Karnataka attracted investment proposals worth ₹12,01,175 crore between FY2021-22 and FY2024-25, according to a study by the MSME Export Promotion Council. During this period, completed projects were valued at ₹1,40,476 crore, while ₹36,078 crore of pending projects were revived. Projects under various stages of implementation accounted for ₹9,49,370 crore.
Investment announcements in FY2021-22 stood at ₹1,45,035 crore. The following year, FY2022-23, saw proposals rise sharply to ₹5,13,364 crore. In FY2023-24, announcements came to ₹2,27,706 crore, while in FY2024- 25, projects worth ₹3,15,069 crore were reported. Private sector investments during the four-year period added up to ₹10,25,614 crore.
Citing NITI Aayog data, the study noted that Karnataka contributes around 20% of India’s total exports. The state accounts for 65% of aerospace exports and 50% of machine tool production. Its IT industry contributes nearly 42% of the country’s software exports, underlining its position as a hub for technology-led industries.
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The report highlighted that Karnataka hosts over 8.5 lakh micro, small and medium enterprises. These units collectively employ close to 70 lakh people. They operate across sectors, including food processing, electronics, readymade garments, chemicals, and automotive components.
Karnataka has over 14,000 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). The state also houses 45 unicorns, making up a significant portion of India’s total.
Agriculture in Karnataka grew at 4% in FY2024-25, higher than the national growth rate of 3.8%. The study also pointed to untapped tourism potential, suggesting the need for infrastructure, branding, and incentives for projects such as eco-lodges, adventure parks, and homestays.
The study underlined Karnataka’s progress across multiple sectors, with investments supported by both private and public initiatives during FY22-FY25.
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Published on: Sep 5, 2025, 11:21 AM IST
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