Kerala has a rich culture, an abundance of natural resources, and beautiful beaches. The people are friendly and welcoming, and the state has a long history that is full of mystery and intrigue. Because this state has a lot of traditional festivals and tourist attractions, it’s one of the best things about it.
However, the federal revenue model is very amateurish; liquor sales are the prevailing income. In Kerala, they have charged a tax of up to 500% above the introductory price for beverages. In comparison, the state’s monthly average firewater sales are USD 196 million.
Many have left their beloved homes to get a better prospect in life. The Middle East accepted and treated them well, and Gulf money has been playing a prominent role in the state’s economy. Few people have made their fortunes in Europe and America, migrated to the cultures, and settled. The NRI fund has an important role in Kerala’s financial stability as well.
Kerala is a state in south India that is home to a large population of people who are employed in the agricultural sector. Because consumer goods, such as rice and vegetables, are imported from neighboring countries, the state has been facing an economic challenge for a long time. Additionally, the number of jobs in the agricultural sector has increased by 30%. These changes show that Kerala’s economic problems can be solved by using local products and innovations. The lack of manufacturing units and a non-business environment raise 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 redirected 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 be forced to shut down. 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 happened to Kitex Garments, a well-known brand that makes brand clothes and has a factory in Kerala with more than 10,000 workers. They couldn’t run smoothly and had to move out.
Kitex has declared its withdrawal of a new investment of 469 million USD due to government officials’ aggravation of their business limits. In a month, eleven times, a collection of federal desks have raided and strained even lady employees’ 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 to pay a heavy amount for unloading building materials, and the trade union personnel threatened to smash his head on the wall. He cannot 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 their due diligence on investing in an engineering unit in the state. During their visit, the communist aggregated party organized a hartal, and all businesses and transportation were shut throughout the state. The team had lost 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.