Advertisement
Karnataka has attracted over INR 12 lakh crore in new investments from 2021-22 to 2024-25, driven by a supportive investment climate, strategic policies, and a strong talent ecosystem. The state leads in innovation, IT, aerospace, and machine tools exports while hosting a thriving MSME and startup ecosystem, including 45 unicorns. Tourism and agriculture sectors show growth potential, with recommendations for improved infrastructure, community involvement, and financial support for long-term sustainability. The study underscores Karnataka's strategic position as a hub for investment, innovation, and economic growth.
Karnataka has drawn new investment proposals worth more than INR 12 lakh crore between financial years 2021-22 and 2024-25, reflecting the state's vibrant and progressive investment environment, according to a study by the MSME Export Promotion Council (EPC). The study highlights that the state's climate strongly supports foreign direct investment (FDI), strategic infrastructure projects, forward-looking policies, and a growing talent and innovation ecosystem. Advertisement
The MSME EPC's report, titled "Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25", shows that investment projects announced during this period totaled INR 12,01,175 crore. Of these, projects worth INR 1,40,476 crore were completed, and pending projects valued at INR 36,078 crore were revived. Meanwhile, investment projects amounting to INR 9,49,370 crore remain at various stages of implementation. This data is sourced from the Centre for Monitoring of Indian Economy (CMIE), the EPC chairman D S Rawat noted.
Citing NITI Aayog, the council said Karnataka leads India in innovation and contributes around 20 percent of the country's exports. The state dominates aerospace exports with a 65 percent share and machine tools production by 50 percent. Karnataka's IT sector accounts for nearly 42 percent of India's software exports.
Investment projects over the years show steady growth: INR 1,45,035 crore in 2021-22, INR 5,13,364 crore in 2022-23, INR 2,27,706 crore in 2023-24, and INR 3,15,069 crore in 2024-25, including private sector investments worth INR 10,25,614 crore.
The MSME sector in Karnataka continues to grow, with over 8.5 lakh units employing close to 70 lakh people. These enterprises operate across sectors such as electronics, food processing, readymade garments, automotive components, and chemicals. The state also hosts more than 14,000 DPIIT-recognized startups and 45 unicorns, representing a significant share of India's total.
The study points out that Karnataka's tourism sector holds immense potential, which requires focused efforts in infrastructure, branding, and experience-building. Recommendations include offering tax breaks and subsidies for resorts, eco-lodges, adventure parks, and boutique hotels. Local communities could be empowered to run homestays, nature tours, and handicraft hubs with training and micro-credit support.
Karnataka's agriculture sector is on a positive trajectory, recording 4 percent growth in 2024-25, above the national rate of 3.8 percent. The report highlights strengths in high-value segments like horticulture and coffee. However, it emphasizes the need to improve irrigation coverage, enhance price support mechanisms, ensure equitable access to finance, and strengthen value-addition infrastructure for long-term sustainability and farmer prosperity.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
