Karnataka floats tender to hire private sector professionals to attract investments 

Government officials said that the decision to establish a focused and dedicated team within IKF is aimed at enhancing investment promotion efforts and strengthening Karnataka’s position as a leading investment destination

The Invest Karnataka Forum (IKF) will soon hire private sector professionals to boost investments in the state.

In the first phase, IKF plans to onboard six professionals, including an investment promotion head, market intelligence and analytics head, and four sector leads for industries such as ESDM (Electronic System Design & Manufacturing) including semiconductors; e-mobility, auto/auto components, and aerospace & defence; core manufacturing, capital goods & machine tools; and FMCG, healthcare, pharma, and biotechnology. The post of IKF’s Chief Executive Officer (CEO) will be held by an IAS officer.

In November 2024, the state government appointed Commissioner for Industrial Development and Director of Industries and Commerce, Gunjan Krishna with the additional charge of Chief Executive Officer, IKF, till further orders.

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IKF, which will hire a private agency, will identify candidates for these six roles. The private agency’s role includes drafting job descriptions, shortlisting candidates, coordinating interviews, and conducting background verifications. The final selection will be carried out by a recruitment committee comprising Commissioner, Department of Commerce and Industries, CEO of IKF, a representative from knowledge partner, and industry representatives from IKF’s board, strategic investments group, and vision groups.

Also, read: Race for big-ticket projects: Karnataka to overhaul investment promotion agency, bring in private-sector professionals

Moneycontrol had reported on October 6, 2024, about IKF’s plans to overhaul its investment promotion agency in the article titled, ‘Race for big-ticket projects: Karnataka to overhaul investment promotion agency, bring in private-sector professionals’.

The Karnataka government had also roped in the Boston Consulting Group as a knowledge partner for the Industries Department as well as for the Global Investors Meet — Invest Karnataka summit, scheduled for February 2025. However, the state government is already facing flak, with the BJP criticising the Congress-led administration for skipping the World Economic Forum, making Karnataka the only southern state to miss the Davos meet.

However, the Karnataka government cited the Invest Karnataka summit (February 12–14) as the reason for skipping the World Economic Forum. Critics, however, pointed out that Kerala is attending the WEF despite hosting a similar event the same month.

Dedicated team, lucrative salaries

The tender document accessed by Moneycontrol said, “these specialised positions will ensure the success of IKF’s mission by driving targeted initiatives that promote economic growth and attract global investments”.

Government officials said that the decision to establish a focused and dedicated team within IKF is aimed at enhancing investment promotion efforts and strengthening Karnataka’s position as a leading investment destination. “This move will allow for better engagement with investors, streamlined facilitation processes, and more effective execution of investment promotion activities”.

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IKF will offer lucrative salaries to attract top talent. For instance, investment promotion head will receive a salary package ranging from Rs 35 lakh to Rs 45 lakh per annum. The selected candidate will lead a team of 9 to 12 members and work closely with senior government officials to drive investments across various sectors.

The market intelligence and analytics head, with a salary package of Rs 20 lakh to Rs 25 lakh per annum, will focus on business intelligence activities, conduct analytical reviews of organisational objectives, and maintain a database of sick units to address investor queries.

The four sector leads will also play crucial roles in attracting investments into their respective industries. The sector lead for ESDM, including semiconductors, will earn Rs 30 lakh to Rs 40 lakh per annum and will work to identify and engage innovative enterprises with direct investment potential.

The sector lead for e-mobility, auto/auto components, and aerospace & defence will be responsible for promoting these industries and will receive a similar salary package. The sector lead for core manufacturing, capital goods, and machine tools will focus on securing investments in the manufacturing sector, while the sector lead for FMCG, healthcare, pharma, and biotechnology will drive investments in healthcare, chemicals, and related industries. Both positions will also offer salaries ranging from Rs 30 lakh to Rs 40 lakh per annum.

In contrast to Rahul Gandhi’s stance

The Congress-led Karnataka government's move to recruit private professionals’ contrasts with its leader Rahul Gandhi's opposition to the BJP-led Union government's push for lateral entry into top positions, bypassing the Union Public Service Commission (UPSC).

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In August 2024, the UPSC advertised 45 posts to be filled through the lateral entry mode on a contract basis. Gandhi had argued that marginalised communities are already underrepresented in top bureaucratic positions, and such measures would further deny them the opportunities they deserve. Following criticism, the Narendra Modi-led Union government made a U-turn by asking the UPSC to cancel its advertisement for lateral entry into the bureaucracy.

A Karnataka Congress leader, who did not want to be named, said: "It's unfair to compare the Union government's decision to hire joint secretaries and directors/deputy secretaries with this. These are professionals required to steer initiatives to attract investments and create jobs

"IKF is inspired by models from Singapore, Chile, Invest India, and others. We now face stiff competition from states like Tamil Nadu, Telangana, Maharashtra, Uttar Pradesh, Gujarat, and Andhra Pradesh," said an official.

States such as Tamil Nadu (Guidance), Andhra Pradesh (APEDB), Maharashtra (MAITRI), Uttar Pradesh (Invest UP), Gujarat (iNDEXTb), and Punjab (Invest Punjab) are aggressively promoting investments through their nodal agencies and professional teams.

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