KOCHI: In a significant shift aimed at accelerating infrastructure growth in the technology sector, the state government’s new IT policy allows the setting up of affiliated private parks — a move experts say could transform the sectoral landscape without burdening public finances.
The IT Policy 2026, approved by the cabinet on Friday, outlines a broad roadmap to transform Kerala into a global knowledge and digital innovation hub. It also aims to increase the state’s share in India’s IT exports to 10%, create at least five lakh jobs in IT and allied sectors, and triple the availability of IT infrastructure through private participation and decentralised growth.
The policy also proposes the establishment of global capability centres (GCCs), promotion of data centres, and expansion of plug-and-play IT workspaces into emerging urban centres. It further emphasises strengthening startup ecosystems, promoting open-source technologies, and building capacity in emerging sectors such as artificial intelligence, electronics, quantum computing, and space technologies.
Speaking to TNIE, V K Mathews, founder and executive chairman of IBS Group, said, “The most striking point in the new IT policy is the provision to allow affiliated private IT parks. One of the challenges for the industry today is that we don’t have enough land or built-up space. However, the state has no dearth of private land. If private parties are allowed to pool their land, the problem will be solved.”
He explained that private land parcels could affiliate with government IT parks such as Infopark or Technopark and enjoy their administrative approvals and ecosystem advantages. “Consider 30 acres of land near Pallikkara affiliating with Infopark — it can be seen as Infopark Phase V. It will have all the administrative benefits of Infopark while remaining privately owned. This offers the best of both worlds,” Mathews said.
The provision comes at a time when Kerala faces severe land constraints for infrastructure expansion. To address this, the government has already initiated land pooling through the Greater Cochin Development Authority (GCDA) to acquire 500 acres for Infopark Phase III, marking a shift away from traditional land acquisition.
Mathews said the policy aligns with Kerala’s ambition to capture a larger share of the global IT market.
“India’s IT exports are around $224.4 billion, and Kerala aims for about $22.4 billion. The state currently stands at around $2 billion. With the right infrastructure and policies, this target is achievable over the next five to ten years,” he said, adding that the new policy could be a “game changer” for the state’s IT sector.
The government said it expects the policy to accelerate infrastructure creation, attract private investments, and strengthen Kerala’s position as a preferred destination for technology companies and innovation-led enterprises.
Land pooling, boosting exports and job growth
Key highlights of the IT Policy 2026
Private IT parks linked to Infopark & Technopark
Targeting 10% share of India’s IT export market
5 lakh new jobs in IT & allied sectors
Expansion of IT infra via land pooling
Setting up GCCs and promotion of data centres
Incentives, co-working spaces, & funding support to scale up startups
Dedicated tech missions in AI, semiconductors, electronics, & future tech