Karnataka Launches Industrial Policy to Attract ₹7.5 Lakh Crore Investments by 2030.

Karnataka Deputy Chief Minister D.K. Shivakumar on Tuesday launched the state’s Industrial Policy 2025-30 at the Global Investors’ Meet, aiming to attract ₹7.5 lakh crore in investments and generate 20 lakh jobs over the next five years. The policy seeks to position Karnataka as a leader in emerging sectors while promoting balanced regional development.

Regional Focus & Incentives

The policy divides Karnataka into three investment zones to decentralize industrial growth beyond Bengaluru.

• Zone-1 & Zone-2: Industrially backward regions to receive higher incentives.


• Zone-3: Bengaluru Urban and Rural, with a different incentive structure.

To boost industry in underdeveloped areas, the government has expanded Zone-1 to 199 talukas, up from 152 in the previous policy.

Key Focus Sectors & Sustainability Push

The policy identifies high-growth sectors, including aerospace & defence, electronics, green hydrogen, future mobility, biotechnology, pharmaceuticals, med-tech, space tech, FMCG, and Global Capability Centres (GCCs). Special incentives will be provided for industries with a higher female workforce and those setting up R&D centres alongside manufacturing units.

To encourage sustainability, Karnataka will develop Green Industrial Areas and incentivize eco-friendly investments. The state will also introduce up to 20% capital subsidy for warehousing projects and incentivize industrial dormitories with ₹1 crore per 1,000-person accommodation.

Ease of Doing Business & MSME Support

The government has revamped the Single Window Clearance System, simplifying industrial permits and approvals. Special incentives include:

• 30% of industrial land reserved for MSMEs, with 24.1% earmarked for SC/ST entrepreneurs.


• Affidavit-based clearance system for faster approvals.


• Financial support for vendor development, marketing, and technology upgrades.

Innovation & Workforce Development

The state plans to develop KWIN City (Knowledge, Wellbeing & Innovation City) to serve as a hub for research, innovation, and healthcare. It will also strengthen industry-academia collaboration and upgrade ITI/polytechnic curriculums to create a future-ready workforce.

Government’s Vision

“The Karnataka Industrial Policy 2025-30 sets a clear roadmap for the state’s industrial future, ensuring sustainability, regional balance, and MSME empowerment,” said MB Patil, Minister for Large and Medium Industries. The policy, he added, is designed to keep Karnataka at the forefront of industrial growth while creating widespread employment and economic opportunities.

HBL