During the 2026 India Today Conclave (South), KM Chandrasekhar, the Vice-Chairperson of the Kerala State Planning Board and former Union Cabinet Secretary, emphasised the need for the state to achieve an annual growth rate of 7 per cent. He noted that this growth is essential to elevate Kerala’s gross state domestic product (GSDP) from approximately Rs 16 lakh crore to Rs 28 lakh crore in current prices.

Chandrasekhar asserted that achieving this ambitious target is feasible, citing Kerala’s past performance when it experienced an 8 per cent growth rate between 2004-05 and 2012-13. He indicated that the national discourse also supports the target of per cent growth, reinforcing his assertion that the 7 per cent goal is within reach.

However, he pointed out that this projected growth would necessitate substantial increases in investment levels, recommending that Kerala targets investments reaching 28 per cent of its GSDP annually. Currently, the state reports capital expenditure at about 1.34 per cent, signalling a significant gap that must be addressed.

Collab with Private Sector and NRIs

Chandrasekhar highlighted that the Kerala government alone cannot meet the investment demands required to realise the state’s growth objectives. He called for a concerted effort that includes collaboration with the private sector, local organisations, cooperatives, and non-resident Keralites.

He specifically mentioned the importance of public-private partnerships and the need for improved utilisation of central funds. Chandrasekhar indicated that Kerala has not maximised these funding opportunities and suggested the planning approach revolves around the “SMART” model, where projects are specific, measurable, achievable, result-oriented, and time-bound.

Emphasising the role of the private sector, he urged that they must take a prominent role in driving forward the state’s economic agenda. This collaborative effort is deemed crucial for achieving the investment levels necessary to meet growth targets.

Addressing Debt and Unemployment Challenges

Chandrasekhar expressed concern regarding Kerala’s significant debt, which he stated is around 35 per cent of its GSDP, the highest among states in India. He clarified that borrowing itself is not an issue; rather, the critical factor is the productive use of borrowed funds. He argued that improper utilisation, particularly in non-revenue generating areas, exacerbates the problem of debt.

At the same time, he advocated for a measured approach in reducing Kerala’s debt over time instead of opting for abrupt corrections. He noted the necessity of generating income to effectively manage and repay the debt. Unemployment emerged as another pressing issue, with Kerala’s unemployment rate reported at 29.8 per cent, significantly higher than the national figure of 12.5 per cent.

Chandrasekhar set a target for halving this rate within the next five years, urging the state to explore beyond traditional industrialisation. He pointed out potential sectors that could contribute to job creation and investment, including medical devices, gold, furniture, aviation, space, artificial intelligence, high-value tourism, sports, and the creative economy.

Asserting that efforts are already underway, he mentioned the existence of around 110 medical device units in Kerala, along with an expanding landscape for startups and small industries. Chandrasekhar concluded by stating that achieving these ambitious goals would require time, effort, and a concerted effort from all sectors of society in Kerala, underscoring the significance of collective action to secure the state’s economic future.

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