We need a simplified Industrial policy for the state for (1) Facilitating investment in the state (2) Employment generation and employability enhancement (3) Adherence to high quality standards.
Kerala per say is not a business friendly state. The attitude of the policy makers, bureaucrats and the citizens of the state to business men and entrepreneurs within Kerala is not very positive. In their eyes, business men and entrepreneur are manpower exploiting, tax evading and PROFIT making people who are not welcomed.
In Kerala entrepreneurship is not celebrated or recognized.
The policy makers and executives conveniently forget the economic principle that Entrepreneurship is the foundation stone of economic progress. Any society which is not entrepreneurial will not grow and the present economic ambience of the state is a testimony to this fact.
When the Revenue Minister and Finance ministers of the state use public podiums to castigate businessmen and entrepreneurs publicly, who will dare to start a venture here?
For a state like Kerala with limitations of space, with no major manufacturing industries around, with people aspiring for white collar jobs, with so many NGOs and people clamouring to maintain the pristine nature of the state, the only call is to focus on SERVICE sector as the major industrial activity.
With this in mind we should make Kerala a centre of technology and skilled economic activity so as to give fillip to Service sector.
Kerala state government must support skill development and other promotional measures to set up Knowledge based industries in Kerala.
Though the Technocity and other district based information parks are there in the making, our Techno parks are slated to establish small companies within. This will not boost employment in large numbers in the state.
We need to take into account of the fact that every year Kerala state produces about 30000 fresh graduate engineers, 10000 diploma engineers, 10000 MCAs and another 30000 graduates who aspire to make it big through white collar employment. For close to 75000 employment seekers per annum, do we have world’s top IT companies present in Kerala for providing jobs? Sadly, no.
Infrastructures like Smart city, Techno city etc. must persuade big time employers like IBM, Microsoft, Oracle, SAP etc. in IT development area and large BPO companies such as Accenture, IBM, Sodexho, Cap Gemini etc. in the BPO sector to set their base in their infrastructure. These companies will take care of the large employment requirement of the state, year on year.
People working in new generation companies aspire for enough of entertainment facilities around the place of working. Attitudinally the policy makers turn their eyes away from these realities. The requirement is genuine and by closing our eyes from this, we only forbid the arrival of such companies from setting base in Kerala.
Other major business segments to be focussed are Financial Services, Hospitality and Healthcare. The state must promote institutions of excellence in these areas for training the job seekers for these sectors.
Next in line could be Educational services, Biotechnology, Media, R&D and Design services.
Industries based on Ayurveda and Food processing also needs encouragement of the state.
Major hindrance to our growth is the lack of infrastructure, particularly roads and transportation facilities. The State has to take up the widening of roads and getting the roads into good shape, of the existing highways and the roads inside the city corporation limits.
Better transportation facilities round the clock are required for cities such as Cochin & Trivandrum. Both the cities also must plan for MRTP system now itself. The authorities and policy makers are neglecting the need of Cochin for a metro. Alternate transportation facilities such as water transport for the city of Cochin must be immediately implemented. It could be on a PPP model so that the state is not burdened on the capital expenditure required for them.
In a state like Kerala where large industries are not favoured due to constraints of space and population, Small and Medium Establishments (SME) must be focussed.
A new Industrial policy should be incorporated for specific interventions for the development of Small & Medium Enterprises which undoubtedly contribute significantly to the economic growth of any state.
SMEs must get interest subsidy, loan disbursement, quality certification, marketing assistance and awards and recognition.
To promote Venture Capital Funding for SME projects, adopting innovative technologies such as Nano technology, Information Technology and Bio-Technology, the Government should provide funds to FIs/Banks who have the necessary expertise in operating Venture Capital Funds. The minimum amount to be given to any such funds should be Rs. 100 Crores.
Though these are perspectives on the focus areas or areas of business, the basic aspect of the attitudinal change required in Malayali on entrepreneurship and companies is something that needs immediate attention. Unless that comes through, any plan that we make in Kerala to elevate its industrial output will not come about.
So, who will bell the cat?
Kerala per say is not a business friendly state. The attitude of the policy makers, bureaucrats and the citizens of the state to business men and entrepreneurs within Kerala is not very positive. In their eyes, business men and entrepreneur are manpower exploiting, tax evading and PROFIT making people who are not welcomed.
In Kerala entrepreneurship is not celebrated or recognized.
The policy makers and executives conveniently forget the economic principle that Entrepreneurship is the foundation stone of economic progress. Any society which is not entrepreneurial will not grow and the present economic ambience of the state is a testimony to this fact.
When the Revenue Minister and Finance ministers of the state use public podiums to castigate businessmen and entrepreneurs publicly, who will dare to start a venture here?
For a state like Kerala with limitations of space, with no major manufacturing industries around, with people aspiring for white collar jobs, with so many NGOs and people clamouring to maintain the pristine nature of the state, the only call is to focus on SERVICE sector as the major industrial activity.
With this in mind we should make Kerala a centre of technology and skilled economic activity so as to give fillip to Service sector.
Kerala state government must support skill development and other promotional measures to set up Knowledge based industries in Kerala.
Though the Technocity and other district based information parks are there in the making, our Techno parks are slated to establish small companies within. This will not boost employment in large numbers in the state.
We need to take into account of the fact that every year Kerala state produces about 30000 fresh graduate engineers, 10000 diploma engineers, 10000 MCAs and another 30000 graduates who aspire to make it big through white collar employment. For close to 75000 employment seekers per annum, do we have world’s top IT companies present in Kerala for providing jobs? Sadly, no.
Infrastructures like Smart city, Techno city etc. must persuade big time employers like IBM, Microsoft, Oracle, SAP etc. in IT development area and large BPO companies such as Accenture, IBM, Sodexho, Cap Gemini etc. in the BPO sector to set their base in their infrastructure. These companies will take care of the large employment requirement of the state, year on year.
People working in new generation companies aspire for enough of entertainment facilities around the place of working. Attitudinally the policy makers turn their eyes away from these realities. The requirement is genuine and by closing our eyes from this, we only forbid the arrival of such companies from setting base in Kerala.
Other major business segments to be focussed are Financial Services, Hospitality and Healthcare. The state must promote institutions of excellence in these areas for training the job seekers for these sectors.
Next in line could be Educational services, Biotechnology, Media, R&D and Design services.
Industries based on Ayurveda and Food processing also needs encouragement of the state.
Major hindrance to our growth is the lack of infrastructure, particularly roads and transportation facilities. The State has to take up the widening of roads and getting the roads into good shape, of the existing highways and the roads inside the city corporation limits.
Better transportation facilities round the clock are required for cities such as Cochin & Trivandrum. Both the cities also must plan for MRTP system now itself. The authorities and policy makers are neglecting the need of Cochin for a metro. Alternate transportation facilities such as water transport for the city of Cochin must be immediately implemented. It could be on a PPP model so that the state is not burdened on the capital expenditure required for them.
In a state like Kerala where large industries are not favoured due to constraints of space and population, Small and Medium Establishments (SME) must be focussed.
A new Industrial policy should be incorporated for specific interventions for the development of Small & Medium Enterprises which undoubtedly contribute significantly to the economic growth of any state.
SMEs must get interest subsidy, loan disbursement, quality certification, marketing assistance and awards and recognition.
To promote Venture Capital Funding for SME projects, adopting innovative technologies such as Nano technology, Information Technology and Bio-Technology, the Government should provide funds to FIs/Banks who have the necessary expertise in operating Venture Capital Funds. The minimum amount to be given to any such funds should be Rs. 100 Crores.
Though these are perspectives on the focus areas or areas of business, the basic aspect of the attitudinal change required in Malayali on entrepreneurship and companies is something that needs immediate attention. Unless that comes through, any plan that we make in Kerala to elevate its industrial output will not come about.
So, who will bell the cat?
4 comments:
Sr,
I was delighted to see your blog here. In fact my husband is a victim of government bureaucracy and corruption on his 2 year long attempt to start a food processing business in Kerala. In reached nowhere. Now he quit after his 2 year struggle. Sadly concluding Kerala is NOT investment friendly.
we used to travel interstate TN, karnataka and kerala quite often, and interestingly the moment you cross kerala border the difference in production and industrialization is visible. sadly, the case is almost getting to be the same in case of agriculture as well.
Pls keep blogging sir. I'm adding a link to your blog on mine. its here http://monalisagonewild.blogspot.com
Somehow, I have been a beneficiary of a positive approach from the Government. I have had positive interaction with the Government as a customer as well as when I sought help from them.
Entrepreneurs are considered like lepers, and if you are a first generation startup then you are a leper with tuberculosis as far as this community is concerned. They cannot comprehend that some one can actually raise capital, find customers, employees and build a business and over years the business will stabilize. The fact is that the entrepreneur who does all that is much more competent than their relative working as a coder in the US.
The other important aspect which was touched upon in one of your previous blogs is the great malayalee negative attitude toward anyone different from them. They will go out of the way to defame, bring down any upcoming talent. This is a State past time and is happening with Sreesanth and Prithviraj. I dont understand why as a community we must hate the only person who has made it to the national cricket league or a successful young film actor? Sheer jealousy, I would say.
The lack of risk capital is a huge impediment in scaling up a business. It is high time to have a venture capital fund with Rs. 100 Crore corpus. Timely non collateral based funding is absolutely essential for an entrepreneur's growth. Depending on bank loans with only home mortgaged is not a way to take a business to the next level.
I also find a lack of good advice to entrepreneurs having interacted around with the so called advisors/financial consultants and lawyers. The ecosystem is so shallow that no one is willing to hand hold a startup entrepreneur. Every one wants to work the big boys.
Ultimately, what matters is the entrepreneur's persistence and determination to succeed. He will find solutions. However, what one can achieve in T.N or Karnataka in 3 years takes 10 years in Kerala.
Technopark has brought a lot of change in the ecosystem of Trivandrum where you find 22 year olds aspiring to be an entrepreneur.
I think the entrepreneurial community in Kerala should put pressure on the Government to make some of these things happen.
With a lot of uncertainty in the Middle Eastern region and elsewhere, people are forced to look inward. Additionally, some Kerala Banks/Financial firms have become National level companies attracting talent non keralites into the state. Same applies to migrant labourers in the State helping with construction etc. A good majority of Malayalee IT professionals working abroad are also likely to come back to the State to start anew. All this is likely to change the work ethic.
yes...with a positive approach we read all the repeated essay.so far nothing worked on how to coordinate or educate new generation to think to be an enterpreneur.
thinking of creating a enterprenures community which throgh we can educate the small and medium enterpreneaures how to run the business sucessfully and legally.
educating or motivating enterpreneaur quality graduates of new generation towars enerpreneureship.
getting respect and consideration of socity.
in kerala i still believe enterpreneaures are considered as usless youngsters who couldnt find an engineering campus job and force to do something his own for living ...hahahahhaha
Aroon Varikkan
great person.
Hydrocyclone
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