Karnataka keen to strengthen ties with Netherlands, says Deputy CM Shivakumar

Bengaluru: Deputy Chief Minister DK Shivkumar Monday said Karnataka holds a very strong relationship with the Netherlands and the state government is keen to strengthen its ties with the Dutch nation.

According to an official statement, addressing a delegation from Netherlands at Vidhana Soudha, Shivakumar said Dutch businesses are among the forerunners of foreign investors in Karnataka.

“Karnataka is home to 9 per cent of Dutch investments in India. We are home to 25 plus Dutch companies. Karnataka is also home to Global in-house Centres of Shell and Philips too. There are more than 200 Dutch companies operating in the state with investment worth over USD 1 billion,” it said.

The Deputy CM noted that Karnataka is India’s leading investment destination, with multiple accolades to itself. The state has consistently ranked first in attracting investments since 2016 and leads the nation in coffee production.

“We are very keen to further strengthen this partnership by leveraging the existing synergies with Karnataka and Netherlands. We share many similarities across major industries like food processing, Biotech and Pharma, Innovation and R&D to name a few,” he added.

Karnataka dominates electronics design in India, with the state’s ESDM (Karnataka Electronics System Design & Manufacturing Policy) offering the highest incentives in the country, the statement said.

“We have also taken multiple bold measures to enhance our offering to Dutch companies…We have a dedicated Industrial Policy that focuses on key areas like Artificial intelligence, advanced manufacturing, and R&D, aimed at becoming an integral part of the global value chain. The policy also offers attractive financial incentives, such as Investment promotion subsidy of up to 2.25 per cent of annual turnover for 6-10 years,” the statement read.

Meanwhile, Prime Minister of the Netherlands Mark Rutte said at the CEO round table meeting that the Dutch nation is keen to enhance economic cooperation with Karnataka.

Rutte, who participated in the G20 summit hosted by India in New Delhi on September 9 and 10, visited Bengaluru as part of an economic mission.

”Netherlands aims to provide Dutch companies operating in Karnataka an opportunity to engage in discussions on strategic matters of mutual interest, focusing on economic growth and investment prospects,” Ruthe said according to an official release. The meeting deliberated prominently on investment climate, regulatory and legislative procedures, and collaborations in the areas of agriculture and horticulture among other things.

Large and Medium Industries Minister MB Patil and IT Minister Priyank Kharge were also among those who represented the Karnataka government. Speaking about the meeting, Shivakumar said, ”The Netherlands delegation has discussed several matters. It has also sought the implementation of a transparent and fair excise policy. A meeting would be soon held to sort out the issues about facilitating the Dutch investments in the state.”

Large and Medium Industries Minister MB Patil said that the government of Karnataka looks forward to increased investments from the Netherlands across various industries like food processing, biotech, pharma, Innovation and R&D among others. There is also enough scope for investments in the tourism sector, he opined.

Patil informed the Dutch delegation that the government would set up KHIR City (Knowledge Health Innovation-Research City) on 1,000 acres near Bengaluru International Airport.

Radovan Sikorsky, CFO, Board Member Heineken expressed that being the largest MNC investor in Karnataka for marketing and brewing of premium beer under the Kingfisher and Heineken brands, Heineken is looking for a fair and transparent regulatory regime that promotes the growth of the beer category in the State and offers premium products to its consumers.