KARNATAKA ATTRACTED OVER RS 7.60 LAKH CRORES IN FIVE YEARS OF INVESTMENT
Karnataka between 2018-19 & 2022-23 has attracted new investment project proposals of worth Rs.7,59,936 crore and the highest jump has been registered in 2022-23 as the state successfully attracted Rs.4,51,516 crore new projects alone whereas in earlier four financial years Rs.308419.6 cr.
This has been revealed in a study just brought out on “investment, growth & development in Karnataka between 2018-19 & 2022-23” by the MSME Export Promotion Council along with the Confederation of Organic Food Producers & Marketing Agencies (COII).
Releasing the study today, the chairman of the MSME EPC Dr D S Rawat said, as per the data available through Centre for Monitoring of Indian Economy (CMIE), while the state received new investment proposals of Rs.451516.2 cr in 2022-23, in 2021-22 of worth Rs.79816.4 cr, Rs.74967.7 cr in 2020-21), Rs.94361.8 cr in 2019-20 and Rs.59273.8 cr in 2018-19.
The study further says, the state completed the projects of Rs.39664.05 cr in 2022-23, Rs.21336.2 cr in 2021-22, and Rs.11415.5 cr in 2020-21. Between 2018-19 and 2022-23, a total number of projects completed were of Rs.143094.2 cr.
It was noted that in 2022-23, the total outstanding projects were worth Rs.1643466.3 cr and under implementation of Rs.822070.4 cr. Once the implementation of the outstanding projects was completed, the study projects, generation of over 5 lakh additional direct and indirect jobs in the state.
In this connection, the study has recommended setting up of a monitoring committee under the chairmanship of Chief Minister/ Dy CM. The state government should also give further boost to the start-ups and ancillaries to ensure inclusive sustainable development.
In the year 2022-23, there has been a very significant jump in the new investment projects announced in the state by the private sector of Rs.407855.5 cr. The foreign private investment in the state had also gone up in 2022-23. The projects announced were of Rs.66334.9 cr, completed projects of Rs.6288.5 cr, the total investment projects outstanding were of Rs.79664.7 cr and under implementation of Rs.7606.2 cr. The export of all commodities had gone up to Rs.223894 cr.
Karnataka is home of more than 8.5 lakh micro, small and medium enterprises providing employment to over 60 lakh people. The state has invested over four lakh crore in the last five years and is in the 5th place in the country in terms of industrial growth. According to World Bank, an estimated 70-90% of MSMEs in Karnataka are family run and typically employ less than ten persons.
Though the state government is focusing on to promote MSMEs through various policy incentives, yet due to severe global competition, there are several challenges that small businesses face as they try to establish themselves and succeed in a competitive market.
The study has emphasized the need for support in terms of entrepreneurial skills, timely and affordable credit, technology adoption, quality production, and a competitive edge to stay ahead in the market. It involves using digital marketing, online platforms, and other digital resources to increase visibility, engagement and customer base.