Confederation of Indian Industry, a premier business association in the country, feels that Kerala has the potential to become a one-trillion-dollar economy. In a report, Kerala - Road to $ 1 trillion Economy, the CII stated, “In an era of rapid economic transformation, Kerala stands poised on the cusp of unprecedented growth”.

The CII Report is coming in the background of the recent controversy over Congress leader Shashi Tharoor lauding the economic development, especially the startup sector in the state under the CPM-led Left Democratic Front. The comments by Tharoor enraged the Congress leadership, while the leaders of the ruling front highlighted it as an endorsement of their policies.

The report has identified seven core areas to focus on for catapulting the Kerala economy into the trillion-dollar club.  Information Technology (IT) and IT-enabled Services (ITeS), Tourism and Hospitality, Healthcare and Wellness, Agriculture and Food Processing, Renewable Energy, Marine and Coastal Industries, Knowledge Economy and Education are the seven areas identified in the report.

^{SHASHI THAROOR | PHOTO: WIKI COMMONS}
“Kerala has already established itself as an IT hub with Technopark in Thiruvananthapuram and Infopark in Kochi”, the report said. To further boost this sector, the report called for developing more IT parks across the state, especially in tier-2 cities. It has also stressed the need to focus on niche areas like artificial intelligence, blockchain, and cybersecurity.

The report has pointed out the state government’s aims to develop at least three new IT parks in tier-2 cities by 2030, each spanning approximately 1 million square feet of office space. “This expansion is expected to reduce urban congestion in major cities, provide employment opportunities closer to talent pools, and lower operational costs for companies, making Kerala more competitive”, it said.

The projected investment of INR 5,000 crore over the next five years is expected to create 50,000 direct IT jobs by 2030 apart from making 2-3 percent contribution to state GDP.

The report highlighted the importance of focusing more on AI, blockchain, and cybersecurity to make the state a preferred destination for industries in these areas. The AI market is projected to reach USD 190 billion in 2025, while blockchain to touch USD 39.7 billion and cybersecurity USD 345.5 billion by 2026. The report called for establishing five centers of Excellence in AI, blockchain, and cybersecurity by 2028. “Attract at least 100 companies specializing in these niche areas by 2030” and “generate 25,000 high-skilled jobs in these sectors by 2030”.

The state government plans to allocate ₹1,000 crore for research and development in these niche areas over the next five years. Additionally, companies working in these domains will be offered a 50% reduction in stamp duty and registration charges, along with a 25% subsidy on land cost, the report said.

^{TECHNOPARK IN THIRUVANANTHAPURAM | WIKI COMMONS}
The 51-page report has made detailed assessments and potentials of the seven areas identified to fast-track Kerala’s journey towards a trillion-dollar economy.

The report has called for the following strategies to achieve the $1 Trillion goal:

Ease of Doing Business: Streamline regulations and create a business-friendly environment to attract investments.

Skill Development: Align education and training programs with industry needs to create a skilled workforce.

Infrastructure Development: Invest in roads, railways, airports, and digital infrastructure to support economic growth.

Innovation Ecosystem: Establish more incubators, accelerators, and innovation hubs to foster entrepreneurship.

Global Outreach: Promote Kerala's products and services globally, participate in international trade fairs, and attract foreign direct investment.

Public-Private Partnerships: Encourage collaboration between government and private sector for large-scale projects.

Sustainable Development: Ensure that economic growth is balanced with environmental conservation and social equity.

Diaspora Engagement: Leverage the global Keralite diaspora for investments, knowledge transfer, and market access.

The CII report is expected to further boost the debates on the development policies and priorities of the state government and political parties.