Karnataka has emerged as India's top destination for Foreign Direct Investment (FDI), attracting ₹50,107 crore and surpassing Maharashtra. This was announced by Chief Minister Siddaramaiah, who hailed the achievement as a testament to the trust and confidence of global investors in the state. He credited the government's policies for creating a truly investment-friendly environment.
Official data from the Department for Promotion of Industry and Internal Trade (DPIIT) corroborates this trend. For FY 2024-25, Maharashtra and Karnataka together accounted for 51% of India's total FDI inflows. Specifically, Karnataka received USD 6.62 billion (approximately ₹50,000 crore), while Maharashtra received USD 19.6 billion.
Analysts attribute Karnataka's success in attracting FDI to its status as a technology and innovation hub. Bengaluru, often called India's Silicon Valley, houses over 400 Fortune 500 R&D centers and dominates national software exports. Karnataka also leads India in innovation and contributes a significant portion to the country's exports. The state accounts for 65% of aerospace exports and 50% of machine tools output. Its IT exports constitute approximately 42% of India's total software exports.
A recent study by the MSME Export Promotion Council highlighted that Karnataka secured over ₹12 lakh crore in new investments between FY 2021-22 and 2024-25 across various sectors. This further reinforces its reputation as a favored investment destination. The study also revealed that ₹1.4 lakh crore worth of projects have been completed, ₹36,078 crore in stalled ventures have been revived, and a massive ₹9.49 lakh crore is under implementation. Private sector confidence remains high, with investments alone topping ₹10.26 lakh crore.
The state government has approved 591 investment projects through single-window committees during 2023-24, which are expected to result in a flow of ₹84,232 crore investment and employment generation for 1,56,986 people. During 2023-24, Karnataka stood first in exports, with a value of USD 1,66,545 Million.
Karnataka has been making strides in various sectors to enhance its economic growth. The state government has taken up multidimensional programs in the areas of industry, agriculture, infrastructure development, and education. Bengaluru's infrastructure is set for a transformation with projects worth ₹1,31,500 crore. These include disaster resilience initiatives, blue economy transformation, urban water supply modernization, climate-smart rural roads, state highway improvements, irrigation, public school infrastructure development, and electric buses for public transportation.
The state is also focusing on tourism, with calls for tax breaks, subsidies for resorts and eco-lodges, and grassroots initiatives like home stays and handicraft hubs to unlock its full potential. With ₹3.15 lakh crore worth of fresh projects announced in 2024-25 alone, the state's economic march shows no sign of slowing.
Chief Minister Siddaramaiah's administration is emphasizing the creation of an investment-friendly ecosystem through infrastructure improvements, policy support, and a dynamic talent pool. Karnataka is aiming for an industrial growth rate of 15-16% annually to reach a $1 trillion GDP by 2032. The state's Industrial Policy offers best-in-class incentives to attract investors globally. The Global Investors Meet 2025, with the theme 'Reimagining Growth', will showcase Karnataka's potential and opportunities.
