The Micro, Small and Medium Enterprises (MSME) sector contributes to the process of economic growth, employment generation and balanced regional development. It has the potential to emerge as a strong, vibrant and globally competitive sector in the State’s economy.
Kerala, with its excellent connectivity, communication network and availability of human resources is best suited for the growth of the micro, small and medium scale enterprises. The availability of infrastructure, including industrial clusters, is a unique offering Kerala has for the sector.
The State has identified about 75 SME clusters and they are at different stages of development. Central Government agencies like Coir Board, SISI, and NGOs like Federation of Industrial Clusters etc. are also taking initiative in Cluster Development.
The potential of IT industry in the MSME sector is big as the state offers best connectivity with broadband reach in almost all parts of the State. It is estimated that the share of Tier-III cities in the IT industry in India is expected to grow up from 10 per cent now to 80 per cent. Consultancy firm KPMG has suggested that the State can become an economic growth driver of the country by tapping its SME and IT sectors.