This Karnataka region needs industry, not instinctive opposition

Kalyana Karnataka region needs targeted industrial investment.

By Abhishek Raj  

Kalyana Karnataka, which includes districts like Koppal, Bidar, Kalaburagi, Raichur, Yadgir, Ballari, and Vijayanagar, continues to trail economically. The region’s average Gross District Domestic Product (GDDP) is around 2 percent, far behind the 5.45 percent seen in the Mysore Karnataka region, which benefits from a stronger IT, services, and industrial base. To bridge this growing gap, Kalyana Karnataka region needs targeted industrial investment. But that also requires moving past knee-jerk protests and adopting a more pragmatic, long-term approach.

Industry as a Path to Regional Growth

Industrial development is more than just setting up factories. It brings direct employment in manufacturing and operations, as well as indirect jobs through transportation, logistics, housing, retail, and services. With rising income levels, local economies become more vibrant. More importantly, it reduces the constant outflow of youth from North Karnataka to cities like Bengaluru, where opportunities are currently concentrated.

Some districts have already seen what industry can deliver. JSW Steel in Ballari has helped spark growth in multiple sectors including fabrication, mining equipment, and transportation. The proposed 54,000 crore BSPL plant in Koppal, though not yet operational, holds similar potential. Once established, it could generate thousands of jobs and activate a chain of economic activity through ancillary industries.

Yet, projects of this scale often face resistance at the starting line. In many cases, opposition arises even after a company has secured all necessary legal and environmental approvals. Concerns about displacement or environmental harm are valid, but rejecting investment outright discourages further interest and ensures the region stays stuck at the same GDDP. If every industrial proposal hits a wall before work even begins, the region cannot progress.

Infrastructure and MSME Growth Go Hand in Hand

One of the most overlooked benefits of industrial investment is the infrastructure that follows. When industries set up, they push for better roads, consistent power supply, water availability, and rail connectivity. These upgrades serve not only the companies but also the local population. National projects like the Bengaluru-Mumbai Economic Corridor are designed to attract industrial clusters, and North Karnataka’s proximity to this route makes it well positioned to capitalize on this, provided the environment for investment is stable and welcoming.

Large industries also act as magnets for smaller businesses. In Ballari, the steel industry has fueled the growth of small and medium enterprises ranging from fabrication units to local logistics providers. These businesses hire locally, circulate money within the community, and deepen the region’s economic base. A healthy industrial ecosystem includes both big players and small contributors working in tandem.

Managing Concerns Without Blocking Progress

Environmental protection must always be a priority, but it should be approached with balance. Shutting down industrial projects purely out of fear is counterproductive, especially when companies follow the legal and environmental standards laid out by regulatory bodies. The government’s job is to enforce these standards rigorously; not just at the point of approval but throughout the life of the project.

Much of the opposition stems from distrust in institutions or political maneuvering rather than evidence of wrongdoing. Improving transparency, involving local stakeholders in monitoring, and holding companies accountable are better strategies than sweeping protests that kill investment before it begins. Sustainable development is not about choosing sides blindly. It is about holding all actors, public and private, to their responsibilities.

Role of Leadership and Need to Retain Talent

Political leaders in the region must take a clearer stance in support of development. Their duty is to the long-term welfare of the people, not just short-term vote banks. Supporting industries that have cleared all legal requirements is not betrayal, it is common sense. Leadership must ensure that these industries contribute to the community, hire locally, and comply with regulations. At the same time, they must prevent politically driven resistance that hurts future prospects.

Migration from North Karnataka to the south is not just an economic issue but a social one. Families are split, and local talent drains away. With strong industrial investment and job creation, this can change. Youth from Kalaburagi, Yadgir, or Raichur should have the opportunity to build careers without leaving their hometowns.

A Chance to Close the Gap

Kalyana Karnataka region has what it takes - land, manpower, and access. What it lacks is coordinated action to attract and retain responsible industry. The focus should now shift from protesting approvals to ensuring compliance and delivering benefits to the community. Protests after due process are counterproductive and send a negative signal to future investors.

The state has a real opportunity to reduce the economic divide between regions. But that will only happen if North Karnataka makes space for industry to grow, not unchecked, but within a framework that demands both development and accountability. Industry is not the enemy. When it is held to the right standards and integrated into the local economy, it becomes the engine of opportunity, stability, and pride.

(Abhishek Raj is Public Policy Consultant Director, Centre for Competition Law and Economics.)

Views are personal, and do not represent the stand of this publication.