Karnataka committed to set benchmark in attracting FDI: CM

Bengaluru: Pitching Karnataka as the destination for Foreign Direct Investments (FDIs), Chief Minister B S Yediyurappa on Wednesday said the state government was committed to set a benchmark in this regard, as the state progresses beyond the COVID-19 phase. Noting that Japan is an important partner for the state, he said in his address to the ‘Indo-Japan Business Forum’.

He highlighted the measures taken to build the state as a robust industrialised economy that would be a model for other states. “Our state is at the forefront of attracting FDI into the country, and I can assure you that we will set the benchmark as we progress beyond the COVID-19 phase,” Yediyurappa said.

Referring to the recent NITI Aayog 2019 Innovation Index that placed Karnataka at the top, he said this has been possible due to the availability of quality human resources, reputed higher educational institutions, and a big thrust on research and development. “This is also assisted and supported by a pro-active administration and conducive investment climate,” he added.

To promote the emerging start-up industry ecosystem, a landmark legislation creating Karnataka Innovation Authority has been passed, he said. The government has taken steps to ensure investors find it easy to do business, he 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,” the Chief Minister said. Over the last few months, labour laws have been simplified to attract investments, the Chief Minister said.

Keeping in focus the investor-centric approach, the government launched the New Industrial Policy 2020-2025 to build a prosperous Karnataka and create employment opportunities. The policy would introduce path-breaking changes like production-linked incentives, he said, adding: “I sincerely believe all the changes we are bringing about and your support will help Karnataka build a robust industrialised economy…” Stating that Karnataka has set up a Japanese Industrial Township at Vasanthanarasapura near Tumkuru town, Yediyurappa said 519 acres of land have been developed and readied for roads, power, and water supply.

Also, the state has potential in the electronic manufacturing sector and offers many incentives for investors, including 25 per cent capital investment subsidy on land, to boost investments, he said. A Japan-India Start-up Initiative has been taken up to promote start-ups, he said.

For this, he said a hub was established in Bengaluru by JETRO (Japan External Trade Organisation) to identify select Indian start-ups for the Japanese market. According to the Chief Minister, the India-Japan Comprehensive Economic Partnership Agreement covers trade in goods and services.

He said FDIs from Japan to India increased from USD 1.6 billion in 2017-18 to USD 3.2 billion in 2019-20.