Karnataka Budget Targets MSME Strengthening, GCC Expansion And Emerging Tech

Bengaluru, Mar 7 (KNN) The Karnataka state Budget presented by Chief Minister Siddaramaiah reflects the Karnataka government’s continued focus on economic growth, industrial expansion, technology development and balanced regional progress across Karnataka.

The Budget focuses on a Rs 4.48 lakh crore outlay strengthening MSMEs, AI, and industrial infrastructure. Key highlights include proposed tax reforms for MSMEs, including reduced stamp duty on loans, professional tax exemptions, and specialized industrial clusters.

It also plans to establish new industrial estates in Muddebihal and Kampli and provide 1,500 plots across industrial estates. Industrial clusters will be developed in Mysuru, including specialised printing and SC/ST units, based on industry requests. 

Logistics efficiency will be improved through high-speed rail and infrastructure upgrades. The budget also allocates Rs 10 crore for the first phase of the quantum technology roadmap to build MSME and startup capabilities in emerging sectors. 

Efforts are also aimed at attracting 500 additional Global Capability Centres (GCCs) by 2029 to boost demand for high-tech MSME suppliers, along with promoting AI integration in production systems. 

Industry reaction
Welcoming the announcements, Federation of Karnataka Chambers of Industries (FKCCI) President Uma Reddy said the Budget supports industry confidence, MSME development, emerging technologies and investment promotion. 

She noted that improved access to credit, infrastructure and technology would help small industries expand and generate employment.

Karnataka Small Scale Industries Association (KASSIA) President B.R. Ganesh Rao said the Budget contains several positive measures for industry, particularly in infrastructure creation, skill development and industrial growth beyond Bengaluru under the ‘Beyond Bengaluru’ strategy. 

He added that decentralised industrialisation under the Industrial Policy 2025–30 could help reduce regional disparities while opening new opportunities for micro and small enterprises.

Senior Vice President, Bangalore Chamber of Industry and Commerce (BCIC) K. Ravi said targeted incentives for the MSME sector, including skill development programmes and business reforms, are expected to strengthen manufacturing capacity and boost employment. 

Meanwhile, Shriram Properties Chairman Murali Malayappan said the move to upgrade the Kaveri registration system to version 3.0 and enable remote registration will simplify property transactions and improve ease of doing business.

Additionally, Concorde Managing Director Anil R.G. said investments in tunnel projects, metro expansion and road infrastructure will enhance urban connectivity, support real estate growth and open new development corridors in the state.

(KNN Bureau)