Why is Kerala industries minister inaugurating U-turn in Kochi cause of concern?

A U-turn in Kerala has become a symbol of the state’s economic stagnation. An undated video of Kerala’s Industries Minister P Rajeev inaugurating a U-turn on a road in Kochi became popular on social media, sparking widespread reactions.
What’s worse was that Rajeev was seen cutting knotted caution tape instead of the traditional ribbon, drawing the attention of users who questioned the significance of the event.
The video, originally shared by BJP leader Anoop Antony Joseph, a former BJP Yuva Morcha National Secretary and Ambalappuzha BJP MLA candidate, quickly gained traction.
Posting the clip on X, Joseph wrote: “Here’s @PRajeevOfficial, Kerala’s industry minister, inaugurating a new U-turn in Kochi—with a ribbon cutting on caution tape! In a government where industries are shutting down and no new projects to inaugurate, ministers are left inaugurating U-turns and speed bumps!”
The post ignited a flurry of sarcastic comments from users on X, with many poking fun at the minister’s role in the event. While this seemingly trivial event has gone viral, it begs us to focus on the deeper issues plaguing Kerala’s economy.
Joseph’s comments came at a time when Kerala’s economic standing is under serious scrutiny. According to a recent report from the Economic Advisory Council to the Prime Minister (EAC-PM), Kerala is the only southern state experiencing a decline in its share of India’s GDP. While other states in the region, like Karnataka, Telangana, and Tamil Nadu, have emerged as thriving economic hubs, Kerala’s GDP share has dropped from 4.1% in 2000-01 to 3.8% in 2023-24.
While states like Karnataka and Tamil Nadu are courting foreign investment with aggressive campaigns and Chief Ministers embarking on tours to woo Global Capability Centre and multinational corporations, Kerala seems to be stuck in neutral.
The state’s reliance on Non-Resident Indian remittances continues to prop up its economy, raising an unsettling question: What happens if this cash flow slows down?
Kerala’s economic struggles are compounded by its inability to secure significant allocations from the Union government. The Finance Department noted discrepancies in expected Union allocations, highlighting that even with a Rs 13.11 lakh crore GSDP, the state received less than anticipated in central funding.
Kerala did not receive any significant allocations in the recent Union Budget for crucial infrastructure projects either. There were also no major allocations for national highways, even as the state desperately seeks significant advancements in transport infrastructure to align with the development of ports and other infrastructure.
Despite the Left Democratic Front government’s ambitious plans to position Kerala as a hub for high-tech manufacturing and artificial intelligence (AI), the reality is far less promising.
The state’s human capital and connectivity are commendable, but industrial reforms remain bogged down by long-standing challenges, with land scarcity being one of the most significant.
As Industries Minister P Rajeev himself admitted, acquiring even a modest 100 acres of land for industrial use can involve negotiating with thousands of small landowners—a slow and inefficient process that discourages investors and stalls progress.
The state’s recent industrial growth, though promising, doesn’t hold a candle to the leaps made by neighbouring states. While Kerala boasts of successful MSME campaigns and a growing startup ecosystem, the lack of available land for expansion continues to stifle innovation.