Karnataka seeks investment in manufacturing

Investment into alternate sectors like manufacturing and tourism sought

Karnataka today urged global investors to look beyond the information technology and bio-technology potential in the State and invest in its manufacturing capabilities and tourism sector as well.

Minister for Commerce and Industry Anand Sharma said the industrial corridors coming up in the state - the Bangalore-Mumbai Industrial Corridor and Chennai-Bangalore-Chitradurga Industrial corridors aim to connect towns and cities to boost the manufacturing capabilities in the region.

Referring to the upcoming National Investment and Manufacturing Zones (NIMZ) in Tumkur, Bidar, Gulbarga and Kolar Sharma said it would not be fair to keep manufacturing in the country contributing to merely 16 per cent of the total GDP of the country.

"We have to become more competent in manufacturing, and the principal instrument for this are these manufacturing zones which will create standalone integrated cities of the future. With three new NIMZs from Karnataka included, this number goes up to 17," Sharma said at the Partnership Summit in Bangalore on Monday. The Summit, organised by the Confederation of Indian Industry (CII) and the ministry of commerce, attended by 400 visitors from about 45 countries to boost bilateral trade.

"Even the countries that became rich and powerful from manufacturing are now talking about going back to manufacturing. The growth and change is irreversible. We are also focusing on building and contributing to global value chains," Sharma said.

"About 250 countries over the globe contribute the making of the Dreamliner and about 17 countries contribute to the iPad that comes from China. We will try to get India a place in important value chains and this will be the future course," he said.

Noting that India has lagged behind other countries in the manufacture of electronics, Sharma promised the investors attending the conference in Bangalore subsidies and benefits to set up semiconductor and related industries in the state and country.

"Two consortiums have come in from the United States and we have also invited Japan to come forward with their plans. Now, I would also like to say that whoever is present here from that (semiconductor) sector and comes in now will get the same subsidy, same benefits given to the two consortiums from the United States," Sharma said.

Highlighting the new promotion of the land bank in Mysore, Chief Minister Siddaramaiah said "Mysore has enormous potential to accommodate various sectors that cannot go to Bangalore because of the pressure on resources."

He added Mysore would be the new growth engine in the state to complement the development in Bangalore, in which over 60 per cent of the companies in the Fortune 500 have set up their establishments.

Siddaramaiah also highlighted investment opportunities in tourism in Karnataka.

He along with Sharma urged the participants at the summit to travel around the state to explore investment opportunities there.

"Tourism is yet another top emerging sector in the state. Karnataka has seen a tremendous increase in tourist arrivals in the state, witnessing a growth of 300 per cent over 10 years from 25 million a decade ago to 85 million today."

"Karnataka offers a variety of investment opportunities throughout the value chain, across industry verticals, especially in the manufacturing and tourism sector. We wish to take advantage of a global partnership to achieve the state's growth plan," he added.