Karnataka to boost Tier-II cities with sector-specific focus, says MB Patil

GIM 2025 has integrated key elements from the World Economic Forum (WEF) in Davos, making it more dynamic and impactful. One major addition is SME Connect, where over 2,000 SMEs have been trained in Industry 4.0 technologies, equipping them for digital transformation and enhanced productivity.

Another unique initiative is Venturise, focusing on industry-specific challenges in aerospace, renewable energy, and Electronics System Design & Manufacturing (ESDM). The Karnataka Government has shortlisted 48 start-ups across these sectors, awarding them a $300,000 prize with exclusive investor interactions with venture capitalists, private equity firms, and potential customers. Additionally, GIM 2025 will feature over 30 sessions, including KWIN City and other industry-focused discussions, with participation from 19 countries, further expanding global collaboration opportunities.

Karnataka has long been a leader in aerospace and defence, contributing 65 per cent of India’s output in this sector. Beyond this, the State is a frontrunner in machine tools manufacturing. Looking ahead, Karnataka is expanding into emerging industries like semiconductors, electric vehicles (EVs), pharmaceuticals, renewable energy, and AI.

The State is witnessing strong interest from semiconductor start-ups and niche players, with plans to establish a full-fledged semiconductor plant, similar to Micron. In the EV sector, Karnataka is developing a dedicated EV cluster, while the pharmaceutical industry is also seeing growth, with an advanced pharma park coming up in Kolar.

Excluding green hydrogen projects, the realisation rate has been 50-60 per cent from previous MoUs. A challenge we faced was the infrastructure readiness for Green Hydrogen projects. While we signed ₹2,40,000 crore worth of MoUs in this sector over the last 2-3 years, only two green hydrogen projects could be absorbed due to the lack of necessary infrastructure.

Now, we are taking a more strategic approach, ensuring investment commitments align with Karnataka’s infrastructure capacity so the projects we attract are both feasible and impactful.

So far, we have confirmed ₹7 lakh crore in investments, and are actively working towards securing an additional ₹3 lakh crore, a total expected investment of ₹10 lakh crore. We are ensuring that the MoUs signed translate into realised investments, with a target of at least ₹7 lakh crore materialising. So out of 10 lakh crore, at least 7 lakh crore should be realised.

Urban Bangalore does not have incentives in its district policy, except for certain high-tech industries. However, other zones are highly incentivised based on sectoral focus. We offer production linked incentives (PLIs), capital subsidy. Mysuru is being developed as a electronics, medical equipment, maintenance company, and semiconductors hub, while Tumakuru focuses on machine tools. Battery manufacturing is expanding in Kolar and Vijayanagar, and FMCG parks are coming up in Dharwad and Bijapur. Belagavi hosts a private aerospace park by Aequs, while Chitradurga is set to have a drone park.

Raichur and Kalaburagi are emerging as textile hubs, leveraging local cotton production and shifting opportunities from Bangladesh. The government is also considering the Nanjundappa Report to drive development in backward districts, with plans for electronics parks in Bengaluru and start-up parks in Mysuru, Bengaluru, Hubballi, and Belagavi.

We will offer employment-based incentives under the industry policy, where incentives increase with the number of people employed. Similarly, companies that hire more women are eligible for additional incentives.

While I cannot disclose full details at this stage, we are actively working on it. I will have another round of discussions with the Chief Minister, after which the proposal will be sent for approval.

HAL Airport is expected to reopen in 2033, as the current exclusivity and preferential clauses will expire by then. However, HAL’s capacity is limited, accommodating only 3 to 5 million passengers annually, whereas Bengaluru needs an airport capable of handling 100 million passengers. Kempegowda International Airport (BIAL) is already designed for 100 million passengers, and the proposed second airport will be built to support a similar scale.

While HAL may still serve regional and domestic routes, such as inter-Karnataka flights using ATR aircraft, Bengaluru requires a second airport of the same scale as BIAL.

The KWIN City is a research park for knowledge, well-being, and innovation. Three decades ago, other countries would come to study in Karnataka. There were fewer colleges in Maharashtra, Tamil Nadu, Andhra Pradesh, and Northern India. All those States now have a decent number of universities, more or less equal to Karnataka. So now we have to step up to the next level.

Foreign universities are coming to India. We have taken the right decision at the right time. We will now welcome foreign universities, and have our own universities, research institutions, and innovation.

In the next six months, we will start with the first phase of development. A lot of interest is being generated by the people, so we want to take it to the next level. Bengaluru has been at an advantage because of the professional colleges. We also have the Manipal group of institutions. This league will continue.

In healthcare, we have institutions like Narayana Hrudayalaya, and Nethralaya among others. Medical tourism is another sector that is up and coming, along with medical research.