Why Kerala
Kerala, the southernmost part of India, has always been scenic land blessed with lush greenery, tranquil backwaters, sprawling beaches, attractive golf courses etc. Kerala has provided its population with cosmopolitan quality of life through a process of living right close to nature thereby being the safest, healthiest & most environment-friendly aligning with the global Environmental, Social and Governance (ESG) framework. Kerala has also been at the forefront of socio-economic development and reforms in the Country.
Kerala is also one of India's most progressive states in terms of support to human development; delivery of justice; social protection; essential infrastructure and connectivity viz., 4 airports, 2 major seaports, 17 mini seaports, 2 ICT Terminals, 11 national highways, railways, metros, "SEA-ME-WE-3" and "SAFE" submarine cable landings, higher road density, 100% digital telephone exchanges, 98% of telephone exchanges connected by OFC to the National Internet Backbone (NIB), 24*7 power connectivity, road density of 390 km/100 sq. km, 1066 miles of inland waterways, excellent air quality and water softness, which is roughly three times the national average, etc. 'Kerala Model' in many indicative parameters is arguably at par with some of the major global super powers. The fascinating part of the Kerala story is that it has been able to replicate its social development in the economic & industrial sectors as well
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Ranked 1 States Startup Ranking by Government of India ΓÇ£Healthy States, Progressive IndiaΓÇ¥ Health Index report released by the NITI Aayog. School Education Quality Index by NITI Aayog SDG (Sustainable Development Goals) Index by NITI Aayog The Public Affairs Index (PAI) National e-GOVERNANCE Services Delivery Assessment
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From the Kudumbashree initiative to the health sector reforms, the famed Student Police Cadet programme to Nava Kerala Mission, numerous initiatives pioneered by Kerala have been emulated at the National & Global levels. Over the years, Kerala has been the fore runner in ushering reforms to the State, and its steadfast commitment to the same is reflected in the new initiatives such as Graphene Center for Excellence, Kerala Digital University and many more.
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Kerala have been a role model for the entire country with our social infrastructure such as literacy (96%), life expectancy (75.2 years), higher health indices, modernized social security, excellent law and order mechanism, ideal tourism infrastructure (winner of PATA Gold Awards, recognized biodiversity by UN, one of the 50 ideal destinations globally by National Geographic) and many more.
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In order to replicate the achievements of the State in social indices to the industrial scenario as well, Government had initiated a slew of reforms with emphasis on simplification of existing rules; introduction of information technology to make governance efficient, effective, transparent and user-friendly; attractive investment subsidies; effective industrial land allotment policies; Investor Help Desks; Online clearance mechanism; designated sector leads, identified sunrise sectors and many more.
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Government of Kerala has been proactive in ushering reforms to accelerate the progress of Kerala, as a preferred industrial destination in the Country. By Implementing ΓÇÿYear of EnterpriseΓÇÖ campaign initiated by the department, A total of 1,40,106 MSMEs were established on FY 2022-23 resulted in creation of 3,00,668 job opportunities and an investment of Rs. 8438.95 cr. in the State.
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Kerala is now transforming itself as an emerging destination for setting up enterprises and doing business. The State has become a center point for investors, with its advantages of abundant skilled labour, excellent industrial infrastructure, connectivity, R&D, incentives and industry friendly rules and regulations.
Ease of Doing Business
As part of fostering a business-friendly environment in Kerala, the Government of Kerala pioneered various Initiatives for Improving the Ease of Doing Business in Kerala. Key Initiatives of the Government of Kerala on Ease of Doing Business are;
The Kerala Single Window Interface for Fast and Transparent Clearance (K-SWIFT) is a technology-driven platform that enables entrepreneurs to apply for, track, and receive all statutory clearances through a single online portal.
Industrial Policy 2023
Kerala's strategic framework for industrial growth
The state of Kerala has formulated a new policy to accelerate its industrial growth and create more employment opportunities. This policy builds upon the previous policy from 2018, incorporating changes that align with the current times. With a focus on high-priority industries in the ΓÇ£sunriseΓÇ¥ category, the policy aims to provide financial incentives and support to foster their development. KeralaΓÇÖs exceptional achievements in education, healthcare, and quality of life have contributed to its economic prosperity. The state has invested in value-added industries such as chemicals, refined petroleum products, natural rubber, electronic products, pharmaceuticals, spices, and food processing, increasing its market share in these sectors.
The policy identifies these high-priority "sunrise" sectors for focused investment and infrastructure support.
Artificial Intelligence, Robotics and Other Breakthrough Technologies
Ayurveda
Biotechnology & Life Sciences
Design
Electric Vehicles
Electronic System Design & Manufacturing
Engineering Research & Development
Food Technologies
Graphene
High Value-Added Rubber Products
High-tech Farming and Value-Added Plantation Produce
Logistics & Packaging
Maritime Sector
Medical Equipment
Nano Technology
Pharmaceuticals
Recycling & Waste Management
Renewable Energy
Retail Sector
Tourism & Hospitality
3D Printing
Focus Sectors
The State, through its Industrial Policy 2023, Identified priority sectors based on ESG and competitive advantages the state can have, given its geographical location, available resources and skill-base, raw material availability, existing manufacturing practices and expertise, and opening up of new opportunities.
AI & Robotics & Other Breakthrough Technologies
Aerospace and Defence
Ayurveda
Biotechnology & Lifesciences
Design
Electric Vehicle
Electronic System Design and Manufacturing
Engineering Research and Development
Food Technologies
Graphene
Hitech Farming & Value-Added Plantation Produce
High Value-Added Rubber Products
Logistics and Packaging
Maritime Sector
Medical Equipment
Nanotechnology
Pharmaceuticals
Recycling and Waste Management
Renewable Energy
Retail sector
Tourism and hospitality
3D Printing
Incentive Schemes
To foster an inclusive and sustainable industrial ecosystem that ushers in Industry 4.0 and promotes investment and innovation, an incentive structure has been designed to cater to the needs of the industrial enterprises in the 22 Priority Sectors.
| Sl. | Incentive Category | Project Category | Description |
|---|---|---|---|
| 1 | Low-interest loans | MSME | Loan @ 4% interest subject to a maximum of Rs. 10 Lakh (via interest subvention upto 6%) |
| 2 | Capital subsidy incentive for MSMEs | MSME | ΓÇö Micro ΓÇô upto 45%, subject to a maximum of Rs. 40 Lakh ΓÇö Small ΓÇô upto 45%, subject to a maximum of Rs. 100 Lakh ΓÇö Medium ΓÇô upto 45%, subject to a maximum of Rs. 200 Lakh |
| 3 | Electricity Duty Exemption | MSME | 100% exemption for 5 years |
| 4 | Access to finance through IPO route | MSME | Reimbursement of 50% expenses subject to a maximum of Rs. 1 Cr., incurred on floating Public issues through the SME platform of NSE & BSE, provided the funds thus raised are utilized for setting up/ expanding enterprise in the State. |
| 5 | Investment subsidy | Large, Mega | Investment subsidy of 10% on fixed capital investment, subject to a maximum of Rs. 10 Cr., in phases. |
| 6 | SGST Reimbursement | Large, Mega | 100% reimbursement on capital investment for 5 years. |
| 7 | Employment Enhancer Incentive | Large, Mega | ΓÇö When 50% of permanent jobs are filled from local population, an amount equivalent to 25% of the monthly wages of each additional employment thus created, subject to a maximum of Rs.5000/- per month per person, shall be reimbursed to the employer, for one year. ΓÇö When more than 50% of permanent employees are women, an amount equivalent to 25% of the monthly wages of each additional employment thus created, subject to a maximum of Rs.5000/- per month per woman employee, shall be reimbursed to the employer, for one year. ΓÇö When permanent employment is provided to transgenders of the State, reimbursement will be provided to the employer for one year, at the rate of Rs.7500/- per month per transgender employee. |
| 8 | Waiver of Stamp Duty & Registration charges for manufacturing units | All Category | ΓÇö Up to 100% on lease deed/ purchase of land/ building for setting up manufacturing unit in Government Industrial Parks and notified Private Industrial Parks. ΓÇö For Women, SC/ST, PH & Transgender entrepreneurs ΓÇô Up to 100% on lease deed/ purchase of land/ building for setting up manufacturing unit anywhere in the State. |
| 9 | Private Industrial Estates | All Category | Funding support upto Rs.3 Cr. for infrastructure development. |
| 10 | Incentive for participation in trade fairs | All Category | Reimbursement up to 100% of the stall charges incurred, subject to a maximum of Rs. 5 Lakh for participating in one domestic and one international fair/ exhibition per annum |
| 11 | Intellectual Property creation | All Category | Reimbursement of 50% of the expenditure incurred, subject to a maximum of Rs. 30 Lakh, for a patent, copyright, trademarks, GI registration, etc. |
| 12 | Quality certification incentive | All Category | Refund of expenses incurred for compulsory marking like CE, FDA, ISO, BIS, etc., to the extent of 50% of expenses, subject to a maximum of Rs. 25 Lakh per unit per annum. |
| 13 | Incentives for sustainability and responsible industrialization | All Category | Reimbursement of 25% of expenses incurred for the purchase of Plant & Machinery/equipment for setting up ETP, installations for substitution of power from the grid, rainwater harvesting, Zero Discharge technologies, recycling of e-waste and recycling of wastewater, conducting audits for energy and water conservation & purchase of material for such conservation, excluding the expenditure incurred for civil works, subject to a maximum of Rs.25 Lakh during the policy period. |
| 14 | IR 4.0 initiatives in manufacturing | All Category | 20% reimbursement of the cost of software (big data analytic tools), machinery, etc., subject to a maximum of Rs. 25 Lakh/unit during the policy period. |
| 15 | R&D Incentive | All Category | Funding of 20% of R&D cost for units engaged in R&D with Universities in the State, subject to a maximum of Rs. 1 Cr. per unit. |
| 16 | Scale up incentive for Startups | All Category | KSIDC shall provide scale-up loans up to Rs. 1 Cr. to Startups in the State. |
| 17 | Made in Kerala (Branding & Marketing) | All Category | Reimbursement of 50% of the cost incurred in obtaining ΓÇÿMade in KeralaΓÇÖ certification. |
| 18 | Special Package to attract PLI Investors | All Category (Manufacturing) | A one-time top-up incentive of 20% of the fixed capital investment, subject to a maximum of Rs 1 Crore, shall be provided for industrial units set up in the State by investors shortlisted under the PLI schemes of the Central Government. Such a top-up incentive is in addition to other subsidies admissible to the said enterprises. |
ESG — Environmental, Social & Governance
Committed to sustainable and responsible industrial growth
Government of Kerala is committed to promoting sustainable industrial growth through responsible business practices that integrate environmental, social, and governance (ESG) principles. Our ESG Policy aligns with the Kerala Industrial Policy, aiming to position Kerala as IndiaΓÇÖs leading ESG-compliant investment destination.
Vision
To create a sustainable and responsible future by embedding ESG principles into all industrial and investment decisions ΓÇö making Kerala a model state for green, inclusive, and ethical growth
Mission
To proactively implement ESG-driven initiatives that promote environmental stewardship, social inclusion, and transparent governance, thereby ensuring long-term value creation and positive impact across all sectors.
Policy Validity & Review
The ESG Policy is subject to periodic review and updates to remain aligned with evolving sustainability standards, SEBIΓÇÖs BRSR framework, and IndiaΓÇÖs climate commitments.
ESG Policy Framework
Environmental · Social · Governance
Environmental
- Carbon footprint reduction
- Renewable energy adoption
- Waste management standards
- Green infrastructure
Governance
- Transparent reporting
- Ethical business conduct
- Regulatory compliance
- Stakeholder engagement
Investor Help Desk
We're here to help you navigate your investment journey
Our dedicated investor facilitation team is available to guide you through every step of setting up your enterprise in Kerala.
Investment Support : investkerala@ksidcmail.org