Kerala has made a remarkable stride in the Ease of Doing Business Index based on the business environment. The state has been positioned with 15th rank in EoDB as per the State Business Reform Action Plan 2020 (SBRAP- 2020) compared with 28th in 2019 based on the implementation and feedback scores.    According to the department for the promotion of industry and internal trade (DPIIT) under the Union Ministry of Commerce and Industry, Kerala with a score of 75.49% has been placed 15th in the country. The ranking is based on the implementation score and feedback score obtained from the beneficiaries. 

 The recognition is attributed to the achievement of the proactive measures taken by the state government to stimulate the state’s business environment. It included policy reforms and business re-engineering processes. The holistic approach focusing on investment with sustainable development has helped the state to make rapid gains as a preferred investment destination. The government aims to get ranked within the first ten states in the upcoming years.

The SBRAP-2020 comprised 301 action points spread across 18 departments/agencies covering 15 reform areas with an addition of several sector-specific reforms. Unlike the earlier evaluation based on One Uniform Ranking, the SBRAP-2020 assessment categorised states into Top Achievers, Achievers, Aspirer and Emerging Business Ecosystems. Kerala is placed under the category of Aspirer. The improvement in ranking would inspire the industrial and investment promotion agencies under the state government to attract more investments and enterprises to the state.

Timely amendments in laws and regulations related to granting permits to industrial enterprises and policy decisions taken and implemented have helped this surge. Every year, the DPIIT is issued to the states in the name of Business Reform Action Plan (BRAP) which lays down the measures to be implemented by the various departments for smooth start-up and smooth running of the enterprises. In 2016, Kerala implemented only 22.8 percent of this. In 2019, 85 percent of the things were implemented, but the ranking was 28. DPIIT to complete 301 reforms in 2020 and  94 percent of the process were completed.

The state government is devising and implementing many schemes to provide better facilities for starting new industries and enterprises in the state. The Chief Minister's Entrepreneurship Development Plan (CMEDP) is also providing financial assistance to new entrepreneurs, loan up to Rs 2 crores will be available to entrepreneurs for new ventures. The loan of up to Rs 2 crores is available for micro, small and medium sector enterprises at an interest rate of 5%. The loan is provided at an interest rate of 5% through subsidy of 3% by the government and 2% by Kerla Financial Corporation. For loans above Rs 2 crores, the loan is available at 5% interest rate up to Rs 2 crores and the rest of the loan amount at the normal interest rate. Loans up to 90% of the project cost are available.The state government has declared the financial year 2022-23 as the year of entrepreneurship to encourage micro, small and medium enterprises. As part of starting 1 lakh enterprises this year, help desks have been started in all local self-government bodies in Kerala to provide guidance to entrepreneurs and guide them towards entrepreneurship. Entrepreneurs need only contact the nearest Local Self-Government Help Desk for any queries and assistance.

Kerala is the top performer in the startup sector

Kerala is the top performer in the startup sector for the third time in a row. For the third time ,Kerala is among the top performers in the Government of India list related to the performance in the startup sector. Along with Maharashtra, Odisha, Telangana and Jammu and Kashmir. Kerala has been recognized for supporting start-ups through local language, start-up mission digital hub for product design-development and Government as a Marketplace project to provide technical assistance to various government departments.

Last updated on : 2022-07-05 18:39:25