Kerala: Shashi Tharoor ruffles feathers with article; UDF leaders upset

In his article, Tharoor highlighted Kerala's impressive 254 per cent compound annual growth rate of start-ups from mid-2021 to late 2023, significantly surpassing the global average of 46 per cent. He commended the state for its improved ease of doing business ranking, which saw a dramatic leap from 28th to a top position among Indian states.

Further, he referenced industries minister P Rajeev's claim that businesses could now be established in Kerala within "two minutes," a statement that, while perhaps exaggerated, reflects a broader narrative of progress in the state's business environment.

Issues clarification

On Sunday (February 16), Tharoor clarified that he did not praise the CPI(M)-led government in Kerala, but instead highlighted the state's progress in the startup sector.

Speaking to reporters, Tharoor said that his article in an English daily did not contain any political references. He emphasised that his focus was solely on Kerala’s growth in entrepreneurship and innovation, aiming to highlight the state's development in that specific area.

Also read: ‘Encouraging, big concerns addressed’: Tharoor praises Modi-Trump meet in US

However, this is not the first time Tharoor has lavished his praise on non-Congress leaders and governments. It may be recalled that late last week, Tharoor said the press statements by Prime Minister Narendra Modi and US President Donald Trump after their meeting in Washington were “encouraging” and addressed some of the big concerns.

Speaking to the media in Bengaluru on the sidelines of the Global Investors’ Meet (GIM), Tharoor said: “If you look at the main issues we have heard about so far, I am very encouraged and I look forward to more details when the Prime Minister and his team are back and expect a briefing from the MEA in the standing committee.”

Congress leaders upset

However, Tharoor's praise has not gone down well with many Congress leaders. Opposition Leader V D Satheesan publicly rejected Tharoor's claims, questioning the validity of the statistics presented and asserted that Kerala remains far from being an investor-friendly state.

He criticised the notion that small businesses opened by returning NRIs should be counted as significant contributions to the state's economic growth. Satheesan's remarks echoed sentiments from other senior Congress figures, including Ramesh Chennithala, who dismissed Tharoor's views as misinformed and disconnected from the ground realities of business operations in Kerala.

A section within the Congress party is unsettled by the developments, as they appear to benefit the LDF rather than the party.

"Some leaders are becoming overconfident, assuming victory in 2026 is certain. They should remember that we had the same feeling in 2021, some even started acting as if they were the chief minister but in the end, Pinarayi Vijayan had the last laugh, and that too with a massive margin. Those who are blindly opposing Tharoor and solely criticising the government should keep this in mind and act rationally," a former MLA told The Federal.

Boiling point

The internal discord reached a boiling point as Congress leaders began to distance themselves from Tharoor's assertions. K Sudhakaran, president of the Kerala Pradesh Congress Committee (KPCC), admitted he had not read Tharoor's article but acknowledged the dissent brewing within party ranks.

Meanwhile, K Muraleedharan mocked Tharoor’s position, suggesting that his views were those of a "universal citizen" rather than a grounded political leader.

However, former Congress MLA K S Sabarinathan also echoed Tharoor’s views, stating that politics should not come in the way of the state's development.

Also read: Court dismisses defamation case against Shashi Tharoor

The fallout

The fallout from this controversy has implications beyond internal party dynamics; it offers the LDF an opportunity to bolster its narrative of economic development in the backdrop of Congress’s historical criticisms of the party. The CPI(M) has eagerly seized upon Tharoor's statements to reinforce its claims of successful governance and economic innovation in Kerala.

In fact, the article has given a significant boost to the LDF and CPI(M), which have been trying to strengthen their position by trying to activate the industrial sector. The party had already begun preparing for the LSG elections, campaigning on projects that the previous UDF governments had nearly abandoned but were revived and successfully completed by the LDF after coming to power in 2016.

Shashi Tharoor’s article on the start-up ecosystem in Kerala has given them ample fire power to push this campaign.

"We are grateful to Shashi Tharoor for speaking the truth, and it is imperative that everyone comes together for the state's development. Governments may change, but progress must continue. The discord among Congress leaders should be resolved through other means, and the state's development should not be compromised because of it," said industries minister P Rajeev.

Good initiatives should be recognised

As criticism mounted, Tharoor stood firmly by his observations. He clarified that his praise was based on credible data from the Global Startup Ecosystem Report and was not intended as an endorsement of any political party. He emphasised that good initiatives should be recognised regardless of their origin and argued for continuity in successful policies across government transitions.

Tharoor’s defense included an acknowledgment of the exaggerations regarding the speed of business registration but maintained that significant strides had been made in streamlining processes through single-window clearances. His comments reflect a broader understanding that while challenges remain, acknowledging progress is crucial for fostering a constructive political dialogue.

UDF’s industrial policies

However, the UDF leadership has launched a rescue effort, with former industries minister and IUML leader P K Kunhalikutty stepping in, asserting that the developmental surge in the state was driven by previous UDF governments.

“We introduced several industrial policies when KM Chandrasekhar was the industries secretary under my tenure. It was during this time that KINFRA (Kerala Industrial Infrastructure Development Corporation) was launched experimentally. After the era of (former CM) C Achutha Menon and T V Thomas, KINFRA parks played a pivotal role in transforming Kerala's industrial sector. We moved forward with a strong commitment to infrastructure development,” Kunhalikutty said.

He further noted that all major companies were later established within KINFRA parks and that even land for airports was acquired through KINFRA.

'Remarkable growth'

“Kakkanad was once an unremarkable suburb of Kochi, but it witnessed remarkable growth with the establishment of InfoPark,” he said. “We ensured the timely development of InfoPark. The Kakkanchery Park, near Calicut University, was inaugurated by the then Indian President for research purposes, and today, it is fully occupied,” he added.

As discussions continue within Congress about how to address Tharoor's remarks, it is clear that this controversy has exposed deep divisions within the party regarding its stance on economic issues and governance in Kerala.

The leadership is now faced with reconciling these differences while maintaining a coherent message ahead of the upcoming elections.