Davos 2025: Narrative of labour strikes, migration issues propaganda, Kerala is business-friendly, says industries minister P Rajeeve

Labour strikes and migration issues in Kerala are part of propaganda, and the state is, in fact, business-friendly, said state minister for industries, law, and coir P Rajeeve.

Speaking to Moneycontrol on the sidelines of the World Economic Forum in Davos, Rajeev said trade union strikes and workforce migration are far from the facts.

“If we examine the National Mobility Report and migration trends across states, Kerala is not at the top. According to the Union ministry of labour, 28 percent of strikes in India over the last one and a half decades happened in Tamil Nadu, 17 percent in Maharashtra, and 11 percent in Gujarat. These are the facts.” he said.

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Rajeeve said, “The misconception or propaganda that labour strikes and unrest dominate Kerala is far from the truth. No company has faced violent attacks by workers in Kerala in the last three to four decades. In contrast, incidents such as attacks on an iPhone factory or the killing of a general manager by workers have happened in other states. Kerala has not witnessed such instances of workplace violence.”

Refuting claims that companies are leaving Kerala, Rajeeve pointed out that many firms continue to operate in the state with large workforces. “Kerala was recently ranked number one in the Ease of Doing Business rankings for the first time in history. These rankings, part of the Business Reform Action Plan, are based on feedback from the investor community and reflect their confidence in the state.”

He further said that in the past two to three years, several major companies have begun operations in Kerala. “While Kerala may not be ideal for large-scale, polluting industries, we are focused on knowledge-based industries and other non-polluting sectors. This approach aligns with Kerala’s strengths and long-term development goals.”

The minister said, “If you consider the overall situation in the country, stepping outside without a mask is difficult due to air quality concerns. In some parts of the country, the pollution levels are equivalent to smoking 45-46 cigarettes a day. Contrast that with Kerala—our air quality is exceptional, among the best in the country. We are home to 44 rivers, ensuring excellent water quality.”

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Rajeeve said Kerala’s skilled talent pool, making it an attractive destination for businesses. “For investments up to Rs 54 lakh, operations can start almost immediately. For larger investments, a statutory bureau provides licences within seven days of submitting the application and relevant documents.”

On Kerala’s investment opportunities, he said, “We are focusing on 22 priority sectors. Over the past few days, we met around 50 investors and received excellent responses. Many have expressed interest in attending the Global Investors Meet in Kochi on February 21 and 22. Our focus includes knowledge-based industries, medical devices, tourism, pharmaceuticals, maritime shipping, and emerging sectors. Instead of signing MOUs, which often have a low conversion rate of 10–15 percent, we prioritise realistic investment proposals. We’ve already received several promising leads in IT, logistics, and medical devices, with a dedicated team following up on them”.

He said they aim to transform Kerala into a knowledge-based economy and society, where knowledge becomes capital. "The state has a highly skilled talent pool and significant potential, evidenced by recent developments like IBM opening two campuses within two years and HCL setting up operations in Kerala. With reverse migration on the rise, we are focusing on attracting investments in Global Capability Centers (GCCs) and Global Technology Centers (GTCs)."

On competition with states like Uttar Pradesh, Telangana, and Tamil Nadu for investments, he said, “Kerala stands out with its focus on ESG (Environmental, Social, and Governance) investments, a thriving startup ecosystem, and unparalleled tourism offerings. Our motto, ‘Nature, People, and Industry,’ reflects this unique positioning.”

Also, read: Kerala can’t afford retirement home status, need to transform into a thriving business destination: State Industries Minister P Rajeev