Karnataka has attracted investment proposals worth more than ₹12 lakh crore in the last four years, according to a new study by the MSME Export Promotion Council.
BENGALURU
Between FY 2021-22 and 2024-25, Karnataka secured new investment proposals worth ₹12,01,175 crore, of which projects worth ₹1,40,476 crore were completed, while pending projects valued at ₹36,078 crore were revived, the study revealed. Investments worth ₹9,49,370 crore remain under various stages of implementation, according to data sourced from the Centre for Monitoring of Indian Economy (CMIE).
The report, “Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25”, highlighted Karnataka’s leadership in attracting FDI and promoting strategic infrastructure, with a strong base in aerospace, machine tools, IT, and startups. NITI Aayog data cited in the study shows Karnataka contributes 20% of India’s exports, accounts for 42% of software exports, and dominates aerospace exports with a 65% share.
Private sector participation was particularly strong, contributing over ₹10.25 lakh crore during the review period. The state’s MSME sector, with 8.5 lakh units employing nearly 70 lakh people, continues to expand in sectors like electronics, food processing, garments, automotive components, and chemicals. Karnataka also houses over 14,000 DPIIT-recognised startups and 45 unicorns.
The study further noted Karnataka’s agriculture sector clocked 4% growth in FY25, above the national average. However, it called for expanding irrigation, value-addition, and financial access to sustain long-term rural prosperity. Tourism, too, was flagged as a sector needing targeted tax breaks, infrastructure push, and community-driven initiatives.
