Karnataka identifies six high-potential areas to create 20 lakh new jobs and attract investment of ₹7.5 lakh crore in five years

Karnataka aims to create 20 lakh jobs and attract ₹7.5 lakh crore investments in high-potential sectors.

Karnataka on Tuesday set a mandate to create 20 lakh new jobs and mobilise ₹7.5 lakh crore investments in the next five years across the State in six high-potential sectors which were collectively identified by the government and the industry.

To spearhead this initiative, which comes post-’Invest Karnataka, 2025’, the Department of Large and Medium Industries and Infrastructure Development had announced the launch of ‘Uthpadana Manthana’, an initiative designed to fast-track the State’s vision of becoming India’s premier manufacturing hub.

The six priority areas identified are aerospace and defence (including space tech and drones); electronics and semiconductors; capital goods and robotics; auto and electric vehicles; technical and MMF-based textiles, and consumer products such as FMCG, footwear, and toys.

Addressing industry leaders, entrepreneurs and policy makers from each of these sectors, State’s Industries Minister M.B. Patil said ‘Uthpadana Manthana’ reflected a commitment to transform Karnataka into a global manufacturing powerhouse. “This initiative goes beyond policy discussions — it’s about working directly with industry leaders to co-create practical, high-impact solutions. Your insights today on improving infrastructure, streamlining clearances, and building talent pipelines will shape our immediate action plan.”

The Minister said, “The broader objective of Uthpadana Manthana is aligned with the State’s vision to attract ₹7.5 lakh crore in investments and create 20 lakh jobs over the next five years. Our government is also focused on scaling up merchandise exports by leveraging free trade warehousing zones, export-oriented industrial parks, and faster port access.”

Leaders from each of these identified sectors made specific recommendations to Mr. Patil, and these ideas presented would be consolidated into a government action plan in the next six to nine months. Some of the industry suggestions included integrating elective courses in electronics and semiconductor manufacturing into academic curricula with a focus on hands-on learning; improving port connectivity in Mangalore and Chennai from industrial clusters to ease exports; and streamlining customs clearance procedures to enhance ease of doing business. There was also a strong call for the development of integrated industrial townships with plug-and-play infrastructure, last-mile connectivity, and social amenities.

Further proposals included establishing an advanced manufacturing institute in collaboration with CMTI and industry players to boost local talent and innovation, and promoting Karnataka’s capital goods manufacturing strength globally by setting up dedicated trade desks in countries such as South Korea. The industry players also emphasised the need to simplify approvals for environmental and operational clearances (such as CFE and CFO), create shared factory spaces for start-ups, and offer incentives for apprenticeship-driven companies. Additionally, the industry recommended support for setting up dedicated facilities for aircraft-grade steel alloys and composite materials.