Karnataka Unveils New Industrial Policy 2024-29 to Boost Jobs and Investment

The Karnataka government has launched its Industrial Policy 2024-29, aiming to generate 20 lakh employment opportunities by 2029. The policy was unveiled at the Global Investors Meet – Invest Karnataka 2025 and focuses on boosting manufacturing growth, attracting investments, and making the approval process easier for businesses.

Key Objectives of the Policy

• Increase the manufacturing sector’s growth rate to 12% per year.
• Attract investments worth ₹7.5 lakh crore.
• Improve investor experience through digitalisation and a Single Window System.
• Promote green manufacturing with sustainability incentives.
• Strengthen electronics system design & manufacturing (ESDM), aerospace, defence, and future mobility sectors.
• Ensure balanced regional growth by developing industries in underdeveloped areas.

Special Incentives and Benefits

• Logistics & Warehousing Industry: Given ‘industry’ status to attract investment and support growth.
• Skill Development: Workforce upskilling initiatives to bridge skill gaps and improve industry competency.
• Research & Development (R&D) Support: Industries co-locating R&D or Global Capability Centres (GCCs) with manufacturing units will get 10% additional incentives.
• Women Workforce Incentives: Special benefits for companies with higher female workforce participation.
• Backward Region Development: Additional incentives for industries in less developed talukas.
• Capital Subsidies: Warehousing projects can get up to 20% subsidy on fixed capital investments.
• Electricity and Stamp Duty Benefits: Five-year exemptions on stamp duty and electricity duty.
• Worker Housing: Industrial dormitories can receive up to ₹1 crore subsidy or production-linked incentives (PLI) per 1,000-person accommodation.
• Expanded Zone 1: Now includes 199 talukas (previously 152), ensuring a wider reach of industrial benefits.

Top 20 Investments Announced at Invest Karnataka 2025

1. JSW Neo Energy Ltd: ₹56,000 crore for renewable energy projects.
2. Baldota Steel & Power Ltd: ₹54,000 crore for an integrated steel plant.
3. Tata Power Renewable Energy Ltd: ₹50,000 crore for solar and rooftop solutions.
4. ReNew Pvt Ltd: ₹50,000 crore for 4 GW renewable energy projects.
5. Serentica Renewables India Pvt Ltd: ₹43,975 crore for green energy projects.
6. JSW Group: ₹43,900 crore for cement and steel projects.
7. Mahindra Susten Pvt Ltd: ₹35,000 crore for renewable energy projects.
8. Hero Future Energies: ₹22,200 crore for renewable energy and green hydrogen projects.
9. Suzlon Energy Ltd: ₹21,950 crore for wind power projects.
10. Essar Renewables Ltd: ₹20,000 crore investment.
11. Avaada Energy Pvt Ltd: ₹18,000 crore investment.
12. Epsilon Group: ₹15,350 crore for anode and cathode materials.
13. Emmvee Energy Pvt Ltd: ₹15,000 crore for solar cell and module manufacturing.
14. Lam Research: ₹10,000 crore for semiconductor equipment manufacturing.
15. AMPIN Energy Transition Pvt Ltd: ₹10,000 crore investment.
16. ACME Solar Holdings Ltd: ₹10,000 crore investment.
17. O2 Power Pvt Ltd: ₹10,000 crore for renewable energy projects.
18. Continuum Green Energy Group: ₹10,000 crore for renewable energy.
19. Sotefin Bharat: ₹8,500 crore for robotic car and bus parking systems.
20. Shree Cement Ltd: ₹8,350 crore for a cement plant and grinding unit.

Other Key Investments

• Safran: ₹225 crore for avionics manufacturing.
• Schneider Electric: ₹2,247 crore for electrical product manufacturing and R&D.
• Honda: ₹600 crore for electric vehicle manufacturing.
• Hitachi Energy: ₹1,000 crore for manufacturing and R&D.
• Bosch: ₹450 crore for manufacturing and R&D.
• Havells: ₹710 crore for a new R&D centre and expansion in Tumkur.
• TVS Motor Company: ₹2,000 crore for an advanced R&D facility.
• UltraTech Cement: ₹4,500 crore for cement manufacturing.
• Dalmia Cement: ₹3,000 crore for cement projects.
• Samvardhana Motherson: ₹3,700 crore for manufacturing and assembly.
• Balaji Wafers: ₹550 crore for snack and wafer production.
• ESR Advisers: ₹2,500 crore for industrial parks and data centres.
• KWIN City: Nine universities, including St John’s University of New York City, will establish campuses.

Karnataka’s Commitment to Industrial Growth

The Industrial Policy 2024-29 reinforces Karnataka’s goal of becoming a leading industrial hub by focusing on sustainability, inclusivity, and innovation. The state is set to benefit from record-breaking investments, enhanced industrial infrastructure, and job creation, strengthening its position as a key player in India’s economic growth.

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