Business Economy


Karnataka woos Japanese firms with special incentives for electronics manufacturing

Bengaluru, Nov 2 (UNI) Karnataka is stepping up its efforts to attract Japanese manufacturers with a special incentive package for electronics production, offering subsidies on plant, machinery and land, turnover-linked incentives and power tariff concessions, as the state seeks to emerge as a major destination for global technology and manufacturing investments.
Dr S. Selvakumar, Principal Secretary, Commerce and Industries Department, Government of Karnataka, on Monday pitched the state's industrial ecosystem to Japanese businesses, highlighting its semiconductor capabilities, skilled workforce, research infrastructure and investor-friendly policies as key advantages for setting up manufacturing facilities and forging technology partnerships.
Addressing the India-Japan Business Summit held by BCIC here, Dr Selvakumar said the special incentive package for electronics manufacturing carried no upper limits on most of its components, offering investors favourable cost economics and an opportunity to expand operations in the state.
The package, covering subsidies on capital investment, turnover-linked incentives and power tariffs, was part of Karnataka's broader strategy to attract investments in electronics, semiconductors, electric mobility, components and clean technology, he said.
Making a case for Karnataka as a technology and innovation hub, Dr Selvakumar said the state had more than 800 design houses and over 800 research and development centres, providing Japanese companies an ecosystem to develop and localise advanced technologies.
The state also had over 20,000 chip designers and more than half of India's artificial intelligence and machine learning professionals, giving manufacturers access to a substantial pool of specialised talent, he said.
Highlighting opportunities for joint ventures, Dr Selvakumar said Karnataka was home to more than seven automobile original equipment manufacturers and over 50 electric vehicle startups, apart from its established strengths in electronics and semiconductor industries.
He said the state was particularly suited for Japanese partnerships in mobility, electronics, components and clean technology, with its industrial ecosystem connecting investors to India's growing domestic market and international export opportunities.
To address manufacturing requirements beyond Bengaluru, the government was pursuing its 'Beyond Bengaluru' initiative and offering a digital single-window clearance platform covering more than 30 departments to facilitate ease of doing business, Dr Selvakumar said.
The state was also upgrading Industrial Training Institutes in collaboration with various partners to introduce Industry 4.0-oriented training and prepare students for emerging manufacturing requirements.
Describing India-Japan cooperation as an opportunity to combine Japanese precision with Karnataka's technological talent, Dr Selvakumar invited Japanese companies to bring their technologies to the state.
"Karnataka offers more than a destination. We offer a committed partner that turns intent into factories, exports and jobs," he said, assuring investors of government support from the initial investment decision to the shipment of finished products.
He said Karnataka was ready to provide Japanese companies with technology partnerships, skilled manpower, industrial land and policy support to scale up their manufacturing operations.
UNI BDN
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