Kerala's Industrialisation
Kerala's industrial sector needs to take advantage of global best practises and attract more investors, educated and skilled work force. Emphasis should be given to the practice of ethical manufacturing, focused in value addition and in harmony with the environment. Focus should be given to tap the huge potential of knowledge based industries such as IT, computer hardware and bio technology. Kerala needs to create an eco-system where economic activities can be undertaken in a socially and environmentally responsible manner. 
The manufacturing sector in Kerala is relatively small in size. The manufacturing sector accounted for a share of only 12.5 per cent of Kerala's Gross State Value Added (GSVA) (at constant 2011-12 prices) in 2019-20. In comparison, the manufacturing sector accounted for 17.4 per cent of India's GDP in 2019-20.
A Revival in Manufacturing in Kerala
At the same time, it needs to be highlighted that there has been a steady increase in the size of Kerala's manufacturing sector, in value terms, especially so over the last four years. The share of manufacturing in Kerala's GSVA increased from 9.8 per cent in 2014-15 to 12.5 per cent in 2019-20. According to data from Annual Survey of Industries, Kerala's share in gross value added by India's factory sector increased from 1.2 per cent in 2014-15 to 1.5 per cent in 2017-18.
Modernising the Traditional Sectors
The Government is taking steps to modernise the traditional industries in the State, including coir, cashew and handloom. As already noted, these industries continue to employ a substantial part of the State's total workforce. Modernisation of traditional industries will include (but not limited to) mechanisation of production processes in these industries. Moreover, with modernisation, Kerala's traditional industries will strive to diversify into new products (such as geo-textiles in the coir sector), and evolve effective marketing and distribution strategies. Rather than displacing workers (a strategy involving mechanisation alone may result in this), modernisation will lead to overall expansion of the industry and the creation of greater value addition per worker.
In Kerala, there is very high potential for growth in the garment sector. Kerala has a large and sophisticated market for all types of garments. In addition to the large home market, garment firms in Kerala can also take advantage of the demand for Kerala-specific designs from a sizeable export market comprising non-resident Keralites. The other advantage is the large availability in Kerala of skilled workers and professionals in the garment and fashion sector. The industry should work closely with fashion and design institutes in Kerala. The garment sector should take good
advantage of online marketing strategies.
Kerala is yet to take advantage of its huge potential in the food and beverages sectors. There are enormous possibilities in the State in the storage, processing, and value addition of vegetables, fruits, fish, and meat. There exists huge potential, in particular, for the processing of coconut, jackfruit, banana, pineapple, and tapioca. Wood and bamboo based industries can also be developed in selected regions of the State. A relatively large market for food and agro-based products exists within Kerala. However, a good part of this domestic demand is met by imports from other Indian States and countries. Kerala's industries, especially food and agro-based industries, can tap into this domestic market.
The growth of traditional, food and agro-based industries and of tourism can go hand in hand in Kerala, feeding on each other to create a globally recognised niche for the State in these sectors. Kerala can learn lessons from countries such as Thailand, Malaysia, and Vietnam in successfully combining agriculture, agro-based industries and tourism.
Industrial Promotion and Investment
Facilitation Activities: The State Government has decided to make business friendly amendments to the relevant laws and regulations. In order to strengthen the sector, the Government of Kerala has come up with the Kerala Investment Promotion and Facilitation Act, 2018 which envisages mandatory approval within a period of 30 days if applications are submitted with necessary documents. The Act seeks to avoid delays in granting various licenses, permissions, approvals, and clearances required under the various enactments and make the State investor friendly. 
Kerala Micro Small Medium Enterprises
Facilitation Act, 2019 and the rules made there in, under Section 14 of the Act, dated January 6, 2020 vide G.O. (P)No.2/2020/ID is one of the key initiatives under the Ease of Doing Business Reforms of the Industries Department for establishing and operating MSME units. This forms part of the online single window clearance mechanism which covers central inspection system for compliance inspections, introduction of self-certification regime, parallel processing of applications by various departments, deemed approvals post the mandated timelines, elimination of redundant clearances, and spot approval for registration through nodal agencies which are revamped single window Board at State, District, and Industrial Parks.
Manufacturing Sector
As per the provisional data from the Central Statistics Office (CSO), the growth of India's manufacturing sector has been estimated at 0.03 per cent in 2019-20 as against the previous year's growth rate of 5.7 per cent. The State Government has engaged handloom cooperative societies in Kerala to supply cloth for the School Uniform Scheme of the Government. Handloom workers and leaders of cooperative societies have agreed that the School Uniform Scheme has helped to revive the sector to some extent. Many workers who had left handloom weaving because of lack of opportunities have returned to work in this sector.
Read more @
Source : Economic Review 2020