Finance Minister K.N. Balagopal used his Budget speech to make a strong pitch for increasing domestic production, and spurring investment, entrepreneurship and employment opportunities in the State, through the ‘Make in Kerala’ programme.
The Centre for Development Studies had carried out a detailed study ahead of the launch of the programme, as per which Kerala imported products worth around ₹1,28,000 crore in 2021-2022. Out of this, 92% was from other states.
During this period, the State’s exports were around ₹74,000 crore, indicating a very high trade deficit. Out of this 70% was to other states. The study looked at imported products which can be produced locally. Analysing productivity, expenditure towards wages and profit, measures are being taken to identify products that are possible to be produced in Kerala and to support them.
Mr. Balagopal said that participation of entrepreneur groups and science and technology research institutions had been ensured in the formulation of the project.
An amount of ₹1,000 crore has been provided for ‘Make in Kerala’ during the Plan period, with ₹100 crore earmarked for the current year.
The Industries department and other departments will also be part of the ‘Make in Kerala’ activities. Support will be provided through ‘Make in Kerala’ to Agritech startups in Kerala which produce agriculture value added products.
Assistance will be provided, including interest subvention, for new enterprises under the programme. The Finance Minister argued that the recent changes in the investment climate in the State will ensure that the programme will smoothly get off the ground.
Explaining the proposals, he cited ‘Below the Radar’, a book by C. Balagopal, former former IAS officer and the founder of Terumo Penpol, which narrates the experiences of 50 companies started in Kerala in the last 20 years which achieved great success.
The success of the Industries department’s ‘Year of Entrepreneurship’ last year and the national and international accolades won by the State Startup Mission also are a positive sign in this direction, he said.
