Invest Karnataka 2025: State Attracts $115 Bn in Funding, Unveils Single Window Clearance Policy

Invest Karnataka 2025 saw the signing of several significant memorandums of understanding (MoUs), reinforcing the state’s attractiveness to major investors. The Mahindra Group outlined plans to invest approximately ₹40,000 crore to expand its footprint in Karnataka, particularly in renewable energy and electric vehicles. 

Similarly, JSW Group committed ₹1.2 lakh crore toward increasing its steel production and setting up new facilities in the state.

While not all agreements were disclosed, industry leaders expressed confidence in Karnataka’s industrial-friendly policies and commitment to economic expansion.

In the semiconductor sector, US-based Lam Research inked an MoU with the Karnataka government, pledging ₹10,000 crore to strengthen the state’s growing role in chip manufacturing. 

Altogether, these and other investment commitments amount to nearly $115 billion, highlighting Karnataka’s business-friendly environment and focus on sustainable economic expansion.

Source: X

Launch of Industrial Policy in Invest Karnataka 2025

The Government of Karnataka has launched its Industrial Policy 2024-29, emphasising a streamlined single-window clearance system to enhance investor experience and facilitate ease of doing business. 

Deputy chief minister DK Shivakumar introduced the policy on the inaugural day of the Global Investors Meet—Invest Karnataka 2025, in the presence of chief minister Siddaramaiah, industries minister MB Patil, and other senior officials. 

The new industrial policy aims to accelerate economic growth, attract investments, and create 20 lakh jobs by 2029. With a target to boost the manufacturing sector’s annual growth rate to 12% and attract investments worth ₹7.5 lakh crore, the policy focuses on making Karnataka a leader in sustainable industrial practices. 

It also prioritises sunrise sectors such as Electronics System Design & Manufacturing (ESDM), Aerospace & Defense, Advanced Manufacturing, and Future Mobility. Additionally, the government aims to ensure balanced regional development by incentivizing industrial expansion in underdeveloped areas.

One of the key features of the policy is the recognition of logistics and warehousing as an industry, granting it the necessary support and investment avenues. 

To address skill shortages in the sector, the government will roll out specialised workforce training programs, including industry-connected workshops, vocational training, and technical courses in Industrial Training Institutes (ITIs). These efforts aim to bridge skill gaps and create a highly skilled workforce.

A major focus of the new policy is the introduction of flexible subsidy options for investors, allowing them to choose between Production-Linked Incentives (PLI) and Capital Subsidy, depending on their business needs. 

Additionally, sustainability initiatives receive significant attention, with incentives offered to industries implementing Zero Liquid Discharge (ZLD), air pollution control, energy efficiency measures, and electrification of thermal processes. Companies with Greenco certification will be eligible for additional benefits.

The policy also encourages the integration of Research & Development (R&D) centers and Global Capability Centers (GCCs) with manufacturing units by offering a 10% additional incentive. 

Speaking at the event, Union Minister Rajnath Singh said that Bengaluru will give India its first foundational AI model. “As India, Bangalore not only creates the future of India but also saves it, driving innovation and progress at national and global scale,” he said.

Anand Mahindra, Chairperson of Mahindra and Mahindra, at the Inaugural event of Invest Karnataka 2025. Source: AIM