Industry leaders stress urgent reforms in Kerala to retain talent and improve infrastructure and collaboration.

As the new United Democratic Front (UDF) government settles into office, Kerala’s technology and start-up ecosystem is looking beyond incremental expansion and pushing for a larger structural transformation of the State’s innovation economy.

Industry leaders across IT services, deeptech, start-ups, infrastructure and employee associations say Kerala now has an opportunity to reposition itself as a stronger technology destination by addressing long-standing concerns related to infrastructure, ease of doing business, transport connectivity, commercial space and industry-academia collaboration.

Despite the steady growth of technology hubs such as Kochi and Thiruvananthapuram, industry stakeholders point out that cities like Bengaluru, Hyderabad and Pune continue to attract global technology investments on a much larger scale. Kerala has evolved into a talent-rich but opportunity-constrained ecosystem, forcing many professionals to migrate outside the State for career growth.

Core challenge

For many in the sector, the core challenge is no longer talent availability but the creation of an ecosystem capable of retaining skilled professionals while simultaneously attracting large-scale investments.

V Sreekumar, Secretary of Group of Technology Companies and Centre Head at Tata Elxsi, said the government must prioritise infrastructure, branding, skill development and policy support while accelerating ease-of-doing-business reforms. He also called for regular IT and industry expos across Thiruvananthapuram, Kochi and Kozhikode to strengthen collaboration opportunities among companies operating in the State.

He proposed the creation of a nodal agency that would integrate sectors such as IT, electronics, artificial intelligence, semiconductors and space technology under a unified framework.

Deepa Sarojammal, Executive Chairperson of Reflections, said Kerala’s biggest weakness has been its inability to convert its talent advantage into sustained ecosystem growth.

“Kerala has never lacked talent; some of the best technology professionals in the world come from here. But for years, many young people have looked beyond the State in search of larger opportunities and faster-growing tech ecosystems,” she said.

Emerging sectors

Beyond traditional IT services, emerging sectors such as deep-tech and space technology are increasingly becoming central to Kerala’s technology ambitions.

Aravind MB, COO of HEX20, described space technology as a “sunrise sector” with major long-term economic potential for Kerala. According to industry projections, the sector could grow into a $44 billion market with a CAGR of 20-25 per cent over the next eight years, offering substantial opportunities for the State if it can capture even a fraction of that growth.

Employee associations have also raised concerns regarding infrastructure and quality-of-life issues in Kerala’s technology corridors.

Vineeth Chandran, Secretary of Prathidhwani Technopark, said the IT employee community expects the government to place greater emphasis on infrastructure, transport connectivity and employee welfare.

Similar concerns have emerged from Infopark in Kochi, where industry representatives say infrastructure development has not kept pace with the rapid expansion of IT companies. Madhavan N G of Infopark Prathidhwani Community said the city’s infrastructure systems are under increasing pressure due to the fast-growing workforce and commercial activity.

Anish Panthalani, state president of Progressive Techies, said infrastructure planning in Kochi must now reflect its emergence as a tier 1 technology ecosystem.

.

Published on May 21, 2026