Invest Kerala is a success. All reports point to the creation of a new climate of investment in what was hitherto perceived as an “investment unfriendly” state. What stood out is that the ruling Left coalition, the principal opposition party viz., Congress and BJP’s senior union ministers were all present to support the investment efforts. This is unique and heartwarming. A promise of no hartals! Great!
Let me recall three important events:
First, Kerala made its presence felt in the World Economic Forum in Davos. A first of its kind for the state. Whether Kerala got large investment proposals in Davos or not is immaterial at this stage: it signalled to the world that it is open for investment and business. Second, Kerala’s consistent efforts in the startup ecosystem won global recognition. The state topped the Global Startup Ecosystem Report (GSER) list in 2024.
Third, Kerala made a rapid stride from 28th position under the BRAP two years ago to “country leader” in two categories of business-centric reforms and seven categories of citizen-centric reforms in the ranking.
These contributed to the success of the Invest Kerala story. Added to this, the government reiterated its commitment to attract private investment in the 2025 budget speech outlining four different pillars. This is a clear shift in policy of the current government. The realisation that private investment will spur growth needs to be applauded.
Now to the Invest Kerala summit. The real challenge is to follow up on each of these investment proposals and ensure that there are no stumbling blocks in the process. Monopolistic public sector undertakings have the potential to play spoilsport in some sectors. The government must not let this happen.
Take the big leap
The big leap consists of two steps
First: A unique identity ( i- Aadhar) for MSMEs in the state. What Aadhaar did to citizen-centric governance can be replicated. The famous ‘JAM trinity’ was followed by the Aadhaar tagging of almost everything, PAN cards, bank accounts, ration cards, SIM cards, KYCs and even Digi Yatra. Kerala can set an example by creating a unique ID for all its enterprises (read MSMEs) and integrating all services under one ID.
What does this entail? Creating a unique ID is easy. Bringing all services under one ID requires careful planning. The state could start with all returns and reports as a first step. “One ID, One Return” (digital) would be a great start!
The next step is to integrate all inspections into one ‘mode’ and decriminalise all petty offences. Once an ID is created, the state can follow the ‘Aadhaar path’ and add more services. Kerala’s industrial future rests on MSMEs. Their role should be recognised and encouraged.
Second: Legislate an Investor Protection Law. This is a recommendation made by the author as part of a committee report way back in 2022: a new Act was recommended with a provision for ‘right to do business’ as in Punjab’s ‘Right to Business Act’. Call it by any name, Kerala needs a law to protect investors from any disruptive action by anyone ‘not authorised by law’ and a restraint on ‘those authorised by law’ .
Finally, I reiterate my earlier recommendation ‘decriminalise, digitise, simplify’!
(Views are personal)
