Sabu M Jacob, the chairman and managing director of Kitex Group, has announced that his company will not be going forward with the investment of Rs 3,500 Cr at three places in Kerala. The investment proposal was made in January 2020. Eighteen months later, the investment proposal has been withdrawn.
Jacob, in a shocking statement, said that eleven teams of officers have raided his company since the last week of May. He sees this as going against the spirit of the Ease of Doing Business. His company was seeking to create 20,000 direct jobs.
Weighing in on the development, several commentators have said that the businessman’s outburst goes to show that Kerala continues to be a nightmare for industrialists. Prof. Shamika Ravi wrote, “If you have ever wondered why Kerala continues to have twice the unemployment rate as all-India, this should be an important case study to follow.” She added that, in 2019, Gujarat had an unemployment rate of 0.9%. On the other hand, Kerala had got a 12.5% unemployment rate.