Karnataka Industrial Policy 2020-25 makes it mandatory to employ locals

Karnataka plans to make it mandatory to employ 70-100 per cent locals (Kannadigas) on aggregate basis and 100 percent in Group C and D jobs.

After launching the New Karnataka Industrial Policy 2020-2025, Jagadish Shettar, Karnataka Minister of Large and Medium Scale Industries said, to be globally competitive with skill and scale that leverage hi-tech growth, the State is planning to focus on - Industry 4.0, research & development, Intellectual Property Rights, technology adoption & innovation, cluster evelopment initiatives and sustainable industrialisation.

The new policy aims for a holistic development and looks beyond Bengaluru to promote Tier-2 and Tier-3 cities as engines of economic growth. The policy also has grouped the districts into three zones, to incentivise investments in the industrially backward districts. Industrially backward districts are classified in Zone-1 & 2, and Bengaluru Urban and Rural districts are classified in Zone-3.

The minister said the proposals from thrust areas are expected to bring in investment of over ₹80,000 crore, which is expected to create over two lakh jobs. “From October 2019 to September 2020, the FDI flow has been ₹58,204 crore and the State stands third in the country,” he added.

Karnataka is a nearly $250-billion economy and growing strong. The State has been leading the country in several sectors with traditional strengths in a wide range of industries - machine tools, heavy machinery, automobiles, electronics, aerospace & defense, biotechnology.

The State government is expected to support industries in cluster mode to ensure the rapid growth of industries. Karnataka was the first State to create sector-specific clusters to attract capital. “It is restoring the toy, textile, agricultural implements, ESDM, FMCG, and wellness clusters,” the minister said.

Gaurav Gupta, Additional Chief Secretary, Commerce & Industries Department, said “Already separate policies for various clusters are in the process of being rolled out.”

“Ultra and super mega industries will be offered special packages/discounts with priority given to investment, project space, direct and indirect job creation. The State is keen on further expanding the existing industrial base by facilitating investors to set up private industrial parks,” explained Gunjan Krishna, Commissioner for Industrial Development and Director of Industries and Commerce.

“There will also be an economic incentive for manufacturing industries to adopt water harvesting/saving measures in their premises without interrupting industrial production. The “zero discharge process” industries will also be promoted to encourage pollution, mitigation and waste control in manufacturing,” Krishna added.