Global AI Conclave: Karnataka's industrial policy to target Rs 7 lakh crore investment, 25 lakh jobs

Karnataka's department of industries and commerce commissioner Gunjan Krishna at the Global AI Conclave in Bengaluru.

Karnataka's industrial policy for 2025-2030 aims to attract Rs 7 lakh crore in investments and create 25 lakh jobs, with stress on encouraging employment for women, department of Industries and commerce commissioner Gunjan Krishna has said.

As reported by Moneycontrol, the new industrial policy emphasises incentives tied to job creation, sustainable practices, and women's employment.

"We are looking at investments of Rs 7 lakh crore and creating 25 lakh jobs through the policy", Krishna said at the CNBC-TV18 and Moneycontrol Global AI Conclave in Bengaluru on November 22.

Also, read: Karnataka’s new industrial policy likely to link incentives to job generation, green practices and women employees

The officer said women’s participation in the Indian workforce remains critically low. The policy has included incentives for industries employing more women, Krishna said.

"Women’s participation in the workforce in India is very low, especially in manufacturing. To address this, we will provide additional incentives to industries employing more women. Industries that generate more employment by limiting automation at the periphery will also receive top-up incentives," she said.

Also read: Union govt should not dictate to semiconductor companies on where to invest: Karnataka minister MB Patil 

The policy will also provide incentives for industries establishing research and development centres and manufacturing units in Karnataka. These measures aim to retain and attract companies that might look outside the state for manufacturing opportunities.

She said, "We are focusing on incentivising industries that set up R&D centres, and if they also establish their manufacturing units in Karnataka, we will offer even more incentives."

The policy will be unveiled on February 11 at the inauguration of the Global Investors Meet, which will be continue till February 14.

The policy’s aim is to lay a robust foundation for Karnataka’s economic growth through three pillars. The first is focus on industries contributing significantly to gross value addition such as electronic components, where end-assembly currently accounts for only 4 to 10 percent of the value addition.

The second strategy prioritises industries with high employment potential, including textiles, leather, footwear and electronics manufacturing services.

Lastly, the policy underscores the importance of emerging technologies such as artificial intelligence, semiconductors, electric vehicles and hydrogen, which can either become major employment generators or significantly enhance value addition in the future.

The state has set ambitious targets for the manufacturing sector. "We are targeting 12 percent growth in manufacturing, up from the current 9 percent," she said.