Kerala's startup ecosystem booms with 20% annual growth

Kerala’s startup ecosystem is growing rapidly, expanding by 20% annually and supporting over 3,500 ventures, according to a report by Startup Genome.

The Kerala Startup Mission (KSUM) has backed more than 6,400 startups, facilitated $665 million in funding, and created 65,000 jobs. Additionally, the initiative engages over 100,000 students annually through 63 incubators.

“Kerala experienced a 147% surge in ecosystem value in 2025, highlighting a significant rise in startup formation. This positive momentum points to stronger investor interest, enhanced policy support, and deeper integration into global startup networks,” the report said.


The state’s projected GSDP (gross state domestic product) for 2024-25 is $150 billion, marking 11.7% growth over the previous year.

AI and robotics

At the July 2024 generative AI Conclave in Kochi, Kerala revealed an industrial policy that targets 22 key sectors, including AI, blockchain, machine learning, big data, robotics, tourism, and logistics. To encourage investment, the government has streamlined the licensing process through K-SWIFT (an online platform for business permits and licenses), which approved 52 new industrial parks within eight months.

In January, Kerala launched its first industry-on-campus initiative, at the Government Polytechnic College, partnering with Genrobotics to set up a robotics manufacturing unit. The state has also provided over 20 IoT (internet of things) labs, fostering collaboration across sectors.

In July 2024, Kerala introduced a new AI policy that offers up to $573,000 in investments from KSIDC (Kerala State Industrial Development Corporation) to AI startups committing over $1 million. This initiative aims to develop infrastructure such as graphics processing units (GPUs) and global capability centres (GCCs).

Other key sectors

Kochi and Thiruvananthapuram are emerging as key cities for GCC expansion, attracting corporate and investor interest. A new GCC policy is being developed to enhance Kerala’s infrastructure and incentives, positioning the state as a major hub for global businesses in India.

In line with its commitment to sustainability, Kerala is also developing an integrated electric manufacturing park to support local innovation and manufacturing in the electric vehicle (EV) sector.

By 2028, Kerala's industrial sector is expected to reach $15.1 billion, with MSMEs playing a crucial role in national projects, including high-profile space missions such as Chandrayaan and Mangalyaan.