The U-turn in Kerala has become a sign of the state’s economic stagnation. An unedited video of Kerala Industries Minister P Rajeev making a U-turn on a Kochi road went viral on social media, sparking widespread reactions.
To make matters worse, Rajeev was seen cutting a ribbon with knots instead of the traditional ribbon, drawing the attention of users who questioned the significance of the event.
The video, initially shared by BJP leader Anoop Antony Joseph, former National Secretary of BJP Yuva Morcha and Ambalappuzha BJP MLA, quickly gained popularity.
Posting a clip to X, Joseph wrote: “Here’s @PRajeevOfficial, Kerala’s industry minister, unveiling the new U-turn in Kochi—with a ribbon cut from duct tape! In a government where factories are closing and no new projects are to be started, ministers are left to open U-turns and speed bumps!”
The post sparked a flurry of sarcastic comments from users on X, many mocking the minister’s role in the event. Although this seemingly trivial incident has become infected, we urge you to focus on the deeper issues plaguing Kerala’s economy.
KERALA’S ECONOMIC DECLINE?
Joseph’s comments came at a time when Kerala’s economic situation was under heavy scrutiny. According to a recent report from the Economic Advisory Council to the Prime Minister (EAC-PM), Kerala is the only state in the south facing a decline in its share of India’s GDP. While other states in the region, such as Karnataka, Telangana, and Tamil Nadu, have emerged as developing economic hubs, Kerala’s GDP share has declined from 4.1% in 2000-01 to 3.8% in 2023-24.
While states like Karnataka and Tamil Nadu are attracting foreign investment through aggressive campaigns and chief ministers are embarking on a drive to attract Global Capability Centers and multinational companies, Kerala seems to be sticking to neutrality.
The state’s reliance on remittances from Non-Resident Indians continues to fuel its economy, raising the obvious question: What happens if this remittance slows down?
Kerala’s economic struggles have been compounded by its inability to get significant allocations from the Union government. The Finance Ministry has noted discrepancies in the expected Union allocation, highlighting that even with a GSDP of Rs 13.11 lakh crore, the state has received less than expected from the central subsidy.
Kerala did not get any significant allocations in the recent Union Budget for important infrastructure projects. There was also no major share of national highways, as the state eagerly sought significant progress in transport infrastructure to complement the development of ports and other infrastructure.
AMBITION WITHOUT KILL
Despite the Left Democratic Front government’s plans to position Kerala as a manufacturing hub for high technology and artificial intelligence (AI), the reality is not very promising.
The role of the people and the coordination of the state is commendable, but the industrial revolution remains constrained by long-standing challenges, with land scarcity being one of the most important.
As Industries Minister P Rajeev himself admits, acquiring even as little as 100 acres of land for industrial use may involve negotiating with thousands of small landowners—a slow and inefficient process that discourages investors and stalls progress.
The state’s recent industrialization, while promising, doesn’t hold a candle to the leaps made by neighboring states. While Kerala boasts of successful MSME initiatives and a growing startup ecosystem, lack of available land for expansion continues to hamper innovation.