Question

What advantages does Kerala offer that make it a center point for investors?

• A. A) Low land prices and minimal environmental regulations.
• B. B) Abundant natural resources and a large consumer market.
• C. C) Abundant skilled labor and educated human resources.
• D. D) Close proximity to major international shipping routes.

Answer 1

Answer:

C. C) Abundant skilled labor and educated human resources.

Advantages of Kerala for Investors: Human Capital and Beyond

• High Literacy Rate: Kerala boasts the highest literacy rate in India, consistently above 90% (96.2% as per NSO 2017-18 survey for age 7 and above). This translates to a highly educated populace readily adaptable to various industries.
• Skilled Workforce Availability: The emphasis on education has led to a large pool of graduates in diverse fields, including engineering, medicine, IT, and management. This readily available skilled labor reduces recruitment and training costs for investors.
• Quality of Education and Research Institutions: Kerala is home to several reputed universities and research institutions (e.g., Cochin University of Science and Technology - CUSAT, Indian Institute of Management - IIM Kozhikode, various IITs/NITs branches). These institutions contribute to a continuous supply of qualified professionals and a strong knowledge base.
• Entrepreneurial Ecosystem: Government initiatives like the Kerala Startup Mission (KSUM) actively promote entrepreneurship and innovation, fostering a dynamic environment for new ventures and attracting investment in technology and knowledge-based industries.
• Social Development Indicators: Kerala's 'Kerala Model of Development' is renowned for its high social development indicators, including excellent healthcare facilities (e.g., 'Aardram' Mission for public health improvement) and a robust public distribution system. A healthy and educated workforce is more productive and reliable.
• Infrastructure Development: Significant investments in physical infrastructure, including a well-connected road network, four international airports (Kochi, Thiruvananthapuram, Kozhikode, Kannur), and major ports (Kochi Port, Vizhinjam International Seaport), facilitate logistics and trade for businesses.
• Favorable Business Environment: The state government has been actively implementing reforms to improve the ease of doing business, including single-window clearance systems and investor-friendly policies to attract both domestic and foreign direct investment (FDI).
• Peaceful Industrial Climate: While historically known for labor movements, recent years have seen a concerted effort by the government and trade unions to create a more conducive and peaceful industrial climate, emphasizing dialogue and resolution.
• Remittances from Diaspora: A substantial portion of Kerala's economy is boosted by remittances from its large diaspora working abroad, particularly in the Middle East. This inflow of funds increases purchasing power and contributes to economic stability and investment capacity within the state.
• Tourism Potential: Kerala's natural beauty and established tourism sector also present investment opportunities, particularly in hospitality, eco-tourism, and related services, which in turn create jobs and demand for local products and services.