Ten years ago, Kerala wasn’t seen as a place for startups. It was known for its tourism, natural beauty and high literacy rates. But over the past decade, the state has quietly built one of the world’s most inclusive and impactful startup ecosystems.
This was made possible through strong government support, student-led innovation, rural inclusion and a growing focus on sustainability. Today, Kerala is home to more than 6,500 registered startups, which are solving real problems in areas like health, education, agriculture, climate and digital services.
The state has received global attention; not because it followed the typical Silicon Valley model, but because it focused on access, inclusion and long-term public value. It has provided over $10 million in funding to startups, including $8 million through venture capital funds. It also supports five active angel investment networks that help startups raise early funding.
A movement that started in classrooms
Over time, this network grew to over 530 IEDCs, making it the largest student innovation network in India. It became the foundation of Kerala’s startup community, helping young people across the state take their first steps as innovators and problem-solvers.
Unlike many ecosystems that focus solely on urban areas, Kerala developed a model that extends to rural and semi-urban regions. Initiatives like LEAP Co-works have supported young entrepreneurs in small towns and villages by providing access to co-working spaces, funding and mentorship. As a result, startups began to emerge not just from capital cities, but from small districts, community spaces and colleges spread across the state.
Infrastructure that supports everyone
To support this movement, Kerala built strong infrastructure. Today, the state has more than 10,000 co-working seats, 22 prototyping labs and multiple incubators and accelerators.
A major milestone was the launch of the Super FabLab in Kochi, set up in partnership with MIT’s Center for Bits and Atoms. It was the first and largest Super FabLab outside the US; it offers world-class tools for digital fabrication, helping early-stage innovators build and test prototypes locally.
This combination of wide access and decentralization has helped overcome the urban-rural divide in innovation.
Policy that opens doors
Kerala’s growth has been driven by smart policies implemented by the Kerala Startup Mission, making it easier for startups to grow and scale. The Direct Procurement Policy, for example, allowed startups to work directly with government departments and deliver real-world solutions.
Kerala was one of the first states in India to launch a startup policy promoting sustainability and impact-driven entrepreneurship.
A model for the world
As the world faces challenges like youth unemployment, lack of rural opportunity and climate change, Kerala offers a working model of how governments can build inclusive innovation systems. The state’s approach is not built on big venture capital or tech giants but on public investment, grassroots talent and policies that focus on the common good.
Kerala is now moving into its next phase, with a focus on deep tech and AI, climate startups, creative industries and women-led startups.
The goal is to make innovation even more accessible and future-ready. New programmes are supporting founders from diverse backgrounds, rural innovators and green startups, ensuring no one is left behind.
Kerala’s story is not just about numbers or rankings. It is about showing what’s possible when governments believe in young people and invest in ideas from the ground up. By starting young, supporting local talent and making sustainability a core principle, it has shown that any region can become an innovation hub if it puts people first.
This article first appeared in the World Economic Forum. Read the original piece here.
