Kerala, a communist leading state of southern India, itself is entitled as Gods’ Zone for no reason. The meridian highlight of this state is that it has certain conventional tourist places and many traditional festivals that delightfully impress travelers.
However, the federal revenue model is very amateur; liquor sales are the prevailing income. In Kerala, they have charged tax up to 700% above the introductory price for beverages. The monthly average firewater sales in the state are comparatively USD 196 million.
Many have left their beloved home to get a better prospect in their life. The Middle East accepted and treated them well, and Gulf money has been playing a prominent role in the state economy. Few have found their fortune in Europe and America and migrated to the culture, and settled off. The NRI fund has an important role in Kerala’s financial stability as well.
Major parts of the consumer goods come from the neighboring states, including rice and vegetables. Lack of manufacturing units and a non-business environment lift off job opportunities in the private sector. Kerala holds the 28th position in India’s business-friendly states rank list; whenever it gets updated, the status goes backward.
A new educated generation has been restationed to other states to find jobs. Many have settled in cities such as Mumbai, Bangalore, Delhi, and Chennai. Gulf expatriates are on the other side of the list. The current scenario has been created over the last couple of decades. Every five years, the federal government keeps changing. However, this year, a communist government repeated its luck.
As time moves, growth should follow. That is everyone’s expectation. But why is it not happening in Kerala? The current tainted framework is not appropriate for investors, and many cases have proved it. Federal officials, party leaders, and trade unions all have a major role in the blockade. And it caused many establishments to compelling shutdown. Besides, state executives have plenty of reason to put pressure on them to liquidate forever.
Recently, a substandard incident in Kerala has made global headlines. It was across Kitex Garments, a well-known rampant brand having a manufacturing base in Kerala with more than 10000 employees, unable to operate smoothly and forced to move out.
Kitex has declared its withdrawal of a new investment of 469 million USD due to government officials’ aggravation at their business limits. In a month, eleven times, a collection of federal desks have raided and strained even lady employees and obtained their personal information.
It’s a tough time for global businesses to survive due to the current pandemic and its stage for federal support; instead of doing it, harassing them will force them to close down or move out to a better venture-friendly environment.
Another incident came to light after Kitex was at Kazakuttam, a city in the capital of Kerala. Nasser, an expatriate, had spent a major part of his life in the Gulf region. He came down to his hometown to commence a retail mall and initiated an investment of USD 1,070,327 through a loan.
He denied the dishonest demand for paying a heavy amount for unloading building materials, and the trade union personnel threatened him to smash his head on the wall. He can not go forward with the project that he dreamed of and wants to sell the property at a massive loss.
BMW officials had visited Kerala to do the due diligence of investing in an engineering unit in the state. During their visit, the communist aggregated party organized hartal was declared, and all business and transportation were shut throughout the states. The team had lost their interest and, instead of investing in Kerala, they started a plant in Chennai.
There are plenty of cases to add on; instead of extending the sealed business list, let’s assume someone will have a solution for this.