The natural resources, policy incentives and infrastructure in the state favour investments in the IT/ITeS, biotechnology, engineering, electronics, automotive, textiles, agri and food-processing sectors. Karnataka's favourable policies have encouraged industries to set up their research and development (R&D) centres in the state. The state has about 401 R&D centres, the most in India.
Karnataka is making significant investments in industrial infrastructure, such as setting up industrial clusters and SEZs and public-private partnership (PPP) projects to provide an impetus to further industrial development.
The following are some of the major initiatives taken by the state government to promote Karnataka as an investment destination:
- 12 biotechnology finishing schools are scheduled for development under the Millennium Biotech Policy.
- A 300-acre SEZ has been created in Belgaum to develop a precision engineering and manufacturing supply chain ecosystem, which would be a great driver for manufacturing industries.
- The government is in the process of announcing a Dedicated Automobile Policy.
- The state plans to develop a 230-acre textile SEZ in Hassan, dedicated apparel zones in Bengaluru Rural, Tumkur, Kolar, Mandya, Belgaum, Bidar, and Dharwad, and a Silk City in Bengaluru.
- The cabinet of Karnataka approved the New Textile Policy 2013-18. The policy offers various incentives for investments in the textile sector; these include credit linked capital subsidy, entry tax reimbursement and power subsidy.
- The Government of Karnataka had approved the establishment of food parks in six districts - Bengaluru rural, Tumkur, Shimoga, Davangere, Bijapur and Belgaum. These parks are in advanced stages of implementation.