Kerala is set to create a city exclusively for non-resident Keralites (NRKs), called NRK City, designed to attract over $10 billion in investments. The city, now in the design phase, will include tax incentives and priority schemes, particularly for Gulf-based investors, according to Industries Minister P. Rajeeve.
Transforming Remittances into Growth
NRK City aims to channel remittances from Keralites abroad into employment-generating investments instead of real estate purchases. Around 25-30% of Kerala’s GDP comes from NRK remittances, and the government wants to redirect this capital into productive avenues.
Kannur NRK Park and Investor Incentives
The proposed NRK Park in Kannur will prioritize NRK investors, offering reduced premiums and payment moratoriums. Investments above ₹100 crore will require just 10% upfront, with the rest payable over 10 years. Smaller investments have similar benefits, aimed at boosting employment and development.
Encouraging Women Entrepreneurs
Through the “Year of Enterprises 3.0” initiative, Kerala plans to establish a “Pink City” in Kochi, promoting women entrepreneurs. These incentives align with the state’s target of creating 100,000 new MSMEs by 2025.
Global Summit for Investments
Ahead of the Invest Kerala Global Summit in February, Kerala officials are engaging Gulf investors to secure commitments. The summit targets high-tech sectors like AI, robotics, aerospace, electric vehicles, and biotechnology.
Tax and Employment Benefits
The government offers tax incentives, including 100% GST reimbursement on capital investments and wage reimbursements for new hires in the first year. Additional benefits may be granted on a case-by-case basis to maximize investor interest.
SmartCity Kochi Developments
Kerala is also resolving issues with the SmartCity Kochi project after Tecom’s exit. The state aims to transform the IT park into a hub similar to Technopark and Infopark, providing land and plug-and-play facilities to meet demand from IT firms.
Kerala’s efforts focus on leveraging Gulf investments to drive economic growth, employment, and technological advancements.
