The Hindu Business Line : Assocham pat for stable SDP growth

KERALA'S State Domestic Product (SDP) growth has remained at 6.3 per cent per annum during 2001-02 to 2004-05 and that is almost the same rate as recorded at national level, according to Mr Mahendra K. Sanghi, President, Assocham.

Complimenting the Government for the improved performance in the last four years, Mr Sanghi said that there was no doubt that the State had been pushing ahead with investor friendly policies to promote growth of industry, infrastructure, IT, tourism, renewable energy etc.

These reforms will undoubtedly help in promoting the long awaited private sector investments, he said while addressing the 148th annual general meeting of the Cochin Chamber of Commerce and Industry here.

Already, Kerala has gained a reputation for attaining high level of human development, although its per capita income is at relatively low level. The Assocham expected that the State would continue with the pursuit of economic reforms so as to exploit its full potential of higher economic growth.

The highest level of literacy and the beneficiary of significant inflows of NRI remittances to the State can be leveraged in the pursuit of economic prosperity, he added.

The experience in the last four years had showed that it is the service sector comprising tourism, construction, health care etc that has enabled the State to score improved level of economic performance. Kerala can also become a powerful knowledge and health care services centre of the country. All these would require promotion of investments through the mechanism of public-private partnership, Mr Sanghi said.

In his keynote address, Mr Babu Divakaran, State Labour Minister called upon the political parties to shed its indifference towards "the capitalist class" for the overall development of the State.

Speaking on the occasion, Mr A.K. Nair, President of the Chamber, said that Kerala as a State is being looked at seriously especially in the tourism and IT sectors. The tourism industry has had a significant growth and is taken as a model by other states in the country. This is one sector in the State, which has shown the nation that public-private participation can do wonders in achieving excellence.

However, some of the IT related projects, which would have given the boost to IT enabled services in the State, are facing serious roadblocks due to several controversies. The Chamber would like to take up the issues before the Government and clear the air on the misconception at various quarters, Mr Nair said.

He also urged the Government for the speedy implementation of various infrastructure projects such as road and rail connectivity prior to the commissioning of the Vallarpadam Container Transhipment Terminal as well as LNG Terminal in Kochi.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page