Karnataka Offers 10% Incentive to Boost R&D Manufacturing
11 Feb 2025
1 Min Read
CW Team
The Karnataka government will provide an additional 10% incentive to companies transitioning their research and development (R&D) operations into local manufacturing. This initiative, part of the state鈥檚 2025-2030 industrial policy, aims to boost domestic production, said MB Patil, Minister for Large and Medium Industries.
With over 400 Fortune 500 companies having R&D centers in Bengaluru but only 10% manufacturing locally, the revised policy offers flexible incentives, including production-linked and capital-based benefits. Employment-based incentives will also favor firms hiring women.
The state has allocated Rs 50 billion to improve industrial infrastructure, including better water supply and leased land options. Companies can also invest up to 26% in solar or wind energy projects, supporting Karnataka鈥檚 65% renewable power capacity.
Additionally, Karnataka is launching an AI-driven single-window portal with Microsoft to halve application processing time. Beyond Bengaluru, Belgaum is being developed as an electronics and aerospace hub, Bijapur for semiconductor-related industries, and Mysore, Hubli, and Belgaum as IT and startup centers.
These initiatives come ahead of Invest Karnataka 2025 on February 12, where the state targets Rs 10 trillion in investments with a 70% conversion rate. Karnataka has already secured Rs 100 billion from Japan and South Korea in high-tech sectors like semiconductors and battery manufacturing.
The Karnataka government will provide an additional 10% incentive to companies transitioning their research and development (R&D) operations into local manufacturing. This initiative, part of the state鈥檚 2025-2030 industrial policy, aims to boost domestic production, said MB Patil, Minister for Large and Medium Industries.
With over 400 Fortune 500 companies having R&D centers in Bengaluru but only 10% manufacturing locally, the revised policy offers flexible incentives, including production-linked and capital-based benefits. Employment-based incentives will also favor firms hiring women.
The state has allocated Rs 50 billion to improve industrial infrastructure, including better water supply and leased land options. Companies can also invest up to 26% in solar or wind energy projects, supporting Karnataka鈥檚 65% renewable power capacity.
Additionally, Karnataka is launching an AI-driven single-window portal with Microsoft to halve application processing time. Beyond Bengaluru, Belgaum is being developed as an electronics and aerospace hub, Bijapur for semiconductor-related industries, and Mysore, Hubli, and Belgaum as IT and startup centers.
These initiatives come ahead of Invest Karnataka 2025 on February 12, where the state targets Rs 10 trillion in investments with a 70% conversion rate. Karnataka has already secured Rs 100 billion from Japan and South Korea in high-tech sectors like semiconductors and battery manufacturing.
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
