Kerala needs a comprehensive creative economy policy to unlock growth potential
Kerala's demographic and economic realities make a strong case for embracing the creative economy. Traditional industrialisation is challenged by the State's limited land availability, high population density, and comparatively high labour costs. Moreover, youth aspirations have shifted dramatically. Many young Keralites, while globally renowned for their work ethic — particularly in healthcare and IT sectors — are increasingly reluctant to take up blue-collar jobs back home. As a result, it is estimated that over one-third of Kerala's informal workforce now comes from other Indian States.
While Kerala has made notable strides in the IT and consulting sectors, inclusive development demands we address opportunities for those outside the formal tech pipeline — particularly freelancers, women, and creative entrepreneurs.
According to the Periodic Labour Force Survey 2023, Kerala's female labour force participation stands at only 25.5%, far below the national average of 37%, despite having the highest female literacy rate in the country.
Cultural and creative legacy
Kerala has always punched above its weight culturally. Malayalam cinema, acclaimed for its storytelling and innovation, has earned national and international recognition— with recent blockbusters reaching audiences far beyond state borders. Events such as the Kochi-Muziris Biennale, Asia's largest contemporary art festival, and traditional spectacles such as Thrissur Pooram and Nehru Trophy Boat Race, attract global visitors — yet their economic impact remains largely unmeasured and underleveraged.
The creative talent pool in Kerala is broad and dynamic — spanning film, animation, visual effects, architecture, design, advertising, performing arts, fine arts, and digital media. The success of Keralites across global creative industries is a testament to this vibrant ecosystem. This has not happened by accident — it is the result of progressive movements, social investments, and education reforms over the decades.
Cultural capital to creative capital
Kerala's cultural richness is deeply embedded in its architecture, literature, and traditional art forms such as Kathakali, Mohiniyattam, Theyyam, and Koodiyattam — many of which are now recognised as UNESCO Intangible Cultural Heritage. Institutions such as Kerala Kalamandalam, established in 1930 and now a Deemed University, have not only preserved endangered art forms but also attracted international students, making Kerala a hub of cultural exchange.
The State has also invested in contemporary institutions such as the K.R. Narayanan National Institute of Visual Science and Arts and the Kerala State Institute of Design, alongside a growing network of media schools and fine arts colleges. These are strong building blocks for a formal creative economy.
Time for a unified policy approach
Despite this potential, Kerala's creative sector remains fragmented and underserved. While progressive initiatives such as the Kerala Design Policy and the AVGC-XR Policy (focusing on animation, visual effects, gaming, comics, and extended reality) are commendable, a comprehensive, inclusive, and coordinated 'Creative Economy Policy' is urgently needed.
Such a policy should: Recognise all sub-sectors — from performing arts and digital content to crafts and design. Support entrepreneurship, local economic development, and export-readiness. Enable structured skilling, mentoring, and incubation for creative professionals. Drive inclusion, particularly for women, youth, and traditional artisans. Build robust infrastructure for festivals, residencies, and marketplaces.
A global template
Kerala can look to models such as the UK's Creative Industries Council, a cross-industry body that advises the government on the needs and opportunities in the sector. A similar entity in Kerala — a Kerala Creative Industries Council — could streamline policies, remove duplication across departments, and provide long-term strategic guidance.
An economic engine for the future
The creative economy is projected to represent 10% of global GDP by 2030, according to UNESCO. India's Ministry of Information & Broadcasting has already identified the AVGC-XR sector as a 'sunrise industry', and global players such as Netflix and Amazon are investing heavily in Indian content.
Kerala is well-positioned to ride this wave. With geographic charm, cultural depth, and abundant talent, the State has all the ingredients to become the 'Cannes of India' — a hub for creative excellence, tourism, and cultural commerce.
What Kerala needs now is a focussed, inclusive, and tech-enabled strategy to turn its cultural capital into creative capital. With the right ecosystem, we can build a future where Kerala's creative products are 'Made in Kerala, Consumed by the World.'
The author is Country Head, World Design Council – India
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