Industrialization, Educated Unemployment, and Entrepreneurial Solutions in Kerala

This podcast session, part of the Vikasarth Conversations 2022, delves into the pressing issue of educated unemployment in Kerala, India, juxtaposing it against the state's high human development indicators. The discussion highlights how Kerala's historical political inclination towards left ideology has led to a slow uptake of economic reforms, fostering an investor-unfriendly image and a poor entrepreneurial spirit. Alarming statistics are presented, revealing youth unemployment rates significantly higher than the national average, prompting a critical examination of how the state can translate its educational achievements into economic opportunities and employment.

Jose Dominic, a veteran industrialist, offers a compelling case study of Kerala's tourism sector, which he describes as transforming from a "bimaru state" (a term for economically backward states) to a "front-performing state." He attributes this success to small entrepreneurs who, despite initial government skepticism, created a unique, world-class product based on indigenous assets and responsible tourism principles. This sector not only generated 1.5 million jobs and contributed significantly to the state's GDP but also shifted governmental attitudes towards tourism. However, the sector's vulnerability to catastrophes like the COVID-19 pandemic underscores the need for resilience and a strategic "God's Own Country version 2.0" to adapt to new global realities, potentially integrating with high-value, low-pollution manufacturing akin to the Swiss model.

T.K. Jose, a retired IAS officer, provides insights from his extensive experience in public service, emphasizing the urgent need for fast and flexible entrepreneurship promotion. He points out a cultural barrier in Kerala, where parents and educational institutions prioritize secure, pensionable jobs over entrepreneurial ventures, leading to a disconnect between academic achievement and wealth creation. Through personal anecdotes and observations from numerous colleges, he advocates for a behavioral shift, proposing initiatives like "Entrepreneurship Development Clubs" and "entrepreneur's festivals" to foster a culture that recognizes, respects, and celebrates entrepreneurs as key contributors to economic growth.

Further, T.K. Jose elaborates on the transformative impact of the Kudumbashree Mission, which he helped establish, in alleviating multi-dimensional poverty and empowering women through micro-enterprises. This mission successfully built a non-unionistic, entrepreneurial workforce from low economic and educational backgrounds, demonstrating the immense potential of grassroots entrepreneurship. The mission's pioneering adoption of a multi-dimensional poverty definition, later acknowledged by NITI Aayog, and its success in generating substantial turnover from networked micro-enterprises, serve as a powerful testament to the efficacy of self-reliance and value creation over traditional freebies and subsidies. The overall discourse converges on the idea that fostering a robust entrepreneurial ecosystem, coupled with strategic investments in high-value sectors and a re-evaluation of educational priorities, is crucial for Kerala to overcome its educated unemployment challenge and achieve sustainable, inclusive economic development.

"It's quite an alarming and a disturbing word educated unemployed because it shatters the very face of our thinking you study to get a job and settle in life but this Millennium has changed all that."

"Kerala's political inclination to left ideology has also meant that it was slow to the economic reforms such as public sector reforms industrial deregulization Etc hence the image of an investor unfriendly state has read."

"As a state that goes of being ahead of others in literacy education and health statistics why are we not able to translate these positives to economic opportunities employment."

"Kerala ended up wearing the red flag so much so outside investment was scared to come to Canada that was the situation prevailing."

"what tourism did was create jobs and create entrepreneurs and that changed the the attitude the governments have had towards towards tourism."

"God's own country itself came exceedingly well in this in this time from the mid 90s build a Gmail position as front performing or both in supply side as well as the demand side now it has now come after the covet after the catastrophe the times come that two we equip ourselves that we are ourselves so I do I would like to say to that it's time to Now launch God's own country version 2.0."

"I would compare with Switzerland where the Swiss model high high technology high value Edition low low low low low in pollution and where tourism and Manufacturing can coexist small manufacturing Enterprises with a large you should go large the danger of of militants your labor will come in so keep it small keep it high value and they can you you can coexist with that with with tourism attractions too."

"I feel that having spent 34 years in the Civil Service my colleagues who contributed true entrepreneurship their contribution is much much higher but unfortunately none of these hundred colleges ever invited an entrepreneur to their history to interact with the students or teachers."

"I believe that when I when I began University in 1998 the dream about University and our purpose when we explain to many people they were they all told me that you are neutopia it is not possible do you think that when we bring together ladies they will start fighting and they cannot stick together."

"from the very beginning rather than giving free ship and freebies and subsidy what I was trying to encourage them is the need for self-related self-sufficiency and adding while you creating value by entrepreneurship."

"our team could help out those women from the very low economic and educational background to take up Enterprises micro Enterprises uh that count when I left was almost one point for two lakh people are involved in entrepreneurship."

"a single product made out of a group of network adversary units created a record history of 116 crores turnover in 2016."