Ease of doing business in Kerala comes under scanner again

The recent decision of leading garment manufacturer Kitex Garments to backtrack from a Rs 3,500 crore investment plan in Kerala has once again brought to focus the lack of 'ease of doing business' in Kerala.

Even as the Kerala government claimed to have initiated measures like single-window clearance systems for investors, the state has been lagging behind in ease of doing business rankings. The state was at the 28th position in the rankings brought out by the Department for Promotion of Industry and Internal Trade.

Labour militancy and involvement of multiple government agencies in giving sanctions to business units are major challenges being faced by investors in Kerala.

With reports that at least six states have already invited Kitex Garments to invest, the Kerala government has initiated steps to pacify the firm.

Kochouseph Chittilappilly, founder and chairman emeritus of Kerala based V-Guard industries, said the fresh allegations by Kitex Garments have further fuelled criticism that Kerala was not investor-friendly. He said Kerala's ease of business ranking, that was 21 a few years ago, has now came down to 28. Though the government initiated many measures, the ground realities were remaining unchanged.

Chittilappilly, who had shifted many of his business units out of Kerala, said only a stern political leadership can curb labour militancy as it was associated with politics.

Lulu Group chairman Yusuff Ali M A said the Kerala government should ensure that no investor moved out of the state as investments decide the state's future. The government should try to find an amicable solution on the issues raised by Kitex group.

Meanwhile, Kerala industries department officials called on Kitex Garments chairman and managing director Sabu M Jacob and initiated discussion. He said action should be taken against officials who conducted raids and issued notices citing baseless charges.