Karnataka unveils ambitious Industrial Policy for 2025-30 to boost high-tech manufacturing

The state government aims to attract ₹7.5 lakh crore in investments and create 20 lakh new jobs by 2030, marking a significant step in Karnataka’s growth as a leading industrial powerhouse

South First Desk

Published Feb 12, 2025 | 5:48 PM ⚊ Updated Feb 12, 2025 | 5:48 PM

Karnataka unveils ambitious Industrial Policy for 2025-30 to boost high-tech manufacturing

Synopsis: Karnataka’s Industrial Policy 2025-30 aims to position the state as Asia’s top destination for high-tech manufacturing. With a target of 12 percent annual growth in the sector, the policy seeks ₹7.5 lakh crore in investments and 20 lakh new jobs by 2030, reinforcing Karnataka’s status as an industrial powerhouse focused on innovation, growth, and sustainability.

Karnataka is poised to strengthen its position as a global industrial leader with the announcement of its Karnataka Industrial Policy 2025-30. 

The policy, designed to transform the state into Asia’s top destination for high-tech manufacturing, outlines a vision for rapid growth, innovation, and sustainability while creating vast employment opportunities.

Vision for global competitiveness

With an ambitious goal of becoming the prime hub for high-tech manufacturing investments in Asia, the policy sets a target to achieve a 12 percent annual growth rate in the manufacturing sector. 

The state government is aiming to attract ₹7.5 lakh crore in investments, while also creating 20 lakh new jobs by 2030. This marks a significant leap in Karnataka’s trajectory as an industrial powerhouse.

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Key objectives and focus areas

The Karnataka Industrial Policy 2025-30 revolves around six core objectives:

1. Massive Investment Inflows: The policy aims to draw ₹7.5 lakh crore in investments across various sectors.
2. Job Creation: A target of 20 lakh new jobs will be pursued within the next five years.
3. Incentive Flexibility: A dynamic incentive framework will be introduced to encourage investment in diverse sectors.
4. Sustainability and Green Growth: Special incentives will be offered to promote environmentally sustainable and green industrial practices.
5. Balanced Regional Development: Region-specific incentives will support inclusive growth across the state, focusing on areas with varying levels of industrial development.
6. Leadership in Emerging Sectors: The policy places emphasis on innovation-driven sectors like Electronics System Design and Manufacturing (ESDM), aerospace and defense, advanced manufacturing, future mobility, and augmented/virtual reality.

Seamless investment experience

To simplify the investment process, Karnataka plans to enhance its digital infrastructure. Key initiatives include:

• Single Window System: A digital, AI/ML-powered interface will streamline interactions for investors.

• Dedicated Nodal Officers: Specialised officers will assist investors throughout the process.

• Vernacular Chatbots: AI-based multilingual support will provide assistance in multiple languages.

• Rationalisation of SLAs for Approvals: Regulatory approvals will be processed more efficiently to reduce bottlenecks.

• Incentive Calculator Tool: An advanced digital tool will help investors assess available benefits.

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Policy implementation and timeline

The Karnataka Industrial Policy 2025-30 came into effect from 8th February 2025 and will remain in force for five years or until the introduction of a subsequent policy. 

The policy was formally unveiled during the Invest Karnataka 2025 Global Investors Meet, taking place from 11th to 14th February 2025, a key event that is expected to attract global investors and further elevate Karnataka’s industrial status internationally.

With a strategic and forward-thinking approach, the Karnataka Industrial Policy 2025-30 aims to foster a thriving, sustainable economy, solidify the state’s industrial leadership, and promote innovation across key high-tech sectors.

(Edited by Ananya Rao with inputs from Deeksha Devadiga)

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