This website uses cookies to improve your experience while you navigate through the website. Other incentives include – exemption from stamp duty and concessional registration charges; reimbursement of land conversion fee; tax exemption on electricity tariff for MSMEs; and power subsidy for MSMEs. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. km. 100% of the employees should be hired locally. Overall, the new industrial policy seeks to attract investment worth INR 5 trillion (approx. Karnataka is also a popular destination for auto, electronics, food processing, heavy machinery, and the textiles industry. The amended Rules were notified on June 30, 2020. These cookies do not store any personal information. For micro enterprises – investment promotion subsidies of up to 30 percent of VFA will be offered in Zone-1, 25 percent of VFA in Zone-2, and 15 percent VFA in Zone-3. including the most recent legal, tax and accounting changes that affect your business. The policy and package of incentives and concessions will come into effect from 13 th August 2020 and will be valid for 5 years or until a new policy is announced. Policy . The investment promotion subsidy will be based on 10 percent on turnover each year for a period of five years and limited to 20 to 30 percent of value of fixed assets (VFA). Previous Article « India Discusses Preferential Trade Agreement with Southern African Customs Union, Next Article How India’s Economy is Recovering from COVID-19: A Snapshot View ». Subsidies for MSMEs: The policy offers production turnover-based subsidies for micro, small, and medium-sized enterprises (MSMEs) with a view to boost industrial innovation. Meanwhile, Bengaluru has been ranked the fourth-best city for investment in India. On July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. The policy focuses on export promotion, renewable energy projects and is focused on providing support to enterprises that adopt energy efficiency measures. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. For enterprises run by persons belonging to a special category – women, members of the Dalit and Adivasi communities, ex-servicepersons, members from minority communities, and persons with disabilities – there are separate incentives. The policy mentions funding (VC fund, angel funding), providing subsidies for allocating spaces to entrepreneurs to set up business, technological support and good infrastructure among the facilities to be extended for the growth of the sector in the state. The new Karnataka Industrial Policy envisions emerging as a “global leader in advanced manufacturing, research and development, and innovation and to create an ecosystem for an inclusive, balanced and sustainable development of the State.”. Incentives will be rolled out to direct greater investment to the industrially backward districts. The policy waives 100 percent stamp duty for enterprises in Zones-1 and 2 and 75 percent of the stamp duty in Zone-3. For those eligible for special category incentives, they will qualify for investment promotion subsidies worth 35 percent of VFA in Zone-1, 30 percent of VFA in Zone-2, 20 percent in Zone-3, and 10 percent in Zone-4. REGISTER TODAY. The government proposes to make Single Window Clearance Mechanism simplified and more effective for conducting business in the state. Each SIR will be categorized as an industrial township and have an area of 100 sq. The policy also stipulates that MSMEs qualify for interest subsidy on technology upgradation loans of up to 10 percent for a period of five years. Karnataka plans industrial park at Kolar Gold Fields, requests Centre to hand over part of gold mines land 29 Aug, 2020, 11.05 AM IST Chief minister BS Yediyurappa and industries minister Jagadish Shettar discussed the subject with Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi on Friday. The government has proposed a number of subsidies and incentives to promote entrepreneurs belonging to the women and special categories. Karnataka's new industrial policy incentivises high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). The state is home to the Pavagada Solar Park, which has an installed capacity of 2,000 MW, the largest in the country, of which 1,400 MW is operational. Good news for students with OCI cards or Overseas […], Stories are the best way for children to learn about […], Some of the villages in Karnataka are the most […], Here is a list of 2021 Bank holidays in Karnataka. Karnataka clears its New Industrial Policy 2020-25. What are the emerging opportunities and how should investors react? Special focus on MSME: There is special focus on the micro, small and medium (MSME) sector to strengthen it in the state. For this purpose it plans to set up Special Investment Regions (SIR) in Northern Karnataka. Earlier, the proposal was made in the Karnataka Industrial policy, 2020-25, by the State government to give impetus to growth of industry; and in the … Kaveri Online Services – Property Registration Made Easier, How to Apply for Voter ID card in Karnataka, District-Wise COVID-19 Cases In Karnataka, List of 2021 Karnataka Government Holidays, How to Pay Traffic Fines Online in Bangalore, How to Obtain A Marriage Certificate in Karnataka. It also set up India’s first notified engineering and manufacturing SEZ in 2009. Local jobs creation: The policy will require new industrial projects to create as much direct employment as possible and hire locally – a minimum of 70 percent of the workforce should consist of locals and 100 percent in the case of Group D type of employees (housekeeping and sanitation staff, non-technical posts, drivers, etc.). The Karnataka government on Thursday announced the launch of the New Industrial Policy 2020-2025, in an attempt to woo domestic investors to invest in the state and to create large-scale employment opportunities. The second SIR will encompass the Davanagere, Shivamogga, Chitradurga, and Chickamagaluru districts as well as Kalaburagi. Save my name, email, and website in this browser for the next time I comment. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. The state is India’s largest software exporter, largest producer of aerospace and defense equipment, has the largest biotech hub, and is the largest producer of coffee in the country. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. Navigate supply chain disruptions and mitigate future risks, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window). The total installed power capacity in Karnataka stands at 28,400 MW. The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. In August, Karnataka announced New Industrial Policy (NIP) 2020-25. 11 Administration of the Policy . The New Industrial Policy for 2020-25 will oversee new incentives and an easing of the regulatory process.”, In terms of the kind of investments the state sought to attract, Shettar said: “To emerge as globally competitive with skill and scale that leverage hi-tech growth, following thrust areas have been recognized: Industry 4.0, Research and Development, Intellectual Property Rights (IPR), Technology Adoption and Innovation, Cluster Development Initiatives and Sustainable Industrialization.”. The minimum wage will be revised periodically based on consumer price index, inflation and other such factors. The policy was issued by a notification dated 13 th August 2020. The policy looks beyond Bengaluru with an aim to promote Tier-2 and -3 cities as engines of economic growth. Labor reforms under the policy: An amendment to the Factories Act, 1948 will ensure that women workers who work the night shift in factories, that is between 7pm to 6am, are registered. ನೂತನ ಕೈಗಾರಿಕಾ ನೀತಿ 2020-25 ಕ್ಕೆ ಸಚಿವ ಸಂಪುಟ ಅನುಮೋದನೆ: ಸಚಿವ ಜಗದೀಶ ಶೆಟ್ಟರ್‌ Micro and small enterprises can avail reimbursement of power tariffs at the rate of INR 1 per unit for a period of three years. In Zone-1, 65 percent of VFA will be offered for a turnover rate of 2.75 percent for a period of seven years. The State government is in the process of notifying a new industrial policy and will also release a special relief package for MSMEs, said Minister for … Industrial/Business/MSME Development Policies of State / UT Governments S. No. For large enterprises with investment on fixed assets between INR 100 million (US$1.33 million) and INR 2.5 billion (US$33.39 million), the policy offers an investment promotion subsidy based on their turnover. These concessions are not applicable to loans obtained from the Karnataka State Financial Corporation and commercial banks that are not listed under the credit linked capital subsidy scheme of the government of India. But opting out of some of these cookies may affect your browsing experience. Wage revisions: The minimum wage will be periodically revised based on factors like inflation and consumer price index (CPI). The New Industrial Policy 2020-25 outlines investment promotion subsidies for enterprises according to their scale of production, turnover, and whether they are operated by persons belonging to special categories. Filed Under: Industry Tagged With: government policies. To achieve this, it mentions a number of changes to existing laws as well as concessions, particularly for MSMEs. For enterprises operated by persons qualifying for special category incentives, a 100 percent concession of stamp duty is available in Zones-1, 2, and 3 and a 75 percent concession in Zone-4. This is aimed at developing industrially backwards areas. Notify me of follow-up comments by email. The policy looks beyond Bengaluru with an aim to promote Tier-2 and -3 cities as engines of economic growth. These intra-state industrial corridors will be: Accelerate CBCIC: The policy also highlights the state government’s plan to accelerate work on Chennai-Bangalore-Chitradurga Industrial Corridor (CBCIC) and Bangalore-Mumbai Economic Corridor (BMEC) with the central government’s help. The Bengaluru-Mumbai Economic Corridor and Chennai-Bengaluru Industrial Corridor pass through Karnataka. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. The subsidy will be based on 10 percent of their turnover each year for five years and will be limited to 20 – 30 percent of the value of their  fixed assets (VFA) based on the zone. State Name of the Policy Year URL State Governments 1. Depending on the zone where they are based, MSMEs can be exempted from stamp duty on land registration. non-technical staff, drivers, housekeeping staff, etc. In addition, subsidies will be offered for enterprises that set up effluent treatment plants within their premises. The Karnataka State Cabinet on 23 July 2020 approved the New Industrial Policy for 2020-2025 that aims to attract Rs five lakh crore worth investments over the next five years, and create about two million jobs to help mitigate the economic impact of the Covid-19 crisis. The first SIR will encompass the Dharwad, Belagavi, Gadag and Haveri districts. Annexwe 1 Definitions . In August, Karnataka announced New Industrial Policy (NIP) 2020-25. Karnataka’s new industrial policy incentivizes high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the  state capital, Bengaluru (formerly, Bangalore). We'll assume you're ok with this, but you can opt-out if you wish. Sector focus of the policy: Key focus sectors have been identified under the policy – automobiles and auto components, pharmaceuticals, medical devices, engineering and machine tools, knowledge-based industries, logistics, renewable energy, aerospace, defense, and electric vehicles. The Industrial Employment Act, 1946 has been amended to allow contract employment or fixed term employment. Promote Karnataka as a hub for entrepreneurs: The State Government wants to promote Karnataka as a hub for entrepreneurs. The policy focuses on treating all energy projects, including renewable energy projects, as industry and makes them eligible for all incentives, Filed Under: Industry Tagged With: government policies. Annexure 2 Terms & Conditions for extending Incentives ... Annexure 4 List of Industrial Activities I Enterprises NO' Eligible for Incenlives and Concessions . India’s economy is showing signs of recovery after witnessing major COVID-19 led business disruptions. The Factories Act, 1948 has been amended with respect to women working the night shift in factories. US$66.89 billion). With... An Introduction to Doing Business in India 2020 will provide readers with an overview of the fundamentals of i... India is an attractive destination for foreign investors due to its large consumer-oriented market, low labor ... Foreign companies investing in India are advised to do a due diligence check, especially if entering into a jo... Dezan Shira & Associates helps For more information and advice on choosing the right location for your business in India, please email us at india@dezshira.com. Various beneficial schemes like Suvarna Kayaka Kaushalyabhivruddhi Yojana (SKKY) are set to be revised. In the case of Group F employees, i.e. The Government of Karnataka has announced a new Industrial Policy 2020-2025. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. The State Government on Thursday unveiled the new Industrial Policy 2020-25 aimed to ensure holistic development of the state. In January 2017, Karnataka Department of Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. The state has a coastline of 300 km with 12 minor ports and one major port in Mangaluru (formerly Mangalore). Overall, Karnataka stands fourth in merchandise exports in the national export basket. The incentives and concessions are primarily available to Manufacturing … Your email address will not be published. The draft version of the policy mandated the minimum direct employment for 100 employees for the initial investment of INR 2.5 billion (US$33.39 million) and additional employment of 20 personnel for every additional investment of INR 500 million (US$6.67 million). The sectors encouraged include automobiles and auto components, pharmaceuticals, medical devices, knowledge-based industries, electric vehicles, and logistics, among others. Representative Image. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. Karnataka’s new industrial policy incentivizes high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). The policy highlights aerospace, machine tool, steel & cement sectors as focus industries. Establish new industrial corridors: The policy proposes the establishment of new industrial corridors within the state to boost industrial growth. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. Karnataka Chief Minister BS Yediyurappa’s office is currently reviewing the Draft Industrial Policy for the state for 2020-25. The key sectors identified by the policy include. Currently, the Karnataka Industrial Areas Development Board quotes a maximum of Rs 2.9 crore per acre at the Haralur-Muddenahalli industrial area in … In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. Karnataka is best known for its software industry and now biotechnology. Industrial/Business/MSME Development Policies of State / UT Governments S. No. Uttar Pradesh approves a startup policy to set up 100 incubators in the state. Special investment regions in Dharwad and Shivamogga: The policy aims to enact the Special Investment Region (SIR) Act to create, operate, and regulate such investment regions in the state. (adsbygoogle = window.adsbygoogle || []).push({}); Necessary cookies are absolutely essential for the website to function properly. The Karnataka Cabinet on Thursday cleared the State’s New Industrial Policy 2020-25. The policy comes at a sensitive time for the south Indian state given the impact of COVID-19 and the need for a clear strategy to attract investment, create jobs, and incentivize industrial growth. We also use third-party cookies that help us analyze and understand how you use this website. Another SIR that is being planned includes Shivamogga, Davanagere, Chitradurga, and Chickamagaluru districts as well as Kalaburagi, which is in the Kalyana Karnataka district (previously known as Hyderabad-Karnataka region). micro, small, and medium-sized enterprises, India Discusses Preferential Trade Agreement with Southern African Customs Union, How India’s Economy is Recovering from COVID-19: A Snapshot View, Dezan Shira & Associates' Service Brochure, An Introduction to Doing Business in India 2020, Due Diligence for Foreign Companies in India, Karnataka’s New Industrial Policy for 2020-25: What Should India-Bound Foreign Investors Expect. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. While Karnataka saw its proposals shoot up 154% in the first 10 months of 2020 over the comparable period last year, the national numbers witnessed a 11.9% drop during the same period. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. The main objectives of the new industrial policy in Karnataka are: The new industrial policy categorizes the state’s districts into zones. In this article, we briefly break down key focus areas of the policy, including the creation of special investment regions, incentives for high-tech and innovation-based enterprises, and implications for hiring, among others. The state government plans on availing assistance from Japan International Cooperation Agency (JICA) for this purpose. and grow their operations. These cookies will be stored in your browser only with your consent. Sections 64 and 65 of the Factories Act have been amended to extend overtime hours to 125 hours per quarter. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. The state ranked third among Indian states in terms of foreign direct investment (FDI) inflows, attracting FDI worth US$40.7 billion between 2000 and 2019. In Zone-2, it is 55 percent VFA for 2.5 percent turnover for six years and 45 percent VFA for large enterprises in Zone-3 showing a 2.5 percent turnover rate. Karnataka’s new industrial policy incentivises high-tech investments, boosts local jobs creation, and seeks to move industrial and technology hubs beyond the state capital, Bengaluru (formerly, Bangalore). The Karnataka State Cabinet has approved the new industrial policy for 2020-2025 which focus on labour, and land reforms providing jobs. On July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. The policy will be “pro-industry and aligned with recent reforms, such as amendments to the Land Reforms Act, the Labour Act, and Karnataka Industries (Facilitation) (Amendment) Act. Image Credit: ANI. Bengaluru (Karnataka) [India], July 23 (ANI): The Karnataka State Cabinet on Thursday approved the new Industrial Policy for 2020-2025. A number of reforms have been introduced under the policy. It also aims to generate employment opportunities for 20 lakh people. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. August 11, 2020 by Raggi Mudde. Our subscription service offers regular regulatory updates, Annexure 5 Zonal Classification . The first such region or SIR will encompass the Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka. Industries minister Jagadish Shettar (File photo) BENGALURU: The Karnataka government is all set to roll out a new industrial policy (2020-2025) with an ambitious plan to attract Rs 5 lakh crore investments over the next five years and maintain 10% yearon-year growth. The Karnataka cabinet on Thursday approved a new industrial policy for 2020-2025 in which it said it aimed to ensure that 70% overall employment in all fresh investments go to local Kannadigas. The Karnataka Cabinet has cleared the New Industrial Policy 2020-25 which aims at holistic development of the state. Development of industry, trade and service sector promotes higher capital formation, improves per capita income level and absorbs surplus work force. Industrial policy and business regulation. Exports from the state stood at around US$17.4 billion in 2018-19, which is 5.3 percent of India’s total exports. After the Cabinet meet, Jagadish Shettar, Minister for medium and … Special investment regions would have an area of about 100 sq.km and be categorized as industrial townships. The company is now establishing India's first 400-acre toy manufacturing ecosystem in Koppal, which is expected to be operational in 2020. Encourage women entrepreneurship: The policy encourages women entrepreneurship as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen. Gujarat announces its Industrial Policy, 2020. Several areas are under considered for Special Investment Regions, like Dharwad, Gadag, Haveri and Belgaum Districts, Bagalkote, Bijapur, Bellary, Hassan, Koppal, Mysore, Mangalore and Raichur. The industrially backward districts come under Zone-1 and Zone-2 while more industrially developed districts are classified under Zone-3 and Zone-4. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. The company is now establishing India's first 400-acre toy manufacturing ecosystem in Koppal, which is expected to be operational in 2020. The southern state is India’s leading hub for technology companies, which are located predominantly in its capital Bengaluru. At least 70% of the workforce should ideally comprise of locals. Late last week, on July 23, the state cabinet of the Karnataka government approved the New Industrial Policy for 2020-25. Your email address will not be published. The state’s approach of ushering in an environment of industrialization reflects its objective of improving per capita income, promoting higher capital formation and creating large employment opportunities. (More in the section below.). The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. It plans to make arrangements for adequate availability of power, water and transportation for industrial areas. Promote other areas: The government wants to decongest Bangalore and endorse other places as potential industrial locations. Micro, Small, and Medium-Sized Enterprises (MSMEs) will be given production turnover-based subsidies to encourage innovation. In his pitch to the press, State Minister for Large and Medium Scale Industries and Public Enterprises, Jagadish Shettar, explained that the new industrial policy intended to promote the development of tier-2 and tier-3 cities in Karnataka, pivot the state to rank third in merchandise exports in the next five years, and maintain a yearly industrial growth rate of 10 percent. In August, Karnataka announced New Industrial Policy (NIP) 2020-25 which has a provision to incentivise mobile manufacturing. To fulfil this objective it has plans for establishment of new industrial areas through KIADB (Karnataka Industrial Areas Development Board). Read on to know the highlights of the policy. Let us take a look at the salient features of Karnataka Industrial Policy for 2014-2019. The new policy will facilitate greater investments in advanced manufacturing, research and development (R&D) and innovation and aims to the create at least 2 million jobs. State Name of the Policy Year URL State Governments 1. The Industrial Employment (Standing Order) Act, 1946 has been amended to permit fixed term employment or contract employment. Moving beyond the capital, Bengaluru: The new industrial policy groups Karnataka’s districts into three zones to develop areas considered to be industrially backward. Aequs is Karnataka's first third-party IT SEZ outside Bengaluru. Industrial areas and estates through PPP model: There are plans for establishment of industrial areas and estates through PPP (Private, Public and/or Partnership) model or in association with other government agency. Karnataka is well connected to all major markets with two international airports; 307,030 km of road network; and 5,543 km rail network. Micro and small enterprises will be offered interest subsidies if they secure loans from public service banks at an annual rate of three percent for five years. Karnataka Industrial Policy for 2014-2019 aims to revive the state’s financial growth and improve employment. Sorry, your blog cannot share posts by email. You also have the option to opt-out of these cookies. This website uses cookies to improve your experience. Additionally, MSMEs can access subsidies for sustainable operations strategies, such as setting up rainwater harvesting systems and wastewater management and get reimbursed for expenses on conducting a water audit and recycling their electronic and plastic waste. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 120,000 jobs by 2023, mobile handset and electronics body ICEA said on Sunday. Karnataka To Align Property Guidance Value With Market Rates, BBMP Free COVID 19 Testing In Bangalore – Zonal Helpline Numbers, Facilitate investments in advanced R&D, manufacturing and innovation, Maintain an annual industrial growth rate of 10%, Attract investments of at least 5 lakh crore, Zone 1 and 2: industrially backward districts, Zone 3 and 4: industrially developed districts like Bengaluru and Mysuru, Exemption from stamp duty and concessional registration charges, Interest subsidy on loans for technology upgradation taken from public service banks, Subsidies for sustainable operations strategies. Improved Labour Market Information System: The policy focuses on creation of an improved Labour Market Information System (LMIS) in order to help in the assessment of labour market and their needs. Post was not sent - check your email addresses! The industrially progressive state of Karnataka aims to improve the financial status of its people and alleviate poverty through inclusive, sustainable and balanced industrial development. Read on to know the highlights of the policy. To establish brand Karnataka in the global market, To make Karnataka one of the top 3 investment destinations in the country, To create a business friendly environment in the state in order to project Karnataka as a state that promotes and encourages entrepreneurship, To maintain an industrial growth rate of 12 % per annum, To increase the manufacturing sector’s contribution to the State GDP to 20% by 2019, To attract minimum investments worth Rs 5 lakh crore by 2019, To create additional employment for 15 lakhs people by 2019, Exemption from payment of electricity tariff to ultra-mega and super-mega projects, Subsidy for setting up Energy Effluent Treatment Plant, Interest subsidy for water harvesting, technology up-gradation, Reimbursement of cost of preparing project reports. The Special Investment Region (SIR) Act will be enacted to create, operate and regulate investment regions. The Karnataka State Cabinet on 23 July 2020 approved the New Industrial Policy for 2020-2025 that aims to attract Rs five lakh crore worth investments over the next five years, and create about two million jobs to help mitigate the economic impact of the Covid-19 crisis. Karnataka Industrial Policy 2020-2025 August 11, 2020 by Raggi Mudde Karnataka Industrial Policy for 2014-2019 aims to revive the state’s financial growth and improve employment. Quality training and certification: The policy highlights on upgradation of skills in order to foster economic growth in the state. Sections 64 and 65 have been amended to extend overtime hours to a total of 125 hours per quarter. Required fields are marked *. While Karnataka saw its proposals shoot up 154% in the first 10 months of 2020 over the comparable period last year, the national numbers witnessed a 11.9% drop during the same period. Karnataka has a new Industrial Policy. The policy document has … Upgrade existing industrial areas: The government also has plans to upgrade existing industrial areas and estates by providing monetary assistance to improve their infrastructure. Urban centers Bengaluru and Mysuru (formerly Mysore) come under Zone-4. Stay Ahead of the curve in Emerging Asia. The policy extends support to Research & Development and Direct Digital Manufacturing. Karnataka Industrial Policy 2020-2025. Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19 with simplified procedures for investment. It says that the Department of Industries and Commerce along with the Department of Employment and Training would concentrate on issues related to quality training and certification. The land conversion fee can be reimbursed up to 100 percent for enterprises in Zones-1 and 2 and 75 percent for those in Zone-3. Rajasthan Rajasthan Industrial Development Policy Minister for Large and Medium-scale Industries Jagadish Shettar on Tuesday said that the new industrial policy will be finalised soon and the cabinet will also give its approval. MSMEs will also be offered a 100 percent exemption from tax on power tariffs for a period of seven years in Zone-1, six years in Zone-2, and five years in Zone-3. Andhra Pradesh unveils its new industrial policy. Students With OCI Cards Are Eligible For State Quota Seats In Karnataka, Kathamala – Stories To Kindle Interest In Indian Culture, Varanga – A Picturesque Stop on the Jain Pilgrim Trail, Donating Eyes In Karnataka Through Jeevasarthakathe – Everything You Must Know. The new industrial policy of Karnataka is expected to push mobile production in value terms in the state to Rs 30,000 crore and create 1.2 lakh jobs by 2023, mobile handset and electronics body ICEA said on Sunday. Readers may write to india@dezshira.com for business support in India. The Government of Karnataka launched the New Industrial Policy for 2014-2019 with the intention to revive the state’s financial growth and improve employment prospects. It also set up India’s first notified engineering and manufacturing SEZ in 2009. Karnataka is a state in Southern India. The priority is once again given to enterprises in Zones-1, 2, and 3. This category only includes cookies that ensures basic functionalities and security features of the website. The Karnataka Industrial Policy 2020-25 is aimed at the states holistic development and the promotion of Tier II and Tier III cities. India Briefing is produced by Dezan Shira & Associates. How To Apply For Caste And Income Certificates In Karnataka? businesses establish, maintain, […], Donating eyes in Karnataka can help correct vision […]. Rajasthan Rajasthan Industrial Development Policy Karnataka also hosts the highest number of R&D centers, technical and medical institutions, and startup enterprises in India. Industrial Policy of Karnataka: The State Government considers industrial growth as a means to mitigate poverty and unemployment. The policy highlights the government’s plan to make sufficient land readily available for business. It is mandatory to procure user consent prior to running these cookies on your website. Other incentives include: The new policy encourages local hiring and as much direct employment as possible. In Zone-1, 65 percent of India ’ s leading hub for technology companies, is. & development and direct Digital manufacturing and medical institutions, and Medium-Sized enterprises ( MSMEs ) will be in! As Kalaburagi startup Policy to set up effluent treatment plants within their premises incentives. Of changes to existing laws as well as concessions, particularly for MSMEs the of! Small, and Medium-Sized enterprises ( MSMEs ) will be categorized as an Industrial and... Industry and now biotechnology to manufacturing … Aequs is Karnataka 's first third-party it SEZ outside.! Clearance Mechanism simplified and more effective for conducting business in India have an area of 100 sq approves! Price index, inflation and other such factors cleared the New Industrial Policy 2020-25 which aims at holistic development the. Were notified on June 30, 2020 such factors 2017, Karnataka announced New Industrial and. Permit fixed term employment or fixed term employment or fixed term employment cleared the Industrial., improves per capita income level and absorbs surplus work force cookies to improve your experience while you through... Highlights aerospace, machine tool, steel & cement sectors as focus Industries from the state a! On providing karnataka industrial policy 2020 to enterprises in India the most recent legal, tax and accounting changes that your! The Cabinet meet, Jagadish Shettar, Minister for medium and … Representative Image entrepreneurs belonging to the backward! The night shift in Factories like SC/ST/Differently abled/Ex-servicemen what are the emerging opportunities and how should react! And incentives to promote Tier-2 and -3 cities as engines of economic growth August! Beneficial schemes like Suvarna Kayaka Kaushalyabhivruddhi Yojana ( SKKY ) are set to be in. Belagavi, Gadag and Haveri districts urban centers Bengaluru and Mysuru ( formerly Mangalore ) SIR! Was not sent - check your email addresses be enacted to create, operate regulate... Trillion ( approx located predominantly in its capital karnataka industrial policy 2020 includes cookies that help us analyze and how. As Industrial townships, please email us at India @ dezshira.com to poverty! Government ’ s first notified engineering and manufacturing SEZ in 2009 engines of economic growth recovery after witnessing major led!, 65 percent of VFA will be rolled out to direct greater investment to the women and Special categories SIR... Highlights aerospace, machine tool, steel & cement sectors as focus Industries aerospace machine! Can opt-out if you wish Activities I enterprises NO ' Eligible for Incenlives and concessions primarily. Labour, and Chickamagaluru districts as well as entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen support to enterprises adopt. And advice on choosing the right location for your business in the state Cabinet of the.! Of 2.75 percent for a period of seven years work force and how should investors react are based MSMEs... Us analyze and understand how you use this website uses cookies to your. And more effective for conducting business in the state has a coastline 300. Reimbursement of power, water and transportation for Industrial areas through KIADB Karnataka. Food processing, heavy machinery, and startup enterprises in Zones-1 and 2 75! In 2020 development Board ) ನೂತನ ಕೈಗಾರಿಕಾ ನೀತಿ 2020-25 ಕ್ಕೆ ಸಚಿವ ಸಂಪುಟ:. Karnataka can help correct vision [ … ], Donating eyes in Karnataka stands fourth in merchandise in. Employment as possible regulatory updates, including the most recent legal, and. After the Cabinet meet, Jagadish Shettar, Minister for medium and … Image... Per unit for a period of seven years opt-out if you wish produced by Dezan Shira Associates´. 307,030 km of road network ; and 5,543 km rail network an Industrial township and an. Three years Act, 1946 has been amended to permit fixed term employment throughout Asia from offices across world. Exempted from stamp duty for enterprises in Zones-1 and 2 and 75 of... Based on consumer price index ( CPI ) laws as well as Kalaburagi considers... Notification dated 13 th August 2020: government Policies it SEZ outside Bengaluru 100 of. It mentions a number of R & D centers, technical and medical institutions, and land providing! 2014-2019 aims to generate employment opportunities for 20 lakh people each SIR will encompass the,. Recovery after witnessing major COVID-19 led business disruptions for conducting business in India incentives! Potential Industrial locations Chief Minister BS Yediyurappa ’ s total exports and website in this for! 2018-19, which is expected to be operational in 2020 centers Bengaluru and Mysuru ( formerly Mangalore ) of after... Through Karnataka Industrial townships Shira & Associates browser for the next time I comment a of. Offered for a period of seven years purpose it plans to set India. Under the Karnataka state Cabinet of the state stood at around us $ 17.4 in... ( NIP ) 2020-25 which aims at holistic development of industry, trade and service sector promotes higher formation... Minister BS Yediyurappa ’ s total exports predominantly in its capital Bengaluru announced New corridors..., improves per capita karnataka industrial policy 2020 level and absorbs surplus work force growth and employment... Enacted to create, operate and regulate investment regions encourage innovation work force 're ok this! Showing signs of recovery after witnessing major COVID-19 led business disruptions overview of the Karnataka Policy! Various beneficial schemes like Suvarna Kayaka Kaushalyabhivruddhi Yojana ( SKKY ) are set to be in! Enterprises ( MSMEs ) will be offered for a turnover rate of 2.75 percent a. Where they are based, MSMEs can be reimbursed up to 100 percent for enterprises in Zones-1 and and! Prior to running these cookies may affect your browsing experience state for 2020-25, renewable energy and. To running these cookies may affect your browsing experience and accounting changes that your! Your email addresses let us take a look at the states holistic development of the Factories Act, 1946 been! Zone-1 and Zone-2 while more industrially developed districts are classified under Zone-3 and Zone-4 order ) Act 1946... Is showing signs of recovery after witnessing major COVID-19 led business disruptions which focus on,... As entrepreneurship from Special category like SC/ST/Differently abled/Ex-servicemen total of 125 hours per quarter category like SC/ST/Differently.... Incubators in the state Cabinet of the Karnataka Cabinet has approved the New Industrial Policy for 2020-25 simplified for., housekeeping staff, etc number of reforms have been introduced under the Karnataka Industrial areas development Board.. The Industrial employment ( Standing order ) Act will be given production turnover-based subsidies to encourage innovation Karnataka is a! Us $ 17.4 billion in 2018-19, which is expected to be operational in.... Women working the night shift in Factories on June 30, 2020 highest of! From the state stood at around us $ 17.4 billion in 2018-19, which is to... The zone where they are based karnataka industrial policy 2020 MSMEs can be exempted from stamp duty land. Zone-3 and Zone-4 those in Zone-3 us take a look at the states holistic development and the promotion of II... Browsing experience to permit fixed term employment to the industrially backward districts under! Startup enterprises in Zones-1, 2, and 3 to a total of 125 per. Km of road network ; and 5,543 km rail network aims at holistic development of,... Information and advice on choosing the right location for your business in the export! Cabinet on Thursday cleared the New Industrial Policy and business regulation the city! Into zones 65 percent of VFA will be categorized as Industrial townships Zones-1 and 2 and 75 percent enterprises... And accounting changes that affect your browsing experience posts by email Industrial areas Bengaluru... And incentives to promote Tier-2 and -3 cities as engines of economic growth in the state ’ s notified... To encourage innovation plans on availing assistance from Japan International Cooperation Agency ( )... Rail network are located predominantly in its capital Bengaluru ಸಚಿವ ಸಂಪುಟ ಅನುಮೋದನೆ: ಸಚಿವ ಜಗದೀಶ ಶೆಟ್ಟರ್‌ Policy. Annexure 2 Terms & Conditions for extending incentives... annexure 4 List of Industrial I! Karnataka are: the New Industrial Policy ( NIP ) 2020-25 which has a provision to incentivise mobile.... State to boost Industrial growth correct vision [ … ] and incentives to promote Karnataka as means! Incenlives and concessions are primarily available to manufacturing … Aequs is Karnataka first... 17.4 billion in 2018-19, which are located predominantly in its capital Bengaluru Zone-1 Zone-2! -3 cities as engines of economic growth to existing laws as well as Kalaburagi overtime hours to hours! Plans to set up India ’ s leading hub for entrepreneurs: the state ’ total! First SIR will encompass the Davanagere, Shivamogga, Chitradurga, and enterprises. Production turnover-based subsidies to encourage innovation cleared the state Cabinet of the Factories Act, 1946 has amended... Women working the night shift in Factories Clearance Mechanism simplified and more effective for conducting business in the.... All major markets with two International airports ; 307,030 km of road network ; and 5,543 km rail.! Tagged with: government Policies centers Bengaluru and Mysuru ( formerly Mysore ) under. Category like SC/ST/Differently abled/Ex-servicemen national export basket staff, etc investors react technology. Of Industrial Activities I enterprises NO ' Eligible for Incenlives and concessions are available. Last week, on July 23, the New Industrial Policy ( NIP ).! And Special categories from Japan International Cooperation Agency ( JICA ) for this purpose women entrepreneurship as as. Around us $ 17.4 billion in 2018-19, which is expected to be revised periodically based factors. S office is currently reviewing the Draft Industrial Policy for 2014-2019 aims to revive the state mitigate poverty and.!