Karnataka is positioning itself for a major economic transformation by revamping its investment promotion agency, the Invest Karnataka Forum (IKF). With the ambitious target of becoming a $1 trillion economy by 2032 and creating 25 lakh jobs in the next five to seven years, the state is making aggressive moves to attract large-scale investments, particularly in the face of increasing competition from neighboring states.
Overhauling Invest Karnataka Forum: Key Objectives
Karnataka’s industries department is undergoing a significant transformation to achieve three main objectives: reaching a $1 trillion economy, promoting the “Beyond Bengaluru” initiative, and generating employment for 25 lakh individuals across various regions of the state.
“We have decided to overhaul the Invest Karnataka Forum (IKF) with three key goals in mind: becoming a $1 trillion economy by 2032, promoting Beyond Bengaluru initiatives, and generating 25 lakh jobs across Karnataka within five to seven years,” said MB Patil, Karnataka’s Minister for Commerce, Large & Medium Industries, and Infrastructure Development.
This overhaul is being driven by the state’s need to enhance its competitiveness and attract significant business investments. The focus is to make the state’s industries department more professional and efficient, breaking down bureaucratic barriers and ensuring continuity to foster industrial growth and job creation.
Upcoming Global Investors Meet (GIM) 2025 and Major Initiatives
Karnataka is preparing for its Global Investors Meet (GIM) in February 2025, where it will showcase its investment potential to global investors. One of the state’s most recent developments is the launch of the Knowledge, Wellbeing, and Innovation (KWIN) City, a futuristic project located 50 km from Bengaluru. The aim is to highlight Karnataka as a leading investment destination in various industries.
Karnataka has long been a pioneer in sectors like information technology and biotechnology, but the state recognizes the need for further innovation and a more aggressive approach in the current competitive landscape. The new Invest Karnataka Forum will lead these efforts, focusing on industry facilitation and enhancing investment opportunities in emerging sectors.
Structure of the Revamped Invest Karnataka Forum
The revamped IKF will be managed by a full-time CEO from the IAS cadre, who will be supported by a team of 5 to 10 professionals from the private sector. These professionals will be recruited laterally from industries, consulting firms, trade associations, and social impact organizations, ensuring a diverse mix of expertise. The team members will be appointed for a period of three to five years, ensuring continuity and long-term focus on investment facilitation.
Additionally, a young IAS officer will be appointed to assist with negotiations with investors. “We have studied the best practices from other states and countries, and the finance department has already given its approval,” said a source involved in the planning process.
The revamped IKF will focus on several critical sectors, including electronics system design and manufacturing (ESDM), semiconductors, e-mobility, core manufacturing, fast-moving consumer goods (FMCG), healthcare, pharmaceuticals, and biotechnology. This targeted approach will help attract investments in these rapidly growing industries, driving Karnataka’s economic growth.
Beyond Bengaluru: Expanding Investment to Regional Clusters
A key focus of the new IKF strategy is the “Beyond Bengaluru” initiative, which aims to promote economic growth in regions outside the state’s capital. Priority will be given to clusters in cities like Mysuru, Tumakuru, Mangaluru, Hubbali-Dharwad, Belagavi, Vijayapura, and Kalaburagi.
Minister MB Patil noted that the revamped IKF is inspired by successful models from countries like Singapore and Chile, as well as India’s own Invest India initiative. Each sector will have dedicated leaders responsible for attracting investments, representing Karnataka both nationally and internationally.
“The overhaul of IKF aims to bring a level of corporate professionalism to the state’s industries department, with clear targets and a task force equipped to meet them. This is one of the most significant changes in recent years to attract large-scale investments,” said Patil.
Competitive Salaries and Professional Management
To ensure top-tier talent, the government will offer competitive salaries to those appointed to leadership roles in the revamped IKF. For instance, the Chief Operating Officer (COO), who will likely be an industry veteran at the senior vice-president level, is expected to receive an annual salary between Rs 70 to 90 lakh. Other key positions, such as the investment promotion head and sector leads, will receive salaries ranging from Rs 30 to 45 lakh annually. These competitive packages are part of the state’s effort to bring private-sector expertise into the public sector for more effective investment promotion.
Competing with Other States for Investment
Karnataka’s investment promotion efforts come at a time when Indian states are aggressively competing to attract business as companies implement the “China+1” strategy to diversify their supply chains. States like Tamil Nadu, Telangana, Maharashtra, Uttar Pradesh, Gujarat, and Andhra Pradesh are all working to position themselves as ideal investment destinations.
For example, Tamil Nadu’s investment promotion agency, Guidance, is actively seeking global investors, while Andhra Pradesh’s Economic Development Board is undergoing a similar transformation under the leadership of Chief Minister N Chandrababu Naidu. Other states, such as Maharashtra, Gujarat, and Punjab, have established agencies like MAITRI, iNDEXTb, and Invest Punjab, respectively, to aggressively attract investments by offering incentives like concessional land, power, and water.
Conclusion: Karnataka’s Bold New Strategy for Growth
Karnataka’s decision to revamp the Invest Karnataka Forum signals its commitment to remaining competitive in the race for large-scale investment projects. By bringing in private-sector expertise, offering competitive salaries, and focusing on high-growth industries, the state is positioning itself as a leading investment destination in India. With ambitious goals of becoming a $1 trillion economy by 2032 and creating 25 lakh jobs, the revamped IKF is poised to drive Karnataka’s economic growth and industrial development for years to come.
