How Kerala Became a Business Hub, Defying Right-Wing Accusations

Thiruvananthapuram: Kerala has once again secured the top spot in the Ease of Doing Business rankings (Business Reforms Action Plan + Reduction of Compliance Burden), being recognised as a “fast mover” in rapidly expanding industrial sectors. The award was presented in Delhi by Union Minister of Commerce and Industry, Piyush Goyal, who commended the state’s progress. Kerala was the first state to receive the award, marking what has been described as a proud moment for its citizens.

The achievement reflects sustained and deliberate efforts to place Kerala at the forefront of business -friendly governance. While critics, including sections of the right-wing media and opposition parties, had previously claimed that development would stall under the LDF government, Kerala’s consecutive recognition is challenging that narrative. The state is increasingly emerging as a hub for new business initiatives, with investment flows rising steadily under the combined leadership of Industrial Minister P Rajeev and Chief Minister Pinarayi Vijayan.

This year, Kerala completed 99.3% of the reforms requested by the Union Government, up from 91% last year. Alongside these reforms, the state successfully reduced investor grievances, a factor highlighted as critical to its progress. Kerala, which previously led in two business-oriented sectors, has now achieved first place across four sectors.

The coordinated efforts across government departments ensured streamlined support for industrial growth, making the achievement a result of effective team management.

States and Union Territories are classified into three categories based on performance. Alongside Kerala, Andhra Pradesh and Karnataka were designated as “fast movers,” while Tamil Nadu and Gujarat were placed in the second-tier “aspirants” category. This marks the second consecutive year Kerala has received this recognition, demonstrating consistent performance.

With continued improvements and growing recognition in advanced technology investment areas, Kerala is expected to further enhance its attractiveness to global investors.