Karnataka has proactively engaged in international investment roadshows across USA, Europe, Japan, and South Korea. These efforts have secured over $3 billion in investment commitments, further strengthening Karnataka’s position as a preferred global investment destination shared Dr. Shalini Rajneesh, IAS, Chief Secretary, Government of Karnataka in an exclusive interaction with Elets News Network (ENN). Edited excerpts:

Karnataka stands as a premier investment hub in India. What distinctive strengths and opportunities are driving its appeal to global investors?

Karnataka has firmly established itself as a premier investment hub, driven by its robust industrial base, innovation-led economy, and proactive government policies. The state plays a crucial role in India’s economic landscape, contributing significantly to GDP and exports across diverse sectors such as software, biotechnology, aerospace, and engineering. The state boasts strong economic fundamentals, with a high share of national exports, particularly in technology-driven industries. It is home to over 500 Global Capability Centers (GCCs) and 400+ R&D centres, attracting multinational corporations and promoting a thriving ecosystem for innovation and industry collaboration.

Karnataka leads in several high-growth industries:

• Information Technology: The state accounts for 40% of India’s software exports, cementing its position as a global tech hub.
• Aerospace & Defense: With 65% of India’s aerospace and defence manufacturing, Karnataka is a key player in this strategic sector.
• Electric Vehicles (EV): Ranked first in EV innovation, the state hosts major OEMs and over 45 startups, positioning itself at the forefront of India’s e-mobility revolution.
• Biotechnology: Karnataka contributes 60% of India’s biotech production and exports, solidifying its leadership in life sciences and bio-innovation.

The Karnataka Industrial Policy 2024-29 prioritises employment generation, sustainability, and sectoral growth. It offers a range of incentives, including Production-Linked Incentives (PLI), capital subsidies, and sustainability-linked benefits, aimed at enhancing long-term industrial development.

The state has proactively engaged in international investment roadshows across USA, Europe, Japan, and South Korea. These efforts have secured over $3 billion in investment commitments, further strengthening Karnataka’s position as a preferred global investment destination.

With its strong economic foundation, thriving industrial ecosystem, and progressive policies, Karnataka continues to be at the forefront of India’s growth story, attracting global investors and encouraging innovation across multiple sectors.

Karnataka has a diverse economic landscape. What initiatives are in place to ensure that both urban centres and rural areas benefit equitably from the state’s industrial policies?

Karnataka’s Industrial Policy 2024-29 focuses on balanced regional development, offering additional incentives for investments in underdeveloped areas.

• Zone-Based Incentives

The policy expands Zone 1 to 199 talukas (from 152), ensuring broader industrial development. Higher capital subsidies and tax exemptions are offered for industries in Tier-2 and Tier-3 cities.

• Sectoral Clusters
  • Aerospace & Defense: Devanahalli, Haraluru
  • EV Manufacturing: Chikkamalligawada, Dharwad
  • Electronics: Mysuru, Bangalore Rural

• KIADB Initiatives

Over 200 industrial areas covering 85,000+ acres are being developed, with infrastructure upgrades and streamlined land acquisition processes.

• Beyond Bengaluru Initiative

Promotes IT and startup growth in Mysuru, Hubballi, and Mangalore, with a Cluster Seed Fund to support emerging tech startups.

These measures aim to reduce dependence on Bengaluru and drive industrial growth across Karnataka.

Karnataka is a hub for sectors like IT, biotechnology, and aerospace. What is your strategy to expand this leadership into emerging areas like green energy, semiconductor manufacturing, and advanced mobility?

Karnataka is driving growth in new industries with a focus on green energy, semiconductors, advanced mobility, and innovation. The Karnataka Clean Mobility Policy supports EV manufacturing, offering up to 10% incentives for sustainability initiatives like Zero Liquid Discharge (ZLD) and renewable energy adoption. Investments in hydrogen energy, smart grids, and sustainable mobility further reinforce this commitment.

The state contributes 40% of India’s chip design output, with over 100 fabless chip design houses and dedicated semiconductor clusters in Mysuru and Dharwad. Capital subsidies and PLI incentives aim to attract global semiconductor firms.

Karnataka is also developing two EV clusters near Bengaluru and Dharwad-Belagavi, alongside expanding charging infrastructure and battery manufacturing support.

Also Read | Karnataka’s Vision Shaping the Future of India’s FinTech Ecosystem

With 500+ GCCs and leading research institutions like IISc, IIT, and IIIT, Karnataka fosters innovation through initiatives like KWIN City and SWIFT City, focusing on AI, semiconductors, future mobility, and life sciences. These initiatives position Karnataka as a leader in next-gen industries.

What innovative PPP models are being introduced to ensure the state remains an attractive investment destination?

Karnataka is leveraging PPP models to drive industrial growth, innovation, and infrastructure development.

• Centers of Excellence (CoE): PPP-led CoEs in AI, semiconductors, green energy, and technical textiles focus on R&D and skill development.
• Industrial & Logistics Hubs: World-class industrial parks, logistics hubs, and warehousing parks are being developed under PPP to enhance supply chain efficiency.
• Infrastructure Upgrades: The Bangalore-Chennai & Bangalore-Mumbai Industrial Corridors, developed through PPP, boost connectivity, while an AI-enabled Single Window System with Microsoft streamlines approvals.
• Startup & SME Growth: Initiatives like SME Connect and VentuRISE provide startups with funding, mentorship, and global market access.

By integrating private sector expertise with government initiatives, the state is ensuring sustained industrial growth and innovation.

Are there any upcoming projects or initiatives planned by the Government of Karnataka to further enhance investment opportunities and drive economic growth in the state?

The Government of Karnataka is rolling out key initiatives to solidify its position as a premier investment state.

• SWIFT City: A futuristic innovation hub in Sarjapura supporting AI, fintech, and data analytics startups with co-working spaces, incubation support, and equity-based models.
• KWIN City: A next-gen smart city focusing on life sciences, semiconductors, aerospace, and future mobility, designed with a walk-to-work model integrating technology, healthcare, and research.
• Industrial Parks: New state-of-the-art parks, including an Electronics Manufacturing Cluster (EMC) in Mysuru and an EV Cluster in Dharwad.
• Global Investors Meet (GIM) 2025: Themed “Reimagining Growth”, this summit will attract global investors in high-tech, green, and resilient industries.
• Special Investment Regions (SIRs): Tumakuru and Dharwad are being positioned as hubs for advanced manufacturing and EV industries.

With policy reforms and investor-friendly infrastructure, Karnataka is reinforcing its status as a top global investment hub.

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