Apple supplier Foxconn will receive Rs 6,970 crore in incentives under Karnataka’s special incentives scheme for the Electronics System Design and Manufacturing (ESDM) sector (2020-2025), Chief Minister Siddaramaiah announced in the state budget on March 7.
“Foxconn is setting up a mobile phone manufacturing plant in Devanahalli Industrial Area with an investment of Rs 21,911 crore and will be provided incentives under the ESDM policy” said Siddaramaiah.
Also, read: Foxconn infuses Rs 1,200 crore into Karnataka Unit, plans major manufacturing plant
Under the ESDM policy, the state provides incentives, including a 25 percent capital investment subsidy on land, a 20 percent subsidy on plant and machinery, and a 100 percent reimbursement of stamp duty, registration charges, and land conversion fees.
Foxconn is setting up an iPhone assembly plant, Project Elephant, on 300 acres in ITIR Industrial Area, spanning Doddaballapur and Devanahalli taluks.
To simplify industry regulations, the government will also introduce Karnataka Employer’s Compliance Decriminalisation and Digitisation Bills.
The Chief Minister highlighted Karnataka’s sectoral policies in IT, tourism, and biotechnology to drive economic growth and jobs.
“These are expected to attract Rs 1 lakh crore in investments, with Rs 13,500 crore committed in subsidies. Karnataka secured $4.4 billion in foreign investment by December 2024-25, ranking third in the country, while exports grew 11.17 percent to $88.85 billion. At Invest Karnataka 2025, the state signed MoUs worth Rs 10.27 lakh crore, projected to create over six lakh jobs,” said Siddaramaiah.
“The new industrial policy 2025-30 aims to attract Rs 7.5 lakh crore in investments and generate 20 lakh jobs. The Karnataka Clean Mobility Policy 2025-30 targets Rs 50,000 crore in investments and one lakh new jobs,” said Siddaramaiah.
“To improve working conditions for women, a 6,000-capacity dormitory in Narasapura, Kolar, will be built for Rs 173 crore, along with a Rs 20 crore hostel in Tumakuru” said Siddaramaiah.
The CM said that a separate MSME policy will be framed with the objectives of achieving the Karnataka Sustainable Development Goals, to accelerate the economy, to mitigate regional imbalances by identifying the importance of and by supporting MSME sector.
"The government is boosting MSMEs by setting up Common Facility Centres under the MSME Cluster Development Scheme, benefiting 1,379 MSMEs and creating 26,750 jobs. Rs 185 crore has been allocated in 2025-26 to support 3,758 MSMEs, with a new MSME policy underway to align with Karnataka’s Sustainable Development Goals" said Siddaramaiah.
To drive textile sector growth, a new Textile Policy 2025-30 aims to create two lakh jobs. Textile parks are being developed in Karkala, Ranebennur, Raichur, Kadur, and Chikkamagaluru under a Public-Private Partnership model, while a PM Mitra Textile Park is coming up in Kalaburagi with Central government support.
"In North Karnataka, a flatted factory with Plug & Play facilities will be developed in Thidagundi, Vijayapura. A multi-sector net-zero sustainability industrial park is planned in Kolar, while Tumakuru will host a Japanese Industrial Park under the Chennai-Bengaluru Industrial Corridor," Siddaramaiah.
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