(Commonwealth_ India) For a long time, Kerala, governed by a left-leaning political framework, grappled with the perception of being an unfriendly environment for investors. However, recent developments have marked a significant turning point. Earlier this month, the state’s concerted efforts to reshape its business landscape received formal recognition from the Union government.
In the latest rankings released by the Ministry of Commerce and Industry, Kerala emerged as a leader in two categories of business-centric reforms and seven categories of citizen-centric reforms under the Business Reforms Action Plan 2022 (BRAP 22). Union Minister Piyush Goyal presented the award to Kerala’s Minister for Industries, P. Rajeev, highlighting the state’s achievements in enhancing its business ecosystem.
Kerala was evaluated across 30 sectors, securing the top position in critical areas such as streamlining the approval process for new businesses., simplifying bureaucratic procedures, enhancing service delivery to citizens, facilitating logistics and connectivity, and strengthening job placement services. These reforms positioned Kerala ahead of Andhra Pradesh, which achieved second place with commendable reforms in five categories. Notably, this recognition represents a significant improvement from Kerala’s 16th place in 2021, signaling a determined effort to enhance the state’s attractiveness for investment.
Minister Rajeev emphasized the transformative journey that Kerala has commenced and has made boundless strides in the comfort of doing business by constructing an ecosystem conducive for a wide range of enterprises to thrive. The collaborative efforts of various stakeholders, coupled with a commitment to changing mindsets, have been pivotal in this transformation. Rajeev thanked his colleagues for their collective action and positive outlook towards fostering a more investor-friendly environment.
Harikishore, Managing Director of the Kerala State Industrial Development Corporation (KSIDC), highlighted the importance of feedback in improving the state’s standing. “We have enhanced our rankings through a focused approach and by addressing gaps in our systems,” he explained. By actively seeking input from beneficiaries, Kerala garnered over 95% positive responses in nine categories, contributing significantly to its elevated status in the BRAP rankings. This feedback-driven strategy underscores the state’s commitment to continuous improvement and responsiveness to the needs of entrepreneurs.
The Kerala government has recognized that positive ratings are essential for attracting substantial foreign investment, especially given the historical perception of the state as unfriendly to investors. A key reform implemented by Chief Minister Pinarayi Vijayan involved the abolishment of “Nokkukooli,” a controversial practice wherein trade union workers demanded payments for refraining from work or striking without notice. This bold move aimed to cultivate a more predictable and stable environment for businesses, thus fostering greater investor confidence.
While the recent accolades signify a promising shift, challenges remain. Kerala must adopt a more professional approach to optimize its resources and generate employment for its educated youth. This entails not only attracting industries but also ensuring that local talent is adequately prepared for the demands of the job market.
To achieve this, the state should focus on aligning educational outcomes with industry needs, fostering skill development initiatives, and encouraging innovation and entrepreneurship. Creating a robust ecosystem that supports not only large enterprises but also small and medium-sized enterprises (SMEs) will be crucial in addressing the employment challenge and maximizing the potential of Kerala’s workforce.
Kerala’s recent recognition for its business reforms marks a significant milestone in its journey towards becoming a more investor-friendly state. The collective efforts of the government, industry stakeholders, and the entrepreneurial community have begun to reshape perceptions and create an environment where businesses can thrive. However, to sustain this momentum, Kerala must prioritize professionalization and strategic planning, ensuring that its educated youth have access to meaningful employment opportunities. As the state forges ahead, it stands at the cusp of a transformative era that could redefine its economic landscape and enhance its reputation on the national and global stage.
