Kerala
Kerala is situated in the southwest corner of India. Though it represents only 1.18% of the total area of India, 3.43% of the total population of the country lives within it. Kerala has a land area of 38,863 sq. km and a population of around 29 million. The state has the advantage of good local administration, good state government support to industry and proximity to markets and ports. The Per Capita Income of Kerala is 6,983 and the inflation rate 6.6%.
Owing to historical and climatic reasons, the state has developed commercial agriculture more than food crops. Consequentially, the state is short in food grains. It is the single largest producer of a number of crops like banana and ginger. Tea and coffee too are produced in abundance. Coir and Cashew are two of the largest traditional industries in the state. Kerala has a well-developed rail, ports and telecommunications infrastructure covering all parts of the state. The state has high levels of literacy and a remarkably stable political situation. The cost of labor in this state is relatively high. Government incentives to industries other than tourism are also less.
Incentives:
50% KSIDC subsidy on feasibility studies for medium and large-scale industries
15% fixed capital investment subsidy (up to Rs 2,000,000) for priority sector
2-year sales tax holiday for self-employment units with turnover below Rs 200,000
5-year freeze on power tariff hikes for new industrial units
15% price preference for small and medium-scale units; 10% price preference for large-scale units
Sales tax exemption for 7 years of 100% of fixed capital investment for new units
Sales tax deferment for 10 years of 100% of fixed capital investment for new units
Labor Development Offices to ensure that work does not suffer due to disputes in new enterprises
Industrial And Commercial Policy 2007
Vision
To achieve high and sustainable economic growth, with specific thrust to social objectives, through rapid industrialization and big leap in commercial activities, with out affecting ecology and environment and to create large-scale employment opportunities for the people of Kerala and ensuring them fair wages and to convert Kerala into an investment friendly destination.
Objectives
Convert Kerala into a favored destination for Manufacturing, Agro Processing, Health Services, knowledge based Industries and Services. According to the Revised Estimates, revenue deficit of the State is Rs. 5916 crores.
Strengthen the State Level Public Enterprises (SLPEs) by technological upgradation, diversification, efficient management system and synergizing with Central Public Sector Undertakings.
Make Traditional Industries competitive by modernization, value addition and skill development.
Promote and support SMSEs as an ancillary to large scale industries as well as a self sustaining entity considering its role as a largest employment provider in the State.
Make use of the abundant and highly rich mineral resources of the State to the fullest extent protecting environment and ecology and restricting the mining activity in the Public Sector.
Equip the State to harness the industrial and commercial potentials to be opened up with the commissioning of Vallarpadam International Container Terminal, Vizhinjam Deep Sea Port and the Petronet L.N.G. Terminal.
