By: Adarsh Som
The ‘Silicon Valley of India’ Karnataka needs no introduction in the business sphere. Proactive approach and business-friendly policies have been among the key drivers of investment in the state. Nonetheless, Karnataka aims to bolster its position as an industrial hub, especially in sectors like IT, semiconductors, clean mobility, manufacturing, and infrastructure, and is looking for industry leaders worldwide to join and invest in the state. On the sidelines of the state government’s roadshow in Delhi, Gunjan Krishna, Commissioner, Department of Commerce and Industries, Government of Karnataka shared the government’s vision with ETGovernment.
India is racing to achieve Prime Minister Narendra Modi’s vision of becoming a five-trillion-dollar economy by 2028. An exemplary testimonial to this is the proactive approach of states to lure global investors and industry majors to invest and boost growth and technological prowess. Be it Invest UP, Invest Haryana, Rising Rajasthan, or Vibrant Gujarat and more, the competitiveness among states can actually give the necessary push to the country’s economy. One such major initiative is by the State of Karnataka – Invest Karnataka. The Global Investors Meet (GIM) – Invest Karnataka 2025 is scheduled to happen on 11th-14th of February in Bengaluru and will witness government leaders, senior policymakers, industry stalwarts from across the globe, and startup founders come under one roof.
Karnataka is well-poised to be the industrial and IT hub. The state ranks third in foreign direct investments and tops the list when it comes to technology adoption and ease of doing business. Considering the push for sustainable initiatives by global bodies like the United Nations, Karnataka does take the lead in sustainable initiatives as well. The state was the first to come up with an electric vehicle (EV) policy, it makes 65 percent of its energy output from renewable sources and is further making efforts to enhance the share of clean energy in the power mix. Another interesting fact is that 40 percent of the Indian startups are based in Bengaluru and 45 percent of GenAI-based startups are again from the capital city of Karnataka. No doubt it adorns the label of ‘Silicon Valley of India’.
Here are some edited excerpts from the interaction with Gunjan Krishna, Commissioner, Department of Industries and Commerce, Government of Karnataka.What are the some major challenges you are facing for fetching investments from the industries for
Karnataka?Karnataka has earned a reputation of being among the most business-friendly states in India. Hence, there has been no major challenge for us to seek investment in the state. However, there are two areas where we need to improve.
Firstly, most of the industries have spawned in and around Bengaluru and to manage land availability, and other resources is turning to be a task for us. As a solution to this, we are offering hybrid and plug and play models.
Secondly, it is the rising competition between the states. So, lately many states have come up with their investment initiatives offering multiple benefits to industries looking for setting up their businesses. In my opinion, offering higher subsidies can give a head start but it is not a sustainable approach. With time, land availability, power supply, water availability, sustainability challenges, and so on, turns up where the subsidies model can become difficult to adhere to.
Besides, the ecosystem in Karnataka speaks for itself. We have the required talent pool, we have ready-made infrastructure, we have the centers of excellence, and we have offered businesses all that we promised. Lately, we are also getting investments from Japan, Germany, Korea, and other countries. Also, numerous Global Capability Centers (GCCs) and R&D centers are opening up across the state.
During your address, you announced that the state government will be coming up with a policy on clean mobility which will be rolled out during the GIM – Invest Karnataka 2025 event?
Electric vehicles, green hydrogen, renewable energy, and other similar technologies are among the sunrise sectors which Karnataka is aiming at. However, we do not want to pick a particular technology nor would we like to miss out on any of it. We are trying to create a cohesive ecosystem for development and growth of clean mobility technologies, and rolling out a dedicated policy will be the first step toward it.
Now, which of these tech wins will be decided by the market. We are trying to ensure that all these technologies mushroom across Karnataka and we will be more than happy to take supportive measures including incentivising green manufacturing. As one of the examples, the move will try to get green hydrogen to replace LNGs. Hence, when it comes to sustainability, our focus is on not just setting up effluent treatment plants but reinvigorating the core manufacturing and the associated processes to become green and sustainable.
What are your focus sectors for further development of Karnataka in the coming year?
The vision that we have for the state takes into perspective three major areas – What sectors are growing and
adding value to the state’s economy? What industries are bringing to the table in terms of innovation and
contributing towards making India a global manufacturing hub? And, Which are the sectors that can generate
employment?
Now, employment becomes an essential factor as we need to make the best use of the available talent pool and
provide them with opportunities. Moreover, the growth of people translates into the growth of the economy further adding to the per capita income and India’s development. We see GCCs, FMCG, IT, Manufacturing, and Infrastructure employ a major pool of talent in Karnataka.
Besides, we keep in sight the opportunities to be a hub for emerging technologies. Also, we are looking ahead to sunrise sectors like renewable energy, semiconductors, clean mobility, and do our bit to contribute to the global growth bringing India at the forefront. Further, I see this decade as the decade of Life Sciences and AI intersection.
The Delhi roadshow of GIM – Invest Karnataka 2025 witnessed Keynote address from Hon’le Minister for Commerce and Large and Medium Industries, MB Patil, and Dr S. Slevakumar, Additional Chief Secretary, Department of Commerce and Industries, Government of Karnataka.
