Bengaluru, June 19 (UNI) Karnataka has emerged as the top investment destination in India, attracting USD 54.5 billion in foreign direct investment (FDI) in recent years — accounting for 21 per cent of the country’s total inflows — with high-growth sectors like IT, aerospace, mobile manufacturing, and semiconductors leading the way, the Confederation of Indian Industry (CII) Karnataka Chapter said on Thursday.

Speaking at an interactive session, the CII Karnataka State Council chairman Rabindra Srikantan said the bulk of the investment was seen across the services and manufacturing sectors, especially in Bengaluru and its surrounding industrial clusters.

“IT and technology services continue to dominate, but we’ve also seen large capital flows into high-precision manufacturing, defence and aerospace, semiconductor facilities, and mobile phone assembly units,” he said replying to UNI queries.

Though the chairman did not provide a sector-wise breakup of the FDI, he assured that CII would compile and share the data. “The exact numbers are with the government and we are in continuous dialogue with them. We will share the segmented data once it is available,” he noted.

Responding to a question about the state government’s 2020-25 industrial policy, which aims to create 20 lakh new jobs, the chairman acknowledged that CII does not have verified data on how many jobs have been created so far. “This is a government projection. The right forum for the data would be the state industries department. Once shared with us, we will make it public,” he said.

Asked about the 300+ MoUs signed by CII across more than 100 countries, the chairman clarified that these are not short-term deals but long-term enablers of business. “These MoUs have facilitated trade, policy engagement, investments, and joint ventures across sectors for decades. They form the backbone of India’s industrial diplomacy,” he explained.

The CII also remains an integral part of government delegations during both inbound and outbound visits and works closely with institutional partners abroad to promote Brand India.

The session also focused on the developmental gap between South and North Karnataka. The chairman admitted the concern and said CII is actively working in districts like Belagavi, Hubballi-Dharwad, and beyond.

“We have members from agrotech, high-tech manufacturing and services. North Karnataka has premier academic institutions and growing industrial potential, especially in Kalaburagi, where sectors like pharma, cement, and light engineering are gaining traction,” he said.

He said that while CII doesn’t yet have a standalone office in Kalaburagi, the region is supported via the Belagavi and Hubballi-Dharwad offices, with potential for direct presence in the near future.

The CII is also advancing its "Beyond Bengaluru" agenda through programmes like SENIOR — a two-day, fully funded skilling and mentoring initiative for MSMEs — and the soon-to-be-launched DSH programme, which connects local industries with academic institutions for AI, digital, and technology training.

The Young Indians (Yi) platform, operating in districts like Bidar and Ballari, was also highlighted for its work with schools, colleges and youth entrepreneurs, forming part of CII’s broader effort to build a future-ready workforce in Karnataka.

In response to a query on the impact of geopolitical conflicts such as the Russia-Ukraine war and the Israel-Iran tensions, the chairman acknowledged that global disruptions affect sectors unevenly.

“Some sectors such as energy and global supply chains face greater strain, while others remain relatively insulated. It depends on the industry cluster,” he said, adding that CII closely monitors developments and provides sector-specific guidance.

The chairman emphasised CII’s ongoing partnership with the Karnataka Government. “We work hand-in-hand with the Industries Department and Industries Commissioner. We provide white papers and feedback after each major event, and in return, they brief us on emerging policies and initiatives,” he said.

He reaffirmed CII’s commitment to policy advocacy, MSME support, sustainability, digital transformation, and AI adoption. “Karnataka’s economy is not only performing well but is also poised for a leap in global competitiveness — and CII will play a central role in facilitating that,” he concluded.

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