• Chip design hub in the country
• Karnataka is the largest software exporter in India
Bengaluru, NFAPost: The three day Global Investors Summit, beginning November 2, is set to place Karnataka in a different zone altogether, compared to other states, as it gets ready to firm up investment proposals exceeding Rs 5 lakh crores.
The prestigious event will be inaugurated, in virtual mode by Prime Minister, Narendra Modi. In addition, Union Finance Minister Nirmala Sitharaman, Union Minister For Road Transport & Highways Nitin Gadkari, Union Minister For Women and Child Development Smriti Irani and Union Minister of State for Chemicals and Fertilizers Bhagwanth Khuba will be attending the all important meet.
However staggering the proposed investment figures may appear, the fact is that the state government would, inevitably, realise its envisaged target, evidenced by the well planned strategy executed by its officials led by Karnataka industry minister Murugesh Nirani.
This is largely because of the growing opportunities that are available in Karnataka for investors from different sectors, including startups. Therefore, it was but natural for the industry minister’s team to highlight these factors during the roadshows in Japan, South Korea, Europe and the US in the course of its interaction with prospective investors. This is in addition to the visits to domestic centres including Hyderabad, Delhi and Mumbai.
The straight and simple objective during the roadshows was to highlight the available opportunities in the state, including the IT capital, Bengaluru, with emphasis on Two and Three Tier cities as well.
It is worthwhile emphasising that for the summit, the government has already earmarked over 50,000 acres of land across the state, including 20,000 in and around Bengaluru.
The land, significantly, will be allotted to the firms, rather the investors concerned, in “quick time” while providing the accompanying infrastructure and facilities including water, power and roads.
Not surprisingly, the participation of over 5000 delegates from virtually every major country, is an endorsement, if at all one is needed, of the state’s enviable record of honouring its commitment and avowed determination to meet its promises to the investors.
According to Karnataka Industries Minister Murugesh Nirani, the global investors meet will showcase the state’s robust industry friendly environment, besides attracting investment from leading global players while boosting industrialisation across the state.
Importantly, as he reiterated, the state government aims to set its development agenda with the summit’s theme, appropriately, being: ” Build the World.” The move is aimed at showcasing Karnataka’s role in the global supply chain ,creating a new Karnataka for a New India.“
In other words, during the summit, Karnataka will emphasise the following for the investors. First, to look at India and the state, in particular, to meet the huge local demand.
More, important, however, is to use the opportunity to export from India with emphasis on manufacturing, innovation and solutions in sustainability.
“We want to ensure that our ecosystem is resilient to withstand these difficult times,” as Gunjan Krishna, Commissioner for Industrial Development, department of commerce in the state government said.
This apart, Karnataka Technology and IT,BT Minister Aswath Narayan explained recently, Karnataka, already a preferred destination for IT/BT, semiconductor and electronics sectors, is set to become a premier hub of electric vehicles soon.
This follows the government’s decision to set up an EV hub on the outskirts of the IT capital. The objective is to house about 1,000 Start Ups in the upcoming growth segment. In addition, five centres of excellence will come up to facilitate research, development, entrepreneurship ,training coupled with innovation.
Investment opportunities
Further, as the vibrant state is the country’s technology sector, in terms of investment and exports, it is not surprising to see new business opportunities which are emerging in segments like automobiles and auto components ,electronics, food processing, textiles and heavy machinery sectors.
This is further emphasised by the fact that Karnataka, predictably, is proud of its position as the country’s leading investment destination for the last two years in a row– —the result ,of course, of its healthy and encouraging industrial environment and infrastructure. Above all, its industry friendly approach!. This underlines the focus on a “ strong fiscal and stable policy .”
To revert to the growth and investment specific areas, one cannot but emphasise the development in the aerospace and defence sector, for one, where Karnataka remains the leader, producing a quarter of India’s aircraft and spacecrafts. As a matter of fact, the state accounts for 65% of the aerospace related exports, to go by official statistics.
The state also remains the first to roll out a dedicated aerospace policy, while at the same time developing a hi-tech aerospace and defence park in a 400 ha with world class infrastructure. Likewise, Aequa Global, a precision manufacturing unit ,has developed the country’s first aerospace SEZ in Belagavi.
In the same vein, in automobile and auto components manufacturing, Karnataka stands in 4th place, accounting for 8.5 per cent of the national output, to go by available statistics.
This is not all. The state has also been home to the first independently built electric car in the country, apart from 45 plus EV innovation Start Ups.
What is more, it even has 7 major OEM and over 50 auto component units besides five auto clusters. These are located in Belgaum, Hoskote, Bidadi, Hubbali- Dharwad and Shivamogga.
In the electric vehicles segment, the state, perhaps, was the first to release an EV policy offering incentives to manufacturers besides planning an EV cluster in Ramangara district.
Heavy Engineering and Machine Tools
Talking about the Heavy Engineering and Machine Tools sector, the state remains the leading player with the IT capital accounting for over 60 per cent of the output in value terms. This apart, the Indian Machine Tools Association has also set up the country’s first Machine Tools park in Bengaluru.
Similarly, in the innovation sector, Karnataka prides itself on the fact that it has the third highest Start Ups . Globally, that is, with over 400 R &D centres and 4000 plus Start Ups in the IT capital.
Notably, the state was the first to announce a multi sector Start Up policy. In fact, out of the $ 14 odd billion raised by these companies in the country, units in Bengaluru alone accounted for $ 5 billion, it is learnt.
If this is not enough, Karnataka is home to several international incubators, according to official sources, including Microsoft, Airbus, SAP and NUMA , to name but a few.
These developments, apart from indicating the investment opportunities and prospects, also help in realising the importance of the Global Investment Meets for the state and the consequent successes it has achieved through such events.
Karnataka remains the top investment destination
In fact, this explains why Karnataka has emerged as the top investment destination for two consecutive years, underlining the positive industrial environment that it provides. In fact , the state attracted over Rs 62,085 crore worth of investments, during the last fiscal.
Yet another feather in Karnataka’s cap is that the government is promoting the FMCG cluster as well with one for toys segment already in an advanced stage.
In fact, as part of its industrial policy, the government has been working towards making the state into a global manufacturing hub . Towards this end, it has also modified its policies accordingly, if only to boost investment.
In this context, it is only natural for one to ask: — with all the advantages that it has, what does the state expect to realise from the GIM?
. The answer is not far too seek, when viewed in the context of the current global environment, particularly the mess the economies of the world are facing, thanks to the Ukraine war.
The accompanying shortage of fertilisers, foodgrains and chips, coupled with the covid lockdowns in China, has impacted the supply chain ,across the world.
Accordingly, it is in this context that Karnataka seeks to provide the much needed supply base to the investors in general and the world at large, Especially as the state is already an established brand.
“ We want other people to be aware that the state is a viable option in the world supply chain where partnerships can play a vital role. The challenges will come now if the world slows down,” said Industries Commissioner Gunjan Krishna.
In that context, Karnataka, in particular, and India, in general, will be the ideal partner for investors who can take advantage of its emergence as the next engine of growth.
In this context, the recent comments of Pierre-Olivier Gourinchas, the chief economist, IMF, that India has been doing very well in 2022 and is expected to grow fairly robustly in 2023, assume significance.
Accordingly, the available investment opportunities in Karnataka and the GIM summit, is expected to underline the growth opportunities in the state and the country, as a whole.
(Written by Tyagaraj Sharma)
