Karnataka’s Natural Advantage Will Help State Grow by 2-3% Over India’s GDP, Says Arun Jaitley

A global investors meet (GIM) has kick-off in Bengaluru on Wednesday with the Congress government in the state hoping to pull in more industrial investments as against the earlier two editions of Karnataka GIMs. At the inauguration function, Union Finance Minister Arun Jaitley called for Centre-State coordination for attracting global investment. FM Arun Jaitley expects Karnataka to surpass the national growth rate, saying it has the potential to grow at least 2-3 per cent ahead of India's GDP. 

Speaking after inaugurating the global investors' meet 'Invest Karnataka-2016', Jaitley said: ".Karnataka has a natural advantage, first-grade human resource and the natural technology inclination of entrepreneurs and so I would Karnataka to grow at least 2-3 per cent ahead of India's GDP." 

''India has caught the attention of investors across the World. Now it is time we respond in one voice and the Centre and State governments live up to their expectations,'' he adds.

The Siddaramaiah government is looking to garner upwards of Rs three lakh crore of investment from this Investors' meet which was organised in a very planned way by the Congress government in Karnataka.

The previous editions, in 2010 and 2012, claimed of attracting nearly Rs 4 lakh crore worth of investments through almost 400 projects while actually delivering only around 75 which were worth less than Rs 1 lakh crore. Major investment hopes, especially in the steel sector, that arose following the signing of MoUs with companies like Arcelor Mittal and South Korean steel giants Posco have fizzled out over the years due to various problems.

“We are expecting to attract double the investment received so far,’’ chief minister Siddaramaiah said. Karnataka would by 2018 achieve 12 per cent industrial growth, Rs 5 lakh crore investment and will generate 15 lakh jobs, he said. Over 100 top global and Indian business leaders are expected to take part in the meet.

The government is trying to promote small cities and towns as preferred investment destinations. It has formulated various schemes to pitch in large-scale investments in Hubballi-Dharwad and Yadgir districts, among others. To ensure a free and easy business environment, the government has introduced and amended various policies in the State. For example, it launched the Startup Policy, New Industrial Policy, amendments to the Textile Policy, amendments to the Land Reform Act and single window clearances, among others.

As per data available about the 275 projects proposed during the 2010 investors' meet, only 58 were implemented, 116 under implementation, and 101 dropped. In the 2012 meet, 209 projects were proposed, 28 implemented, 104 under implementation, and 77 dropped.

The Industries Department has already identified key areas such as infrastructure, power, information technology, agriculture, and biotechnology as potential opportunities for investors to invest. The government has also created a land bank of 26,268 acres for industries to set shops say reports.

“Over the years Invest Karnataka has come to signify successful partnerships and comprehensive and sustained developments. In this edition too we call upon visionary leaders and global corporations to explore opportunities in Karnataka. The three day event will include focused sectoral, theme and partner country seminars and will attract domestic and global stakeholders” adds Siddaramaiah.