Shashi Tharoor recently took to the social media platform X to share a Times of India report, voicing his worries about the dwindling startup scene in Kerala.
Referring to the findings, the former minister remarked, “Dismayed to see that the Kerala start-up entrepreneurship story is not what’s been reported. The only silver lining is that at least the GoK’s claims point to the right intentions. We need more MSME start-ups and not just on paper. Kerala must head this way!”
42,000 MSMEs Closed in Kerala Over Nine Years, Tharoor Raises Concern
A staggering 42,000 MSMEs in Kerala have shut down over the past nine years, resulting in a significant loss of over one lakh jobs, according to the report.
With his latest remark, Tharoor shifted from his previous stance of commending the Kerala government’s initiatives to promote industrial growth.
Kerala Government Responds
Kerala State Industries Minister P. Rajeev called the report “baseless” and said, “I provided a detailed reply in the Assembly on February 10.”
Union Commerce and Industries Minister Piyush Goyal recently presented a report in Parliament, revealing that 1,700 MSMEs had closed in Kerala over the past four years.
Rajeev pointed out that while 30 percent of MSMEs across India shut down within their first year, Kerala’s closure rate is only 15 percent.
He also alleged that the report had underlying motives, as it failed to disclose the source of its data.
