Karnataka govt unveils new industrial policy 2024-29, aims to create jobs

Karnataka expects to generate employment opportunities for about 20 lakh people by 2029, according to the Industrial Policy 2024-29 unveiled by the state government on the inaugural day of the Global Investors Meet – Invest Karnataka 2025. The key objectives of the policy also include accelerating the annual growth rate of the manufacturing sector to 12 per cent and targeting an investment of Rs 7.5 lakh crore. Another goal is to create an investor-friendly ecosystem by streamlining approvals and enhancing investor experience through digitalisation and the ‘Single Window System’.

 

The policy was officially unveiled by D K Shivakumar, deputy chief minister of Karnataka, in the presence of the chief minister of Karnataka, Siddaramaiah, M B Patil, minister for large and medium industries & infrastructure development, and other senior government officials.

   

The policy aims to position Karnataka as a leader in sustainable industrial practices through incentives for green manufacturing. The focus is also on establishing Karnataka’s leadership in electronics system design and manufacturing (ESDM), advanced manufacturing, aerospace and defence, and future mobility. It would also ensure balanced regional growth by promoting industrial expansion in underdeveloped areas.

 

Recognising the growing significance of logistics and warehousing, the government of Karnataka has accorded it ‘industry’ status, enabling greater support and investment. To address the industry’s skill shortage, the government will introduce several workforce upskilling initiatives. These efforts aim to bridge skill gaps, enhance competency, and create a highly skilled workforce for the logistics and warehousing industry.

 

Industries that co-locate their research & development (R&D) centres or global capability centres (GCCs) with manufacturing units will receive a 10 per cent additional incentive.

 

The policy includes special incentives for industries with higher female workforce participation, promoting gender inclusivity.

 

Additional incentives will be provided for industries setting up in more backward and most backward talukas, ensuring equitable industrial growth.

 

There will be up to 20 per cent capital subsidy on fixed capital investment for warehousing projects, along with stamp duty reimbursement and electricity duty exemptions for five years.

 

Industrial dormitories will be incentivised with up to Rs 1 crore capital subsidy or production-linked incentives (PLI) for every 1,000-person accommodation, improving worker living conditions.

 

The new policy expands Zone 1 to include 199 talukas, up from 152 in the previous policy, ensuring a more inclusive and widespread distribution of industrial benefits across Karnataka.

 

The government said the Industrial Policy 2024-29 reaffirms Karnataka’s commitment to fostering sustainable, inclusive, and innovation-driven industrial growth. By introducing investor-friendly policies, sustainability incentives, and workforce development programmes, the state aims to strengthen its position as a premier industrial and investment hub in India.

 

Top 20 announcements at Global Investors Meet: Invest Karnataka 2025 as of February 11

 

1.  JSW Neo Energy Ltd – Rs 56,000 crore investment for solar projects, wind projects, battery energy storage, blade manufacturing, and setting up a wind turbine generator plant.

2.  Baldota Steel & Power Ltd – Rs 54,000 crore investment for an integrated steel plant.

3.  Tata Power Renewable Energy Ltd – Rs 50,000 crore investment for the development of renewable energy power projects and rooftop solutions across the state.

4.  ReNew Pvt Ltd – Rs 50,000 crore investment for setting up 4 GW of renewable energy projects.

5.  Serentica Renewables India Pvt Ltd – Rs 43,975 crore investment for the development of renewable energy projects.

6.  JSW Group – Rs 43,900 crore investment for JSW Cement and Steel and its affiliates.

7.  Mahindra Susten Pvt Ltd – Rs 35,000 crore investment for setting up renewable energy projects.

8.  Hero Future Energies – Rs 22,200 crore investment for projects in renewable energy, green hydrogen, and its derivatives.

9.  Suzlon Energy Ltd – Rs 21,950 crore investment for wind power projects.

10.  Essar Renewables Ltd – Rs 20,000 crore investment.

11.  Avaada Energy Pvt Ltd – Rs 18,000 crore investment.

12.  Epsilon Group – Rs 15,350 crore investment for manufacturing anode and cathode materials.

13.  Emmvee Energy Pvt Ltd – Rs 15,000 crore investment for manufacturing solar photovoltaic cells and modules.

14.  Lam Research – Rs 10,000 crore investment for semiconductor equipment manufacturing.

15.  AMPIN Energy Transition Pvt Ltd – Rs 10,000 crore investment.

16.  ACME Solar Holdings Ltd – Rs 10,000 crore investment.

17.  O2 Power Pvt Ltd – Rs 10,000 crore investment for setting up renewable energy solar and wind projects.

18.  Continuum Green Energy Group – Rs 10,000 crore investment for developing renewable energy projects.

19.  Sotefin Bharat – Rs 8,500 crore investment for the construction and installation of fully automated robotic multilevel car and bus parking systems.

20.  Shree Cement Ltd – Rs 8,350 crore investment for an integrated plant and clinker grinding unit.

21.  Hexa Climate Solutions Pvt Ltd – Rs 8,000 crore investment. 

Other key investments announced

 

1.  Safran – Rs 225 crore for manufacturing avionics.

2.  Schneider Electric – Rs 2,247 crore for manufacturing electrical products and related research and development (R&D) activities.

3.  Honda – Rs 600 crore for manufacturing electric vehicles.

4.  Hitachi Energy – Rs 1,000 crore for manufacturing and R&D.

5.  Bosch – Rs 450 crore for manufacturing and R&D.

6.  Havells – Rs 710 crore for expansion of existing manufacturing at Tumkur and a new R&D facility in Bengaluru.

7.  TVS Motor Company – Rs 2,000 crore to establish a state-of-the-art R&D facility.

8.  UltraTech Cement – Rs 4,500 crore for cement manufacturing.

9.  Dalmia Cement – Rs 3,000 crore for cement manufacturing.

10.  Samvardhana Motherson – Rs 3,700 crore for manufacturing, engineering, and assembly facilities.

11.  Balaji Wafers – Rs 550 crore for manufacturing and distribution of salty snacks and wafers.

12.  ESR Advisers – Rs 2,500 crore for setting up industrial parks and data centres.

13.  KWIN MoUs – Around nine universities have shown interest in setting up their facilities in KWIN City over the coming years, including St John’s University of New York City.