Representative
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Bengaluru: Karnataka has attracted new investment proposals worth over Rs 12 lakh crore between 2021-22 and 2024-25.
According to a study on “Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25” conducted by the MSME Export Promotion Council (EPC), of the total investment proposals received, the state has seen completion of projects with an investment of Rs 1.40 lakh crore.
Releasing the study, the chairman of the MSME EPC D S Rawat said pending projects revived saw an investment of Rs 36,078 crore during the period. Investment projects worth Rs 9,49,370 crore were under various stages of implementation. The data has been sourced from the Centre for Monitoring of Indian Economy (CMIE).
Karnataka leads India in innovation (as per NITI Aayog), hosts 20 per cent of India's exports, and dominates in aerospace exports (65per cent) and machine tools output (50 per cent). Its IT exports account for about 42 per cent of India’s software exports.
During 2021-22, projects announced were of Rs.1,45,035 crore, 2022-23 received projects with an investment of Rs 5,13,364 crore. In 2023-24, investment of Rs 2,27,706 crore and Rs 3,15,069 crore worth of investment proposals were received in 2024-25. This includes the total investment by the private sector at Rs 10,25,614 crore.
The micro, small and medium enterprises (MSME) are registering growth and it is estimated that the state hosts over 8.5 lakh units collectively employing nearly 70 lakh people. These enterprises span diverse sectors like electronics, food processing, readymade garments, automotive components, and chemicals.
Over 14,000 DPIIT recognized startups operate across Karnataka and it hosts 45 unicorns.
The study says the state already has enormous tourism wealth, but to realize its potential it needs a focused push on infrastructure, branding and experience-building. The government should offer tax breaks, subsidies for resorts, eco-lodges, adventure parks, and boutique hotels. The state should empower local communities to run home stays, nature tours and handicraft hubs with training and micro-credit.