Updated on January 08, 2026 01:26:18 PM
State Logistics Policy of Kerala aims to enhance the logistic, transportation and supply chain infrastructure of Kerala. The goal of the Kerala Logistics Subsidy is to help boost the economic condition of the state, avail moving of goods across regions seamlessly, increase export and reduce transportation costs. The Kerala Logistics Policy helps industries and promotes commerce by giving job opportunities through improvement of the road, railway, and port linkages. Kerala State Logistics Subsidy attracts investment, streamlines business activities and increases competitiveness in the state with compliance to the National Logistics Policy.
To encourage logistics and transportation infrastructure in the states, the state governments launched the State Logistics Policy. The Kerala Logistics Policy is associated with the National Logistics Policy as its goal is to enhance the supply chains and accessibility of the goods transported. The State Logistics Subsidy in Kerala aims at improving road, rail, air, port, building new warehouses and usage of digital tracking techniques. Kerala Logistics Policy is also implemented to reduce logistics costs of enterprises, quicker delivery of goods and human resource development in logistics management. The Kerala Logistics Subsidy is proposed for investments to create employment and overall economic development in Kerala by promoting suitable logistics structures.
The State Logistics Subsidy in Kerala offers several benefits to enhance the logistics sector and overall economic growth of the state which are listed below:
The Kerala Logistics Policy provides maximum subsidy rates and amount to businesses to ensure prevention of exploitation or unfairness of the intermediary. The State Logistics Subsidy in Kerala is categorized under 1 program which is listed below:
Investment subsidy
| Subsidy Rate | Subsidy Amount | Limitations |
|---|---|---|
| 20% of Eligible Fixed Capital Investment | Up to Rs 7 Crore | Only for Logistics Park |
| Rs 3 Crore | Mini-Logistics Park |
Listed below are some of the additional information about State Logistics Subsidy in Kerala for the logistics sector within the state.
Conclusion
The Kerala Logistics Subsidy is a program by the Government for the purpose of enhancing the economy of the state with improvement of transport and supply chain network. The Kerala Logistics Policy is in synchronization with the National Logistics Policy to upgrade road, rail, air, ports and attract more investment and generate employment in the state. The objective of the State Logistics Subsidy in Kerala is to reduce logistics costs, support sustainable development, and encourage ease of movement of goods in Kerala. Besides that, Kerala Logistics Policy also fosters competitiveness in the state and fosters healthy growth in various industries.
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Frequently Asked Questions
The State Logistics Policy in Kerala include 1 subsidy programs which are:
1) Investment Subsidy
The Kerala Logistics Subsidy is a Financial Scheme to encourage the development of the Logistics Transport and Supply Chain sector in the state by minimizing transportation expenses, improving the flow of products, and boosting the competitiveness in the market.
Kerala's draft logistics policy offers an investment subsidy of up to Rs 7 crore for logistics parks. A 10-acre park will receive Rs 7 crore, while a five-acre mini-park will get Rs 3 crore.
State Logistics Policy in Kerala would benefit the sectors associated with logistic infrastructure development such as logistics parks, warehouses, cold chains and multimodal logistics and it also aims at employment generation and attracting investment in said sectors.
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