Kerala Rises from 28th to 1st in Industry-Friendly Rankings, Credits LDF’s Proactive Policies

Thiruvananthapuram: Kerala rose from 28th to 1st position among industry-friendly states, owing to the "pro-active interventions of LDF governments," according to state data. Large-scale investments in modern industrial sectors, protection of public sector undertakings, and strong support for small-scale industries are identified as the crucial factors behind this shift.

KINFRAs 34 industrial parks now house 1,400 units, generating 6,280 crore rupees investment and 72,500 jobs. Ten of these parks were opened during the current LDF tenure.

Under the Year of Entrepreneurship initiative, 3,53,210 MSMEs were launched, creating 7.49 lakh jobs and attracting 22,692 crore rupees in investment. Among these, 1.12 lakh enterprises were started by women.

The ‘Meet the Investor’ program attracted 15,000 crore rupees in new investments. The Hydrogen Valley project, expected to attract 18,000 crore rupees, by kerala, was one of the first initiatives endorsed by the World Economic Forum at Davos.

The LDF compares the growth of public sector during their term with the previous UDF government tenure from 2011–16, describing that period as one when “industry was on a ventilator.” When the 2006–11 LDF government stepped down, PSU profits stood at 292.45 crore rupees. By 2016, after the UDF term, PSUs registered a loss of 645.96 crore rupees.

The LDF accuses the previous government of neglecting public sector undertakings. Although UDF budgets allocated 849 crore rupees for PSUs, less than half was reportedly released. Several major PSUs — including FACT, TCC, IAC, HIL, HOC, IRE, HMT, KMML — were “on the brink of closure.”

Even projects fully completed by the earlier LDF government — such as Weaving Mill in Pinarayi and Uduma Spinning Mill — were allegedly not opened by the UDF.

The UDF’s 'Emerging Kerala' investment summit is criticized as having failed to bring in even a single rupee of actual investment.

Former Defence Minister A.K. Antony had publicly said that “investors were afraid to start new industries in Kerala under UDF,” praising the VS Achuthanandan government for its stronger support to industries.

Kerala Takes a Different Path: Strengthening the Public Sector

While the Union Government pushed for PSU disinvestment, Kerala claims to have taken a “contrary stance” by reviving and retaining key PSUs. Kerala acquired the HNL in Kottayam and Keltron Electro-Magnetic Ltd (KEL-EML) in Kasaragod after they were put up for sale by the Centre.

Today, 27 PSUs are functioning in profit, with 27.30 crore rupees operational profit and 2,440.14 crore rupees turnover. Institutions such as KMML, Keltron, KSIE, TELK, SIFL, TCC, Kerala Electricals and others are reported to be performing strongly.