Kerala Unveils AI Policy: Incentives, Cluster & Investment

Kochi, Jul 12 (PTI) Kerala on Friday unveiled a slew of upfront policy initiatives to promote the state as a global hub of generative artificial intelligence (Gen AI) by creating a highly enabling ecosystem reinforced by incentives, support and partnerships.

Minister for Industries and Law P Rajeeve made the state's AI Declaration at the valedictory of the two-day international Gen AI conclave here, laying the road map for the transformative shift.

A first-of-its-kind initiative, the July 11-12 conclave was organised by Kerala State Industrial Development Corporation (KSIDC) in association with technology giant IBM.

Noting that the state has already identified AI as a priority sector in the present industrial policy, Rajeeve said the government will come out with a dedicated AI policy, complying with the ESG (Environmental, social, and governance) goals during this fiscal year itself.

Based on the policy, support and incentives will be provided to enhance the existing infrastructure and create a more futuristic AI ecosystem.


Taking forward the initiative, an AI Cluster will be established in the state, facilitating the creation of a cluster-based Industrial Park on a public-private partnership basis in association with technology and knowledge partners.

This will serve as common infrastructure, including Graphics Processing Centres, Global Capability Centres and other ecosystem support infrastructure, an official statement said here.

Plug-and-play and incubation facilities will also set up in the state in association with anchor investors, it said.

Identifying the startup ecosystem as a key component in the state's transformative journey, the declaration said the government will provide financial assistance, including share capital to startups in the AI segment.

Preferential share capital investments of up to Rs 5 crore shall be provided by KSIDC to AI entities with a minimum investment of Rs 10 crore, it added.

Scale-up support of Rs 1 crore shall be provided along with other incentives notified in the Industrial policy. The state's fast-growing MSME sector will be further empowered by providing them with AI tools and financial incentives, which will also strengthen the AI entities, according to the statement.

Promoting collaborative efforts in the critical domain, AI based technology groups will be constituted, comprising representatives from AI entities, research institutions, associations and government agencies for ensuring wider stakeholder partnerships.

Adoption of AI in various core sectors such as marine genome sequencing, tourism, healthcare, IT/ITeS will also be focused with the support of the technology groups.

Adoption of AI to strengthen governance will be an important component of the policy. As part of this, AI will be used in various schemes and initiatives of government departments and agencies.

As a first step, the companies in Mission 1000 scheme will be encouraged to adopt AI technologies. The database of Mission 1000 scheme will be analysed using AI tools.

AI tools shall be incorporated into the online mechanism for processing application forms, resolving investor queries, decision making and licensing support by government agencies, the statement added.

Meanwhile, buoyed by the phenomenal response to the GenAI Conclave, Kerala will host a two-day Global Investors Meet to promote investments from companies in the AI sector next year, Rajeeve said.

The minister revealed a raft of ambitious plans of the Industries Department to ramp up the ecosystem in Kerala by attracting investment.


The Global Investors Meet has been planned in Kochi on January 14 and 15, 2025, he said.