Varavelpu, meaning welcoming, is a 1989 Malayalam film directed by Sathyan Anthikad and written by Sreenivasan, starring Mohanlal in the lead. In the film, Murali (Lal) returns to his village after working 7 years in the Gulf (Middle East) and decides to start a business -- a bus service connecting his village to the nearby town. Soon the trade union leaders, labour officials, motor department officials, and employees of the bus brands him a 'bourgeois'(a Marxian term defining those who own wealth of the people and are exploiting the working class) and one by one he encounters many problems. Finally, fed up with the system and losing all his savings in the business, Murali returns to Bombay, hoping to get a visa to work again in the Gulf. The film was a black comedy mirroring the then political and social environment in Kerala, especially how trade unionism was killing many businesses in the state.

Kerala has changed from those old days and is now an investor-friendly state, claims political leaders. At the Invest Kerala Summit in Kochi last week, Leader of Opposition V D Satheesan said his party is starting a new culture. ''The Opposition will extend our support to the Government on all aspects to make Kerala investment-friendly, regardless of political differences,” he says.

Turning investment friendly

In an exclusive interview with Fortune India, Chief Minister Pinarayi Vijayan said the state is now future-ready to attract big investments and has emerged as the top investor friendly state in the country. Kerala got the No.1 ranking in ‘Ease of Doing Business Reforms', as per the ranking of the Union Ministry of Commerce and Industries. ''Kerala's top ranking is a result of comprehensive improvements in key areas. The Government has simplified approvals and policies, ensuring faster licensing, policy enhancements and MSME friendly reforms. Digital and governance reforms, including K-SWIFT - the single window clearance system, and an efficient grievance redressal system, have streamlined business facilitation'', he says.

Kerala received Expression of Interests (EoIs) for investments worth Rs 1,52,905.67 crore from 374 companies at the recent Invest Kerala Global Summit (IKGS 2025). Minister for Industries, Law and Coir, P Rajeeve told Fortune India that the government is looking for ‘realistic’ investment proposals rather than signing MoUs which fail to materialise.

He says a slew of follow-up action plans are going to be in place and there will be a specific structured mechanism for proper professional follow-up of each EoI. The government will establish a fast-track mechanism for carrying forward each EoI made at the summit. Further work on these proposals will begin from the next working day onwards. A special dashboard and mechanism will also be set up for the following up of proposals. A nodal officer will be assigned and a committee chaired by the Chief Secretary will do the periodic review. Chief Minister will hold review meetings to evaluate the progress of the EoIs. A dedicated investor toll-free number and email ID will be notified towards expediting the implementation of new investments, diversification and expansion of the state’s limit.

Kerala is a great place to live and work, and its inherent strengths, such as a skilled labour force, technology infrastructure, and constructive government policies, make it a great place to invest, says V.K. Mathews, Founder and Executive Chairman of IBS Software.

Focus on tourism & sustainable businesses

Suman Billa, Additional Secretary of the Union Tourism Ministry, says the state should fully exploit its brand value as a global tourism destination. “Kerala has become an investment-friendly destination through the gradual growth achieved in the tourism sector in the last 30 years,” he says. Plans should be formulated to maintain this and attract more investments. Kerala's status as a green destination, tourism is viable throughout the year, making it suitable for any weather conditions. This year-round appeal makes the state attractive to tourists on a global scale and also investment-friendly. He says Kerala is an investment-friendly destination thanks to several factors, including good connectivity, hospitality, high skill levels, robust infrastructure, and quality services. ''Areas like medical tourism present great potential for Kerala,'' says Mukesh Mehta, Senior Managing Director of Blackstone Private Equity.

Clean Energy, food processing, IT, ship building, defence and aerospace, fintech and retail, etc, are some of the areas the state is focusing to attract investments, says experts. ''We may not be able to provide 2000 acres for an automobile project, but can make and supply the electricals and computer systems required to run that automobile,'' says P. Rajeeve.