Electronics in Kerala s Industrialisation

K K Subrahmanian K J Joseph This paper reviews the growth of the elctronics industry in Kerala. The focus is on the existing structure and competitiveness in an inter-regional context with a view to identifying strategy options that could maximise the potential of this industry as a vital link in the rapid industrialisation of the state, given the availability of a vast pool of skilled human resource. The development of the electronics industry in Kerala has taken place almost entirely at the initiative of the state government Therefore, an attempt is made to provide a perspective of the role of the state government THERE is now a burgeoning literature which suggests that a capital-deficient economy could stimulate growth and create considerable employment through the development and diffusion of the electronics industry if it has a vast pool of skilled human resource. Some economists' would even attribute to electronics the same role conventionally assumed for capital goods in the growth process because it is a crucial source of skill-based innovations that have a wider degree of applicability throughout the economy and society. Thus electronics has become a critical sector in modern industrialisation not only for its direct contribution to output and employment but also for its role in contributing to efficient resource-utilisation, greater productivity, and hence rapid growth in the economy as a whole.