Intro:
The Karnataka government has introduced a series of major initiatives under its Industrial Policy 2025–30 to accelerate industrial growth and bring entrepreneurs from marginalized communities into the mainstream. The details were shared in response to a question raised by Legislative Council member Balkis Banu.
Bengaluru
According to the government, the new Industrial Policy 2025–30 focuses on attracting investments through a range of incentives and subsidies. Key highlights of the policy include capital investment subsidies and turnover-based incentives designed to encourage businesses to expand operations in the state. Investors will also benefit from exemptions on stamp duty and concessions in registration charges, making it easier to establish new industrial units.
Additionally, the policy offers relief in electricity-related costs, including exemptions on electricity duty and financial assistance for power consumption. Special incentives have also been announced for industries adopting advanced technologies, export-oriented units, and sustainable industrial practices, reflecting the government’s emphasis on modernization and environmentally responsible growth.
A major component of the policy is a dedicated support package for entrepreneurs belonging to Scheduled Castes (SC) and Scheduled Tribes (ST). Under the Special Component Plan, eligible industrial units with investments up to ₹10 crore can avail soft seed capital assistance of up to ₹75 lakh. This assistance comes with a four-year moratorium period, followed by a flexible repayment schedule of five years.
Further, substantial subsidies are being offered on land allocation. Industrial plots of up to two acres allotted through state agencies will receive up to 75 percent subsidy, significantly reducing the cost burden on new entrepreneurs.
The government has also announced a 60 percent subsidy on loans taken from banks for setting up micro and small enterprises, with a maximum benefit of ₹5 lakh. This measure is expected to encourage grassroots entrepreneurship and enable individuals from disadvantaged communities to establish sustainable businesses.
Overall, the policy aims to create a more inclusive industrial ecosystem, strengthen economic growth, and ensure equal opportunities for all sections of society in Karnataka’s development journey.