Karnataka’s Industrial Policy for 2025-30

February 12, 2025

Karnataka has revealed its new industrial policy for 2025-30. This policy aims to attract ₹7.5 lakh crore in investments and create 20 lakh new jobs. The focus is on equitable growth across all regions. It seeks to promote industrial development beyond Bengaluru, particularly in backward areas. The policy was announced during the global investors meet, ‘Invest Karnataka 2025’.

Investment Zones and Infrastructure Development

The policy will establish 12 new investment zones across 30,000 acres.
This is in addition to over 200 existing industrial areas.
The government has allocated ₹3,800 crore for clean water supply to these industrial areas.
The initiative is part of a broader strategy to enhance production efficiency while reducing costs.

Incentives for Investors

The policy offers financial incentives. Investors can choose between capital subsidies or production-linked incentives. This flexibility is designed to attract more investments. The government is particularly keen on promoting green initiatives. This aligns with global sustainability goals.

Sectoral Focus Areas

Key sectors identified for growth include aerospace, defence, electronics, and renewable energy.
Other focus areas are pharmaceuticals, biotechnology, and future mobility.
The government aims to develop clusters for specific industries.
This cluster-based approach is expected to drive economic growth.

Support for Small and Medium Enterprises

The policy places emphasis on small and medium enterprises (SMEs). These enterprises employ around 55 lakh people across 8 lakh units. Supporting SMEs is crucial for job creation and economic stability. The government plans to provide targeted assistance to enhance their growth.

Technological Advancements and Digital Transformation

The state is prioritising digital transformation. Investments in AI, blockchain, and cloud computing are underway. This focus aims to future-proof the digital economy. Karnataka is already a leader in software exports and electronic product manufacturing. The government is keen on maintaining this competitive edge.

Global Connectivity and Economic Potential

Karnataka is also addressing connectivity issues. Plans for a second international airport in Bengaluru are in progress. This will enhance the city’s global connectivity. The state currently accounts for 60% of India’s electronic exports and over 40% of software exports. This economic potential is a key attraction for investors.

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