We are enabling both [public and private] sectors to flourish

Pinarayi Vijayan, Chief Minister of Kerala, tells Pushpita Dey about how a Left government has taken measures to promote industry in the state. Edited excerpts

- Pushpita Dey

How do you reconcile socialist principles with capitalist growth strategies?

As far as the LDF [Left Democratic Front] government is concerned, we do not see investments and entrepreneurship as belonging solely to the public or private sector alone. Both are essential to the development of the state. We are not promoting one at the cost of the other.

We have been able to make our PSUs [public sector units] profitable. One of our PSUs, Keltron [Kerala State Electronics Development Corporation]—which is the first electronics-manufacturing company in the country—along with some of the MSMEs registered here has collaborated in the Chandrayan project, a pride of our nation.

Some critics argue that Kerala's economic policies are contradictory—promoting investments while maintaining high wages and union influence.

Kerala is a global spice-processing hub. We account for around 40-50% of global oleoresin production. We have a strong food-processing sector with global brands based out of the state. We have globally leading manufacturers of dentures—DentCare Dental Lab—and blood bags—Terumo Penpol, based in Kerala.

As far as big names go, IBM, Infosys and IBS [Software] have expanded their presence in Kerala. To name a few newcomers into Kerala, Airbus, Nissan, Taurus [BPO], Tech Mahindra, Tata Elxsi, NOV [an oilfield equipment provider] and others have established themselves here since 2016. If we really weren't industry and investment friendly, or to put it in your words, if wages and unions were an issue, would they have stayed on here?