 "Karnataka eyes Rs 1.4 trillion investment annually to boost state economy")
The Karnataka government has announced the initiation of several strategic initiatives aimed at attracting investments worth Rs 1.40 trillion annually, a 75 per cent increase from the current level. The plan is to bring a total investment of Rs 7 trillion over next five years with an aim of establishing Karnataka as a premier investment destination in Asia for future technology and advanced manufacturing.
"Our government has initiated several measures to make Karnataka an industry-friendly state,” stated M B Patil, Minister for Large and Medium Industries and Infrastructure Development, Government of Karnataka.
“We aim to create a conducive environment for all sectors to flourish,” he added,
Over the next five years, the government plans to grow at a rate of 15-16 per cent annually and increase the industrial sector's contribution to the Gross State Value Added (GSVA). Currently, the state attracts investments of about Rs 80,000 crore per year.
The government's focus sectors include aerospace and defence, electronic components, core manufacturing, warehousing and logistics. Additional sectors of interest are electric vehicles, textiles, semiconductors, space tech, and med tech.
Significant investment proposals received by the state government are from companies such as Foxconn, IBC, AMD, Qualcomm, Applied Materials, Marubeni, and Tata Technologies.
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“We have a robust pipeline of investments worth Rs 50,000 crore,” Patil remarked.
The Government of Karnataka is preparing to announce a new industrial policy soon, aiming to make the state the most preferred investment destination in the country.
“Measures like reconstituting the IKF Board, forming a strategic investment committee and establishing nine sector-specific vision groups will position Karnataka as a leading state for investors,” Patil added.
The strategic investment committee is tasked with guiding the industries department in attracting investments to the state. Nine Vision Groups have been established in various sectors, including aerospace and defence, ESDM, auto and EV, machine tools, pharma, core manufacturing, industry 5.0, textiles, and green energy.
To draw investors to its focus sectors, the government is establishing ready-built factories, industrial parks and clusters, and common facilitation centres. It has also digitised the application and approval process, providing real-time visibility of the Karnataka Industrial Areas Development Board (KIADB) land banks. Furthermore, the government is fostering industry-academia collaboration and upgrading its polytechnics with modern equipment and infrastructure.
The government has undertaken several initiatives to maintain industrial growth, including a recent delegation visit from the Department of Industries to the United States. The delegation engaged with US-based companies in technology, semiconductor, electric vehicles, aerospace, and healthcare, highlighting investment opportunities in Karnataka.
The Strategic Investment Committee under the Invest Karnataka Forum (IKF) is a notable development. IKF, in its revamped form, will benefit from the participation of leaders across various industrial sectors, including core manufacturing.
The government emphasised Karnataka's investor-friendly policies, which include multiple financial incentives to enhance cost economics and a readily available industrial ecosystem, including land. The state boasts a highly skilled and trained workforce, robust skill infrastructure, and subsidies.