Bengaluru: Karnataka aims to attract investments worth Rs 5 lakh crore and create job opportunities for 20 lakh people in the next five years, according to the states new industrial policy for 2020-2025, an official said on Thursday.
In five years' time, the southern state wants to be the third largest merchandise exporter, maintaining an industrial growth rate of 10 per cent per annum.
The state issues industrial policies regularly in intervals of five years to ensure well-balanced and inclusive industrial development throughout Karnataka.
Following the end of the last industrial policy issued in 2014, the state government has realised that new opportunities have emerged and massive changes have taken place in the industrial landscape, particularly in manufacturing-related service industries, smart manufacturing, customisation, collaborative production and others.
"The focus of the new industrial policy 2020-25 is to exploit Karnataka's industrial prowess, creation of enabling environment, development of infrastructure, and providing equitable opportunities to the people of the state, particularly in the industrially backward districts and Tier 2 and Tier 3 cities," said the official.
The state has also declared its vision to emerge as a global leader in advanced manufacturing, research and development, innovation and to create an ecosystem for sustainable development.
Looking beyond Bengaluru, the industrial policy has recommended promoting Tier 2 and Tier 3 cities as engines of economic growth.
"The policy has grouped districts of the state into three zones with a view to incentivise investments in the industrially backward districts… classified in Zone 1 and 2 while Bengaluru Urban and Rural districts are classified in Zone 3," he said.
Meanwhile, based on competitive strength and growth potential, the policy has identified some focus sectors, such as automobiles and auto components, pharmaceuticals and medical devices, engineering and machine tools, knowledge based industries, logistics, renewable energy, aerospace and defence and electric vehicles.
Likewise, to emerge as a globally competitive state with skills and scale to leverage hi-tech growth, Karnataka has recognised thrust areas like Industry 4.0, R&D, industrial property rights (IPR), technology adoption, innovation, cluster development initiatives and sustainable industrialisation.
The policy has also specifically addressed MSMEs, promotion of large and mega projects, acquiring land, labour laws and others.