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A simplification of Karnataka’s New Industrial Policy for2014-2019

The state of Karnataka aims to alleviate poverty and unemployment and improve the financial status of people through industrial, trade and service sector, because they promotes improved per capita income, good investment, higher capital forming and encourage entrepreneurship. The state looks for industrialization to improve the lives of people from all walks of life.


  • The central agenda is to create a good business environment to build Karnataka a state that promotes
  • Also, to maintain an industrial growth of 12% annually
  • To draw investment of Rs 5 lakh crore
  • To create a business friendly environment
  • Increase the contribution of manufacturing sector to the State GDP from 16.87% to 20% by 2019
  • Create employment opportunities for almost 15 lakh people

Main Highlights:

  • Karnataka government plans to establish new industrial areas through KIADB (Karnataka Industrial Areas Development Board). To make Karnataka a successful hub for entrepreneurs, the policy highlights on making adequate land available for business with a 10% of reserved land to be served for promoting social infrastructure and others.
  • The policy talks about establishing industrial corridors to increase industry. The Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore-Mumbai Economic Corridor (BMEC) would be advanced on the lines of Delhi-Mumbai Industrial Corridor (DMIC) with the support of Government of India. Also, assistance can be availed from Japan International Cooperation Agency (JICA) in this purpose. Karnataka is also planning to explore State Industrial Corridors as well.
  • To promote other places as potential industrial locations and to clear congestion of Bangalore, the state plans to make potential areas as Special Investment Areas. Some areas have already been proposed to be Special Investment Areas like Dharwad, Gadag, Haveri and Belgaum Districts, Mysore, Mangalore, Hassan, Bagalkote, Bijapur, Raichur, Koppal, Bellary.
  • Industrial areas and estates will be established under PPP (Private, Public and/or Partnership) model by private investors and government agencies.
  • Already existing industrial areas those are 10 years old will be provided budgetary assistance to improve their infrastructure.
  • Upgradation of skills has been given priority in this policy because they foster economic growth of any state. Department of Industries and Commerce along with the Department of Employment and Training would focus on quality training and certification issues. Different beneficial scheme will be revised including Suvarna Kayaka Kaushalyabhivruddhi Yojana (SKKY).
  • Another important step is to create a improved Labour Market Information System (LMIS) to help in assessing labour market and their needs.
  • Single Window Clearance Mechanism will be made more effective to do business in the state.
  • Special efforts have been given to make the MSME sector strong in the state. From funding (VC fund, angel funding) and various subsidies to providing spaces to entrepreneurs to set up their business and providing good infrastructure, technological support are some of the important steps taken in this policy. Apart from manufacturing industry, Khadi; artisan and coir are also given importance.
  • Women entrepreneurship as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen are encouraged promptly. Various subsidies and incentives have been proposed to promote entrepreneurs from women and special category.
  • Non-Resident Kannadigas are encouraged to share their experience and knowledge to build a health atmosphere for businesses to grow.
  • The policy encourages export promotion, renewable energy projects as well as supports enterprises those adopt energy efficiency measures.
  • Extensive support has been given to Research & Development as well as to direct digital manufacturing.


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