Sridhar Vembu, CEO of Zoho Corporation, recently shared his belief that Kerala has the potential to achieve economic prosperity similar to Taiwan. His comments were made in response to a tweet by Thomas Isaac, a member of the Central Committee of the Communist Party of India, who celebrated the electoral success of the Student Federation of India (SFI) in college union elections across the state. Vembu, known for his deep involvement in economic discussions, took the opportunity to highlight a critical issue facing Kerala: the outflow of talented youth.
The Talent Drain
Vembu pointed out that many of Kerala’s graduates leave the state after completing their education to pursue job opportunities in other regions or even abroad. He believes this talent drain is a significant obstacle to Kerala’s economic growth and that reversing it could lead to a much more prosperous future for the state. “I say this as someone who loves Kerala. Kerala could be as rich as Taiwan,” he remarked on social media platform X (formerly Twitter).
Job Creation and Entrepreneurship
Vembu emphasized the urgent need for local job creation in Kerala. He noted that many entrepreneurs who were born in Kerala are starting their businesses elsewhere, depriving the state of valuable economic contributions. To change this, Vembu suggested that Kerala should foster a more supportive environment for entrepreneurship and job creation, allowing the state’s talent to flourish locally.
Lessons from East Asia
Vembu also urged Isaac to consider the economic development strategies of East Asian leaders like Deng Xiaoping of China and Lee Kuan Yew of Singapore. He suggested that Kerala could learn valuable lessons from their approaches to economic reform, noting that Deng Xiaoping even had Lee Kuan Yew as an advisor during China’s transformation. These strategies, Vembu implied, could serve as a guide for Kerala to enhance local opportunities and retain its talent.
Engagement in Economic Policy
Vembu’s comments reflect his active engagement in broader economic discussions, particularly in the context of India’s technological and policy landscape. In another recent debate, Vembu defended the Indian government’s selection process for the AI Centres of Excellence (CoE), responding to criticism from former Infosys board member Mohandas Pai. Vembu clarified that the selection was based purely on merit, not political influence, with strong proposals coming from institutions in southern India.
Conclusion
Vembu’s insights bring to light an important conversation about Kerala’s potential for economic growth and the challenges it faces in retaining talent. His remarks suggest that by addressing these issues, the state could unlock new levels of prosperity, matching the success seen in places like Taiwan.
