INTRODUCTION

Kerala is a green strip of land, in the South West corner of Indian peninsula. It has only 1.1 8 per cent of the total area of the country but houses 3.43% of the country's population. The state is also a very popular tourist destination in the world and is known as one of the ’10 paradises on Earth’ for its natural beauty, greenery, tranquility and rich cultural heritage. A combination of picturesque sceneries, friendly people and rich culture make Kerala an ideal holiday destination for people looking for a spectacular mix of beauty, tradition and history. Agriculture and fishing continue to be the dominant source of livelihood in the state. Kerala is the largest producer of coconut, rubber, coir and pepper. The state is also the leading producer of a variety of spices, cashew, coffee and tea. Besides agriculture and fishing, the services sector also plays a major role in Kerala’s economy.The growth in tourism and IT has enabled the services sector to record a compound annual growth rate (CAGR) of 12 per cent since 1999-00. The state is also a leading state in terms of infrastructure penetration. It has the highest per capita density of roadways in the country, three international airports, a large port at Kochi, three intermediate ports and 17 small ports. It is one of the only two Indian states to have two submarine cable landings.The Kerala State Industrial Development Corporation Ltd acts as a nodal agency for foreign and domestic investments in Kerala, providing comprehensive support for investors. The state ranks high on social, educational and health indicators. It has the highest literacy rate in the country at 90.9 per cent and sex ratio of 1,058 women per 1,000 men. Low infant mortality rate and high life expectancy are positive health indicators in the state. The state has the highest density of science and technology personnel in India.

At the industrial front too, Kerala is strongly engaged in nurturing its manufacturing sector and has proposed measures to help businesses seek technology upgradation and process improvements. The IT policy seeks to establish Kerala as a global IT services hub. Several steps have been proposed by the state government to improve labour relations and make governance streamlined, transparent and investor-friendly. The excellent infrastructure facilities, policy framework and the availability of skilled manpower have enhanced the state’s reputation as an IT/ ITES destination. There are several opportunities in the biotech sector that are yet to be utilized. In order to promote the core competence sectors of Kerala, dedicated sector-specific industrial parks are being set up across the state.