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State Profile of Kerala

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State Profile of Kerala STATE PROFILE OF KERALA 2011-12 MSME DEVELOPMENT INSTITUTE, THRISSUR ³ÖÖ¸üŸÖ ÃÖ¸ü úÖ¸ü Government of India ÃÖæ ´Ö, »Ö‘Öã †Öî¸ ´Ö¬µÖ´Ö ˆª´Ö ´ÖÓ¡ÖÖ»ÖµÖ Ministry of Micro, Small & Medium Enterprises ‹´Ö ‹ÃÖ ‹´Ö ‡-×¾Ö úÖÃÖ ÃÖÓãÖÖ­Ö MSME-Development Institute (Formerly Small Industries Service Institute) Ó•ÖÖण Öß ¸üÖê›ü, †µµÖÓŸÖÖê»Ö ›üÖ ‘Ö¸ü, Kanjani Road, Ayyanthole PO ŸÖééé¿¿Öæ¸ü -680 003 - êú¸ü»Ö THRISSUR - KERALA E.mail: [email protected] Website: www.msmedithrissur.gov.in Prepared by Statistics Division, MSME-DI, Thrissur-680 003 March, 2012 Published by: MSME-Development Institute, Ministry of MSME, Government of India, Kanjani Road, Ayyanthole P.O, Thrissur-680 003 (Kerala) Telephone: 0487-2360536, 2360686 Fax: 0487-2360216 E-mail:[email protected] Website: www.msmedithrissur.gov.in FOREWORD MSME-Development Institute, Ministry of MSME, Government of India, Thrissur, Kerala has prepared the 19th updated edition of the State Profile as a part of MSME-DO action plan for the year 2011-12. The report provides an insight in to the various aspects of the State like General Characteristics, Resources including material of human Resources, Infrastructure available etc. The findings of a study on the Status of Traditional, Small, Medium and Large scale industries in Kerala also have been incorporated. Other areas included in the report are the functions & services rendered by various State and Central government Institutions /Agencies engaged in the Industrial Development of the State, Schemes and Incentives for MSME sector, different policies of Government of Kerala in respect to industrial environment, approach outline to 12th Five Year Plan, statutory formalities, a gist of important key economic parameters etc. A list of industrial items having scope in this state has also been suggested in the report. I take this opportunity to express my sincere thanks to all Central and State Govt. agencies and NGOs specially the Directorate of Industries & Commerce, State Planning Board for their valuable advice and assistance rendered in the preparation of this Report. I take this opportunity to record my sincere appreciation for the efforts put in by Shri. K.C. Johnson, Asst. Director (Stat) and the secretarial assistance by Shri. Shaji N.M., Stenographer for successfully bringing out this report in its entirety. I hope the report would be a useful reference to the planners and investors who are interested in the industrial development of Kerala. Thrissur 31-03-2012 (S. PANIKKASSERY) Director KERALA DISTRICT MAP CONTENTS FOREWORD KERALA DISTRICT MAP CHAPTER TOPICS PAGE No. I General Characteristics of the State 1-7 2 Resources 8-17 3 Socio –Economic Status 18-21 4 Industries 22-69 5 Infrastructure 70-92 6 Institutional Support and Incentives 93-133 7 Industrial Potentiality in the State 134-137 8 Whom To Contact and for What 138-147 9 Key Economic Parameters 148-151 CHAPTER-1 GENERAL CHARACTERISTICS OF THE STATE 1.1 INTRODUCTION Kerala has been an enigma to the Economists and Social Scientists. While the Economy has moved from the almost stagnant situation in the 1960s and 70's to the slow growth in Nineties, the State has been in the fore front of social development indicators in India. Though, post liberalisation phase has seen significant growth in secondary and territory sectors like IT, Tourism, entertainment, internet and mobile services, airlines, banking, insurance etc. the growth has not been commensurate with social development indicators. Kerala is a small state, tucked away in the south west corner of India. It represents only 1.18 percent of the total area of India but has 3.34% of the total population of the country. It is separated from the rest of the peninsula by natural geographic boundaries. Kerala may be divided into three geographical regions (1) high land (2) mid land (3) low land. The high lands slope down from the Western Ghats, which rise to an average height of 900m, with a number of peaks over 1,800 m in height. This is the area of major plantations like tea, coffee, rubber, cardamom and other species. The mid land lies between the mountains and the low lands. It is made up of undulating hills and valleys. This is an area of intensive cultivation - cashew, coconut, areca nut, cassava, banana, rice, ginger, pepper, sugarcane and vegetables of different varieties are grown in this area. The 'Western Ghats' with their rich primeval forests having a high degree of rainfall, form the eastern boundary and extend from the north to Kanyakumari in the south. The entire western border is caressed by the Arabian Sea. Between these natural boundaries lies the narrow strip of land extending from Kasarkode in the north to Parasala in the south. Located at north latitude between 8o 18` and 12o 48` and east longitude between 74o 52` and 77o 22`, with an area of 388863 sq. km lying between the Arabian Sea on the West and Western Ghats on the East, Kerala has the following to its credit: • Highest literacy rate in India. • Highly skilled human resources with low operating cost. • Human Development Index at par with the West. • Ranked best in India in terms of Physical Quality of life Index. • An efficient public transport system. • Information Technology becoming a key area of economic excellence. • Best Public Health care system in India. • Tourism has grown to be a front line industry with Government support and private management. However the fact that Higher Economic Growth is necessary not only to generate higher tax revenue but also to sustain the advances made in social sector and in order to allocate more resources by the State to the welfare activities for the poor and needy has yet to be widely acknowledged in the State. In order to generate higher economic growth, investments are required for creating high quality infrastructure, skilled human capital, technology up-gradation and enterprise promotion. The Micro and Small Enterprises plays an important role in the balanced and holistic industrial development of the State. It generates employment and value to products and services through utilizing available resources in the State. The slowdown in the Indian economy did adversely impact State finances in 2008-09 and 2009-10. It was particularly alarming in 2009-10, when revenue deficit re-emerged after a gap of three years and gross fiscal deficit shot up above 3% of GDP. Revised estimates available for 2009-10, however, showed much steeper deterioration over the budget estimates. A turnaround was envisaged in the budget 2010-11, with the State possibly reverting to the path of fiscal consolidation. The final outcome, however, left a lot to be desired. Various factors had contributed to the States’ financial uncertainties in the crisis years of 2008-09 and 2009-10, the additional financial burden brought to bear on the exchequer by the Sixth Central/State(s) Pay Commissions (CPC/ SPCs) and the discretionary fiscal measures introduced to moderate the impact of the overall macroeconomic slowdown being the more important among them. Though the state’s fiscal imbalances continued to prevail in 2010-11, there were hopeful signs of recovery. Revenue deficit, which stood at `2638 crore in 2006-07 and rose to Rs.5023 crore in 2009-10, came down to Rs. 3674 crore in 2010-11. This improvement was attributed to the 18.70% growth in revenue receipts vis-à-vis 11.3% in revenue expenditure. The reduced growth in Non-Plan expenditure was largely due to the deferment of the major portion of expenditure by way of pay and pension revisions due in 2009-10 to 2011-12. As a proportion of GSDP, revenue deficit declined to 1.4% in 2010-11. The consumer price index of agricultural and industrial workers in Kerala went up by 19 points during 2011 (upto August) compared to the corresponding period of 2010. So did the wholesale price index of agricultural commodities in Kerala. The high rate of inflation witnessed by the State resulted in higher retail prices of almost all essential commodities. Among food crops, the highest price hike was recorded for oil and oil seeds followed by fruits and vegetables. It was also significant that the price of plantation crops decreased during 2011. Unemployment continues to be one of the basic problems of the State. The number of job seekers, as per the live register of employment exchanges in Kerala as on 31.08.2011 was 43.42 lakh, of which 25.68 lakh (59.1%) were female. However, there is doubt whether these figures reflect the actual unemployment position as many who have found employment continue to be retained on the live register for want of information. 9 The Kerala State Entrepreneurs Development Mission was a new initiative launched by the Government in 2011, aiming at providing self- employment to one lakh youths through 10,000 new ventures, over a period of 5 years. The Kerala Financial Corporation is the nodal agency and before launching self-employment ventures, all the beneficiaries are given training jointly with institutions like the Entrepreneurship Development Institute, KITCO, RSETI, the Centre for Management Development etc. The labour sector continued to face several problems such as high rates of unemployment and under employment, low rates of employment creation, unprotected conditions in the unorganized sector, adverse labour relations, inadequate levels of skill creation and training and inefficiently targeted social security programmes. The Labour Welfare Fund Boards played a vital role in providing various welfare measures for labourers. In Kerala, 30 lakh families joined schemes like RSBY and CHIS, of which 11.79 lakh families come under RSBY and the balance under CHIS.
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