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Kerala’s Startup Revolution: A Staggering 254% Growth in Just Two Years, Says CM

October 28, 2025
in National, Politics
Reading Time: 3 min

Kerala is rapidly cementing its position as India’s most startup-friendly state, witnessing an astonishing 254% growth in its startup ecosystem over just two years, since 2021. This remarkable achievement was highlighted by Chief Minister Pinarayi Vijayan during the inauguration of ReCode Kerala 2025. The development seminar, organized by the Department of Electronics and Information Technology at the KINFRA International Convention Centre in Kochi on Tuesday, October 28, is a key part of the State Government’s ambitious Vision 2031 initiative.

Reinforcing its innovative stance, Kerala proudly holds the top spot in Asia for affordable talent, according to the Global Startup Ecosystem Report. Furthermore, it achieved the prestigious ‘Top Performer’ status in the 2022 National Startup Rankings, a testament to its dynamic entrepreneurial environment.

Chief Minister Vijayan recounted the state’s journey, stating that when his government took office in 2016, Kerala was home to only 300 startups. Thanks to a series of proactive initiatives, including a dedicated startup policy, robust funding mechanisms, and a substantial corpus fund, this figure has soared to an impressive 6,400. Over the last nine and a half years, startups within Kerala have successfully attracted a staggering ₹6,000 crore in investments, signaling strong confidence from investors.

The Chief Minister also highlighted the remarkable surge in IT exports, which are on the cusp of reaching the ₹1 lakh crore milestone. From ₹34,123 crore in 2016, IT exports have grown to ₹90,000 crore. Concurrently, the state’s built-up IT space has dramatically expanded from 155.85 lakh square feet in 2016 to 223 lakh square feet presently. He emphasized that Kerala’s IT industry is experiencing unparalleled momentum, driven by substantial infrastructure development and forward-thinking policy initiatives.

To attract further IT investments, key infrastructural advancements are underway across the state. These include extensive National Highway expansion, significant airport modernization projects, the strategic development of the Vizhinjam Port, and crucial Power Highway and TransGrid initiatives aimed at ensuring a continuous energy supply. Additionally, the Gail pipeline and the ambitious K-FON project, providing statewide connectivity, are bolstering the state’s appeal. These efforts have led to robust job creation, with approximately 1.5 lakh individuals currently employed across Technopark, Infopark, and Cyberpark, and over 66,000 new jobs added since 2016.

The government has also rolled out several strategic measures to foster IT growth, such as the Private Tech Park Promotion Policy, flexible land lease options for new projects, and attractive incentives on property tax, stamp duty, and registration fees. Recognizing that infrastructure alone is not enough, the Chief Minister underscored the importance of a skilled workforce, announcing plans to train 10 lakh professionals to meet the evolving demands of the industry.

The event, presided over by Industries Minister P. Rajeeve, also saw Special Secretary (IT) Seeram Sambasiva Rao IAS presenting the comprehensive Vision 2031 report. A highlight of the inauguration was the unveiling of ‘I by Infopark’, a modern plug-and-play co-working space conveniently located near Ernakulam South Metro Station. Further showcasing the state’s technological prowess, a 5G chip entirely developed in Kerala was officially launched. The Chief Minister personally handed over the operational permit for the first company to occupy ‘I by Infopark’, Zoho Corporation, to its USA CEO, Tony Thomas.

During the seminar, the Indian Institute of Information Technology and Management-Kerala (IIITM-K) solidified its commitment to innovation by signing multiple memorandums of understanding with various leading IT firms. Other notable dignitaries present included Kochi Mayor M. Anil Kumar, MLA P.V. Sreenijin, and Infopark CEO Sushant Kurunthil.

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