Knowledge economy, skill development and infra to drive growth

Budget takes into consideration specific requirements of Kerala

The Budget was one that was based on optimism and hope. While major thrust was on the health sector in the previous budget, this year’s State Budget focusses on knowledge economy, skill development and infrastructure development in order to spur economic growth.

The Budget takes into consideration the specific requirements of Kerala which are slightly different compared to other Indian States; the development model proposed is the ‘Kerala Model’ to achieve growth while ensuring environment conservation, sustainability in development and social justice. This also forms the central theme of the 14th Five-Year Plan of Kerala.

Key announcements with respect to education, industries, infrastructure, agriculture and tourism sector that trigger employment generation, prevent brain drain and have power to catapult the State’s development are:

Education - The government aims at radical changes in the higher education sector. An amount of ₹ 100 crore will be made available through the KIIFB for this project. The State plan outlay set apart for the education sector during 2022-23 is ₹2546.07 crore. Four science parks are being established in the State at an investment of ₹1,000 crore.

Knowledge economy and skill development - The government started the Knowledge Economy Mission for providing 20 lakh employment opportunities under the knowledge economy sector. The basic aim of the mission is to establish a strong skill infrastructure ecosystem in the State. Apart from this, subsidies and other facilities will be extended to future entrepreneurs for the first five years for establishing the units.

Additionally, it is important to have an environment conducive for industries, corporates and entrepreneurs to be able to attract businesses to the State. In this regard, previous year’s Budget provision for the industries sector was ₹1,058.38 crore which now stands enhanced to ₹1,226.66 crore. An amount of ₹332.53 crore is earmarked for KINFRA (Kerala Industrial Infrastructure Development Corporation) during the financial year 2022-23 for various activities. It is expected to provide direct employment to 22,000 and indirect employment to 80,000 individuals.

For infrastructure support, the below plans provide a major boost.