Covid-19 pandemic has exacerbated Karnataka’s financial condition and need for investments, job creation a big priority for the government
BENGALURU : The Karnataka state cabinet on Thursday cleared the New Industrial Policy 2020-25 that aims to attract ₹5 lakh crore worth investments over the next five years, and create about 2 million jobs to help mitigate the economic impact of the covid-19 crisis.
“It is to help (Karnataka) emerge as a global leader in advanced manufacturing, research and development, innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the state,” Jagadish Shettar, Karnataka’s minister for large industries said.
The policy also outlines the state’s target to reach the third position in merchandise exports in the next five years.
Covid-19 pandemic has exacerbated Karnataka’s financial condition and need for investments, job creation a big priority for the government.
The policy also adopts a production turnover based incentive system instead of tax based incentives, which Shettar said, was the first such initiative in India.
The B.S.Yediyurappa-led state government has relaxed several laws governing industries, land and even diluted labour laws in Karnataka to attract big and medium ticket investments.
Red-tapism, delays in clearances and hurdles in land acquisition among other issues has resulted in lower conversion of potential investments including big signings at the Global Investors Meet (GIM). Karnataka has missed out on investments as corporations have been offered better incentives and readily available land in neighbouring states.
Source: livemint
