Karnataka located on the south western coast of India is one of the most industrialised and progressive state playing a foremost role in the development of Indian economy. It is rightly said that economic growth and development is influenced by the Industrial growth.
Karnataka has an unbelievable history of successfully achieving various industrial and technological initiatives to boost the economy of our nation.
Karnataka was formed on 1st Nov 1956, after the state reorganisation committee came into effect. Karnataka is a state rich in natural resources and known for its healthyclimate. The state has produced illustrious persons like Raja Ramanna, GirishKarnad, Vishveshwarayya and others due to amazing educational infrastructure consisting of world prominent schools colleges, higher educational institutes and learning and development centres.
The area is full of greenery and easily accessible paving the way for the government that is far sighted, investor friendly, developmental oriented and encouraging the PPP (Public Private Partnerships). Karnataka is an amazing knowledge and manufacturing hub and contributes more than 6% of the GDP (Gross Domestic Product) to our nation.
Furthermore, we are contributing to 16% of India’s exports and playing a vital role in spearheading the growth of Indian Industry, trade and commerce. Karnataka has got Energetic Aerospace, Textile, Garments, Automobile, Textiles and Garments, Food Processing, Biotech, Heavy Engineering industries present.
Government of India has introduced National Policy on Manufacturing and Electronics in 2019 to enhance the domestic production of various manufacturing units to enhance the growth.
The outbreak of COVID-19 lead to most of the manufacturing giants like Volvo, HP, Britannia, Apple located in China and South East Asia to look at greener pastures to expand. India and Vietnam is emerging as new destination due to the cheap labour costs and closeness to China and incredible incentives.
VISION:
To renovate Karnataka into excellent investment destination and have an amazing entrepreneurial policy that is broad, eco-friendly and believes in having economic growth and development. We aim to make Karnataka the top 10th ranking state in India as far as comfort of doing business is concerned.
Objectives Of The Schemes Done By Government Of Karnataka Towards The Manufacturing Segment
Various schemes have been introduced by the Karnataka Government to expand the development of Manufacturing Industries. Karnataka ranks in top 5 states contributing to GDP of India. Similar to central government schemes, Karnataka has also introduced multiple schemes for MSME sector.
CM Yediyurappa passed an important scheme on July 15, 2021 stating that his government will offer incentives to the Oxygen Manufacturing Units in the state. It was planned, due to the shortage of Oxygen in the state during the second wave of pandemic.
Cabinet decided to offer 25% subsidy on fixed assets to establish the oxygen generation plants. Some of theoffers include 100% exemption on electricity duty for 3 years. Tariff subsidy of INR 1000 per tonnes of Oxygen supplied to the government hospitals.
Government of Karnataka has introduced the National Handloom Development Programme (NHDP) in the year 2020. The Handloom segment offers women folk playing a vital role to generate employment. This plays a major role in development of the locality and creating revenue for the state, as they weave wool, silk, and cotton.
The weavers face a tough task for marketing their products, and it is vital to preserve their heritage in the present scenario of science and technology to survive. It covers people from NGO and the Self-Help Groups and includes purchasing the raw materials, upgrade technology, marketing, create good infrastructure like marketing complex, develop e-portals.
The components of this scheme are:
NHDP stressed on developing and enhancing the marketing channels in domestic and foreign markets and it consist of activities like:
National Handloom Day is celebrated on August 7th every year in India.
This is a new strategy introduced by the Government to enhance the growth of MSME (Micro, Small and Medium Establishments) in Karnataka. The main motto of this scheme is to embrace new technologies, more investments and generate additional investments.
A new policy named the “KalpavrikshaKayakaNiti”is introduced to encourage the manufacture of these goods. This was introduced by Mr.Kumaraswamy in 2019.
Major component of this scheme revolves around revitalising sick units and eradicating problems faced by the sick industrial units in Karnataka. It is created to help the Tier 2 and 3 cities come up along with the major cities in Karnataka, boost the economy of the state and maintain a yearly growth of 10% and above.
Investment Promotion Subsidy Fixed Capital:
The new industrial policy of Karnataka is emphasising on the overhaul growth and development of tier 2 and 3 cities. The policy deals with offering the global leadership in research and development, invention, creating good ecosystems for giving maintainable, balanced and inclusive Karnataka. Numerous changes have been made to the existing laws in MSME sectors.
Objectives:
Eligibility:
Documents Required:
The applicant must furnish the following documents to apply for the MSME Schemes.
Advantages of MSME Sarthak Schemes:
Sectors Getting Benefit From This Schemes:
The segments getting benefits from these schemes are:
Highlights of MSME SarthakSchemes:
These are the schemes introduced by the Government of Karnataka and if you are the MSME owner, these schemes will act as a boon to develop and diversify business in Karnataka.
Generate Accurate and globally accepted project report for financing