kerala’s finance minister tells B&E’s anu warrier how his state plans to move into production-related services
B&E: Kerala is known for being the most literate State in the Indian economy. So are you planning to leverage this plus point to make Kerala a hub for manufacturing by leveraging the educated lot in the State?
TI: We are proud to have a literacy rate, that in itself sets standards of the highest levels. But we will continue to focus on the services industry and I see no chance that Kerala will become or will want to become a bigger manufacturing hub of the likes of Gujarat. However, not sticking to dogmatic ideologies, the nature of services that Kerala concentrates on is in for a radical change very soon. We were concentrating on consumption-related service industries but the thrust will now be on tourism, IT and modern agro-processing. These are purely service-based industries. The change will be from consumption-related service industries to production-related service industries, and that will soon bring Kerala into the list of top five GDP States of India.
B&E: Over the past couple of years, the State has started nurturing a culture of entrepreneurship, making Kerala more attractive for non-Keralites, and ensuring that it gets easier to conduct business in Kerala, thereby promoting economic development. Your views...
TI: Unlike some other States, Kerala never had a class of commercial entrepreneurs. In fact, a new generation of entrepreneurs is emerging now, especially in the new sectors. The profit-making PSUs have probably encouraged the private sector industries. The general thinking of entrepreneurs is – if PSUs can make profits, why can’t they? Moreover, Kerala is a State with organised labour force, which has its advantages too!
B&E: Social welfare programmes are a big part of the agenda of growth for Kerala. How is that working out?
TI: The state is contemplating on a social consensus regarding growth. Last few years saw the State witness a paradigm shift in the development pattern and a surge in social welfare programmes. Now a general consensus in infrastructural development and land acquisition is required. We are confident that a consensus wil emerge regarding the development plans. We have provided excellent education and employment atmosphere to youngsters of the State. The next step for us is to ensure the remittance from those who work overseas, to be able to use it for the development of the State.
TI: We are proud to have a literacy rate, that in itself sets standards of the highest levels. But we will continue to focus on the services industry and I see no chance that Kerala will become or will want to become a bigger manufacturing hub of the likes of Gujarat. However, not sticking to dogmatic ideologies, the nature of services that Kerala concentrates on is in for a radical change very soon. We were concentrating on consumption-related service industries but the thrust will now be on tourism, IT and modern agro-processing. These are purely service-based industries. The change will be from consumption-related service industries to production-related service industries, and that will soon bring Kerala into the list of top five GDP States of India.
B&E: Over the past couple of years, the State has started nurturing a culture of entrepreneurship, making Kerala more attractive for non-Keralites, and ensuring that it gets easier to conduct business in Kerala, thereby promoting economic development. Your views...
TI: Unlike some other States, Kerala never had a class of commercial entrepreneurs. In fact, a new generation of entrepreneurs is emerging now, especially in the new sectors. The profit-making PSUs have probably encouraged the private sector industries. The general thinking of entrepreneurs is – if PSUs can make profits, why can’t they? Moreover, Kerala is a State with organised labour force, which has its advantages too!
B&E: Social welfare programmes are a big part of the agenda of growth for Kerala. How is that working out?
TI: The state is contemplating on a social consensus regarding growth. Last few years saw the State witness a paradigm shift in the development pattern and a surge in social welfare programmes. Now a general consensus in infrastructural development and land acquisition is required. We are confident that a consensus wil emerge regarding the development plans. We have provided excellent education and employment atmosphere to youngsters of the State. The next step for us is to ensure the remittance from those who work overseas, to be able to use it for the development of the State.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
