The Hindu Business Line : Kerala sets up panel to spur commerce growth

Thiruvananthapuram, Jan. 6 The Kerala Government has constituted a committee to study the issues hampering the growth of commerce in the State and recommend practical solutions.

The State’s industrial policy, 2007, has focused on the untapped potential of the commerce sector and laid emphasis on ensuring its growth through initiatives to encourage trading and commercial activities. The ongoing ‘Grand Kerala Shopping Festival’ is part of the Government’s efforts in this direction.

The Industries Minister, Mr Elamaram Kareem, said here on Saturday that the contribution of the service sector to the state domestic product (SDP) was 60 per cent, and the sector accounted for 67 per cent of employment generation and 60 per cent of tax revenues.

Nevertheless, there were many issues coming in the way of the sustained growth of the sector and the panel would study them and recommend ways to solve them, he said.

The committee, among other things, will study existing discrepancies, if any, in the functioning of the sector and make comparisons with the other sectors.

It will also compare the various incentives and assistance extended by other state governments, especially the neighbouring ones, to the commerce sector and suggest ways to drive growth in the State.

The committee, which will have a term of three months, will have interactions with various organisations such as chambers of commerce, traders’ associations and hotel and restaurant associations in all the districts and submit its findings and recommendations to the Government for further action. The terms of reference of the committee also include an immediate action plan for further growth of the sector.

Trade fairs

The Minister said that one of the initiatives seriously considered by the Government was to hold trade fairs to showcase ‘Kerala brand’ products in different parts of the State. As part of it, permanent trade and convention centres are proposed to be set up in Thiruvananthapuram, Ernakulam and Kozhikode through public-private participation, which will also be eligible for central assistance.

In Thiruvananthapuram, the convention centre will come up at Aakulam in association with Raheja group, while the centre in Ernakulam is proposed to be set up on HMT land with the participation of Mumbai-based Zoom Developers. In Kozhikode, the Chamber of Commerce has identified 35 acres at Pantheerankavu for the purpose.

Mr Kareem said standardisation and branding of products, which would require quality laboratory facilities, and development of infrastructure like cold storages were vital for the growth of the commerce sector. These will be sought to be realised through a centralised set-up for better result.

Ms Lida Jacob, former Social Welfare secretary, who is the chairperson of the committee, said that one of the areas being looked into was the high power tariff and the complex taxation structure for the commerce sector. The committee would study the situation and recommend ways to overcome them, she added.