Karnataka's New Industrial Policy 2025-30 targets investment of Rs 7.5 lakh crore
The policy also aims to accelerate the annual growth rate of the manufacturing sector in the state to 12% and generate employment opportunities for around 20 lakh people.
Karnataka's New Industrial Policy 2025-30 targets an investment of Rs 7.5 lakh crore.
The policy also aims to accelerate the annual growth rate of the manufacturing sector in the state to 12% and generate employment opportunities for around 20 lakh people during the policy period.
The Government of Karnataka launched the New Industrial Policy 2025-30 on Tuesday at the inaugural event of Invest Karnataka 2025. The policy was launched by Deputy Chief Minister D K Shivakumar.
The policy focuses on the sunrise sectors and aims to position the state as a leader in ESDM (electronics system design and manufacturing), advanced manufacturing, aerospace and defence, and future mobility.
During the inauguration, Chief Minister Siddaramaiah said that the state was the EV (electric vehicle) capital of India, and the largest aerospace hub with more than 65% of aerospace and defence manufacturing was in the state.
The state strives to ensure a balanced growth across regions by promoting industrial expansion in underdeveloped areas.
Deputy Chief Minister Shivakumar, at the launch, requested investors to use CSR funds for primary education across the state, by taking part in setting up of government schools.
To bridge the skill gap in the logistics and warehousing industry, the government plans to introduce workforce upskilling initiatives such as industry-connect workshops, skill gap assessments, vocational and technical training programmes aligned with industry needs, and specialised courses added to Industrial Training Institutes (ITIs) to train professionals for the sector.
The New Industrial Policy offers flexible subsidy options to investors to choose between production-linked incentives (PLI) and capital subsidy.
Additionally, the state announced one-time capital subsidies for sustainability initiatives such as zero liquid discharge, air pollution control, energy efficiency, and electrification of thermal processes, with companies having Greenco certifications receiving additional incentives.
As per the policy, industries that co-locate their R&D centres or global capability centers (GCCs) with manufacturing units are set to receive a 10% additional incentive.
The policy also aims to promote gender inclusivity with the introduction of special incentives for industries with higher female workforce participation.
Industrial dormitories will be incentivised with up to Rs 1 crore capital subsidy or PLI for every 1,000-person accommodation, improving worker living conditions.
The new policy also has a revised zone classification wherein zone 1 will include 199 talukas compared to 152 in the previous policy.
Edited by Swetha Kannan