Congress Working Committee member and Thiruvananthapuram MP Shashi Tharoor has reversed his stance on industrial growth in Kerala. Making a U-turn on his position, the Congress leader on Sunday said that startups should not remain confined to paper alone.

Tharoor stated that the Kerala government’s intentions were good, however, he added that the reality on the ground was not reflected in reports. Tharoor expressed his new stance on Kerala startup entrepreneurship while referring to a report published by The Times of India, which highlighted the closure of several small and medium enterprises in the state.

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He shared a Times of India article titled ‘Kerala’s real MSME story: Over 42,000 closures in 9 yrs, government claims growth’ on his X handle to express his changed view. The report claimed that nearly 50,000 MSMEs had shut down in Kerala over the past nine years, resulting in more than one lakh job losses.

“Dismayed to see that the Kerala startup entrepreneurship story is not only what’s been reported. The only silver lining is that at least the GOK’s claims point to the right intentions. We need more MSME startups—and not just on paper. Kerala must just head this way!” Tharoor wrote on his X handle along with the Times of India article.

Tharoor had earlier sparked controversy by stating that Kerala is an industry-friendly state with no hurdles in setting up businesses. His comments triggered widespread debate in the political circles. While the ruling CPI-M hailed his remarks, Congress leaders came out against him, asking from where Tharoor has got these figures about the growth of MSMEs in Kerala.

In his article, ‘Changing Kerala: Lumbering jumbo to a lithe tiger’, published in The New Indian Express recently, Tharoor highlighted Kerala’s new industrial policies, focusing on knowledge-based industries like AI, blockchain, and machine learning.

“Kerala, with its strong historical foundation and strategic economic initiatives, has emerged as a dynamic centre for startups. Kerala’s startup ecosystem has experienced impressive valuations and rapid scaling, positioning the state as a key player in India’s economic ascent and a recognised leader in fostering entrepreneurial excellence,” Tharoor says in the article.

“The state has implemented a new industrial policy focusing on knowledge-based industries, including AI, blockchain technology, and machine learning. Under the state’s “Year of Enterprises” initiative, over 2,90,000 MSMEs have been established, with significant investments and support for women and transgender entrepreneurs. I had been constrained to observe in the past that “god’s own country” was the devil’s own playground for business. If that is no longer true, we all have reasons to celebrate,” he further says in the article.

Coming out against Tharoor’s praise for the LDF government’s industrial policy, Opposition leader VD Satheesan said Kerala is not a state with favourable industrial conditions and that he was not sure if Tharoor had written the article based on real studies.

Questioning the credibility of Tharoor’s data on startups, Satheesan said, “I do not know from where Tharoor has got these figures about the growth of MSMEs in Kerala. Many of the Kerala diaspora, who return from abroad, open shops, bakeries, and small ventures, but how can such ventures be accounted into the MSME figures?”

Senior Congress leader Ramesh Chennithala said that the claims in Tharoor’s article were far from reality. “I don’t think Tharoor knows the facts. Enterprises shut down in a minute here in Kerala,” Chennithala said.