Kerala has set its sights on joining the ranks of Indian states aspiring to become a $1 trillion economy. However, a key challenge stands in its way—the large-scale migration of its young and skilled workforce. Business leaders and industry experts believe that to achieve this ambitious target by 2047, the state must take concrete steps to retain talent, attract investments, and strengthen key sectors.
Speaking at the session ‘Kerala Towards $1 Trillion Economy’ at the Invest Kerala Global Summit in Kochi, industry leaders emphasized that sector-specific investments and a focus on human resource development could be game changers. Kerala has now joined Gujarat, Karnataka, and Maharashtra in aiming for the trillion-dollar milestone, but its unique demographic challenges demand a tailored approach.
Pamela Anna Mathew, chairperson and managing director of O/E/N India Limited, pointed out that while Kerala has abundant talent, most of it has left the state in search of better opportunities. “We have talent here. But most of them have gone away from Kerala. It is a great challenge to pull them back to the state,” she said.
A significant portion of Kerala’s workforce has historically migrated to Gulf countries for employment. The Kerala Migration Survey (KMS)-2023 revealed that two out of five households in the state had at least one non-resident Keralite. In 2018, remittances from the diaspora amounted to a staggering Rs 2,16,893 crore, indicating the deep economic link between Kerala and its overseas workforce.
The migration trend is not limited to employment. Kerala’s student population is increasingly moving to cities such as Chennai, Bangalore, and Delhi for higher education, particularly in engineering and technology. Additionally, an emerging trend shows a rise in student migration to European countries. The KMS reported that of the 21.54 lakh international emigrants from Kerala in 2023, around 2.5 lakh were students.
Sidharth Narayanan, senior VP at Invest India, stressed the importance of enhancing the quality of higher education to curb student migration. “Kerala must invest in upgrading its higher education institutions to world-class standards to retain its young population,” he noted.
Industry leaders believe that investments in infrastructure and sustainable development could propel Kerala towards its trillion-dollar dream. V.K. Mathews, founder and executive chairman of IBS Software, emphasized the need for a ‘Clean Kerala’ initiative focused on waste management, clean rivers, and digital transformation. “We need a ‘Clean Kerala’ in waste management and clean rivers, a ‘Safe Kerala’ from an infrastructure perspective, and a digitally enabled Kerala,” he said.
Investment in key sectors is another crucial strategy. Navas Meeran, chairman of Group Meeran, suggested that Kerala’s diaspora should be encouraged to invest in the state beyond traditional avenues like real estate. He highlighted sports infrastructure as an underutilized sector with immense potential.
Adeeb Ahamed, managing director of Lulu Financial Holdings, identified tourism and wellness as high-growth sectors. He advocated for public-private partnership (PPP) models to develop tourism-related infrastructure, ensuring sustainable job creation in an era where artificial intelligence threatens employment in many industries.
Kerala’s economic trajectory shows promise. In 2004-05, the state’s economy was valued at Rs 0.97 lakh crore. By the current financial year, it is projected to reach Rs 13.1 lakh crore. With a strategic focus on talent retention, infrastructure, and sectoral growth, Kerala’s goal of a $1 trillion economy may well be within reach.
