Departing significantly from traditional Left-leaning resistance to private investment, Finance Minister KN Balagopal’s FY25 budget unveiled programmes targeting investments to the tune of at least Rs 3 lakh crore over the next three years.
The budget emphasises exploring various new-generation investment models, including public-private partnerships, joint ventures, the CIAL model, infrastructure investment trusts (InvITs), real estate investment trusts (REIT)s, and the hybrid annuity model, alongside public sector investment and subsidy schemes.
Key initiatives will encompass rapidly implementable tourism projects, developmental activities around Vizhinjam and Cochin ports, industrial corridor development in Kochi, Palakkad and Kannur, and the promotion of IT-IT-enabled services. Plans to attract capital investment in the education sector have also been highlighted.
Adeeb Ahamed, MD of LuLu Financial Holdings, said Finance Minister Balagopal’s initiative to position Kerala as an investment-friendly state is a promising step. “The establishment of ‘development zones’ is a noteworthy strategy to attract expatriates and private investors to contribute to various projects in the state. The move will be instrumental in creating a conducive environment for investment, thereby fostering economic growth and overall state development,” he added.
The announcement of developing and supporting private industrial parks and exploring new investment models such as InvITs and REITs is a revolutionary move for a state like Kerala, said K Paul Thomas, MD and CEO, ESAF Small Finance Bank.
The budget also underscored the need for reforms addressing land scarcity while ensuring swift issuance of permits without compromising environmental conservation. The minister said an expert panel will be formed to study these matters and submit a report within three months.
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