From Work Near Home to Kochi Cyber Valley: What’s in Kerala Budget for IT sector
From scaling up the Work Near Home initiative and creating a new Cyber Valley in Kochi to increased funding for IT parks, startups and high-speed connectivity, the Budget signals a push to take tech jobs beyond urban centres while deepening Kerala’s position as a digital and innovation hub.
From scaling up the Work Near Home initiative and creating a new Cyber Valley in Kochi to increased funding for IT parks, startups and high-speed connectivity, the Budget signals a push to take tech jobs beyond urban centres while deepening Kerala’s position as a digital and innovation hub.
From scaling up the Work Near Home initiative and creating a new Cyber Valley in Kochi to increased funding for IT parks, startups and high-speed connectivity, the Budget signals a push to take tech jobs beyond urban centres while deepening Kerala’s position as a digital and innovation hub.
The Kerala Budget for 2026–27 presented by Finance Minister KN Balagopal has laid out a roadmap to strengthen the state’s IT and technology ecosystem, with a sharp focus on decentralised workspaces, infrastructure expansion and digital entrepreneurship. From scaling up the Work Near Home initiative and creating a new Cyber Valley in Kochi to increased funding for IT parks, startups and high-speed connectivity, the Budget signals a push to take tech jobs beyond urban centres while deepening Kerala’s position as a digital and innovation hub.
Work Near Home (WNH) Initiative: Following the inauguration of the first 'Work Near Home' facility in Kottarakkara, the project will be extended to at least 200 centers across the state in the coming year. An amount of ₹150 crore has been earmarked for the expansion of this project. These centers are designed to accommodate professionals in IT and IT-based jobs, with priority for new locations given to colleges, polytechnics, ITIs, and Local Government Institutions. New facilities in Kollam, Varkala, and Ramanattukara are currently in the construction stage.
IT Parks and Infrastructure
- A new Cyber Valley is planned across 300 acres of Kochi InfoPark Phase III. It will serve as a hub for AI, IT-based services, and digital entrepreneurship with an initial allocation of ₹30 crore.
- Specific allocations have been made for the state's major IT hubs:
- Technopark: ₹25 crore.
- Infopark: ₹21.60 crore.
- Cyberpark: ₹12.10 crore.
- IT-cum-Industrial Park in Kottarakara: ₹10 crore is allocated for a new integrated IT-cum-Industrial Park in Kottarakara.
- IT Professional Hostels: A new scheme will construct quality hostels for IT professionals on land provided by Technopark and Infopark, with an allocation of ₹5 crore.
Entrepreneurship and Startups
- Startup Growth: The startup ecosystem has grown significantly, reaching 6,477 startups in 2024-25. Total investment in this sector increased to ₹6,983 crore from just ₹280 crore in previous years.
- Digital Entrepreneurship: The Cyber Valley project is specifically designed to foster digital entrepreneurship alongside modern urban life.
- Entrepreneur Support Scheme (ESS): ₹110 crore is earmarked for the ESS, which provides capital assistance for starting MSME enterprises.
Connectivity and Smart Initiatives
- K-FON: To ensure high-speed internet connectivity, ₹112.44 crore is earmarked for K-FON activities, including ₹10 crore specifically for 'Tribal Connectivity'.
- Public Wi-Fi: ₹15 crore is allocated for the public Wi-Fi project, which already supports over 2,023 hotspots across the state.
- Smart Services: The government aims to transform all 1,666 village offices into Smart Village Offices.
- KITE and AI: ₹38.5 crore is allocated to Kerala Infrastructure and Technology for Education (KITE) to strengthen IT-based activities in schools. Artificial Intelligence has already been integrated into the state school curriculum.
- Global School: A 'Global School' focusing on Techno-Economics and Future Technology will be established with an initial state share of ₹10 crore.