Karnataka is encouraging a business-friendly regulatory environment with a dedicated GCC support unit that streamlines approvals through a single-window system. Fast-track approvals ensure that all GCC operational approvals are processed within 45 days, shared Dr. S. Selva Kumar, Principal Secretary, Commerce & Industries Department, Government of Karnataka in an exclusive interaction with Elets News Network (ENN). Edited excerpts:

Karnataka consistently ranks high in Ease of Doing Business (EoDB) indices. What are the specific government-led reforms or digital initiatives being implemented to further enhance EoDB, especially for MSMEs and startups in the state?

Karnataka has consistently ranked among the top states in India for Ease of Doing Business (EoDB), driven by progressive reforms and digital initiatives aimed at streamlining regulatory processes and enhancing investor experience. The state is now taking further steps to improve EoDB, particularly for MSMEs and startups, through two key initiatives: the New Single Window System and SME Connect.

1.  New Single Window System: To simplify and expedite investment approvals, Karnataka has introduced a revamped Single Window System, providing a one-stop solution for businesses. Key features include:

• Common Application Form (CAF): Investors can apply for approvals at both district and state levels through a unified interface.
• Accelerated Approvals: The Affidavit-Based Clearance (ABC) from Karnataka Udyog Mitra allows businesses to begin preparatory work before obtaining final approvals.
• Integrated Services: The platform offers access to 130+ business services across 30+ state departments and 45 district-level services, eliminating the need for multiple applications.
• KIADB Land Services: Investors can seamlessly apply for land allotment through the integrated GIS-based land availability tool, ensuring transparency in site selection.
• AI-Driven Assistance: A multi-lingual, Generative AI Chatbot provides real-time guidance on policies, incentives, and regulatory processes.

SME Connect – A Dedicated Support System for MSMEs

As part of Invest Karnataka 2025, the SME Connect initiative has been launched to empower small and medium enterprises (SMEs) by addressing market access, financial constraints, and technology adoption. Key components include:

• SME Connect Portal: A dedicated digital matchmaking platform connecting MSMEs with buyers, investors, and policymakers. This portal facilitates buyer-seller interactions and provides access to financial and technological resources.
• Industry 4.0 Training: In collaboration with NASSCOM and K-Tech, Karnataka is equipping MSMEs with advanced manufacturing and digital transformation skills, ensuring they remain competitive in a tech-driven economy.
• Vendor Development & Supply Chain Integration: AI-powered matchmaking helps SMEs connect with larger enterprises for supply chain opportunities.
• Global Investors Meet (GIM) 2025 Showcase: MSMEs will get dedicated exhibition space at GIM 2025, enhancing visibility and encouraging collaborations with global enterprises.

What is the state government’s approach to leveraging Public-Private Partnerships in critical sectors like manufacturing, IT, and green energy? Are there upcoming mega-projects you would like to highlight?

The Government of Karnataka has established Vision Groups to drive focused growth across nine key sectors: Aerospace & Defence (A&D), Machine Tools, Electronics System Design and Manufacturing (ESDM), Pharmaceuticals, Core Manufacturing, Automotive, Startups, Textiles, and Green Energy. These groups, comprising industry leaders, policymakers, and academia, play a crucial role in shaping the state’s industrial roadmap. Their efforts include sectoral planning, investment facilitation, and promoting Karnataka as a global business hub. Key initiatives include:

Also Read | Karnataka’s Vision for Innovation, Industry, and Investment

• Creating detailed sector-specific plans to attract high-value investments.
• Strengthening partnerships with multinational corporations, investors, and industry associations.
• Showcasing Karnataka’s industrial strengths through international roadshows, policy roundtables, and sector-focused investment summits.
• Advocating for industry-driven policy reforms to promote ease of doing business and encourage private-sector participation.

The Karnataka Startup Policy 2022-27 aims to stimulate the growth of up to 25,000 startups. What specific strategies are being employed to achieve this target, and how does the government plan to measure the success of these initiatives?

Karnataka has one of the strongest startup ecosystems in India. With around 15,000 active startups, Karnataka leads the country in technological advancements and entrepreneurial activities. Karnataka’s thriving ecosystem is supported by an extensive network of 1,565 venture capital and corporate venture funds and 17,164 angel investors. They support startups across various sectors such as IT, biotechnology and fin-tech.

Government initiatives like the Karnataka Startup Policy and Elevate 100 have been instrumental in providing financial aid, mentorship, and infrastructure support. The state’s robust IT infrastructure, skilled workforce and favourable regulatory environment have attracted significant venture capital investment, amounting to over $4 billion in 2023 alone.

Further, the state also conducts VentuRISE, a global startup challenge, to reward and support growth-stage startups in manufacturing sectors. The event provides an opportunity for budding entrepreneurs to showcase their solutions and products before a panel of experts in the field. Grants for ideas to Proof-of-concepts for startups in the sectors of Advanced Manufacturing, Robotics, Sustainability (Climate Change, Circular Economy, Renewable Energy), etc will be facilitated on a case-by-case basis.

Karnataka is home to over 550 GCCs, contributing more than $50 billion to the economy annually. With plans to double this number to 1,000 GCCs by 2029, what policies are in place to attract global corporations, and how is the government preparing to upskill the workforce for these roles?

Karnataka is committed to almost doubling its Global Capability Centres (GCCs) from 550 to 1,000 by 2029, contributing an additional $50 billion to the economy and creating 3.5 lakh new jobs. The Karnataka GCC Policy 2024-2029 is designed to solidify the state’s leadership in AI, deep-tech, and digital transformation while fostering a future-ready workforce.

The Government of Karnataka is committed to talent development to ensure workforce readiness for the future. Key initiatives include partnerships with top institutions to cultivate future leaders with interdisciplinary competencies, offering 1 lakh internships with reimbursement incentives for companies, and providing targeted technical and soft skills training. A significant focus is on AI and deep tech, with the establishment of an AI Skilling Council and a ₹100 crore AI Innovation Fund to develop specialised programs. Additionally, joint industry-academia research initiatives aim to bridge the gap between academic knowledge and industrial application.

Karnataka is also focusing on strengthening the local ecosystem beyond Bengaluru. This includes the establishment of government-backed innovation labs and Centres of Excellence (CoEs) focused on AI, deep-tech, and digital transformation. The state is promoting expansion in cities like Mysuru, Mangaluru, and Hubballi-Dharwad-Belagavi, offering GCC-friendly policies with rental reimbursements and EPF support. Start-ups are encouraged to collaborate with tech labs and incubation programs, driving innovation across the state.

The state is investing in world-class infrastructure and incentives, including the development of three new technology parks, one in Bengaluru and two in other cities. To drive regional industrial growth, GCCs setting up outside Bengaluru will receive rental incentives. The focus on sustainable infrastructure includes green buildings, smart city mobility, and enhanced connectivity to ensure seamless operations.

Karnataka is encouraging a business-friendly regulatory environment with a dedicated GCC support unit that streamlines approvals through a single-window system. Fast-track approvals ensure that all GCC operational approvals are processed within 45 days. A commercial real estate portal has been created to help GCCs find office spaces across the state, and employee support services assist in housing, school placements, and healthcare facilities.

Karnataka has established itself as a leading hub for startups in India. What initiatives has the government undertaken to strengthen this ecosystem?

Karnataka has firmly established itself as India’s leading startup hub, driven by progressive policies, sectoral focus, and strategic global partnerships.

Policy-Driven Growth

• Karnataka Startup Policy: Designed to support startups across key sectors such as IT, biotechnology, fintech, and deep tech, the policy provides financial aid, mentorship, infrastructure support, and regulatory assistance.
• Karnataka Global Capability Center (GCC) Policy: Encourages the establishment of AI-driven and advanced technology centres, enhancing Karnataka’s position as a tech-first innovation hub.
• Green Mobility Policy: Supports electric vehicles (EVs) and sustainable practices, attracting startups working on clean energy, battery technology, and mobility solutions.

Also Read | Karnataka Leading with Smart Sustainable Policies

 Flagship Startup Programs

• Elevate 100 Program: One of Karnataka’s flagship initiatives that identifies and funds high-potential startups, providing them with grants, mentorship, and incubation support.
• VentuRISE Global Startup Challenge: A global startup challenge, to reward and support growth-stage startups in manufacturing sectors. The event provides an opportunity for budding entrepreneurs to showcase their solutions and products before a panel of experts in the field.

SWIFT City: embodies Karnataka’s commitment to creating a future-ready, innovation-centric state, where startups, technology, and infrastructure come together to shape the economy of tomorrow.

• Sarjapura Industrial Area’s Transformation: The Government of Karnataka is reimagining the Sarjapura Industrial Area as SWIFT City, a cutting-edge startup hub designed to drive innovation and economic growth across high-growth sectors.
• Empowering Startups: SWIFT City will foster a dynamic ecosystem for startups by offering flexible business models tailored to various needs, including lease, rent, small plots, and equity-based arrangements. The initiative ensures startups at all stages receive the support necessary to thrive, from inception to scaling.
• Modern Workspaces: The city will feature state-of-the-art infrastructure with flexible workspaces, co-working areas, and plug-and-play models equipped with the latest technology. These facilities aim to reduce setup time and enhance productivity, creating a collaborative environment for innovation and networking.
• AI and Data Analytics Hub: Positioned as a centre for intelligence-driven solutions, SWIFT City will attract businesses specialising in artificial intelligence (AI), data analytics and fintech innovation, propelling advancements in these transformative technologies.

Considering the current trajectory, what are the projected industrial growth rates for Karnataka over the next five years, and which sectors are expected to be the primary drivers of this growth?

Karnataka is set to witness robust industrial growth, with a targeted annual manufacturing growth rate of 12% and a projected investment inflow of INR 7.5 lakh crore by 2029. The state aims to create 20 lakh new employment opportunities while positioning itself as a leader in sustainable and innovation-driven industries.

 Key Growth Sectors & Their Impact

GDP Accelerators: The sectors that have high-value additions to the net output while also becoming the key cogs of the supply chain. This includes key sectors like aerospace and defence, electronics components, core manufacturing, and warehousing and logistics.

• Employment Generators: The sectors with high dependence on human capital. This includes sectors such as textiles, electronics manufacturing services, Global Capability Centers (GCC), R&D centres, and manufacturing support services. By focusing on these industries, the government aims to create large-scale employment opportunities while strengthening the state’s core manufacturing support services, promoting inclusive industrial growth.
• Innovation Drivers: The new and sunrise sectors are heavily dependent on R&D and Technology to obtain a cutting-edge lead. Under this theme, sectors like future mobility, green hydrogen, drones, space technology, medical technology, and semiconductor manufacturing are actively being promoted.

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