Question

What attempts were made to promote private investment in Kerala during the Third Phase of its economic development?

1. Attempts were made to promote private investment in the industry sector.
2. Efforts were concentrated on promoting private investment solely in the agricultural sector.
3. Private investment was encouraged in electricity generation.
4. The tourism sector was also a focus for promoting private investment.

• A. ഇവയൊന്നുമല്ല
• B. ഒന്നും നാലും
• C. മൂന്ന്
• D. ഒന്നും മൂന്നും നാലും

Answer 1

Answer:

D. ഒന്നും മൂന്നും നാലും

Kerala's Economic Development: The Third Phase (Post-1990s Reforms)

Transition in Economic Policy

• The Third Phase of Kerala's economic development typically refers to the period after the 1990s economic liberalization in India.

• This phase marked a significant shift from a predominantly state-led development approach, characteristic of the earlier 'Kerala Model,' towards greater encouragement of private sector participation and market forces.

• The primary objective was to boost economic growth, diversify the state's economy, and create employment opportunities beyond traditional sectors and remittances.

• Key Sectors for Private Investment Promotion

Industry Sector:

• Considerable efforts were made to attract private capital into various industrial sub-sectors, including manufacturing, information technology (IT), and IT-enabled services (ITES).

• Prominent initiatives include the establishment of IT parks such as Technopark in Thiruvananthapuram (established in 1990), Infopark in Kochi (established in 2004), and Cyberpark in Kozhikode. These parks aimed to create a conducive environment for private IT companies.

• Industrial policies were reformed to be more investor-friendly, streamlining processes and offering incentives to reduce bureaucratic hurdles for private enterprises.

Electricity Generation:

• Kerala has historically faced challenges in meeting its power demands, often relying on imports. During this phase, the state actively sought private investment to augment electricity generation capacity.

• While the Kerala State Electricity Board (KSEB) remained a dominant player, policies were formulated to encourage Independent Power Producers (IPPs) and private entities to invest in conventional and renewable energy projects to bridge the demand-supply gap.

Tourism Sector:

• Tourism emerged as a high-potential sector, significantly contributing to the state's economy and earning Kerala the popular moniker "God's Own Country."

• The government actively promoted private investment in the development of tourism infrastructure, including hotels, resorts, houseboats, and various related services.

• Public-private partnerships (PPPs) and direct private initiatives were strongly encouraged for the development, marketing, and management of tourist destinations and facilities.

• This sector became a crucial driver of economic growth and job creation in the state.

Agricultural Sector:

• While agricultural development remained important, the focus for attracting significant new private investment for growth and transformation during this phase was not solely or primarily concentrated on agriculture in the same way as industry, tourism, and power. Efforts in agriculture often centered on productivity improvements, diversification, and market linkages rather than large-scale private investment promotion as a primary growth engine during this specific liberalized period.