Kerala bets big on sustainability and trade with new export and logistics policies

Thiruvananthapuram Oct 15 (IANS) In a major policy push to boost investment and trade competitiveness, the Kerala government has unveiled its new Export Promotion, Logistics and ESG policies along with a Hi-Tech Framework — giving fresh momentum to the state’s ongoing industrial transformation.

Launching the policies, Minister for Industries, Law and Coir P. Rajeeve said the initiatives are designed to strengthen Kerala’s position as a responsible and attractive investment destination, with a sharp focus on high-tech manufacturing, services and export-led growth.

"These policies will significantly unlock the state’s growth potential," the minister noted.

A key highlight is Kerala’s pioneering move to become the first state in India to adopt a comprehensive Environment, Social, and Governance (ESG) policy.

The ESG Policy 2025 integrates sustainability and ethical practices into the state’s industrial framework.

It includes tax incentives, subsidies and easy credit for ESG-aligned investments. A dedicated State ESG Monitoring Cell will coordinate enterprise-level adoption, supporting the state’s target of carbon neutrality by 2050 and a transition to renewable energy by 2040.

The Kerala Export Promotion Policy 2025 seeks to reposition the state as a globally competitive export hub with a target of $20 billion in exports by 2027–28.

Key measures include diversification into high-value sectors such as biotechnology, life sciences, aerospace, defence manufacturing, electronics, Ayurveda, pharmaceuticals, IT, tourism, and healthcare.

"The policy also aims to modernise export infrastructure, build global value chain linkages, and revitalise traditional sectors like coir, cashew, handloom and plantation products through technology infusion and market expansion," added Rajeeve.

The Kerala Logistics Policy 2025 provides a roadmap to establish Kerala as an efficient multimodal logistics hub, with a goal of reducing logistics costs to below 10 per cent of GSDP.

It envisions integrated logistics parks, private sector investment in warehousing and freight infrastructure, and digital logistics ecosystems connecting industrial clusters with ports and airports.

The initiative is expected to generate over 50,000 direct and indirect jobs.

Complementing these policies, the Hi-Tech Framework 2025 aims to position Kerala as an innovation-driven manufacturing hub.

It identifies strategic growth areas such as semiconductors, ESDM, aerospace, biotechnology, robotics and advanced materials.

The plan includes setting up innovation clusters and plug-and-play manufacturing parks along the Kochi–Palakkad–Thiruvananthapuram corridor to attract global investors and accelerate technology-driven industrialisation.

Together, the policies mark a strategic shift toward sustainable, innovation-led growth, aligning Kerala with global investment and trade trends.

--IANS

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