Geo-spatial and ecological Sustainability
The state also faces a unique challenge to find a sustainable development model given its high population density, high land cost, and vulnerable ecosystem. The state witness multi faced development pressure which needs to be balanced and directed strategically to minimize opportunity cost for development activities and ensure sustainability of the natural ecosystem of the state.
Kerala has comparative advantage in attracting investment in high skilledhigh tech sectors such as Aerospace electronics, Robotics & Instrumentation, Information Technology, Media and Entertainment, Healthcare, Tourism and Hospitality sectors. Investments in these sectors would enable adequate network effect in generating indirect and induced employment opportunities across the state. The Country’s first Technopark started in the outskirts of Thiruvananthapuram (Trivandrum) already employs over 100000 Software professionals. Industry majors such as Oracle, TCS, Infosys have dropped anchor almost a decade back.
However the state has to compete with the several investment regions in developed and developing world by offering world class infrastructure, high degree of ease of doing business, competitive cost of operations and world class quality of life to attract global investment in these sectors.
The state economy currently depends heavily on consumption based indirect taxes which have a higher price elasticity and hence susceptible to high degree of variation across economic cycles. In order to achieve balance, it is necessary to broad base the service sector economy which will help generate multiple economic activities within the state. State intends to broad base its revenue base by through appropriate measures based on value enhancement to beneficiary and socio-economic equity.
Therefore the state has to demonstrate a viable, scalable and replicable development model which can serve as a benchmark for the future economic development of the state and conceptualized a potentially large area development project “Outer Area Growth Corridor”.
Creation of a Special Investment Region which will serve as a world class hub for multiple economic activities and a vibrant socio-cultural habitat offering a sustainable quality of life matching the best global standards.
Outer Area Growth Corridor Appreciation
Outer Area Growth Corridor project is perceived as a new township built alongside an Outer Ring Road (ORR), to be recognized as Outer Area growth Corridor (OAGC) similar to Special Economic Zone with proper Master Development Plan & special Development Regulations to attract Investments and Talents.
The project is conceived as a Mobility and Investment Enhancement Initiative, realizing that any development should be supported by a mobility plan that would span at least two to three decades. The absence of this approach has been the major deficiency in Indian planning and OAGC hopes to set a benchmark.