Karnataka Unveils Industrial Policy 2025-30, Aims For Rs 7.5 Lakh Cr Investment & 20 Lakh Jobs

ENA State 2025-02-12 13:57:11 Bengaluru, Feb 12 (KNN) Karnataka Deputy Chief Minister D K Shivakumar has launched the state's Industrial Policy 2025-30, presenting an ambitious framework for sustainable industrial development across the region. The policy, unveiled during the GIM Invest Karnataka 2025 event in Bengaluru on Tuesday, sets forth substantial investment and employment targets while emphasising balanced regional growth. The new policy framework establishes Karnataka's vision to emerge as Asia's premier destination for high-technology manufacturing investments. With a strategic focus on decentralisation, the government has implemented a targeted approach to industrial development beyond Bengaluru, incorporating special incentives for research and development initiatives. Companies that transform their R&D operations into manufacturing units will receive an additional 10 percent incentive package. The government has outlined ambitious objectives, targeting investments of Rs 7.5 lakh crore and the creation of 20 lakh new employment opportunities during the policy period. To facilitate balanced regional development, the policy introduces a three-zone classification system. Zones 1 and 2 encompass industrially underdeveloped taluks and districts, while Zone 3 covers Bengaluru Urban and Rural districts. Each zone features customised incentive structures designed to promote equitable industrial growth across the state. The policy identifies strategic focus sectors including aerospace and defence, electronics, steel, cement, warehousing and logistics, textiles, future mobility, and emerging technologies such as green hydrogen and industrial robotics. Additional priority areas encompass drones, medical technology, space technology, biotechnology, renewable energy, pharmaceuticals, automobiles, FMCG, and tourism. The framework is structured around four fundamental pillars: financial incentives offering choices between capital subsidy and production-linked incentives; infrastructure development promoting public-private partnerships and sustainable industrial areas; streamlined business processes through an enhanced single-window system; and human capital development fostering industry-academia collaboration. Significant emphasis has been placed on MSME development, with the policy mandating 30 percent land allocation in industrial areas for these enterprises and reserving 24.1 percent for SC/ST entrepreneurs. The policy introduces various support mechanisms for MSMEs, including expedited approvals, marketing assistance, and technology upgradation support, complemented by excellence awards to foster innovation. Environmental sustainability and innovation form crucial components of the policy, with specific incentives allocated for green industrial practices. The framework also emphasises research and development, supporting startup ecosystems and establishing KWIN City as a centralised hub for research and healthcare innovation. Large and Medium Industries Minister M B Patil emphasised that this comprehensive policy establishes a robust foundation for Karnataka's industrial future, balancing technological advancement with sustainable development while prioritising employment generation and economic growth across all regions of the state. (KNN Bureau) 41031 https://knnindia.co.in/news/newsdetails/state/karnataka-unveils-industrial-policy-2025-30-aims-for-rs-75-lakh-cr-investment-20-lakh-jobs 2025-02-12 13:57:11 knnindia.co.in Karnataka Unveils Industrial Policy 2025-30, Aims For Rs 7.5 Lakh Cr Investment & 20 Lakh Jobs