The fast-growing IT sector in Kerala has helped the state live down its long-held image as a poor destination for investment bedevilled by labour troubles and political meddling.

The IT sector in Kerala has so far remained largely free from militant trade unionism and strikes, which had stalled flow of investment to the manufacturing sector, and often prompted several existing units shift to other states over the decades.

"Yes, IT is on an upswing in Kerala with the growth far surpassing the national rate. But the striking thing about the IT growth in Kerala is that it helped the state to establish itself as a highly attractive destination for investors?, said Mervin Alexmander, CEO of Technopark here.

The first major dedicated IT park in the country, Technopark, located on the city outskirts, completed its 20th year last month and has embarked on a major expansion drive.

According to official figures, Kerala's share of the national export of IT sector has steadily increased from 0.7 per cent in 2000-01 to 1.01 per cent in 2009-10. The state?s contribution in money terms rose from Rs 141 crore in 2000-01 to Rs 2,412 crore by 2009-10.

""The very fact that Indian IT majors like Infosys, TCS, Wipro and Toonz have come to Kerala is proof of its success in the IT sector. The investor confidence in Kerala has been further reinforced through the government?s policy and many more companies are coming to the state," Alexander told PTI.

Considering the unique social and economic features of Kerala, the state has been pursuing a multi-tier development strategy which helped IT percolate down to the grassroot level.

At the apex level are major parks like Technopark and Infopark (Kochi). Then there are middle-level facilities in districts and at the base there are technolodges.

Apart from the IT as business, its application has been extended to lower rungs of administration and education.

Though Kerala is reputed for militant trade unionism and frequent hartals, its IT industry has remained insulated to any major hold-up.

According to industry sources, broad policy consensus among political parties on IT development, despite CPI(M)-led LDF and Congress-controlled UDF alternating in power in every five year, has helped create a conducive atmosphere for the IT ventures to flourish.

"There has been a realisation that the state requires a paradigm shift to productive sectors instead on resting on its past achievements in the social sector. Considering factors like its human resource potential and fragile environment, industries like IT and tourism are the most promising areas," the CEO of a leading unit at Technopark said.

However, some trade union leaders think that allowing the IT sector to have a free-for-all would harm labour interests in the long-run. Many of them,especially from the Left stream, have often raised serious objections to unrestricted powers and privileges accorded to Special Economic Zones (SEZs), holding that they led to exploitative practices.

At the same time, they agree that special approaches need to be evolved in addressing labour issues in the IT sector, different from conventional methods and union practices.

"We cannot not say that IT sector is free from all sorts of problems. IT sector is integrated to the global context in the first place. Then, the social and professional profile of the bulk of the workforce are different. Factors like these should be taken into account before evolving an approach towards industries like this,"" a senior trade union leader, who does not want to be identified, said.

He, however, said sooner than later professionally competent labour leaders from within the IT industry would emerge to tackle the issues in effective and positive ways.