Subsidies and incentives alone will not work, a proper ecosystem is needed to give the right push to the MSME sector to grow, said Priyank Kharge, Minister for Rural Development & Panchayat Raj and Minister for IT & BT, at the MSME Growth Conclave 2025, organised by businessline.

Addressing the MSME and entreprenuers here on Wednesday, Kharge said his State was trying to make all projects water-secure and energy-secure, along with a focus on sustainability. “Everybody speaks about giving incentives and subsidies, but just those things will not work. I need to ensure we create an agile and secure ecosystem for you to thrive,” he said.

MSMEs will be the growth engines of the country and that sectors such as defence, space and civil aviation, which present a huge opportunities are the ones to watch out for.

He also announced that the Karnataka government is initiating a Local Economic Accelerator Programme (LEAP) to establish budgetary facilities outside Karnataka with more heavy incentivisation, subsidisation and help entrepreneurs with market linkages. LEAP, which was announced during the 2025 Karnataka Budget, will make its public debut in a month-and-a- half.

“Whether it’s powering innovation in cutting-edge fields or creating millions of jobs across towns and villages, MSMEs are set to be the growth engines for the country,” he shared.

Ease of doing business

Stating that it is the government’s responsibility to ensure that manufacturing grows, businesses thrive and jobs are created, Kharge said the State was also trying to ensure better ease of doing business.

The Invest Karnataka policy, a new industrial policy released in November, has ensured that the processes are reduced to around 32 from the earlier 168.

The State is also trying to create affordable infrastructure and plug-and-play facilities for SMEs and MSMEs, especially in areas beyond Bengaluru. “We are creating infrastructure in Mysuru, Hubballi, Belagavi, and Kalaburgi, where we give you facilities at affordable rates so you can go experiment, innovate and invent things that can be then commercialised,” he told the entrepreneurs.

Vocal about local

Observing that Bengaluru’s entrepreneurship spirit is over 500 years old, the IT/BT Minister added the city was initially built as a city for trade and commerce. Before the country’s Make in India initiative, Karnataka was already vocal about local. “If Bengaluru or Karnataka is a leader in various sectors, including manufacturing, it is because we have been nurturing it over many years,” he said.

Alongside, Kharge highlighted that the State’s competition is no longer with neighbouring States — Telangana, Tamil Nadu, Kerala, or Maharashtra — but with global manufacturing hubs such as Vietnam and China.

To be considered a serious global player, one must see whether State or Central government policies have borne fruit.

Published on June 25, 2025