Bengaluru: Deputy Chief Minister DK Shivakumar on Tuesday launched Karnataka’s Industrial Policy 2025-30 with a vision to position the state as the top destination for high-technology manufacturing investments in Asia at the inaugural event of GIM Invest Karnataka 25. “The policy focuses on equitable and sustainable development while aiming to attract ₹7.5 lakh crore in investments and generate 20 lakh new jobs during the policy period. A key objective is to ensure balanced growth across regions by looking beyond Bengaluru and promoting industrial development in backward areas” Shivakumar said.
Highlighting about the key features of the policy, Large and Medium Industries Minister MB Patil said, “To achieve the objective, the policy classifies districts into three zones. Zone-1 and Zone-2 include industrially backward taluks and districts that will receive differential incentives to encourage investments. Bengaluru Urban and Rural districts fall under Zone-3 with a different incentive structure, ensuring targeted support for industries in less developed areas”.
The policy identifies key focus sectors that will drive economic development and job creation across Karnataka. These include Aerospace & Defence, Electronics, Core Manufacturing (Steel, Cement, Metals), Warehousing & Logistics, Textiles, Global Capability Centres, Future Mobility, Green Hydrogen, Industrial Robots, Drones, Augmented Reality/Virtual Reality, Med Tech, Space Tech, Biotechnology, Renewable Energy, Pharmaceuticals, Automobiles, Capital Goods, FMCG, and Tourism.
According to Patil,
the policy is built on four key pillars. It offers financial incentives by allowing investors to choose between Capital Subsidy and Production-Linked Incentives. It ensures world-class infrastructure by promoting PPP collaborations and supporting dormitories and affordable housing for ultra-mega investments. To enhance ease of doing business, the government has revamped the Single Window System with simplified processes for industrial permits and approvals, he explained. “Additionally, the policy focuses on human capital development by fostering industry-government-academia collaboration. It also introduces short-term and long-term curriculums for ITIs and polytechnics to create a future-ready workforce” Minister noted.
Focusing on four key enablers, the policy promotes sustainability by developing Green Industrial Areas and incentivizing green initiatives by investors. It boosts innovation by strengthening the R&D and startup ecosystem and establishing KWIN City (Knowledge, Wellbeing & Innovation City) as a hub for knowledge, healthcare, innovation, and research. The policy ensures inclusive development by strengthening the MSME ecosystem through infrastructure support, incentives for women entrepreneurs, and industrial cluster development in backward regions. Additionally, it reinforces governance through regular monitoring for transparency and seamless execution.
Providing a major push for MSMEs, the policy introduces an affidavit-based (ABC) approval system and a simplified Single Window Clearance System to streamline approvals. It earmarks 30% of industrial area land for MSMEs, with 24.1% of allotable land reserved for SC/ST entrepreneurs. The government will also support MSMEs through vendor development conclaves, marketing support in public procurement, technology upgradation assistance, skill development initiatives, MSME Manufacturing Excellence Awards, and cluster development programs. The policy also offers attractive incentives and concessions to encourage industrial growth and entrepreneurship.
“The Karnataka Industrial Policy 2025-30, sets a clear roadmap for the state’s industrial future. With a strong emphasis on sustainability, regional balance, MSME empowerment, and innovation, the policy aims to keep Karnataka at the forefront of industrial growth. It is expected to create widespread employment and economic opportunities across the state”, Minister Patil emphasised.
