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

Releasing the study on “Investment, Growth & Development between 2021-22 to 2024-25 in progressive Kerala” today, the chairman of the MSME EPC, Dr D S Rawat, confirmed that during the period (2021-22 to 2024-25), Kerala attracted new investment projects worth Rs 70,916 crore.

Investment projects worth Rs 23,728 crore were completed, projects of Rs 10,780 crore were revived, and under implementation at various stages were of Rs 3,03,720 crore during the period of reporting. The data, the Council chairman said, have been sourced from the Centre for Monitoring of Indian Economy (CMIE).

The study found that the state continues to register steady growth across key sectors, reaffirming its position as India’s most socially advanced and progressive state. With its strong focus on human development, sustainability, and inclusive policies, Kerala is achieving balanced progress that combines economic expansion with social welfare.

Especially, the state has witnessed notable advancements in information technology, tourism, healthcare, education, and MSMEs, while new opportunities are emerging in green energy, knowledge economy, and start-ups.

During the FY 2024-25, the new projects (both government & private sector) announced were worth Rs 11,544 crore, completed projects of Rs 2944 crore, and revived projects of Rs 867 crore. The private sector contribution in it was Rs 8119 crore, completed projects worth Rs 675 crore, and revived projects of Rs 430 crore.

The MSME EPC Chief, Dr Rawat, said the state government needs to set up a high-powered committee to review each project facing hurdles and solve them across the table to implement the ongoing projects within a stipulated time frame to avoid any cost escalation.

Kerala has recovered post-pandemic in terms of both domestic and foreign visitors. During 2024, reportedly over 2.20 crore tourists have visited the state, contributing 10-12 per cent to the state's GDP and providing direct and indirect jobs to over 24 per cent of the workforce, i.e., 15 lakh people.

Kerala’s MSME sector has seen rapid growth, and during the past two years, more than 2,40,000 new MSMEs were established, involving an investment of about Rs 15,000 crore and creating jobs for nearly 2.20 lakh people.

However, a large number of MSMEs are facing a crisis due to the non-availability of timely and affordable credit, a gap in the implementation of governmental schemes and on top of that, many new MSMEs are in services or retail and not in high-value manufacturing. Therefore, the state needs to promote manufacturing MSMEs to diversify beyond retail/services. There is a need to improve support in marketing, export orientation and technology adoption.