INFORMATION Technology (IT) is the world's fastest growing economic activity.

The IT industry has been found to be ideal for Kerala in terms of its potential to generate opportunities and employment with little pressure on land, environment and other resources.

Kerala is a fertile ground for the growth of the IT industry. Government realises the significance and potential of this sector in the economic development of the State. It has many locational advantages for Software and Software Exports Industry.

The Software Technology Park in Trivandrum (STP-T) provides state-of-the-art communication infrastructure through its dedicated satellite earth station. Low start-up and operating cost when compared to other parts of the country is a vital advantage.

Kerala is a model state in education and has a vast pool of skilled manpower conversant in English.The Software Technology Park in Trivandrum (STP-T) boasts of a built-up space of seven lakh square feet, with a dedicated leased line providing High Speed Data Communication facility.

The Satellite Earth Station within the STP-T provides high-speed data net work from 64 KBPS to multiples of 64 KBPS.

A simple application at the office of STP-T takes care of the need to venture in to a software business in Kerala.

It provides ready to use built up space from day one and provides consultancy for projects and assists in manpower recruitment, training, legal issues and documentation.

The STP-T helps the entrepreneurs in liasoning with the government and other agencies; issues licences for procuring of capital goods etc.

Kerala Government agencies offer immense help to set up new ventures in IT sectors. A venture capital fund is proposed to offer financial assistance for the entrepreneurs. Outright grant of 20 per cent of capital investment with a ceiling of Rs 25 lakh per project is given to the IT industry.

Grant of 50 per cent of the total cost of feasibility study for small and medium industries, Duty free Imports and tax exemption for Export Oriented Units, Exemption of Duty and Registration charge for purchase and sale of land or built-up space and Priority in power connection are some of the advantages Kerala offers for the IT sector.

Kerala Government aims at modernisation of governmental functions by effective use of IT to bring in more transparency. Networking and Computerisation of local self-governing bodies to expedite transactions like certificates, licences, tax collection etc.

Training and orientation of personnel at all levels of village, district and state governing bodies and setting up internet kiosks accessible to public in every panchayat are some of the other objectives of new IT policy.

All the Treasuries and Co-operative banks in the state are inter-connected. Secretariat Wide Area Network connects the officers of the ministers, secretaries and departments. Kumarakom panchayat in Kottayam district became the first place in India to have e-governance. These achievements along with the efforts to go for expeditious computerisation have made Kerala an ideal place for setting up an IT business with their allied products.