On Wednesday, Industries Minister P. Rajeeve proudly launched three pivotal policies: the Kerala Export Promotion Policy, the Kerala Logistics Policy, and the Kerala Environmental, Social, and Governance (ESG) Policy. Alongside these, the Kerala Hi-Tech Framework was also introduced. These ambitious initiatives are designed to revolutionize the state’s industrial sector, establishing it as an appealing destination for sustainable development and innovation.
The new Export Promotion Policy is squarely focused on dramatically increasing Kerala’s exports by seamlessly integrating local industries into global value chains. Minister Rajeeve emphasized that even with recent challenges like U.S. tariffs, this policy is poised to propel the state towards its ambitious goal of achieving $20 billion in exports by 2027-28. This will be accomplished through a strategic blend of export diversification, robust skill development, and the strong establishment of the ‘Made in Kerala’ brand.
To ensure smooth implementation, a comprehensive multi-tier facilitation structure will be put in place, featuring a State Export Promotion Committee, various District Export Promotion Committees, and a dedicated State Export Facilitation Desk. Generous incentives are on offer, including a 25% subsidy (up to ₹1 crore) for crucial export-oriented infrastructure like cold storage, warehousing, and advanced testing laboratories, along with a 50% reimbursement of logistics expenses.
Kerala’s pioneering ESG policy stems from the understanding that environmentally friendly and low-polluting industries are perfectly suited for the state’s unique industrial environment. Minister Rajeeve proudly announced that Kerala is the first Indian state to adopt such a thorough and forward-thinking ESG policy.
Generous Incentives for Green Industries
To vigorously promote the adoption of ESG principles, the policy guarantees a suite of attractive benefits, including tax exemptions, subsidies, favorable loan concessions, and dedicated start-up incubation support. A core objective of this policy is to transition to 100% renewable energy utilization by 2040, ultimately achieving complete carbon neutrality across the state by 2050.
Significant investments are planned for developing solar parks, innovative floating solar installations, expansive wind farms, efficient hydroelectric plants, and sustainable biomass projects. Industrial units will further benefit from a substantial 25% capital subsidy (up to ₹1 crore) for integrating renewable energy systems, waste recycling facilities, or advanced water treatment solutions.
Transforming into a Logistics Powerhouse
The Logistics Policy is strategically designed to transform Kerala into a highly efficient, multimodal logistics hub, providing crucial support for manufacturing, exports, and domestic trade. A key focus is to fully leverage the immense opportunities presented by the new Vizhinjam seaport.
Minister Rajeeve highlighted that the Sharaf Group’s state-of-the-art logistics park near Vizhinjam is nearing completion. Additionally, plans include establishing integrated logistics parks in key locations such as Ernakulam, Palakkad, Thiruvananthapuram, and Kozhikode, specifically tailored to serve port-based, manufacturing, and export-driven industries.
This policy aims for a significant reduction in logistics costs, targeting below 10% of the Gross State Domestic Product (GSDP), through a meticulously coordinated and technologically advanced approach.
Finally, the Hi-Tech Framework serves as the strategic blueprint for cultivating Kerala’s advanced manufacturing and innovation ecosystem. This framework pinpoints high-growth ‘sunrise’ sectors with substantial global potential, such as semiconductors, electronics system design and manufacturing (ESDM), biotechnology and life sciences, aerospace and defense, medical devices, robotics, nanotechnology, and cutting-edge advanced materials.