CHANGING KERALA: LUMBERING JUMBO TO A LITHE TIGER

Kerala is beginning to stand out as a model of economic innovation and sustainable growth. It just needs to update its laws, slash regulations and streamline government processes

- SHASHI THAROOR

Back in 2007, in my book, The Elephant, the Tiger, and the Cell Phone, I described the Indian economy as an "old elephant," a creature with a "big, slow, lumbering" presence and a "long but not always happy history." For decades, this elephant trudged along under the weight of stagnation, constrained by policies of self-reliance that inadvertently stifled growth.

However, the elephant's journey took a decisive turn in 1991 when India embarked on a path of economic reform. Liberalization, privatization, and globalization injected new vitality into the economy, gradually replacing the elephant's "old fat" with "muscle." Over time, something extraordinary began to emerge—"large black stripes" swirling across its form. These stripes, bold and dynamic, symbolized the rise of a new India: an India of entrepreneurs, innovators, and startups. The elephant was evolving into a tiger—sleek, agile, industrious, and ready to leap into the future.

Is something similar happening to Kerala? Startups have suffused India's—especially Kerala's—economy, becoming ubiquitous. Indeed, according to the 2024 Global Startup Ecosystem Report, which analyzed data from over 4.5 million companies across 300-plus entrepreneurial innovation ecosystems, Kerala has forged a startup ecosystem that, at the end of an 18-month period last year, was valued at a whopping $1.7 billion, five times more than the global average during this same period. Between July 1, 2021, and December 31, 2023, while the worldwide average growth was 46 percent, Kerala recorded a staggering 254 percent compound annual growth rate: a phenomenal feat.