'Kerala’s GDP to double by 2032: A golden chance for entrepreneurs'

A booming new Kerala economy is on the horizon as the state’s Gross Domestic Product (GDP) is set to double from USD 140 billion to USD 280 billion in the next eight years, offering immense opportunities for the State’s entrepreneurs.

Inaugurating the Dhanam MSME Summit in Kozhikode, Kerala State Industrial Development Corporation (KSIDC) Chairman C. Balagopal noted that, according to recent data, the Kerala economy is growing at an annual rate of 6 to 7 percent. 

This growth trajectory is expected to take the state’s GDP to USD 280 billion by 2032.

“Kerala’s entrepreneurs need to be part of this transformation from the current USD 140 billion to USD 280 billion. For this to happen, all factors of production must double, except land, where a vertical development model will be necessary. Additionally, infrastructure must also be expanded,” he said.

Outdated Kerala narrative

Encouraging entrepreneurs to reject the outdated narrative that Kerala is anti-enterprise, he referred to a study by Bengaluru-based think tank, the Public Affairs Centre, commissioned by Niti Aayog.

The study ranked Kerala as the No. 1 State in India in achieving the United Nations’ 17 Sustainable Development Goals (SDGs).

Dismissing the common belief that Kerala’s youth are leaving in large numbers, Balagopal pointed out that Kerala is not among the top eight states in India sending students abroad. 

Gujarat and Maharashtra rank first and second in sending youth overseas for jobs, with Tamil Nadu and Karnataka also ahead of Kerala.

China is the top country sending students to the US, though this trend has slowed due to US restrictions and improvements in the Chinese economy. In terms of foreign students in the US, India ranks second, so it is only natural that students from Kerala pursue education abroad.

Much ahead of other States

Balagopal stressed that Kerala’s industrial growth is often overshadowed by political bickering, which tends to dominate public attention. He highlighted Kerala’s leading position among 25 States in sustainable development, a fact that often goes unnoticed.

Kerala’s per capita GDP stands at USD 4,000, 60 percent higher than the national average of USD 2,600, Balagopal added.

Growth in non-agricultural sectors

As is typical of developing economies, a shift from agriculture to non-agricultural sectors is evident in Kerala, where 85 percent of the population is now engaged in services and industrial sectors. 

The industry sector or secondary sector, which includes manufacturing as well as power generation, construction, communications, etc., contributes 23 percent to Kerala's GSDP. Manufacturing alone contributes about half of this, that is, over 11 percent.

Opportunities abound for entrepreneurs

Balagopal urged entrepreneurs to ignore political rhetoric and focus on future expansion, citing the rapid growth of both the Indian and Kerala economies.

“In the next eight years, entrepreneurs must be ready to seize the opportunities presented by a booming economy,” he said. “The factors of production, alongside technology and infrastructure, will drive economic growth. Therefore, the State must invest more in these areas.”

Given the limited availability of land, entrepreneurs should consider vertical expansion, he noted. 

Productivity must rise dramatically through the upskilling of labour. “Kerala’s advantage is its 100 percent school enrolment achieved years ago, resulting in high demand for skilled labour.”

“Entrepreneurs should think beyond the present and ask themselves whether they are prepared to double their growth alongside the state’s economic expansion,” Balagopal emphasised.

Lauding the risk-taking ability of entrepreneurs in the Malabar region, Balagopal also urged them to unlock the potential for business expansion by taking the IPO route and private investment in family-held businesses. 

MSME Summit opens with a flourish

C. Balagopal lit the traditional lamp to inaugurate the MSME Summit at the Malabar Palace Convention Centre in Kozhikode.

Ullas Kamath, Founder of UK & Co., Chairman of FICCI-Karnataka State Council, and former JMD of Jyothy Labs, delivered the keynote address.

Ananda Mani K., President of the Calicut Management Association, Dhanam Business Media Chairman Kurian Abraham, and others were present.

New business news portal launched

Balagopal and Ullas Kamath officially launched the Dhanam Group’s business news website (https://english.dhanamonline.com/) at the event. The portal aims to be a platform connecting professionals and businesses worldwide with opportunities in Kerala.