Kerala Records Rs. 70,916 Crore in New Investments Between 2021 and 2025

Thiruvananthapuram: According to a study conducted by the MSME Export Promotion Council Kerala has been making steady progress in several sectors, including tourism, information technology (IT), micro, small and medium enterprises (MSMEs), and green energy.The data for this analysis was taken from the Centre for Monitoring Indian Economy (CMIE). 

The study reveals that between 2021 and 2025, new investment projects worth Rs. 70,916 crore have been initiated in the state. Out of these, projects worth Rs. 23,728 crore have been completed, while investments totaling Rs. 10,780 crore have been revived after a period of slowdown.

The state has also begun tapping into emerging sectors like green energy, knowledge-based industries, and startups, which present new opportunities for growth and employment.

The IT sector in Kerala has attracted significant investments, with expansions in software development centers and IT parks advancing the state’s vision of becoming a hub for knowledge-based industries. These developments include the growth of technology parks such as Technopark in Thiruvananthapuram and Infopark in Kochi. Leading companies like UST Global, IBS Software, and TCS have expanded their operations in the state. Additionally, the government’s Kerala Startup Mission continues to foster innovation and support new ventures in technology and digital services.

The tourism sector has also seen significant development. In 2024, Kerala welcomed over 22 million tourists, boosting industries such as hospitality, transport, and retail. Investments have gone into improving infrastructure, including projects like the development of the Kochi International Marina and eco-tourism initiatives in Wayanad and Thekkady.

The MSME sector has experienced rapid growth, with over 2,40,000 new enterprises established in the last two years alone. These MSMEs have attracted approximately Rs. 15,000 crore in investments and created employment for around 220,000 people.

Green energy projects are also gaining ground, with several solar power plants coming up in districts like Palakkad and Idukki. The Kerala State Electricity Board has also initiated wind energy projects. 

In addition to these, Kerala’s healthcare and education sectors have received investments aimed at enhancing infrastructure and service quality, which are crucial for improving the state’s human development indicators.

For the fiscal year 2024-25, new projects amounting to Rs. 11,544 crore have been announced across both government and private sectors. Of this amount, Rs. 2,944 crore worth of projects have been completed, while Rs. 867 crore worth of projects have been revived. The private sector’s contribution to these investments stands at Rs. 8,119 crore.

The findings were released by Dr. D.S. Ravath, Chairman of the MSME Export Promotion Council, highlighting Kerala’s ongoing efforts to diversify its economy and promote sustainable development through targeted investments in key sectors.