Karnataka unveils new industrial policy, targets 20 lakh jobs

Karnataka unveils new industrial policy, targets 20 lakh jobs

Mangalore Today News Network

Bengaluru, February 12, 2025: The Karnataka government on Tuesday, unveiled the state’s new Industrial Policy 2025-30, aiming to attract Rs 7.5 lakh crore in investments and create jobs for 20 lakh people by 2030.

Speaking during the inauguration of the Global Investors Meet, Invest Karnataka 2025, Chief Minister Siddaramaiah said: "The new industrial policy 2025-30 outlines Karnataka’s ambitious vision to drive innovation, sustainability and inclusive growth, aiming for 12% annual growth rate in the manufacturing sector."

The key focus sectors in the policy are aerospace and defence, electronics, advanced manufacturing (steel, cement, metals), Global Capability Centres (GCCs) and future mobility, among others.

Heavy and Medium Industries Minister M B Patil explained that the new policy would correct regional imbalances by providing additional incentives of 5% and 3% to the "most backward" and "more backward" taluks, respectively, as identified by the D M Nanjundappa Committee, which submitted its report in 2002. The report had identified 114 backward taluks (39 most backward, 40 more backward and 35 backward taluks).

The policy classifies districts into three zones, of which the first two zones include the backward taluks. Bengaluru Urban and Rural districts fall under the third zone with a different incentive structure. The new policy expands Zone-I to include 199 taluks, up from 152 in the previous policy.

Stating that the world was looking at India through Bengaluru and Karnataka, Deputy Chief Minister D K Shivakumar said: "The new policy was providing new incentives to the younger generation. We are not just looking at Bengaluru but beyond it since Bengaluru already has a population of 1.4 crore, with nearly 1.1 crore vehicles."

The new policy also focuses on the warehousing sector, making provisions for up to 20% capital subsidy to be included on fixed capital investment for warehousing projects, along with stamp duty reimbursement and electricity duty exemptions for five years. It also accords ’industry’ status to the logistics and warehousing sector.

To address skill shortage, the government will introduce workforce upskilling initiatives, as per the policy.

"The policy also introduces short-term and long-term curriculums for ITIs and polytechnics to create a future-ready workforce," Patil added. It also includes incentives for industrial dormitories for workers’ accommodation.

As previously reported, some key features of the policy are flexible subsidy options, sustainability incentives including one-time capital subsidies for initiatives such as zero liquid discharge and air pollution control, additional 10% incentives for industries that co-locate their research & development (R&D) centres or GCCs with manufacturing units, and incentives for industries with higher female workforce participation.

The state’s new single window clearance system was also launched at the ceremony. In the coming months, an affidavit-based (ABC) approval system will be introduced.

It earmarks 30% of industrial area land for MSMEs, with 24.1% of allottable land reserved for SC/ST entrepreneurs. Patil also announced that the Clean Mobility Policy would soon be unveiled.

Highlights - New thrust * New industrial policy targets 20 lakh jobs by 2030 * Focus sectors include aerospace and defence, electronics, advanced manufacturing, GCCs, future mobility * Policy accords ’industry’ status to the logistics and warehousing sector * Will introduce workforce upskilling initiatives * Short-term and long-term curriculums for ITIs, polytechnics to create future-ready workforce