The Kerala government has rolled out four major policy frameworks — the Export Promotion Policy 2025, Logistics Policy 2025, ESG (Environmental, Social and Governance) Policy 2025, and the high-tech framework 2025 — giving a strong push to its New Industrial Policy (NIP) that seeks to reshape the state’s industrial landscape.
Industries minister P Rajeeve said the new initiatives are designed to strengthen Kerala’s position as an investment-friendly state with a focus on sustainability, technology, and global competitiveness. “These policies are aimed at transforming Kerala into a high-value, responsible and future-ready industrial ecosystem,” he said while announcing the launch.
The Kerala ESG Policy 2025 sets out a clear roadmap for promoting industries that are not only environmentally sustainable but also inclusive and transparent in governance. The policy comes with a suite of incentives — including tax concessions, subsidies, easier access to credit, and incubation support for start-ups and research-based ventures.
A State ESG Monitoring Cell will be set up under the Department of Industries and Commerce to coordinate and monitor ESG adoption across enterprises. The long-term vision is ambitious: achieve carbon neutrality by 2050 and complete the transition to renewable energy by 2040.
“This is not just a policy document but a mindset shift towards responsible and future-oriented industrial growth,” Rajeeve added.
The Export Promotion Policy 2025 focuses on expanding Kerala’s role in the global trade network by strengthening its integration with international value chains. The state aims to increase its export value to $20 billion by 2027-28, repositioning Kerala as a globally competitive export hub.
Currently, Kerala’s export basket is dominated by marine products, spices, petroleum, and engineering goods. The new policy aims to diversify into high-value sectors such as biotechnology, life sciences, defence, aerospace, electronics, pharmaceuticals, Ayurveda, IT, tourism, and healthcare.
It also outlines a plan for modernising export infrastructure, improving logistics, upskilling the workforce, and building a stronger global brand identity under “Made in Kerala”.
The Kerala Logistics Policy 2025 presents a detailed roadmap to make the state a high-efficiency, multimodal logistics hub, supporting manufacturing, exports, and domestic trade.
The goal is to bring logistics costs down to below 10% of the state’s GSDP through a coordinated and technology-driven approach. It envisions a digitally connected logistics ecosystem integrating ports, airports, and highways to position Kerala as a cost-efficient and sustainable trade gateway for South India and beyond.
Rajeeve noted that improving logistics efficiency is crucial for industrial competitiveness, and the policy aligns closely with India’s national logistics goals.
Kerala’s High-Tech Framework 2025 acts as a strategic blueprint for developing the state’s advanced manufacturing and innovation ecosystem. It emphasises building clusters in emerging sectors such as semiconductors, robotics, aerospace, and electronics manufacturing, while enhancing collaboration between academia, industry, and research institutions.
The framework aims to make Kerala a hub for high-technology-driven industries that can generate quality jobs, attract global partnerships, and accelerate innovation-led growth.
Together, these four initiatives reinforce Kerala’s New Industrial Policy, which envisions sustainable growth grounded in digital innovation, equitable development, and global integration. The government believes that by aligning industry growth with green principles and technological advancement, Kerala can position itself as both an ethical and competitive player in the national economy.
