Karnataka

Recent Developments in Key Sectors

• On September 15, 2025, Japanese majors Sumitomo Corporation, Honda Motor Company and JFE Shoji announced fresh investments in Karnataka, strengthening the state’s position as India’s manufacturing hub. Sumitomo will set up a Rs. 2,345 crore (US$ 264 million) steel plant in Koppal, Honda will invest Rs. 600 crore (US$ 67 million) in an electric vehicle unit in Narasapura, and JFE Shoji will revive the NGEF plant in Hubballi with Rs. 400 crore (US$ 45 million).
• On July 28, 2025, Wipro Infrastructure Engineering (WIN) announced the launch of a new division, Wipro Electronic Materials, which will invest approximately Rs. 500 crore (US$ 56.4 million) to establish a copper-clad laminate (CCL) manufacturing facility in Karnataka. The plant is expected to create around 350 jobs, produce over 6 million sheets of copper-clad laminates annually, and bolster domestic manufacturing of Printed Circuit Board (PCB) base materials.
• On July 10, 2025, the Government of Karnataka formally requested the approval of two defence industrial corridors with one in North Karnataka and one in South Karnataka, to boost the Make in India mission, enhance indigenous defence manufacturing and generate skilled employment.
• On June 1, 2025, the Karnataka government affirmed the state continues to lead India’s aerospace and defence sector, citing contributions of around 60% to 65% of national aerospace manufacturing and exports.
• In FY26 (April-August 2025), Karnataka produced 19,000 tonnes of iron ore, as compared to 17,500 tonnes in FY25 (April-August 2024).
• Total export value of iron & minerals from Karnataka in FY25 (April-September 2024) was Rs. 4,833 crore (US$ 545 million).
• As of 2025, Karnataka has registered 536 IT/ITES companies and extended key incentives, including power tariff concessions to 288 firms, stamp duty exemptions to 38 firms, and financial assistance such as Rs. 14,34,000 (US$ 16,166) in PF/ESI benefits for two firms and Rs. 20,37,000 (US$ 22,964) in rental reimbursements for seven firms located outside Bengaluru, reflecting the state’s focus on promoting inclusive IT sector development.
• Karnataka’s services-sector exports hit Rs. 14,03,811 crore (US$ 159 billion) in FY25, marking a 13.7 % rise over the previous year and nearly doubling from Rs. 6,86,896 crore (US$ 77.8 billion) in FY19; the state led the country in total services exports.
• The Karnataka government has allocated Rs. 3,894 crores (US$ 438 million) for various agricultural schemes in the 2024-25 budget, reinforcing its commitment to farmers’ welfare and sectoral growth.
• As per the State Budget FY26:
  • Chief minister’s infrastructure development program has been announced with an allocation of Rs. 8,000 crore (US$ 936.7 million). The focus will be placed on minor irrigation, roads, and urban infrastructure throughout the state.
  • Rs. 16,021 crore (US$ 1.8 billion) has been allocated for subsidies to supply free power to irrigation pump sets.
  • The Gruha Jyothi scheme has been allocated Rs. 10,100 crore (US$ 1.18 billion).
  • Rs. 3,715 crore (US$ 435 million) has been allocated towards Samagra Sikshana Karnataka.
  • Rs. 1,235 crore (US$ 144 million) has been allocated for Ayushman Bharath scheme.
  • Policy for agriculture: An additional Rs. 450 (US$ 5.28) will be provided over the Rs. 7,550 (US$ 88.58) per quintal minimum support price for toor dal procurement, with a total allocation of Rs. 138 crore (US$ 16.2 million)
• Karnataka achieved Rs. 54,427 crore (US$ 6.52 billion) in Foreign Direct Investment (FDI) during 2023-24, ranking third in India. Chief Minister of Karnataka, Mr. Siddaramaiah highlighted the government's multidimensional programs across industry, agriculture, infrastructure, and education, which aim to accelerate economic growth and create jobs. Additionally, 13 industries signed MoUs expected to bring in Rs. 42,915 crore (US$ 5.14 billion) and generate around 22,600 jobs.
• The Centre has sanctioned Rs. 2,675.31 crore (US$ 320 million) for the 4-laning of the Belgaum-Hungund-Raichur section of National Highway-748A in Karnataka, covering 92.4 km. This project, part of the Panaji-Hyderabad economic corridor, will be implemented through a Hybrid Annuity Model (HAM).
• Karnataka is set to launch a Rs 48,686 crore (US$ 5.84 billion) long-term infrastructure plan for Bengaluru, aimed at transforming the city into a world-class tech hub, with projects including improved transportation, highways, and the Peripheral Ring Road to address traffic congestion and enhance economic growth.
• Karnataka's revised electric vehicle policy prioritizes affordability through increased subsidies, aims to attract investments of Rs. 50,000 crore (US$ 6 billion), create one lakh jobs, foster innovation, and integrate MSMEs and component vendors into state-level incentives.
• On June 19, 2024, it was reported that former Sri Lankan cricketer Mr. Muttiah Muralidharan is set to invest Rs. 1,400 crore (US$ 167 million) to expand his soft drink business to Karnataka, with a new manufacturing unit being developed in Chamarajanagar district and plans to invest further in Dharwad as well.
• On January 17, 2024, the Karnataka government signed investment deals worth Rs 22,000 crore (US$ 2.64 billion) with global industry leaders such as Microsoft, Web Werks, Hitachi, Lulu Group, Takeda Pharma, B L Agro, Inox Air Products, Honeywell, Nestle, and Tillman Global at the World Economic Forum 2024, aimed at driving technological advancement, infrastructure development, and economic growth in the state.
• In November 2023, the Karnataka government signed a Memorandum of Understanding (MoU) with the automobile major Toyota Kirloskar Motor (TKM), an Indian subsidiary of Japan's Toyota Motor Corporation, to facilitate the further expansion of its car manufacturing facility at Bidadi in Karnataka. TKM will make an additional investment of Rs. 3,300 crore (US$ 395.7 million) to establish its third manufacturing facility with a capacity of 1 lakh units at Bidadi.
• Karnataka reached another milestone in terms of improving connectivity as the Shree Siddharoodha Swamiji Station in Hubballi now has the longest platform in the world. It is a 1,507-metre-long platform and was built at a cost of about Rs. 20 crore (US$ 2.4 million).
• The state is India’s largest software exporter, with electronics and computer software exports totalling US$ 81.4 billion in FY20 and US$ 70.9 billion in FY21, US$ 91.8 billion in FY22. In FY23, the software and service exports stood at US$ 130.3 billion.
• South India’s first Vande Bharat Express connecting the capitals of Tamil Nadu and Karnataka (Chennai-Mysuru via Bengaluru) was flagged off in November 2022.

Karnataka continues to strengthen its position as one of India’s most advanced and future ready economies, supported by a strong innovation ecosystem, a highly skilled talent base and a steady flow of global and domestic investments. The state’s leadership in information technology, electronics, aerospace, biotechnology and advanced manufacturing reflects a diversified and resilient growth model. Ongoing reforms to improve infrastructure, expand industrial corridors, promote electric mobility, enhance connectivity and support agriculture and MSMEs further underline the government’s commitment to balanced development. With major multinational companies expanding their presence, robust export performance and a growing focus on next generation technologies, Karnataka is well placed to sustain its economic momentum and remain a key driver of India’s long term growth.