Karnataka's Bold Vision for 2025-30: New Industrial Policy Aims to Transform the State into Asia’s Top Tech Manufacturing Hub
Deputy CM DK Shivakumar Unveils Strategic Blueprint Focused on Sustainability, Innovation, and Regional Development at GIM Invest Karnataka 25
BNH NETWORK
Bengaluru - Deputy Chief Minister, DK Shivakumar, unveiled the state's forward-looking Industrial Policy 2025-30 on Tuesday at the inaugural GIM Invest Karnataka 25 event, with a bold vision to position Karnataka as the leading destination for high-tech manufacturing in Asia. The policy aims to generate a massive ₹7.5 lakh crore in investments and create 20 lakh jobs, all while fostering equitable growth across regions and focusing on sustainable industrial practices.
Strategic Focus on Regional Balance and Sustainability
The new policy emphasizes inclusive development by promoting industrial growth outside Bengaluru, encouraging investments in underdeveloped regions. Large and Medium Industries Minister, MB Patil, explained that the policy segments districts into three zones, offering targeted incentives for industrially backward regions, while Bengaluru receives a differentiated incentive structure to balance growth.
Key Sectors to Drive Karnataka's Economic Growth
The policy identifies several high-potential sectors to fuel Karnataka’s economic progress, including Aerospace & Defence, Electronics, Core Manufacturing, Med Tech, Green Hydrogen, Future Mobility, Robotics, Biotechnology, and Pharmaceuticals. These industries are set to generate significant employment opportunities and contribute to the state’s ambition of becoming a global innovation hub.
Four Pillars for Long-Term Growth - The policy is built on four core pillars:
- Financial Incentives: Offering flexible options like Capital Subsidy and Production-Linked Incentives to attract investors.
- World-Class Infrastructure: Promoting public-private partnerships (PPP) and providing support for affordable housing and dormitories.
- Ease of Doing Business: Overhauling the Single Window System to streamline industrial approvals and permits.
- Human Capital Development: Collaborating with educational institutions to create a future-ready workforce and introducing tailored curriculums for ITIs and polytechnics.
Sustainability and Innovation at the Forefront
Karnataka’s industrial policy integrates green initiatives by developing Green Industrial Areas and incentivizing eco-friendly investments. The government also aims to foster R&D and innovation through the establishment of KWIN City (Knowledge, Wellbeing & Innovation City), envisioned as a global hub for research, healthcare, and innovation.
Empowering MSMEs and Promoting Inclusivity
A major highlight is the focus on empowering MSMEs (Micro, Small, and Medium Enterprises), with the introduction of a simplified Single Window Clearance System and land reservations for SC/ST entrepreneurs. The policy ensures 30% of industrial area land is earmarked for MSMEs and offers various support mechanisms such as technology upgrades, skill development, and cluster development programs to foster entrepreneurship.
Clear Roadmap for a Prosperous Future
Minister MB Patil emphasized that the Industrial Policy 2025-30 lays a solid foundation for Karnataka’s industrial future. With an unwavering focus on sustainability, innovation, and regional inclusivity, this policy positions Karnataka as a trailblazer in industrial development, offering immense economic opportunities and long-term growth for the state.
