Karnataka Attracts Over $115 Billion in Investments, Unveils New Key Policies With the new industrial policy, the Karnataka Government aims to attract investments and create up to 20 lakh jobs by the end of 2029.
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In light of the ongoing Invest Karnataka 2025, a Sweden-based commercial vehicle manufacturer has proposed to expand its existing manufacturing plant near the city of Hoskote near Bengaluru with an announced investment of INR 1400 crore.
According to the company, the investment is poised to create over 2,000 direct jobs. Karnataka CM Siddaramaiah said that the government will provide the necessary facilities, and in return, the company is expected to create more jobs for Kannadigas.
Volvo CEO Martin Lundstedt said, "Now we are manufacturing 3,000 buses and trucks here per year. With the expansion of the Hoskote plant, we can manufacture 20,000 buses and trucks per year. This capacity increase will also create jobs and further strengthen the position of India and Karnataka in the global supply chain. In addition, it will be possible to meet the local market needs smoothly."
Other notable investments include JSW Group's commitment of over INR 1 lakh crore to expand the group's operations in Karnataka. The group's director Sajjan Jindal said that INR 43,000 crore of this will be towards making Vijayanagar into the world's largest and most advanced steel plant.
JSW Neo Energy is poised to enter solar, wind, energy storage, blade manufacturing and construction of a wind turbine generator facility.
Tata Power Renewable Energy Ltd signed for an INR 50,000 crore for RE projects and rooftop solutions in the state, while ReNew Power committed INR 50,000 crore for renewable energy projects with capacities of up to 4GW. Serentica Renewables further pledged to add another INR 43, 975 crore to the sector. Baldota Steel and Power Limited announced an INR 54,000 crore for an integrated steel plant.
Anand Mahindra, Chairman, Mahindra Group said that the conglomerate is planning an INR 40,000 crore of investment into the state over the next few years. Group's renewable energy arm Mahindra Susten will invest INR 35,000 crore towards developing solar and hybrid projects with over 5GW of capacity over the next five years and is expected to create 6000-8000 direct and indirect jobs. Mahindra Lifespaces is also planning an INR 5,000 crore value project in Bengaluru with plans to invest another INR 6,000 crore in the near future.
The investments are being announced in the back of Government of Karnataka has launching its Industrial Policy 2024-29, to emphasize a better streamlined single window clearance system, to attract investments better, and to facilitate ease of doing business at the Invest Karnataka 2025 being held in Bengaluru.
With the new industrial policy, the Karnataka Government aims to attract investments and create up to 20 lakh jobs by the end of 2029. The state has set new targets for the manufacturing sector to boost yearly growth rate to 12 per cent and even attract investments worth INR 7.5 lakh crore.
The state also unveiled its 'Clean Mobility Policy 2025-2030' to attract an investment of INR 50,000 crore to the clean mobility space and a potential 1 lakh new jobs. The policy is aimed at making Karnataka the hub for clean mobility in Asia.
"Karnataka has a strong R&D ecosystem, top talent, and growing hardware manufacturing. The key gap is full-fledged system integration in the space sector-bridging this will drive future innovation," said Dr S Somnath, Former Chairman of ISRO.
The semiconductor industry also saw major investments in Lam Research announcing an investment of INR 10,000 crore and signing an MoU with the Karnataka Industrial Areas Development Board (KIADB). TVS Motor Company also announced INR 2,000 crore for an R&D facility that helps in developing greener vehicles. Auto giant Honda also announced INR 600 crore for EV manufacturing facility.
