KARNATAKA ATTRACTS OVER RS.12 LAC CRORE INVESTMENT BETWEEN 2021-22 & 2024-25
Karnataka has attracted new investment proposals worth over Rs.12 lac crore between 2021-22 and 2024-25 due to the highly vibrant and progressive investment climate in the state. It strongly supports robust foreign direct investment (FDI), strategic infrastructure projects, forward-looking policy frameworks, talent and an innovation ecosystem.
This has been revealed by the just-released study on “Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25” by the MSME Export Promotion Council. Releasing the study, the chairman of the MSME EPC Dr D S Rawat said, during the said period the new investment projects announced were of Rs.12,01,175 crore, projects completed of Rs.1,40,476 crore, and pending projects revived 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 (per NITI Aayog), hosts 20% of India’s exports, and dominates in aerospace exports (65%) and machine tools output (50%). Its IT exports account for about 42% of India’s software exports.
During 2021-22, projects announced were of Rs.1,45,035 crore, 2022-23 of Rs.5,13,364 crore,2023-24 of Rs.2,27,706 crore and 2024-25 of Rs.3,15,069 crore. This includes the total investment by the private sector was Rs.10,25,614 crore between this period.
The micro, small and medium enterprises (MSMEs) 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-recognised startups operate across Karnataka, and it hosts 45 unicorns, representing a substantial share of India’s total.
The study says the state already has enormous tourism wealth, but to realise its potential, it needs a focused push on infrastructure, branding and experience-building. The government should offer tax breaks and subsidies for resorts, eco-lodges, adventure parks, and boutique hotels. Also should empower local communities to run home stays, nature tours and handicraft hubs with training and micro-credit. Karnataka’s agriculture sector is on an upward trajectory, registering 4% growth in 2024-25, above the national growth rate of 3.8% demonstrating resilience, diversified strength, and strategic growth in high-value segments like horticulture and coffee. However, addressing low irrigation coverage, improving price support mechanisms, ensuring equitable access to finance and deepening value-addition infrastructure will be crucial to long-term sustainability and farmer prosperity.
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