Kerala is accelerating growth with strong strides in tourism, information technology, micro, small and medium enterprises (MSMEs), and green energy, reaffirming its path towards a progressive and knowledge-driven economy, according to a study by the MSME Export Promotion Council.

Releasing the report on Investment, Growth & Development between 2021-22 to 2024-25 in Progressive Kerala, Council chairman Dr D. S. Rawat said that during the period, Kerala attracted new investment projects worth Rs 709 billion.

Projects worth Rs 237 billion were completed, Rs 108 billion worth revived, while projects valued at Rs 3,037 billion were under implementation at various stages. The data was sourced from the Centre for Monitoring of Indian Economy (CMIE).

The study highlighted Kerala’s steady growth across key sectors, reaffirming its position as India’s most socially advanced state. With a focus on human development, sustainability, and inclusive policies, Kerala has been balancing economic expansion with social welfare.

The state recorded notable progress in IT, tourism, healthcare, education, and MSMEs, while new opportunities are emerging in green energy, start-ups, and the knowledge economy.

In FY 2024-25, newly announced projects were valued at Rs 115 billion, completed projects at Rs 29 billion, and revived projects at Rs 8.6 billion. Of this, the private sector accounted for Rs 81 billion in new projects, Rs 6.7 billion in completions, and Rs 4.3 billion in revivals.

Dr Rawat stressed the need for a high-powered committee to resolve hurdles facing ongoing projects to ensure timely completion and avoid cost escalations.

Tourism has rebounded strongly post-pandemic, with over 22 million domestic and foreign visitors reported in 2024, contributing 10-12 per cent to state GDP and generating direct and indirect jobs for about 24 per cent of the workforce, or 1.5 million people.

The MSME sector has grown rapidly, with over 240,000 new enterprises set up in the past two years, attracting Rs 150 billion in investment and creating 220,000 jobs.

However, many MSMEs face challenges due to limited access to affordable credit, gaps in government scheme implementation, and concentration in retail and services rather than high-value manufacturing. The study recommends promoting manufacturing MSMEs, improving marketing support, enhancing export orientation, and driving technology adoption.