The Hindu Business Line : `Attitude change key to luring more investment'

THE atmosphere in Kerala does not seem to be conducive for attracting investments for various reasons which, if addressed properly, would lead to a positive change.

Speaking to Business Line, Mr N. Sreekumar, Vice-Chairman, CII (SR) Kerala, and head of the Apollo Tyres Ltd's operations in the State, said that the biggest factors hindering Industrial growth in Kerala were the mindset and attitude of Keralites living in the State.

"The moment we leave the borders of Kerala, our attitude and mindset change and we become very efficient and effective employees. But inside Kerala, we have a poor work culture leading to lower productivity, resistance to change, higher wage levels, and too much time spent in settling issues.''

According to him, the atmosphere in Kerala is not conducive for attracting investments due many factors such as scarcity of land and its high cost, lower productivity and higher wages, too much interference from different Government departments, besides unions bargaining on output, manning and wages and the occurrence of too many hartals.

The State could overcome the problems if the ruling and opposition parties work together to attract investment, he added. "Besides, a better work culture had to be developed. The employment cost per unit should be brought down by improving productivity and lowering wages. Also, the changes should be accepted and implemented faster."

Mr Sreekumar also said that the State Government should take serious steps to improve the perception among the investors about Kerala.

"There should be more freedom to outsource and engage contract and badli workmen.

"The Government might have to ensure that the interference from its departments is less. There must be no attimary system. Above all, labour disputes must be settled faster."

He added: ``More investors will come to Kerala only if the investors feel that they can profitably invest their funds here and there will not be any hassles in the process of investment or operation afterwards."

According to him, the thrust areas for the State should be identified and concerted efforts put in to promote industries in these areas.

Demand by customers for improved product quality and variety is increasing in an exponential manner. "In Kerala units, it is extremely difficult to implement even minor changes in product/process. In addition to the efforts put in by the management to implement changes, trade union leaders should take it up as top priority agenda and generate consensus on the issue."

He also said that the labour department play a positive role as far as reforms are concerned. It should take more initiative in prevention by properly educating trade union leaders, workmen, politicians, and managements on the need for co-operation and collaboration in the new environment.

According to him, the Government should concentrate more on accelerated infrastructure development. Besides, successful Keralites outside should be persuaded to invest in the State.

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