Karnataka-Investment and Industrial Policies

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Export Promotion Policy (2002 - 2007)

The ongoing process of opening up of the Indian economy, changing Industrial and trade policies over the last decade and the formation of WTO have together given rise to stiff challenges as well as tremendous opportunities for Indian Industry. While the challenges are the result of liberalised imports of raw materials, components and finished products from across the globe in an increasingly reducing tariff regime, the opportunities arise from the opening up of the world markets for Indian industry.


Integrated Agribusiness Development Policy 2011

The Government of Karnataka considers high growth of agriculture and allied sectors as a means to accelerate the state's GDP growth, enable farmers to earn higher income and ensure food security. Karnataka has rich biodiversity and ten agro-climatic zones suited for majority of the agricultural & horticultural crops and a long coastline that encourages fisheries. The state contributes around 7% of the agricultural production and 15% of the horticultural production in the country. It contributes around 10% of the fruit & vegetable production in India. Its climate endowment suits cultivation of cash crops like coffee, coconut, mango, spices, commercial flowers, aromatic plants, cotton, sugarcane, oilseeds, grapes, pomegranate, sapota, etc.


Karnataka Industrial Policy 2014-19


Industrial growth

•  To mitigate poverty and unemployment.

•  To promote higher capital formation.

•  To improve per capita income level.

•  To observe surplus workforce.

To realize the above benefits state accords high priority for industrial development



Electric Vehicle & Energy Storage Policy 2017

The twentieth century has been an era of Internal Combustion Engines (ICE) primarily on account of accessibility - ease of use and affordability-low-cost of fossil fuels. The shift to electric mobility has become necessary due to the fast depletion of fossil fuels, increase in energy costs, impact of transportation on the environment and concerns over climate change.


New Infrastructure Policy – 2007

The Government of Karnataka had come out with the first Infrastructure Policy in 1997. The Infrastructure Policy of 1997 aimed at expanding and upgrading infrastructure to meet the growing needs of industrial and agricultural sectors, inviting private investment and adopting an integrated approach to infrastructure development. This policy had specific incentives and concessions for infrastructure projects. However, with the efflux of time there have been changes in the tax and stamp duty regime, formulation of Govt. of India's Policy on Public-Private-Partnership (PPP) in infrastructure projects and the concept of Viability Gap Fund (VGF). In line with these changes, the existing policy needs to be revised.


Aerospace Policy 2013-2023

Karnataka is home to India’s Aerospace industry. The establishment of Hindustan Aeronautics Limited (HAL) in 1940 heralded the aerospace activities in Bangalore. Subsequent establishment of defence public sector undertakings and R&D institutions like BEML, BHEL, GTRE, NAL, DRDO, ADA, ADE, ISRO, IISc etc., positioned Karnataka as a prime location for Aerospace industry in India.

India’s Aerospace & Defence (A&D) sector is at an inflection point. Various estimates put the A&D expenditure on acquisitions at around Rs. 5 lakh crores (US $ 100 Billion) over the next 10 years. The robust growth potential of the industry is attracting global majors in Aerospace sector to set up shop in India thereby providing tremendous opportunities for Indian industry participation.


Tourism Policy 2015-20

Tourism is currently the largest and fastest growing industry in the world. The industry has emerged as one of the leading sectors that have enhanced the contribution to Karnataka's economy. Karnataka has been witnessing a tremendous influx of international and domestic tourists that has added to foreign exchange earnings. Therefore, increased demand for accommodation coupled with need for elevated authentic experience has led to tourism infrastructure gaining importance.


Startup Policy 2015-2020

As per the Global Startup Ecosystem Ranking Report 2015,”Bangalore is home to approximately 3,100 to 4,900 active tech startups and has achieved the second highest growth rate for exit volume and VC investment among the top 20. As a result, Bangalore moved up four positions to #15 in 2015, advancing from #19 in the 2012 ranking”. As per this report Bengaluru is the only Indian city to be ranked within the best twenty startup eco systems across the world. The State's long and sustained leadership in driving the IT economy and conducive R&D ecosystems have contributed to this.


The Millennium Biotech Policy

Hon'ble Chief Minister, Mr. S. M. Krishna in his budget speech for the year 2000-2001 has said,  "While Karnataka is the acknowledged leader in IT, I would like the State to lead the next revolution in Biotechnology.  Karnataka already has the training and knowledge base necessary to drive the revolution. We have the critical mass of biotech companies and the best research institutions.  The immediate challenge is how to nurture that innovation, promote entrepreneurship and facilitate effective technology transfer to the end users.  I am happy to announce a Vision Group on biotechnology is being set up to advise the government on future strategies."