Kerala Aims to Make 10% Contribution to India’s IT Exports: CM Pinarayi
Kerala, a state in southern India, is witnessing significant growth in the Information Technology (IT) sector, with rising software exports totaling Rs 19,006 crore during the year 2022-23. Chief Minister Pinarayi Vijayan has expressed his satisfaction with this development and announced Kerala’s ambitious goal of contributing 10% to the country’s IT exports and generating 500,000 new jobs in the sector.
During the inauguration of the second fully-owned campus of IBS Software at Infopark in Kochi, the Chief Minister highlighted the rapid expansion of IBS Software as a global Software as a Service (SaaS) solutions provider. He emphasized that this growth exemplifies Kerala’s industry-friendly climate and challenges the perception that the state is unfriendly towards industrial development.
The newly inaugurated IBS facility at Infopark will focus on providing cutting-edge digital solutions to meet the post-pandemic growth in the aviation, hospitality, and cruise sectors. Kerala’s IT parks offer all the necessary infrastructure, allied facilities, smart business centers, and ample land and buildings to attract both national and global companies. Currently, these IT parks provide a space of two crore square feet and have already housed 509 companies since 2016, employing 63,000 IT professionals.
The state has also experienced significant growth in the startup sector, with the number of startups increasing from 300 to 5,000 in the past eight years. This achievement earned Kerala the Best Performer honor in the national ratings of the Union Commerce Ministry’s startup sector. Additionally, the state topped the Affordable Talent ratings at the Asia level.
To further boost the IT sector’s growth, the upcoming Technocity in the capital city will provide comprehensive facilities for offices, housing, shopping, health, and education. Furthermore, 20 small-scale 5G IT parks will be established along the Kannur-Thiruvananthapuram stretch of the national highway. The state aims to share its infrastructural wealth, abundant manpower resources, and investment prospects with the world in collaboration with private entrepreneurs.
During the inauguration event, IBS Software’s Mathews highlighted the company’s significant role in the air cargo sector, managing half of the world’s software business in that industry. He emphasized the rapidly changing nature of the sector, with software evolving from coding to prompting using generative AI. Mathews encouraged IT employees to develop this faculty to stay ahead in the industry.
Prominent figures such as Infosys co-founder S D Shibulal and IBS Software independent director Armin Meier also praised Kerala’s silent revolution in IT. They acknowledged the state’s achievements and advancements in the sector, indicating a promising future for IT development in Kerala.
In addition to the IBS Software inauguration, Chief Minister Pinarayi Vijayan also inaugurated the Kinfra International Exhibition Centre in Kakkanad. This center will serve as a venue for exhibitions, industrial promotions, fairs, conferences, and expos, with an international convention center also in preparation.
According to the report of the MSME Export Promotion Council, Kerala has seen significant investments over the past five years, amounting to about Rs 92,000 crore. Of this sum, projects worth Rs 33,815 crore have been completed, creating around 5 lakh jobs. Additionally, stalled projects worth Rs 12,240 crore have been revived, contributing to Kerala’s 17.3% industrial growth in the last financial year.
The Kinfra International Exhibition Centre and the ongoing preparations for the international convention center are expected to cost a total of Rs 90 crore, with Rs 50 crore already invested.
Kerala’s determined efforts to expand its IT sector and attract global businesses demonstrate the state’s commitment to economic growth and job creation. With its favorable industry-friendly climate, the state aims to become a major player in India’s IT exports and continue its upward trajectory in the IT sector.
