SME Connect Awards distributed at GIM Invest Karnataka 2025
Bengaluru, NFAPost: Union Minister of State for Labour and Employment and MSMEs Shobha Karandlaje on Thursday, assured full support from the central government for industrial growth through a cluster model, provided the state government addresses the land-related issues.
Speaking at the “SME Connect Awards” event organised as part of the GIM Invest Karnataka 2025, Union Minister of State for Labour and Employment and Minister for MSMEs Shobha Karandlaje urged the state government to resolve these issues to boost industrial development. She presented the “SME Connect Awards” to over 30 successful MSMEs in the state during the event.
“The rising land prices in Karnataka have become a challenge for industrial investment, making it difficult for businesses to acquire land for their operations. Entrepreneurs have voiced concerns that land acquisition costs are often higher than the actual investment required for the projects themselves. This should be addressed by the state government,” said Union Minister of State for Labour and Employment and MSMEs Shobha Karandlaje
Karandlaje highlighted the successful agreements with international investors during her speech. Karnataka has secured investments of Rs 820 crore from the UAE, including Saudi Arabia, Doha, and Dubai. Additionally, the KLE Society’s Shivashakti Sugars Factory is receiving a Rs 1,000 crore investment, and Rs 250 crore has been invested in Inandar Sugars.
“MSMEs contribute to the country’s GDP, accounting for approximately 30% and providing employment to over 25 crore people. Over the past decade, Rs 27.5 lakh crore in loans have been provided to 7 lakh MSMEs across India. It is important to note that the MSME policy has been revised, with new classifications introduced. The turnover limit for micro enterprises has been raised to Rs 10 crore, for small enterprises to Rs 100 crore, and for medium enterprises to Rs 500 crore,” said the Minister at the GIM Invest Karnataka.
“The rising land prices in Karnataka have become a challenge for industrial investment, making it difficult for businesses to acquire land for their operations. Entrepreneurs have voiced concerns that land acquisition costs are often higher than the actual investment required for the projects themselves. This should be addressed by the state government,” said Union Minister of State for Labour and Employment and MSMEs Shobha Karandlaje.
Opportunities in food processing and skill development
Union Minister of State for Labour and Employment and Minister for MSMEs Shobha Karandlaje emphasised the need to consider both agriculture and industrial development in Karnataka.
“The state has immense potential in food processing, particularly for ready-to-eat and ready-to-cook food products. She noted that foreign markets are increasingly seeking digital technologies and skilled workers from Karnataka, and the government needs to focus on equipping youth with the necessary skills to meet these global demands,” said Union Minister of State for Labour and Employment and Minister for MSMEs Shobha Karandlaje.
Cauvery Water for Bengaluru’s industries: D K Shivakumar
On the infrastructure front, Karnataka Deputy Chief Minister D K Shivakumar highlighted the need for more water to support industries in Bengaluru.
“I assure that an additional 6 tmc of water would be sourced from the Cauvery River to meet the demand. Also, I want to highlight that the state is working to resolve the city’s traffic congestion issues,” said Karnataka Deputy Chief Minister D K Shivkumar.
He urged entrepreneurs to actively participate in the government’s ‘Beyond Bengaluru’ initiative, which encourages industrial development outside the city.
KLE Society’s Rs 1,000 crore investment in KWIN City
In a significant announcement, the KLE Society disclosed a Rs 1,000 crore investment plan for healthcare services, education, and research in KWIN City over the next five years. This investment will create 1,500 new jobs and is the first major investment commitment to the KWIN City project. The investment agreements were signed in the presence of industry officials, including Selvakumar, Principal Secretary of the Industry Department, and Dr. Prabhakar Kore, chairman of the companies involved.
Investments in sugar and ethanol production
Meanwhile, Shivashakti Sugars in Savadatti and Inandar Sugars have announced investments of Rs 1,000 crore and Rs 250 crore, respectively, over the next two years to increase sugar and ethanol production. These agreements were signed on Thursday in the presence of government officials and company representatives.
Governor Thaawar Chand Gehlot, Ministers MB Patil, Ramalingareddy, and Chaluvaraya Swamy were also present.
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