Manufacturing Sector in Kerala | Overview, Present Condition, Concerns, Government Measures & Way Forward | Kerala Economy for KAS Exam

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This article discuss about manufacturing sector or the secondary sector of the economy of Kerala. Here it explains the overview of manufacturing sector in Kerala, its present conditions, concerns in this labour intensive sector, measures taken by Government of Kerala and the sustainable solutions and way forward. This topic is relevant to the Kerala economy syllabus of Kerala Administrative Service examination. The contents are explained as key points.

Overview of Manufacturing Sector in Kerala
  • Traditional industries like mat-weaving, handlooms, bamboo products. 
  • A textile factory was started at Quilon in 1881. 
  • Industrial development of Travancore - Sir C.P. Ramaswamy Iyer. 
  • Aluminium Company at Eloor, Travancore Sugars and Chemicals Limited, Ogale Glass Factory, Fertilisers and Chemicals Travancore Limited. 
  • Cochin State - coconut oil and textiles - Pushpagiri Weaving Mills started at Thrissur in 1908.
  • Malabar – Basel Mission. 
  • 1940s - export-oriented plantations and agro-processing industries.
  • Traditional industries like cashew, handloom, handicrafts, etc. 
  • 1935 to 1948 - 'the golden age' of Kerala's industrial sector.
  • 1960s to 1970s - Kerala ceramics, Kerala soap Industry, Trivandrum rubber works, Calicut factory.
  • The Kerala Electronic Development Corporation (KELTRON).
  • The 1980s is the decade which has the lowest growth in industrial production Kerala State Industrial Development corporation (KSIDC), Kerala Financial Corporation (KFC), Small Industries Development Corporation (SIDCO) 
  • Post liberation phase - petroleum products, chemical products, non-metallic minerals, transport equipment and electricity generation.
Comparison between KINFRA, KSIDC & KIFFB
Comparison : KINFRA, KSIDC & KIFFB
Present Day Condition of Secondary Sector in Kerala

  • Relatively low size.
  • 12.8 per cent of Kerala's GSVA.
  • The manufacturing sector accounted for 18.0 per cent of India's and 29.3 per cent of China's GDP in 2017.
Why there is low manufacturing base in Kerala?

  • Not having sufficient capital for starting the business. 
  • Meagre amount of public expenditure. 
  • Investment in social development. 
  • Eco sensitive zones. 
  • High population density – increased land price. 
  • High cost of production. 
  • Labour union activities. Land of strikes & harthals. 
  • Focus only cottage industries.
Concerns for Manufacturing Sector in Kerala

  • Unemployment. 
  • Resulted in out flow of human capital. 
  • Low productivity. 
  • Limited competition capability. 
  • Frequent strikes. 
  • Financial problems – red tapism.  
  • Lack of demand. 
  • Power issues. 
  • Transportation, non availability of raw materials.
Measures taken by Government of Kerala to uplift Manufacturing Sector of the State

  • Revival of public sector - Steel & Industrial Forgings Limited and The Kerala Minerals & Metals Ltd. - made profitable.
  • Industrial corridors. 
  • Modernizing traditional sector – e portal – hand loom uniform.
  • Startups - UN Innovation Hub – country’s first. 
  • Abolition of "Nokkukooli".
  • Kerala State Industrial and Commercial Policy 2018.
  • KIIFB funding.
Way Forward

  • Modernizing the traditional industries – new products – geo textiles.
  • Manufacturing food and agro based products – processing of jack fruit, pineapple, banana.
  • Utilizing the Gulf returnees – professionals – Dream Kerala project. 
  • Kudumbashree units- food processing.
  • Entrepreneurship among students. 
  • COVID- 19 – PPE kit manufacturing.
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