Kerala Boosts PSUs to Profitability While Centre Focuses on Privatisation: Pinarayi Vijayan

Thiruvananthapuram: Chief Minister Pinarayi Vijayan, addressing a press meet, here in Trivandrum, said the Kerala government’s continuous efforts to make public sector undertakings (PSUs) more competitive and efficient have produced remarkable results.

Under the Industries and Commerce Department, the state has 51 PSUs, which together recorded a turnover of 5,135.89 crore rupees, a 15.14 percent increase over the previous year. The number of profit-making enterprises rose from 12 in 2023-24 to 14 in 2024-25, while operationally profitable units increased from 18 to 22.

He noted that at the national level, central government policies have focused on privatising PSUs and reducing public investment, often resulting in closures. Kerala, by contrast, has strengthened these institutions, emerging as a stronghold for their development. Annual Survey of Industries (ASI) data from 2016 to 2024 show a sharp decline in PSU numbers elsewhere: Kerala’s government factories slightly decreased from 170 to 163, while Karnataka dropped from 151 to 74, Uttar Pradesh from 117 to 45, Gujarat from 406 to 139, Maharashtra from 343 to 98, and West Bengal from 152 to 63.

CM Vijayan highlighted that Kerala contributed 11.3 percent of the national Gross Value Added (GVA), second only to Maharashtra, while Gujarat and Tamil Nadu accounted for 2 percent and 5.9 percent, respectively. Over nine years, Kerala achieved a cumulative nominal GVA growth of 15.6 percent, outperforming major states like Gujarat and Maharashtra, which recorded negative growth.

He added that Kerala’s PSUs’ value addition rose from 5,756 crore rupees in 2016 to 17,801 crore rupees in 2024, reflecting a 15.2 percent annual growth (CAGR). Meanwhile, Gujarat’s industrial GVA fell from 8,354 crore rupees to 3,189 crore rupees, and Maharashtra’s from 58,237 crore rupees to 18,863 crore rupees. CM Vijayan attributed Kerala’s success to the government’s unwavering commitment and innovative approach toward PSUs.

The CM also warned against attempts to undermine the government’s achievements through misinformation. “Despite central government financial constraints, Kerala’s progress stands as a strong rebuttal to those attacking the government with falsehoods,” he said, urging citizens to remain vigilant against orchestrated campaigns that seek to distort the state’s success story.