Kerala Economy: Tourism, Industries, Agriculture & Growth

Recent Development in Key Sectors

• From 2016-2026, Kerala recorded major progress in inclusive development through infrastructure expansion, digital education, healthcare reforms, startup growth, and projects like the Vizhinjam Port, emerging as a leading model of sustainable economic and social development
• On January 23, 2026, Prime Minister Mr. Narendra Modi launched major development projects in Thiruvananthapuram, strengthening rail connectivity through new Amrit Bharat train services and advancing innovation, healthcare, and urban infrastructure in Kerala.
• The Kerala Government, supported by the Pradhan Mantri Matsya Sampada Yojana, secured central funding of Rs. 1,346 crore (US$ 151.6 million) to upgrade the fisheries sector for FY25, including the construction of seven modern fishing harbours, nine integrated modern coastal fishing villages, six climate-resilient villages, two advanced fish markets and the deployment of 6,500 satellite-based transponders to enhance fishermen’s safety at sea.
• In 2025, the central government has approved 48 new seaplane routes in Kerala under the Regional Connectivity Scheme (RCS)-UDAN, aimed at linking the state’s four international airports with key back-water and lake destinations like Kovalam, Kumarakom and Vembanad.
• At the Kerala Urban Conclave held in September 2025, Chief Minister Mr. Pinarayi Vijayan announced that Kerala’s IT exports are nearing Rs. 1,00,000 crore (US$ 11.27 billion).
• In June 2025, Rubber Board and Spices Board have signed a Memorandum of Understanding with the Kerala Climate Resilient Agri‑Value Chain Modernisation (KERA) Project to modernise value-chains for rubber and cardamom cultivation in Kerala under a World Bank-supported initiative running from 2025-29.
• In state budget FY27, Kerala increased the agri-allied sector outlay to Rs. 2,071.95 crore (US$ 220.94 million), including support for climate-resilient agriculture, paddy procurement, vegetable, coconut and spice cultivation, crop insurance and precision farming initiatives
• In state budget FY27, Kerala allocated Rs. 318.46 crore (US$ 33.96 million) for animal husbandry and Rs. 128.05 crore (US$ 13.65 million) for dairy development, focusing on veterinary services, dairy infrastructure, milk production, poultry, livestock development and farmer welfare.
• In state budget FY27, Kerala increased the IT sector allocation to Rs. 548.05 crore (US$ 58.44 million), supporting IT parks, digital innovation, artificial intelligence, technology infrastructure and employment growth.
• In state budget FY27, Kerala increased investments in quality education, digital learning, scholarships, higher education infrastructure and skill development to enhance human capital and employability.
• In July 2024, the Ministry of Rural Development has approved the construction of 33 roads spanning 159.86 km in Kerala under the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III), aiming to enhance rural connectivity and boost economic growth. The project involves an estimated investment of Rs. 160.56 crore (US$ 19.3 million).
• In March 2024, Kerala is set to make a significant impact in digital entertainment with the launch of CSpace, India’s first government-backed OTT platform.
• In January 2024, ReNew plans to invest Rs. 26,400 crore (US$ 3.17 billion) in a green hydrogen project in Kerala. The project aims to produce 220 kilo-tonnes per annum (KTPA) of green hydrogen, which will be used to generate 1,100 KTPA of green ammonia.
• In January 2024, Prime Minister Mr. Narendra Modi inaugurated the Kochi-Lakshadweep islands submarine optical fiber connection (KLI-SOFC) project in Kavaratti, Lakshadweep, today. This inauguration is part of developmental projects exceeding Rs. 1,150 crore (US$ 138.1 million) across technology, energy, water resources, healthcare, and education sectors.
• Prime Minister Mr. Narendra Modi laid the foundation and dedicated to the state several projects of the Kochi Metro and Indian Railways totalling Rs. 4,500 crore (US$ 552.69 million) in September 2022.
• In May 2023, during the investors' meet, 24 of the 121 investors forwarded their letters of interest for an investment of Rs. 381.75 crore (US$ 46.6 million) in various sectors of the Kattakada constituency of Kerala.
• In FY23, the total marine products exports from Kerala accounted for US$ 1 billion.
• In FY23, the state’s passenger traffic stood at 8,812,531 at Cochin airport and 3,478,067 at Thiruvananthapuram airport.
• Union Railway Minister Mr. Ashwini Vaishnaw, in April 2023, informed that 34 railway stations in Kerala would soon be upgraded to world-class standards.

Kerala remains a steadily growing and socially advanced state, supported by strong tourism, a skilled workforce and rising export activity. Continued investments in roads, urban development, healthcare, education and IT are strengthening its business environment and improving connectivity across regions. Targeted support for fisheries, rubber, spices and green energy is also widening economic opportunities. With a stable services driven economy and a clear focus on sustainability and quality of life, Kerala is well placed to attract new investments and maintain balanced, long-term growth.