Thiruvananthapuram: With an educational background in photonics and aerospace engineering and professional experience in multiple countries, Yedhu Krishnan returned post the Coronavirus pandemic with a plan to build aerospace systems India has long relied on imports for. The vision led the 39-year-old Kannur native to launch his startup \u2018Specrule\u2019 in 2022 to develop advanced laser and optical measurement systems for aerospace applications.<\/p>\n
\u201cI considered Thiruvananthapuram because it\u2019s home to the Indian Institute of Space Science and Technology (IIST). I get access to labs and student-interns here,\u201d said Yedhu, adding the state\u2019s network of institutes and human resources are useful for a startup, though he could have attracted more seed money in other states.<\/p>\n
Specrule is not an anomaly. The state, once seen as a fading presence on India\u2019s investment and startup picture, is slowly moving up the ladder, with policy reforms and by tapping into its infrastructure and institutional network.<\/p>\n
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As per the Kerala Startup Mission (KSUM) data, the number of startups registered in Kerala has grown steadily over the past few years\u2014from just 21 in 2016 to 121 in 2017, 277 in 2018, 594 in 2019, and reaching 1,128 by 2024. As of October 2025, more than 7,200 startups are registered in the state, according to official figures. Unofficial statistics, however, put the number to be about 13,600, according to KSUM CEO Anoop Ambika.<\/p>\n
This growth, Anoop said, is the compound effect of a change in attitude towards entrepreneurship as well as the state\u2019s changing investment climate.<\/p>\n
\u201cMany from the diaspora in the UK, the US, and elsewhere are reaching out with renewed enthusiasm to establish ventures in Kerala. The current geopolitical climate, coupled with the state\u2019s growing (investment and startup) ecosystem, gives them confidence,\u201d he said, adding the state is currently focusing on attracting investment in the knowledge economy, utilising its existing research network, such as Specrule.<\/p>\n
As per the States\u2019 Startup Ranking 2022 (which ranks states and Union Territories based on their support to startup ecosystems), released by the Department for Promotion of Industry and Internal Trade (DPIIT) in January 2024, Kerala was listed among the \u2018Best Performer\u2019 along with Gujarat, Karnataka, Tamil Nadu, and Himachal Pradesh.<\/p>\n
The report noted that the state government has taken several \u2018praiseworthy initiatives\u2019, including ensuring institutional support, facilitating events for networking, as well as launching schemes to promote startups that also impact\u00a0rural areas.<\/p>\n
According to the Ministry of Commerce and Industry, India had more than 1.4 lakh startups recognised by DPIIT as on 30 June 2024, with Maharashtra leading with 25,044, followed by Karnataka (15,019), and Delhi (14,734). With 5,782, Kerala was at the ninth place in the list.<\/p>\n
Kerala has been continuously working to attract investments, organising multiple sector-specific conclaves and effecting several policy reforms in recent years.<\/p>\n
The state issued an industrial policy in 2023, identifying 22 priority areas. An Information Technology policy was also released the same year, aiming to transform the state into an IT hub by 2030 through infrastructural development and skill training.<\/p>\n
Anoop said changes in the investment climate and investments from large companies make Kerala an attractive destination for strategic collaborations with startups.<\/p>\n
\u201cTraditional IT is becoming outdated. Our goal is to leverage digital science parks, existing talent pools, and science-based ideas to create knowledge and attract companies. Kerala has 125 research institutions forming a strong research network,\u201d he said, adding cities in Kerala offer better quality of life compared to cities in many states that are saturated with companies and traffic.<\/p>\n