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KNOW INDIA
Kerala
Economic Infrastructure
Finance, Economic Zone
Major Industries
Major Industries1
Policy Framework
Social Infrastructure

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INDIAN STATE : KERALA

Policy Framework

Industrial & Commercial Policy 2007

Vision

To convert Kerala into an investment friendly destination and to achieve consistently high economic growth with specific thrust to social objectives, without adversely affecting ecology and environment and to create employment opportunities for the people in Kerala and ensuring them fair wages.

Objectives

  1. Convert Kerala into a favoured destination for Manufacturing, Agro Processing, Health Services, Knowledge based Industries and Services.
  2. Enabling growth, revival and diversification of State Level Public Enterprises.
  3. Strengthening and modernization of Traditional Industries.
  4. Accelerating the fast growing Services and Commerce sector.
  5. To develop Kerala as a global centre of excellence with state of the art education and skill sets and preparing a pool of multi skilled, technically competent individuals and organizations.
  6. Creation of additional employment of 5 lakh persons in the manufacturing and service sectors.
  7. To sustain industrial and economic growth by facilitating accelerated flow of investment.

Strategy

To meet the above objectives the strategy for industrialization of the State during the policy period will be as follows:

  1. To develop Industrial infrastructure facilities in various locations of the State through KSIDC, KINFRA, DIC, SIDCO and Private Sector.
  2. To encourage Industrial Corridors / Cluster Development in potential locations.
  3. To restructure and retain potentially viable State Level Public Enterprises (SLPEs).
  4. To focus on Agro Based Industries & products.
  5. To promote / help facilitate establishment of specialized skill development institutions at key locations suitable for the manufacturing, knowledge based industries.
  6. To promote local entrepreneurship through institutional mechanism and mass participation
  7. To work in coordination with Chamber of Commerce / industry associations and other trade bodies to have continuous feed back on the state of industries and commerce and the support measures required.
  8. To improve investment climate through investment protection, decentralization, facilitation and by creating more growth opportunities
  9. To attract Foreign Direct Investment with specific criteria.
  10. To ensure time bound clearances from all Departments / Agencies for speedy implementation of Projects.
  11. Exploiting mineral wealth of Kerala in a scientific manner through Public Sector Enterprises.
  12. To move towards a low tax, high growth regime.

Full text of the policy

IT policy

Objectives

In line with this broad strategy, the Government have set the following immediate objectives for the promotion of the IT industry in the State.

  1. To establish Kerala as a leading IT destination in the country within the next five years.
  2. To provide a nurturing and enabling environment conducive to the vigorous growth of the local IT industry in the State.
  3. To significantly enhance direct and indirect employment creation in the IT sector.
  4. To attain a minimum growth level of 100% every year in IT.
  5. To significantly accelerate the levels of investment inflows including foreign capital into the hardware, software and ITES sectors.
  6. To aggressively promote the State as the destination of choice for emerging IT business opportunities including IT Enabled Services, new media products and E-services. To establish ITES as the definitive core competence of the State.
  7. To develop Kochi as an international media and ICT hub.
  8. To consolidate and expand the Techno park, Trivandrum as a leading software and HR Centre in the region.
  9. To provide the physical and institutional environment for the growth of SOHO and decentralized IT businesses.

Policy initiatives

  • Creating an appropriate pro-business, pro-enterprise, legal, regulatory and commercial framework to facilitate the rapid growth of the IT industry in the state.
  • Establishing Kerala as a global center for excellence in Human Resources, through the creation of a large pool of diverse, multi-skilled technically competent manpower in the State and
  • Establishing an internationally competitive business infrastructure and environment for the IT industry in the State, on par with the best facilities and practices worldwide.

Full text of the policy

Labour Policy

Objective

  1. Fostering an enabling environment for rapid employment generation through enhanced private and public investment, in order to achieve the goal of creating 15 lakhs of new jobs in the coming five years.
  2. Retraining and rehabilitation of retrenched labour in closed and sick units.
  3. Improving working conditions, providing decent wages and basic lifeline Social Security for workers, especially in the unorganised sector.
  4. Minimizing adversarial Labour relations and providing Labour market security, employment security, work security, and income security for the working population.

Vision

This policy is the statement of the concerns of this government for the welfare and protection of labour and to endeavour to empower them and improve their quality of life. Increased production, productivity coupled with a harmonious and peaceful labour relations and a new work culture only will create a conducive climate for rapid industrial investment and growth. This will ensure the successful solutions to the twin problems of retrenchment of labour and creation of new jobs for the unemployed. Government is also committed to providing labour market security, income security and decent working conditions for the working population. This labour policy aims to carry forward these objectives. These aims can be attained only if there is tripartite and mutually beneficial partnership between employers, workers and the Government.

Labour Policy Highlights

  • Creative measures to attract public and private investment.
  • 15 lakh new jobs in the coming five years.
  • A unified and consolidated legislation for social security schemes.
  • New Social security schemes for workers in the unorganised sector.
  • Social security cards for workers.
  • Unified and beneficial management of funds of Welfare Boards.
  • Reprioritisation of allocation of funds to benefit vulnerable workers.
  • Model employee-employer relationships.
  • Long term settlements based on productivity.
  • Vital industries and establishments declared as `public utilities`.
  • Special conciliation mechanism for projects with investments of Rs.150 crores or more.
  • Industrial Relations committees in more sectors.
  • Labour Law reforms in tune with the times. Empowered body of experts to suggest required changes.
  • Referenda for recognition of trade unions.
  • Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary.
  • Amendments to Industrial Disputes Act in tune with the times.
  • Efficient functioning of Labour Department.
  • More labour sectors under Minimum Wages Act.
  • Child labour act to be aggressively enforced.
  • Modern medical facilities for workers.
  • Rehabilitation packages for displaced workers.
  • Restructuring in functioning of employment exchanges. Computerization and updating of database.
  • Revamping of curriculum and course content in industrial training.
  • Joint cell of labour department and industries department to study changes in laws and rules.
  • Kerala Institute of Labour & Employment to be upgraded.
  • Policy progress monitoring team to review progress of implementation of policy.

Full text of the policy

Kerala Bio-Technology policy

Objectives and goals:

The Biotechnology policy for Kerala is designed to catalyse the development and application of Biotechnology, taking advantage of the state's resources and emphasizing its specific needs while meeting global requirements. The policy is aimed to ensure the rapid exploitation of pipeline technologies and opportunities available in the state to products and processes and to promote the sustained build-up of an elite knowledge cadre and knowledge base through the strengthening and creation of educational and Research & Development (R&D) institutions, establishing infrastructure and putting in place administrative, regulatory, legal and financial framework conducive for investment and growth of Biotechnology enterprises, for the economic development and human welfare.

The specific objectives and goals are:

  • Create a biotech knowledge base and human resources by establishing world-class centres of education and R&D in biotechnology by upgrading existing institutions and/or organizing new entities in the public and private sectors (eg. on the lines of Birla Institute of Technology, Pilani).
  • Apply biotechnology tools to:
    1. enhance the value with adequate assurance of quality in the State's export-oriented resources such as spices and related plantation crops, seafoods and marine resources;
    2. upgrade productivity and evolve new application in rubber, coconut, tuber crops and develop novel internationally competitive products;
    3. ensure the sustainable and eco-friendly exploitation of the State's forest, animal and marine wealth;
    4. boost the State's renowned health care practices of Ayurveda by synergising traditional knowledge with the scientific validation and technical product profiling and clinical data base and by evolving means to conserve and substantially use one of world's most-valued biodiversity treasures located in the State.
    5. promote traditional tribal and ethnic knowledge in medicine and other areas of human welfare by scientific validation and facilitating intellectual property rights.
    6. develop recombinant DNA and other modern technologies to combat the major health hazards of the State such as cancer, diabetes and cardio-vascular and other physiological disorders; to develop diagnostics and vaccines for overall healthcare as well as to protect the State's agriculture, spice, plantation and forest crops, from biotic and a biotic stresses.
    7. enhance the quality of the environment and promote sustainable development;
    8. provide an ambience with a package of guidelines for financial support and incentives, legal and labour reforms as well as institutional autonomies needed for the healthy, efficient and competitive growth of biotechnology knowledge base and industry

Full text of the policy

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