Bengaluru: The Karnataka cabinet has approved a new industrial policy for 2020-2025 that aims at Rs 5 lakh crore investment and 20 lakh employment.The new policy has a vision for Karnataka to emerge a global leader in advanced manufacturing, research, development and innovation to create an ecosystem for inclusive and balanced growth.
Briefing the media after the Cabinet meeting, large and medium scale industries ministerJagadish Shettar said, "Many multinational companies have decided to vacate their plants in China. We are hoping to attract such industries bygiving incentives and other benefits." Aimed at maintain ingindustrial growth of 10 percent per year, the new policy will facilitate new industries in tier 2 and 3 cities in the state.
One of the main objectives of the policy is decentralization industrial plants to backward districts and talukas. Forthis, state has created three industrial zones with backward districts and backward taluks included in zone-1. New industrial policy is promoting automobile, auto components, pharmaceutical,machines and tools, surgical equipment, defence, electrical vehicles and mechanical based industries.
Since Medium and Small Scale enterprises giving enormous contribution in industrial growthin the state, the government has decided to bring reforms in labour laws, factories act and industrial employment standing rules. Due to Covid-19 pandemic, many MSME had shut its operations across the state, thus the state has decided to bring reforms in labour laws and rules, Shettar said.
New industrial policy talks about incentives to the industries based on its annualturnover. Tax holiday and GST relaxation created confusion, the State has decidedto give incentives to the industries based on their annual turnover, Shettar announced.
Besides, a Special Investment Region has been created for backward districts and taluks.Urban development department has been asked to develop industrial townshipsacross the state.