Kerala Inefficient In Job Creation Despite Rs 1520.69 Crore Investment: RTI Reveals (image-unsplash))

The Right To Information (RTI) filed by a Kerala-based activist K Govindan Nampoothiry has revealed Kerala’s job creation inefficiency over the eight years through various government schemes. From 2016 to 2024, the government was only able to manage to create 5,839 jobs over an investment of Rs 1520.69 crore in companies with a turnover of Rs 5 crore, reports India Today who got access to the copy of the RTI.

Nampoothiry’s analysis based on the data acquired shows a significant gap between the state’s approach to investment and job creation. After investments made by the state government, they were only able to yield less than 6,000 fresh jobs in Kerala for the same period.

The RTI response has also revealed that 119 enterprises in Kerala have benefitted from the financial assistance provided by the Kerala State Industrial Development Corporation (KSIDC). KSDIC is the state-level nodal agency responsible for promoting investments and enterprises.

Analyzing the data received by RTI reply, Nampoothiry argues that the substantial investment has not translated into proportional growth. “In contrast, the Directorate of Industries and Commerce, Kerala, maintained that the last 22 months have seen the creation of over 5 lakh jobs through their “Year of Enterprises” scheme. They cited the initiation of 2,36,384 enterprises during this period, with an investment totaling Rs. 14,922 crore,” he said.

He indicated the need for a more strategic overhaul of the government’s policies and schemes. He shared his concern over the prevailing schemes and cited the urgent need for a comprehensive review and modification of strategies aiming at bolstering investments and entrepreneurship in the state.

The RTI response received on February 15 reveals the state government’s lackluster performance in ensuring the effective utilisation of investments.

“The stark difference in job generation and investment figures raises serious concerns over the effectiveness and productivity of the government”s assistance schemes. These revelations bring to light the urgent need for a comprehensive review and modification of strategies aimed at bolstering investments and entrepreneurship in the state,” he said.