Karnataka’s Industrial Leap: ₹7.5 Lakh Crore Investment, 20 Lakh Jobs, and a High-Tech Future

Karnataka’s Industrial Policy for 2025-30 outlines a comprehensive strategy to position the state as a leader in high-tech manufacturing and sustainable economic development. The policy aims to attract investments totaling ₹7.5 lakh crore and generate 20 lakh jobs over the next five years.

Key Objectives:

Investment and Employment: The policy targets ₹7.5 lakh crore in investments and the creation of 20 lakh jobs by 2030.

Manufacturing Growth: It seeks to accelerate the annual growth rate of the manufacturing sector to 12%, reinforcing Karnataka’s position as a manufacturing hub.

Strategic Initiatives:

  • Balanced Regional Development:
  • The policy introduces a zoning strategy to promote industrial growth beyond Bengaluru, focusing on underdeveloped districts.
  • Infrastructure Development:
  • Plans include establishing 12 new investment zones across 30,000 acres, with an allocation of ₹3,800 crore for clean water supply to these areas.
  • Incentives for Investors:
  • Investors can choose between capital subsidies and production-linked incentives (PLI), offering flexibility to attract diverse investments.
  • Sectoral Focus:
  • Priority sectors include aerospace and defense, electronics, renewable energy, pharmaceuticals, biotechnology, and future mobility. The policy emphasizes developing industry-specific clusters to drive economic growth.
  • Support for MSMEs:
  • The policy reserves 30% of land in industrial areas for micro, small, and medium enterprises (MSMEs) and 24.1% for SC/ST entrepreneurs. Initiatives include faster clearances, technology upgrades, and marketing assistance.
  • Sustainability and Green Initiatives:
  • The policy promotes green industrial practices by incentivizing sustainability initiatives such as zero liquid discharge, air pollution control, and energy efficiency. Companies with Greenco certifications receive additional incentives.
  • Human Capital Development:
  • Efforts include strengthening industry-academia collaborations and updating curricula in Industrial Training Institutes (ITIs) and polytechnics to align with industry needs.