Arun K Vijayan, Director, Industries and MD, KSIDC, Government of Kerala delivering a special address at the MSME Growth Conclave Coimbatore-2026. | Photo Credit: BIJOY GHOSH

The Kerala government has made a strong pitch to attract manufacturers from western Tamil Nadu, positioning the proposed Integrated Manufacturing Cluster (IMC) at Palakkad as a natural extension of Coimbatore’s industrial ecosystem. Addressing the fifth edition of MSME conclave in Coimbatore on Saturday, Arun K Vijayan, Director of Industries, and Managing Director of the Kerala State Industrial Development Corporation (KSIDC), said Kerala should not be viewed as a competing investment destination, but as a partner in the region’s industrial growth. 

“For Tamil Nadu MSMEs looking for the next chapter of growth, Kerala is not a distant option. Kerala is the natural gateway on the western frontier,” he said, adding that Kerala sits at the intersection of logistics, talent, sustainability and future-ready manufacturing.  

Historic ties

Vijayan said Kerala and western Tamil Nadu should be seen as a single economic corridor, linked through the historic 40 km-wide Palakkad gap, through which goods, people and capital have moved for over 2,000 years. “The border exists on the map, but the economy has always worked as one corridor,” he said, describing the relationship as a “Tamil Nadu plus Kerala model”, rather than one of inter-State competition. 

At the centre of Kerala’s investment strategy is the 1,710-acre IMC in Palakkad, being developed under the National Industrial Corridor Programme, as the first priority node on the Kochi-Bengaluru Industrial Corridor. The project involves a capital investment of ₹3,806 crore, and is expected to unlock investments of ₹8,729 crore. Calling Vizhinjam seaport a “game-changer” for exporters, Vijayan said the deep-water transshipment port will reduce dependence on overseas hubs such as Colombo and Dubai, and provide exporters from Coimbatore, Tiruppur, Erode and Salem with faster access to global shipping routes. 

Inviting entrepreneurs to expand into Kerala, Vijayan said “Kerala is rising. Please rise with us so that entire South India can rise together”.

Published on June 27, 2026