GOD’S OWN COUNTRY For updated information, please visit www.ibef.org September 2017 Table of Content Executive Summary……………….….…….3 Advantage State …………………..….…….5 Kerala Vision 2030 …………………..……..6 Kerala – An Introduction……….…….……..7 Budget 2016-17…………...………………..18 Infrastructure Status...................................19 Key Industries…….……….......…………….46 Doing Business in Kerala…….……….........65 State Acts & Policies…….……….......……..73 EXECUTIVE SUMMARY … (1/2) Cultural diversity and . Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty well developed tourism successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped sector attract tourists from the world over. Highest literacy and sex . As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men, ratio in India. Male literacy rate in the state stands at 96.10%, among all states. Largest recipient of . In 2015-16, Kerala received NRI remittances of US$ 20.17 billion. In 2014-15, NRI remittances of the state foreign remittances in were US$ 16.50 billion, up by 24%. Remittances to the state are estimated at 36.3% of the net state domestic the country product. As of December 2016, Kerala had US$ 22.98 billion of non-resident deposits. Ranks second in . Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research Investment Climate working paper by the World Bank. The state stands second due to its world-class infrastructure and well- Index trained human resource pool. Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala 3 KERALA For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2) Strong agricultural . Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir. As per budget 2017-18, Government of Kerala has proposed an outlay of US$ 326.88 million for the sector agriculture sector, First international . Kerala has the 1st international transshipment terminal in India, having a design capacity of around 4 million container transhipment TEUs & providing better connectivity between Kerala & other ports in India. terminal Presence of world class . Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware & biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a world- technology park class IT campus in Thiruvananthapuram. Cargo Traffic in Cochin . The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of Port 13.16% against 22.09 million tonnes for the year 2015-16. Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2017-18 4 KERALA For updated information, please visit www.ibef.org ADVANTAGE: KERALA 2016 2021E Foreign High economic growth Leader in tourism Foreign tourist tourist . Kerala’s gross state domestic product (GSDP) surged at . In 2015, Kerala was rewarded as the winner of PATA arrivals: arrivals: a compound annual growth rate (CAGR) of 11.18% awards by Macau Government Tourism Office (MGTO) 1.04 million between 2005-06 and 2015-16. 3 million . BBC Travel survey has rated Kerala as the top favourite . Kerala is the leader in rubber production; high demand tourist destination among foreign travellers. of rubber has opened up immense opportunities for the . Foreign tourist arrivals increased by 5.71% during 2016 state in the rubber industry. over 2015. Advantage Kerala Rich pool of skilled labour Policy and . Kerala has a large base of skilled labour, making it an infrastructure support ideal destination for knowledge-intensive sectors. Kerala has a wide range of fiscal and policy incentives . The state has the highest literacy rate in the country. for businesses under the Industrial and Commercial . It has a large pool of semi-skilled and unskilled Policy and has well-drafted sector-specific policies. labourers. It has a well-developed social, physical and industrial infrastructure and virtual connectivity, and good power, airport, IT, and port infrastructure. E-governance initiatives will further strengthen transparency and bridge digital divide. Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism 5 KERALA For updated information, please visit www.ibef.org KERALA VISION 2030 . Affordable and clean power to all. Exploit the full potential of hydro-electric . Green, sustainable and safe generation. transport. 100% electrified households with 24*7 availability. Growth oriented labour welfare policy. Transport Energy . Provide high quality education at . Connecting labour supply with affordable rates. demand. Create a global brand name in . Increasing employment Labour education and develop into a opportunities. Education knowledge hub by 2030. Vision 2030 . Increase health expenditure to . Increase the share of Industry Health GSDP ratio from 0.6% in 2012 to 4- manufacturing to 10% of the GSDP 5% by 2027−31. by 2030. Set up three medical cities by 2030. Sustained increase in employment Agriculture & Forestry . Provide health insurance cover to in manufacturing. livestock all. Increase the share of forestry in . Shift from subsistence farming to GSDP to 0.5%. highly knowledge intensive, competitive farming. Increase the productivity of forests through improved management of . Self sufficiency in supply of fish, resources. meat, milk and other dairy products to the local market. Source: Government of Kerala 6 KERALA For updated information, please visit www.ibef.org KERALA FACT FILE . There are 44 rivers flowing through Kerala, the major ones being Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km). Out of these 44 rivers 41 are west flowing and 3 are east flowing. Parameters Kerala Capital Thiruvananthapuram Geographical area (sq km) 38,863 Administrative districts (No) 14 Source: Maps of India Population density (persons per sq km) 860 . Kerala is located along the coastline to the extreme south-west of the Total population (million) Indian peninsula, flanked by the Arabian Sea on the west and the 33.41 mountains of the Western Ghats on the east. The state has a 580 km Male population (million) 16.02 long coastline. Malayalam is the most commonly spoken language. Hindi, English Female population (million) 17.38 and Tamil are the other languages used. Sex ratio (females per 1,000 males) 1,084 . Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the Literacy rate (%) 94.6 state. Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office 7 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (1/2) Parameter Kerala All states Source Economy 2015-16 2015-16 “Advanced Estimates” provided by Directorate of GSDP as a percentage of all states’ GSDP 4.31 100.0 Economics and Statistics of Kerala “Advanced Estimates” provided by Directorate of GSDP growth rate (%) 2.85 8.71 Economics and Statistics of Kerala “Advanced Estimates” provided by Directorate of Per capita GSDP (US$) 2,677 1,546 Economics and Statistics of Kerala Physical Infrastructure Installed power capacity (MW) 4,998.94 329,226.27 Central Electricity Authority, as of August 2017 Telecom Regulatory Authority of India, as of June Wireless subscribers (No) 39,823,618 1,186,840,884 2017 Telecom Regulatory Authority of India, as of March Internet subscribers (No) 16,550,000 422,190,000 2016 National highway length (km) 1,811.52 100,087.08 NHAI & Roads and Building Department Major and minor ports (No) 1+17 13+187 India Ports Association Airports (No) 3 125 Airports Authority of India 8 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (2/2) Parameter Kerala All states Source Social Indicators Literacy rate (%) 94.6 73.0 Census, 2011 Birth rate (per 1,000 population) 14.8 20.8 SRS Bulletin December 2016 Investments Department of Industrial Policy & Promotion, From FDI equity inflows (US$ billion) 1.75 332.11 April 2000 to March 2017 Industrial Infrastructure DEA, Ministry of Finance, Government of India, PPP projects completed & operational (No) 29 1,246 July 2016 Exporting SEZs (No) 19 222 SEZ India, as of September 2017 PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System 9 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP GSDP of Kerala at current prices (US$ billion) Per Capita GSDP of Kerala at current prices (US$) 100 3000 CAGR 11.18% CAGR 11.09% 90 2500 80 89.4 70 2,677 2000 60 68.5 66.6 65.7 50 64.3 1500 1,961 1,907 1,892 1,841 57.8 40 1,678 48.9 1000 1,430 43.9 43.5 30 1,294 1,291 31 20 34.1 935 500 1,019 10 0 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 . At current prices, Kerala’s GSDP* was about US$ 89.44 billion . The state’s per capita GSDP^ stood at US$ 2677 during 2015- in 2015-16. 16 as compared to US$ 935 during 2005-06. The state’s GSDP was recorded at a CAGR of 11.18% . Per capita GSDP increased at a CAGR of 11.09% between between 2005-06 and 2015-16.
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