Karnataka is India's top investment destination, receiving the most foreign direct investment. It has a strong industrial base centered around Bengaluru and has the largest economy of any state in South India. Karnataka leads India in many sectors including IT, biotechnology, renewable energy, aerospace, machine tools, and electronics. The state offers investors favorable business policies, skilled workforce, developed industrial land, and world-class infrastructure and amenities to support business. Key government initiatives aim to further improve the ease of doing business by simplifying approvals and providing various financial incentives.

1. Investment opportunities
in Karnataka, India
Discussion Document
SEPTEMBER 2022

2. 2
Karnataka is a leading investment destination in India, with a strong
industrial base
22
15
8
3 3 3
2
TN TS
KN MH GJ
DL HR
in FDI inflows
FY22 (Apr-Mar)
FDI inflows (in $ Bn)
1st
38%
of FDI to India
Capital – Bengaluru
• Startup Capital of
India
• Top 3 Startup
ecosystems globally
New Delhi
Kolkata
Chennai
Ahmedabad
Mumbai
Hyderabad
Bengaluru
Karnataka
GSDP - $230 Bn - Almost the size
of Vietnam & growing at ~9.5%
400 out of Fortune 500
companies present in Karnataka
Karnataka
INDIA’S NO. 1
Investment Destination
Top Achiever in Ease of
Doing Business
1st in India Innovation Index
1st in service exports
amongst all states in India
1st in # of R&D centers

3. KARNATAKA LEADING
INDIA ACROSS SECTORS
1st
in Electronics Design in India - 40% share
in Electric Vehicles innovation - 7+ Auto OEMs and 45+ EV startups
in Machine Tools manufacturing - 52% share
in Aerospace & Defence manufacturing – 65% share
in R&D centres – 400+ R&D centres in India
in Biotech production & exports – 60% share
in Software exports – 40% of India’s IT exports
in Renewable energy – 63% of total installed capacity from renewable sources

4. 4
1
2
3
Revamped processes to facilitate Ease of doing business
4
Highly skilled & trained labor workforce, along with a robust
skill infrastructure and subsidies
5
Well connected to demand centers and gateways with an
efficient logistics network
Investor friendly policies with multiple financial incentives to create
favorable cost economics
Readily available industrial eco-system including land
Key offerings that
make Karnataka
the most
attractive
investment
destination in
India
6
Industrial ecosystem well supported by World Class Social Infrastructure
6

5. 5
Multiple financial incentives announced in Karnataka's Industrial Policy 2020-25
to create favorable cost economics for investors
1. Subsidy applicable only for the first industry in sub-administrative zones; to encourage investments in taluks where there are no industries with
investments above INR 100 Cr and direct employment of 75 persons
100% reimbursement
of stamp duty
100% reimbursement of
land conversion fee
50% subsidy for setting
up Effluent Treatment
Plants upto Rs. 250 L
0.1% concessional
registration charges
Investment promotion
subsidy
upto 2.25% of annual
turnover
for 6-10 years upto
40-60% Value of Fixed
Assets
Pre-setup charges Capital expenditure
Turnover linked
subsidies
New Industrial Policy
released in August 2020
…and many more
INR 7-10 Cr subsidy to
anchor industries1
1

6. 6
Karnataka has a strong ecosystem for capital goods manufacturing with major
Global and Indian companies having a manufacturing presence here
Many Global and Indian companies have set up
manufacturing facilities in Karnataka
Karnataka has a strong capital goods
manufacturing ecosystem
1. Invest Karnataka
Highest producer of special purpose
and heavy electrical machinery in India
2nd
Highest contributing state for
Heavy Engineering in India
3rd
of India's total share in machine
tool production
52%
1st
Integrated machine Tool park (TMTP)
in India in Tumkur
2

7. 7
Tumakuru Machine Tool Park in Karnataka provides a great ecosystem and
opportunity for investment in capital goods manufacturing
530
Acres
• India's first machine tool park and
developed to international standards
158
Plots
>99%
Infra Progress
Tumakuru Machine Tool Park
1
Why Tumakuru Machine Tool Park (TMTP) ?
State-of-the-art Infrastructure with all modern
amenities with a cluster of machine tool industries
2 519 acres exclusive Japanese Industrial
township in proximity
Proximity to rapidly growing Indian
Machine Tool Market
Availability of highly skilled man-power
More than 130 acres already allotted to investors
3
4
5
2

8. 8
Karnataka, the knowledge capital of the country, provides highly skilled &
trained labor force; along with relaxed labor laws
Large skilled & trained talent pool in Karnataka
Institutes of Excellence
Indian Institute of Management,
Indian Institute of Science, Indian
Institute of Technology etc.
ITIs
Public and Pvt.
Industrial Training
Institutions
Engineering
Colleges
Universities
52
234
1,777
Largest workforce at the intersection of advanced mfg.
building blocks (AI, IoT) and skilled mfg. craftsmanship
20 Mn in age group of 16-35 years creating a
favourable demographic dividend
…along with relaxed labor laws
• Provision to avail 'Fixed term employment' to
optimize labor capacity to cater to seasonality
• Recent amendments made to facilitate women's
work timings in night shifts, between 7 PM to 6 AM
• Overtime limit per quarter increased from 75 to 125
hours with the amendments to the Factories Act
• Among the first few Indian states to introduce and
implement labor reforms, ensuring convenience for
both employees and employers
• Partnership with Govt. training institutes can be
provided, to tailor curriculum as per requirement
• Skilling subsidies can also be considered
…and skilling support from Govt.
3

9. 9
Developed industrial land available at strategic locations - well connected to
key demand centers and logistic gateways
1. 3 operational currently and 3 more in the pipeline 2. In terms of value of trade handled
Mumbai
Chennai
Hubballi
Mysore
InternationalAirport Major Port Domestic Airport
BMEC Corridor
Shivamogga
Bellary
Krishnapatnam
2
CBIC Corridor
1
1
2
3
Bengaluru(Urban & Rural)
Mysore
Dharwad & Belagavi
Belagavi
xx xx – Distance to port
Bidar
Gulbarga
Mangalore
2 International airports and 6 Domestic airports
Bengaluru Airport – 3rd Largest in India
Major port at Mangalore + 9 minor ports; 300-400 km
access to Chennai, JNPT and Krishnapatnam ports
6 ICDs (Inland Container Depots) with direct rail
connectivity to ports & 5 CFSs (Container Freight
Station) incl. 2nd largest ICD2 in India
Power Surplus State with highest installed capacity of
renewable energy (18.8 GW) in country; 63% of
installed capacity is renewable
3
Dharwad
Bengaluru
Tumkuru
Bengaluru-Chennai expressway being implemented
4

10. 10
Karnataka has simplified the application and approvals processes to ensure
hassle-free investment
Application to
Karnataka
Udyog Mitra for
Project Approval
State High Level
Clearance
Committee to
approve project
Land allotment
and registration
Key approvals
pre and
postconstruction
Commencement
of commercial
operations
Affidavit-based Clearance
System (ABC) implemented for
improving EODB
approvals relaxed by
introducing moratorium
3
years long moratorium
period
departments covered
7
15
Moratorium provided for key time-
consuming mandatory approvals
• Building Plan approval
• Factory Plan approval
• Registration under Contract labor act
• Provisional NOC from Fire Dept.
• Tree Felling and Tree Transit
permission
Single window clearance for the
remaining key approvals
• Land Allotment and
Possession Certificate
• Consent for Establishment
• Consent for Operations
• Power and water connections
5

11. 11
8 of top 10
international schools
of India present in
Karnataka
Blessed with pleasant
climate throughout
the year, with
abundant greenery
Home to world-class
golf courses, sports
clubs & wildlife resorts
Bengaluru consistently ranked amongst
the best cities to live in India for expats
– Mercers quality of living report 2019
Bengaluru ranked most dynamic city in
India
– JLL report 2020
Expatriate friendly ecosystem and
lowest crime rate in South India
Over 16 International Schools
Popular tourism
destination incl.
UNESCO Heritage Sites,
attracting tourists from
across the world
Industrial ecosystem well supported by World Class Social Infrastructure
in Karnataka
40+ five-star hotels
in the state, such as
Taj Group of Hotels,
Hyatt, etc.
6

12. 4
For further details, please contact us:
Website https://www.investkarnataka.co.in/
Email commissioner@karnatakaindustry.gov.in
Phone +91-80-22386796
Thank you
Commissioner for Industrial Development and Director, Dept. of Industries & Commerce