Karnataka govt woos leading ESDM firms to set up factories

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Karnataka govt woos leading ESDM firms to set up factories

Our Burea Bengaluru | Updated on June 02, 2020 Published on June 02, 2020

The Karnataka government said it will offer several incentives to attract electronics system & design manufacturing (ESDM) companies to set up their factories in Karnataka.

Participating in a video conference by Invest India forum with with leading ESDM companies on Tuesday, the IT minister CN Ashwathnarayan, highlighted that the State has a thriving ecosystem along with a pro-active and responsive government which makes Karnataka an ideal destination.

Rolling out a red carpet for investors, the Minister said: “We will make the best efforts to provide the needed support to this sector. We welcome all with open arms.”

Ashwathnarayan said that Karnataka continuous to be the leader in attracting technology-specific investments and said the ESDM sector contributes 64 per cent to the nation’s ESDM exports. “We are the largest chip design hub and home to 70 per cent of India’s chip designers.”

Referring to the Karnataka ESDM policy 2017-2022, he said: “We aim to stimulate growth of 2,000 ESDM start-ups during the policy period and create 20 lakh new jobs by 2025.”

The Minister said: “We have held multiple consultations with the private sector to seek inputs for returning to business as usual as we ease the lockdown restrictions. We are also initiating dialogue with countries globally to understand future plans for their companies in the post-Covid era and discuss how the Government of Karnataka can support that.”

“The State is one of the most prosperous States in the country, with an estimated GSDP of almost $220 billion. We have a vibrant IT, BT, automobile, agro, aerospace, textile and garment, and heavy engineering industries,” he added.

Asking investors to make use of the industrial-friendly government and atmosphere in the State, Ashwathnarayan said that Karnataka was one of the top three States to attract highest Foreign Direct Investments after Maharashtra and Delhi.

“Cumulative FDI inflows in the state from 2000 to 2019 stood at $42.3 billion,” he added.

Recalling that Karnataka was the first State to announce sector-specific policies, the Minister said, “We were the first to come out with IT, BT, ESDM and AVGC (Animation, Visual Effects, Gaming and Comics) policies to give push to the growth of the technology sectors and innovation.”

He further added that Karnataka continues to be the most preferred destination for all foreign majors. “Besides investor friendly policies of the government several other factors like salubrious climate and talent pool of highly trained professionals.”

Published on June 02, 2020

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