Ruled by the Communists, it was only natural for Kerala to be averse to industrial growth, development and wealth generation. For a type of politics that views poverty and oppression as key to power retention, the ruling Left-government of Kerala was never expected to go out of its way to promote investments into the state. However, what has now come to be revealed is simply shocking, and shows how industrialists, businesses and entrepreneurs are institutionally harassed in Kerala, to the point that they are forced to contemplate suicide.
In 2019, Kerala was ranked 28th in the Ease of Doing Business scale among Indian states, while in 2020, its position progressed to 18th. However, the attitude of the Left government in Kerala is simply anti-business, which is why industrialists are now looking to shift their operations out of the Communist state. The biggest private-sector employer in Kerala – Kitex Garments has announced that it is withdrawing from a Rs 3,500 crore investment project, alleging an incessant witch hunt by the government.
Kitex Garments, the world’s second-largest manufacturer of kids apparel, announced the scrapping of the Rs 3,500 crore project, under which it planned to open an apparel park in Kochi and establish industry parks at Thiruvananthapuram, Kochi and Palakkad. “The decision to scrap the project has been taken as I am fed up with the continuous harassment at the hands of the authorities. Whoever invests in Kerala will lose peace of mind and will be driven to suicide,” said Sabu M Jacob, chairman and managing director of Kitex group.
Sabu M Jacob took to social media to vent his anger and later talked to media in the port city. “Almost every day, officials of the government department descend on the premises of the company and makes inquiries as if we committed a big fraud. I am fed up with continuous harassment. The government treats us like bourgeoises, exploiter capitalists and land encroachers. Enough is enough,” he said. Jacob said he would also be shifting some of the existing units to other states if the situation continued like this. According to him, the multi-thousand crore investment from Kitex would have given jobs to over 35,000 people.
In remarks which speak volumes about the stress which businesses in Kerala have to reel under, Sabu M Jacob said, “If the situation continues like this, the state will turn a graveyard of industries. While neighbouring states roll out red carpets for industries, we are hounding them out. No doubt, the existing climate will drive entrepreneurs to suicide.”
The state of Kerala seems to be walking straight into destitution. PepsiCo, one of the biggest soft drink manufacturing giants, had last year decided to shut its manufacturing unit in Kerala. PepsiCo’s decision to issue the closure notice came amidst the Kerala government’s refusal to reform the archaic labour laws that run against the profitability of private enterprises.
The closure notice had revealed the level of toxicity against private enterprises in the state of Kerala. It read, “Even after the order of the Honourable High Court of Kerala granting police protection, the situation is very grave and the threat of criminal assault is looming large. Permanent employees who are to operate the production line are on illegal strike since they are not doing the work as directed by the management. The management is incurring very huge loss due to the present situation and there is no hint of any improvement in the situation in the near future.”
By antagonising businesses, Kerala is scripting its downfall. In order to save their state, Keralites must realise the perils of having Communists lead them, and must get rid of the Left as soon as possible.