Kerala budget 2017: Budget positive for IT industry

In some ways, Kerala was a pioneer in information technology, with visionary leaders developing KELTRON into a national brand. Technology is appropriate for the state, as it pays well and pollutes little. Kerala did not leverage the IT services boom to the extent it could have, but the state seems intent to not miss the next wave. Recognizing it as an “engine of growth”, the latest budget has been generous. The Kerala State IT Mission gets a budget of Rs. 100 crores, which will include further development of e-governance, enhancing Kerala’s lead in the delivery of services using IT.

In addition to funding for Technopark and other technology parks, innovation and entrepreneurial efforts get significant attention, in line with the national #StartupIndia program. The Youth Entrepreneurship Development Program under Kerala StartUp Mission gets a big boost of Rs. 70 crores. The most important thrust is on enhancing skill development: the Indian Institute of Information Technology in Thiruvananthapuram gets Rs 52 crores and IIIT Pala gets Rs 22.5 crores. This is good news as new areas in technology such as blockchains, machine intelligences and bio-informatics are sunrise sectors. Recognizing the value of electronics design and manufacturing –the thrust of the national effort from MeitY, which has established a cluster in Kerala – the government intends to also establish 12 hardware parks.

Kerala already hosts electronic design and manufacturing capability as well as an SEZ in Kochi with companies like SFO and OEN, apart from MeitY which has created Maker Village, an electronics incubator. Not to leave out the consumer, the government also has dedicated significant funds to the provision of Internet at lower cost to the public, including laying out a new optical fiber backbone (Kerala Fiber Optic Network) paralleling the KSEB power network. Overall, this budget has been quite positive as far as the IT industry is concerned.

(Prof. S. Rajeev is adjunct faculty, innovation, with IIM Bangalore and Chief consultant with Maker Village, Kochi)