Registered MSMEs in Kerala Expected to Rise to 1.5 Lakh by End of 2022-23

As many as 42,300 micro, small and medium enterprises got registered in Kerala during the first quarter of the current financial year, prompting the government to re-estimate its target from 1 lakh to 1.5 lakh MSMEs by the end of 2022-23, state's Minister for Law, Industries and Coir P Rajeev said.

Kerala had only 17,300 MSMEs registered in the whole the last financial year, the Minister said after inaugurating a new facility of Innovator at Infopark Phase 2 SEZ in Kakkanad.

"We are a state with the fragile Western Ghats on one side and a coast with regulations zone act on the other. In between, we have eco-sensitive zones. This implies we can go only vertically. The government encourages industrial projects requiring less land," he noted while addressing the employees of the 2005-founded software firm.

Focused on Japanese clients, Innovature, with 500 employees and working space of 20,000 square feet, is targeting a growth of 2,000 employees by 2025.

Rajeev also said the government has decided to give non-IT startups all the exemptions their IT counterparts enjoy. The state government has decided to provide certain discounts even to non-IT businesses with 10 acres of land, along with a grant of Rs 3 crore.

To further improve the ease of doing business, firms with an investment of up to Rs 50 crore need to secure a license only within six months of commencing operations. For firms of above Rs 50 crore investment, the license will be given within seven days of application, he said.

Industries now have grievance redressal forums at both district and state levels. Their decisions are binding on all departments of the government, the Minister pointed out, adding that errant officials will be penalized.

The Kerala IT Parks CEO John M Thomas, in his keynote address, said that global digital commerce is expected to be worth 4,00,000 crore US dollars by 2030.

"IT firms like Innovature are trying to make the best use of this opportunity," he noted.

Innovature Global CEO Gijo MS said the state had been a model for the country in IT industry. Recalling how the activities of the 1990-established Technopark aided the growth of Kerala's IT sector, he said Innovature's business focus on Japan gives it an upper hand vis-a-vis the rest of the companies in the state.

"Research and innovation are Innovature's biggest assets. The company's uncompromising take on quality has always boosted its profile," he added.