Kerala economy has entered phase of ‘accelerated and broad-based’ growth: Governor’s policy address

Kerala Governor Rajendra Vishwanath Arlekar’s policy address to the Legislative Assembly on Tuesday (January 20, 2026) played up a vision of Kerala’s future growth into the “largest city in the world – a well-connected, Statewide urban region” – while emphasising the State’s CPI(M)-led LDF government’s commitment to social welfare measures and sustainable development.

The two-hour address, which sparked a row over ‘omissions,’ and ‘additions’ by the Governor, dwelt on the achievements of the LDF government, while being sharply critical of the fiscal policies of the BJP-led Centre, which it said “have placed severe constraints on the State’s finances at a critical point in the financial year.”

It slammed the Centre’s decision to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) framework with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme, calling it a “setback” for Kerala. In the case of the Mullaperiyar dam, the policy address reiterated Kerala’s slogan of ‘Water for Tamil Nadu and Safety for Kerala’, while asserting that an expert committee be appointed immediately to inspect the structural strength of the century-old dam.

The policy address marked the start of the 16th and final session of the 15th Kerala Assembly, as Kerala moves into the Assembly election season.

It noted that the Kerala economy has entered a phase of “accelerated and broad-based growth,” setting the foundation for the State’s next phase of development.

“This transition is anchored on three mutually reinforcing pillars: infrastructure-led growth that integrates Kerala into the ‘largest city in the world,’ as a well-connected, Statewide urban region; innovation-driven industrialisation that deepens value creation and competitiveness; and a world-class higher education system rooted in skills and entrepreneurship and globally connected through diaspora engagement,” it said.

On the environment front, the government plans to propose four more wetlands for Ramsar designation, the policy address said. In the health sector, the Centre for Disease Control (K-CDC) would start operations in the current fiscal. Pandemic preparedness plans will be developed across all local bodies to ensure prompt containment and mitigation. Mental health services will be expanded through the ‘Sampoorna Manasika Arogyam Programme,’ extending coverage to additional grama panchayats, with treatment anchored at the primary care level. The government also plans to intensify its focus on bio-waste and liquid waste through advanced treatment systems, the policy address said.

Demographic changes in the State will be tapped as a unique opportunity for building a “new silver economy,” the policy address said. By positioning Kerala as “a global destination for graceful ageing,” the government will seek to create new jobs and boost high-end eco-tourism while further strengthening social security, it said.

Vision of ‘Nava Keralam’

The policy address dwelt on the Left government’s vision of a ‘Nava Keralam’ (New Kerala), “founded on a fully digital economy (zero cash), congestion-free mobility (zero congestion), emission-free development (zero emissions), waste-free systems (zero waste) and zero accidents (Vision Zero).” “To realise this vision, an integrated and unified urban transport system is envisaged, aligning city development plans with transport plans,” it said.

To boost irrigation, the government hopes to commission the Pattissery dam in Idukki district by February 15, 2026. This project hinges on water entitled to Kerala under the decisions pertaining to Cauvery Inter-State River Water Dispute. The government’s plans for reforms in paddy procurement, boosting aquaculture by bringing 3,000 hectares under Vannamei shrimp culture were among the thrust areas in agriculture and allied sectors.

On the infrastructure front, the government hopes to begin construction on the Kochi–Bangalore Industrial Corridor soon, and upgrade 1,200 km of major district roads to BM&BC standards and widen State highways, it said.

Further, the policy address underscored the State government’s “deep commitment to Constitutional values and the ethos of our nationalist movement, namely, democracy, secularism, federalism and socialism.” The government, it said, has taken all possible steps to defend these values in the public domain as well as by approaching the Constitutional Courts when warranted. It also called for collective responsibility, informed decision-making and cooperation across institutions and all levels of governance in addressing the challenges facing the State.