Kerala is the only state in the country to have recorded growth in receiving industrial entrepreneurs memorandum (IEM) proposals during 2012-14 as against 2009-11, according to Assocham.

The growth rate is to the tune of 315%, the industry body said in its study titled 'Realising economic growth potential in Kerala'.

"Kerala had received industrial entrepreneurs memorandum (IEM) proposals worth over Rs 17,600 crore during 2012-2014, just about 1% of the total IEMs worth about Rs 15 lakh core received across India. Kerala had attracted outstanding investments worth about Rs 3 lakh crore accounting for just about two% of the total outstanding investments worth Rs 157 lakh crore attracted by states across India as of 2014-15," the study said.

Services sector (other than financial) accounted for the largest share of 54.5% in total outstanding investments attracted by the state, followed by manufacturing (27.5%), real estate and construction (8%) and electricity (7.5%), Assocham said in a release.

"Investments attracted by Kerala have grown at a compounded annual growth rate (CAGR) of over 13% during the course of past decade i.e, between 2004-05 and 2014-15," Assocham Secretary General D S Rawat said.

Investments attracted by construction and real estate sector have recorded highest CAGR of about 44%, followed by mining (20%), irrigation (18%), manufacturing (15%), services (13%) and electricity (4%).

However, about 54% of total investments attracted by Kerala have remained non-starters as of 2014-15, the study said.

In its study, The Associated Chambers of Commerce and Industry (Assocham) has suggested to the state authorities to focus on improving physical infrastructure like roads and power supply to improve industrial productivity and competitiveness, especially in the micro, small and medium enterprises (MSMEs) sector, which employs over 33 lakh people in Kerala.

"Kerala should create new employment opportunities by partnering with private sector to realise the objective of robust economic growth and promote agriculture and food processing industry, tourism, textile, rubber, and other such sectors," it suggested.

Besides, it is also required to provide training to farmers and producers to improve quantity, quality and promote usage of new technologies in farming sector, it said. The state government should facilitate modernisation and technological upgradation of different segments of industry to make them globally competitive and liberalise procedures and reforms to lure investors for setting up industrial units, the study said.

Ensuring timely implementation of projects by providing license and clearance from concerned departments in a stipulated time frame and rehabilitation of sick industrial units were some other suggestions in the study.