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Mony K. Mathew

The industrial policy, at the outset, aims at enhanced and sustained industrial growth and generation of higher employment.

FOR Kerala, which boasts of top spots in various social indices in the country, the flip side has been tardy industrialisation and despite attempts by successive governments to set things right, there has hardly been any perceptible change in the scenario till very recently.

The industrial landscape of the State is dotted by public sector enterprises and many of them have not been in the pink of health. A disturbing fall-out is the steep rise in the unemployment curve. In the event, the State's economy has been dependent and sustained by remittances from expatriate Keralites working abroad, especially in the Gulf.

The Government has now recognised that while the State enjoys fairly good infrastructure and efficient and skilled manpower, it has failed to attract investments to put its strengths to good use. And given the socio-political realities here, the Government's foremost task has been to bring about a basic measure of agreement among the various stakeholders and interest groups on the need for speedy industrialisation.

The Global Investors Meet held in Kochi this January was the first major initiative to showcase the State's industrial potential to prospective investors. Though much of the proposals that came up at GIM are yet to crystallise into concrete projects, the show was able to provide an insight into the inherent strengths of the State as an ideal investment destination. The industrial policy and other measures of the Government are based on the realisation that the massive investments needed for the huge task ahead cannot come from its budgetary resources as it will involve unbearable levels of taxation. Hence, the focus has been on luring private investments, preceded by efforts to strike consensus on contentious issues between the present and prospective investors and the workforce and the trade unions. The labour policy brought out by the Government close on the heels of the industrial policy reflects the Government's concern in this respect.

The industrial policy, at the outset, aims at enhanced and sustained industrial growth and generation of higher employment. This presupposes the creation and maintenance of an investment-friendly climate and elimination of all restrictive labour practices to ensure cordial industrial relations and establishment of a new work culture.

The policy lays emphasis on development of sunrise sectors such as information technology, biotechnology, food and agro processing, infrastructure and service, which have high growth potential. Another area of priority is maximisation of value addition within the State of indigenous produce and minerals.

The public sector enterprises will be restructured to bring in effectiveness and accountability, even while providing a social safety net for those adversely affected by the restructuring. Also, efforts will be made for coordination of industry with the educational system in order to inculcate and update particular knowledge and skills required by industry from time to time.

The small-scale sector is sought to be equipped to stand up to global competition by suitable upgradation of technology, cost reduction techniques and sound management.

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