Karnataka Friday unveiled a new industrial policy to attract Rs.5 lakh crore (Rs.5 trillion) from domestic and overseas investors over the next five years.
"The new industrial policy for 2014-19 aims to achieve an industrial growth rate of 12 percent per annum in the state over the next five years (2014-19) and increase the contribution of the manufacturing sector to 20 percent of the state gross domestic product (GSDP) from 17 percent this fiscal," Chief Minister Siddaramaiah told reporters here on the occasion.
The policy targets Rs.5 lakh crore investments in diverse sectors and to spread industrial growth across the state to generate 1.5 million (15 lakh) jobs by 2018-19.
"We give importance to the industrial sector as much as to welfare and social sectors. We believe that industrial growth will increase production, lead to asset creation and develop the state's economy," Siddaramaiah said.
With the seventh largest GSDP in the country, the state has a huge potential to improve its economy through industrialization and contribute substantially to the national gross domestic product (GDP).
"The state government considers industrial growth as a means to mitigate poverty and unemployment. Development of industry, trade and service sector promotes higher capital formation, improves per capita income level, absorbs surplus work force," Siddaramaiah said.
The new policy includes the recommendations of the manufacturing task force, which was set up to study the needs of the industrial sector for growth and suggest remedial measures.
The policy also ensures infrastructure support to promote industries and proposes setting up five industrial clusters every year spread over an area of 5,000-8,000 acres. Energy and water resource departments will be directed to provide power and water to the clusters.
"The policy considers the mining sector as a focused area and proposes escort services to execute the pending projects in a time-bound manner. We are in the process of coming out with a new mining policy in the state," Siddaramaiah said.
The policy seeks involvement of the central government in implementing the Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore Mumbai Economic Corridor (BMEC) with the help of external assistances from Japan and Britain.
To derive maximum benefit from the twin mega industrial corridors, the policy has proposed four mini industrial corridors across the northern, central, coastal and southern regions of the state.
