Tharoor takes a U-turn: Slams Kerala's startup woes, calls for more MSMEs

Congress leader Shashi Tharoor shared his displeasure about the state's startup ecosystem whose growth is continuing to decline

In a U-turn from his earlier stance, Member of Parliament Shashi Tharoor has expressed disappointment over Kerala’s startup landscape, emphasising that the state needs more MSME start-ups – not just on paper.

 

On Sunday, Tharoor shared a report on social media platform X from The Times of India, which highlighted concerns about the state’s declining startup ecosystem. Referring the findings, he remarked, “Dismayed to see that the Kerala start-up entrepreneurship story is not 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 start-ups — and not just on paper. Kerala must head this way!”

 

 

Dismayed to see that the Kerala start-up entrepreneurship story is not 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 start-ups — and not just on paper. Kerala must head this way! pic.twitter.com/tVc22YWyGl

— Shashi Tharoor (@ShashiTharoor) March 2, 2025

The news report he shared said that over 42,000 MSMEs had closed in Kerala in the past nine years, leading to at least 1,03,764 job losses. This marks a departure from his earlier appreciation of the Kerala government’s efforts in fostering industrial growth.

 

However, State Industries Minister P Rajeeve called the report “baseless”. He said, “I provided a detailed reply in the Assembly on February 10. Recently, Union Commerce and Industries Minister Piyush Goyal stated in Parliament that 1,700 MSMEs shut down in Kerala over the past four years.”

 

Rajeeve also noted that while 30 per cent of MSMEs in India close within their first year, the rate in Kerala is only 15 per cent.

 

He claimed that the report was published with hidden motives since it did not mention the source of its numbers.

 

Controversy over Shashi Tharoor’s article

 

Recently, Shashi Tharoor, had written an article in an English daily. In that, he praised Kerala’s investment growth under the Left Democratic Front (LDF) government and spoke positively about the results of PM Modi’s US visit.

 

However, in response to Tharoor’s article, Congress leaders in Kerala, including Leader of Opposition VD Satheesan and party general secretary KC Venugopal, criticised his views and questioned his statements.

 

On February 23, Tharoor clarified that he was not praising the CPI(M)-led government. He said his article focused on Kerala’s progress in business and innovation. His aim was to highlight the state’s economic growth, not to make a political statement.

 

Tharoor at the centre of controversies 

 

Tharoor was also involved in another controversy regarding his exploration of options beyond the Congress party, which he later denied and alleged that he was misinterpreted by the media. 

 

Recently, he spoke in an interview on The Indian Express Malayalam podcast, where he said, “Even without making any effort, even without campaigning in Kerala, I seem to be ahead in people’s minds. If the party is interested in using that for its benefit, I am here. If the party is not interested, then we can each focus on our own paths. But don’t assume that I have no other options for my time. I always have options. I have my writing. I have my books. I have my lectures. I receive invitations from around the world to speak. There are so many conferences I have to decline because of my political and parliamentary commitments.”

 

Tharoor alleged that he was misinterpreted in the media report. Tharoor said he was not talking about other political options but his passion included writing books and speaking at conferences around the world. 

 

1/5 A rather important thread that i hope will be read in our country’s journalism schools:  The last few days have offered an object lesson in how the news is “made“. @IndianExpress wanted to draw attention to their new Malayalam podcast, so they did two somewhat shameless… pic.twitter.com/K1SAGdfMB3

— Shashi Tharoor (@ShashiTharoor) February 27, 2025

In response to the media report, Tharoor posted on X, “First, they took an innocuous statement (I said I had multiple “options to spend my time” in literary pursuits) and made a headline out of it in English that implied I was exploring other political options. And as usual, the rest of the media reacted to the headline and the political class reacted to the media, and I was left dealing with the mess!”