Karnataka Industrial Policy

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Karnataka Industrial Policy

Karnataka is a land of immense opportunity and innovation. It is ideally positioned to make the future happen today. The State's manufacturing process is supported by critical enablers such as: thriving ecosystem, highly skilled and talented workforce, empowering institutional & policy environment; favourable business climate and robust infrastructure. Government has taken many initiatives to enhance its stature as one of the leading high-tech industrialized States in the country and is in the forefront of attracting investments from across the country and abroad. As a result, the State ranks 1st in attracting investment intentions since 2016 and has attracted FDI of US$ 37.67 billion during the period April 2000 to March 2019, constituting 9 per cent of the all India FDI.

Government of Karnataka comes out with industrial policies at regular intervals of five years to ensure a well-balanced, sustainable and inclusive industrial development throughout the State. The State Government had announced Karnataka Industrial Policy 2014-19 read at above for promoting manufacturing industries in the State. This Policy came into effect from 01.10.2014 and had validity for a period of 5 years or till the announcement of New Industrial Policy is announced. During formulation of the New Industrial Policy 2020-25, several interactions and stakeholder consultations were held across the State wherein views, demands and suggestions of industry/industry associations / departments on key areas have been received and intricately incorporated in the policy.

The new industrial revolution presents new opportunities for industry, particularly manufacturing and manufacturing-related service industries including smart manufacturing, customization, collaborative production etc. The focus of the New Industrial Policy 2020-25 is to build on the strengths of Karnataka's industry and to enable it to fulfill its role as the engine of growth and to shoulder responsibility of adding more hi-tech value and employment.


To emerge as a global leader in Advanced Manufacturing, Research & Development, and Innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.


To retain Karnataka's position as a global manufacturing hub and to achieve higher and sustainable industrial growth through capital infusion, technology transfer, world class industrial infrastructure, skill up-gradation and benchmarking of policies and practices to best global standards.

  1. To attract investments worth INR 5 Lakh crore
  2. To create employment opportunities for 20 Lakh people
  3. To reach 3rd position in merchandise exports in the next five years
  4. To maintain an industrial growth rate of 10 per cent per annum
  5. To provide an enabling ecosystem for technology adoption and innovation

In line with the National benchmark, the Karnataka Agribusiness & Food Processing Policy 2015 aims to achieve the target of 10% of agro processing by 2020 and 25% by 2025 in the State. This policy aims to develop agribusiness and agro processing as a vibrant sector for creating employment opportunities and increasing the farm returns to farmers by value addition. Read More KS Agriculture Policy

Govt. of Karnataka reaffirms its strong commitment towards export promotion to push economic growth and create jobs. Concrete steps are taken in the Industrial Policy 2020-25 to take exports on higher growth trajectory by considering strategies more holistically and synergizing export promotion with industrial growth Read More KS Export Promotion

Karnataka is the fourth largest and one of the fastest growing States in India with a INR 16,99,115 crore economy growing at around 10.00 per cent at current prices as per Economic Survey of Karnataka 2019-20. Karnataka has carved out a niche for itself in the global market as the knowledge and technology capital of the country. Read More KS for MSME

Karnataka currently ranks 5th in Pharma exports and contributes 10% to the Indian Pharma revenue. Karnataka exports 40% of its pharma produce. Presence of exclusive Pharma Special Economic Zone in Hassan, Pharma Industrial Areas and R&D centers provide required impetus for further growth of Pharma sector in the State Read More KS for pharmaceuticals

Karnataka is keen on further expanding the existing industrial base by facilitating investors to setup Private Industrial Parks. Eligible Private Industrial Parks shall be granted the following package of incentives and concessions. Read More KS Private Industrial Parks

The State’s New Textile and Garment Policy aims to position Karnataka as a leading destination in the Textile and Apparel sector in the country and to make textile value chain into gold mine value chain. The Policy will provide a stimulus to the textile industry in the State and aims to generate 5 lakh new employments in the next 5 years and attract investments worth INR 10,000 crore. Read More KS Textile Policy

Karnataka provides a unique and complete package to meet all the needs of Large, Mega, Ultra & Super Mega Enterprises and continues to be preferred destination for many OEMs looking for high quality intermediate products equipped with the latest technology. Concerted efforts are made in the Industrial Policy 2020-25 to ensure Karnataka remains an attractive destination for investment Read More KS for Large, Mega, Ultra Mega adn Super Mega Enterprises


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