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As Japanese businesses look for alternative investment sites away from China to set up manufacturing bases, Karnataka has begun to showcase Japanese Industrial Township at Vasanthanarasapura close to Bengaluru in Tumkuru district, to attract investments.
The Karnataka government, after getting feelers from Japanese businesses’ couple of years ago, created an exclusive township on 519 acres and developed it with infrastructure facilities such as roads, power, and water supply.
Karnataka Chief Minister BS Yediyurappa, on Wednesday, while addressing the India-Japan Business Form, said, “Karnataka is ready with good infrastructure and has significant potential for investment in the field of electronic manufacturing.”
Incentives for investors
“The State is also keen to offer many incentives for investors, including 25 per cent capital investment subsidy on land, to boost investments in the sector,” he added.
The Chief Minister also told the Japanese businessmen that keeping the investor-centric approach in mind, the government has launched the New Industrial Policy 202025, to build a prosperous Karnataka and create employment opportunities for the youth. The industrial policy will introduce path-breaking changes like production-linked incentives.
Talking about the Indi-Japan relationship, Yediyurappa said, “It has transformed into a partnership of great substance and purpose. To achieve significant economic transformation, India encourages FDI investment from Japanese companies in all sectors.”
“India-Japan Comprehensive Economic Partnership Agreement is a comprehensive deal covering both trades in goods and services. India is also one of the most attractive investment destinations for Japanese companies,” he added.
FDI from Japan to India increased from $1.6 billion in 2017-18 to $3.2 billion in 2019-20. “For us in Karnataka, Japan is an important partner and Karnataka being one of the biggest states in southern India and known for IT, ITES services, machine tooling, manufacturing, aerospace, biotechnology, and engineering design. It offers many benefits for investors.”
Karnataka is also one of the first States to lift the lockdown gradually and re-start economic activities, he said.
Pointing out the joint statement on Japan-India start-up initiative signed to promote start-ups in the State, the Chief Minister said: “A start-up hub was established in Bengaluru by JETRO to identify selected Indian start-ups for the Japanese market.”
Policy measures
Highlighting the State’s policy measures, Yediyurappa said, “The State to promote the emerging start-up industry ecosystem has passed landmark legislation creating Karnataka Innovation Authority in November-2019. Also, our government has taken several steps to ensure investors find it easy to do business in Karnataka.”
He further said, “We have simplified processes, set up a single-window for investors and engaged in regular discussion with the industry to create a stable, policy-driven environment. Over the last few months, labour laws have been simplified, as these measures were long overdue to attract investment to the State.”
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