Truly a Landmark Year for the Sri Basavaraj Bommai ji as Chief Minister of Karnataka. Under his able leadership the Government with many firsts to its credit.
Warmest Greetings from Federation of Karnataka Chambers of commerce and Industry to Sri Basavaraj Bommai ji Hon’ble Chief Minister of Karnataka on his successful completion of one year . Sri Basavaraj Bommaiji a great visionary and a true statesman with clear focus on development and believes in inclusive growth for state economy. The vision of making Karnataka as Nava Karnataka to Nava Bharath in the year of 75th year of Independence Azadi Ka Amrirtmahostav .Truly a Landmark Year for the Sri Basavaraj Bommai ji as Chief minister of Karnataka. Under his able leadership the Government with many firsts to its credit. FKCCI acknowledge the positive contribution by the Honourable Chief Minister. Chief Minister Sri Basavaraj Bommai ji has the unique distinction of having placed Karnataka at the top of all States under several parameters, and taken many bold measures to enhance the Ease of Doing Business in the Karnataka State One of the time-tested ways to assess a government’s performance is to identify any landmarks that it has left, in its path.
By this yardstick, the one year of sri Basavaraj Bommai ji as Chief Minister of Karnataka government can count on several accomplishments, which have actually added immense value to the brand image of Karnataka, as a most preferred investment destination. To list a few of them, recently the Honourable Union Finance Ministry Govt of India has announced that Karnataka is among the top achievers in the country, based on implementation of Business Reforms Action Plan. This is a most credible and realistic indicator of the reforms being brought about by the State administration, and has specific relevance for Industry & Trade, considering that the BRAP 2020 includes 301 reform points covering 15 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, Land Administration and Transfer of Land and Property, Utility Permits and others. It is truly a remarkable and deep dive achievement since as per the Union Commerce Ministry, as many as 118 new reforms were included to further augment the reform process and sectoral reforms with 72 action points spread across 9 sectors namely Trade License, Healthcare, Legal Metrology, Cinema Halls, Hospitality, Fire NOC, Telecom, Movie Shooting and Tourism.
Karnataka also has the distinction of being the top recipient State in the country with 38% per cent share of the total FDI Equity inflow reported during the FY 2021-22. Karnataka attracted 40% of Foreign Direct Investment during April-December 2021 and is number one in the country. The speed and intent with which the State Government is working can be gauged from a recent example when as many as 81 new industrial projects valued at nearly Rs 2,700 crore with potential to create over 6,800 new jobs was sanctioned by the Industries Department, Government of Karnataka, within days after returning from the WEF Summit at Davos. The government green signalled several projects including seven important large and medium-size industrial projects valued at Rs 1229.43 crore, and 71 projects valued at Rs 1308.06 crore. As is widely known, the Chief Minister’s visit to Davos ended as a big confidence vote for Karnataka, with nearly Rs 65,000 crore investments likely to flow to the State. The investment proposals from about 25 companies go beyond the broad math and are coming into many diverse sectors such as renewable energy, health R&D, retail, pharma, FMCG, telecom, IT, EV infrastructure, and modern manufacturing. Also, these investments are going to be made across districts and not just the state capital, thanks to the Beyond Bengaluru initiative of the government.
Accordingly, districts such as Nanjangud, Hubballi-Dharwad, Mysuru, Tumakuru, Vijayapura and Kalaburagi where the prospective investors are setting up their plants, will see a visible jump in employment. Bengaluru has also garnered top position in EV sector growth, as per a survey by the ‘Latest Employment Trends in EV sector 2022. The survey found that Bengaluru accounts for 62 per cent of electric vehicle talent in the country. This is significant and not just a cursory statistic as the survey by city-based CIEL HR Services reportedly covered as many as 15,200 employees over 52 companies, which is a wide enough scale and so reflective of the reality on the ground. Bengaluru also topped the list of cities in India in leasing office space in 2022, as per a report by Knight Frank India, an international property consultancy agency, which said Bengaluru accounts for 31 per cent of the country’s office transactions in the first half of 2022, and also more than doubled its transactions related to office space, at 117%. Even residential sales were said to have gone up by as much as 80%, strongly indicating that the working population is shifting back to the city. The demand for office space also is a consequence of a bump in hiring which is seen to have gone up by a remarkable 35% between January and May. Another survey by Talent Insights has confirmed the surge in hiring, stating that Bengaluru is among the top cities for the most popular destinations for job-seekers, underlining that the economy is recouping well from the multiple shocks of Covid-19 pandemic environment, stagflation in the global market and inflation within the country. Bengaluru has got another distinction as the Meeting, Incentives, Conference and Exhibitions (MICE) hub. Shri Basavaraj Bommai Government has also been responsive to the concerns of Industry, Trade & Services, taken up by FKCCI.
For instance, the Government has now permitted sanction of electricity connections to building owners without Occupancy Certificate (OC), which has come as a huge relief to more than 5 lakh people. This will also help to give a tremendous boost to the government’s Belaku programme that aims to electrify rural households without power. Even the State Budget 2022-23 was widely appreciated by all sections of people as it did not levy any fresh taxes, and focused mainly on roads, rail, ports, ropeways, air and heliports, start-ups, mini food parks in all districts, plug & play industrial townships, and incentives to industries. The Chief Minister accepted FKCCI’s proposal to make sizable allocation for Kalyana Karnataka region, by allocating Rs 3,000 crore to the Region. Bengalureans too had a lot to smile about, with allocation of Rs 8,409 crore, including Rs 1500 cr for developing mega storm water drains to prevent flooding and four 500-bed super-specialty hospitals, apart from Rs 11,250 cr for development of phase-3 of Bengaluru Metro. The push for the Mekedatu project with Rs 1000-cr allocation will also ease the city’s water scarcity. Summing up, FKCCI has been actively working with the Government, relaying the concerns of the Industry, Trade & Services, and helping policies that match their concerns as well as realise the Chief Minister’s dream of Karnataka contributing $1.5 Trillion to India’s Economy by 2025.
A gist of some of the other prominent achievements that can be credited to the Shri Basavaraj Bommai Government is given below:
Bengaluru-based start-ups received $7.5 Billion in funding between January and May 2022, as per report by Start-up Genome. Bengaluru’s start-up ecosystem was valued at $105 Billion, higher than Singapore and Tokyo, the report said, and it was just behind Silicon Valley, London, Greater Boston and New York There’s little doubt that Bengaluru is India’s top start-up hub based on funding, deal counts, unicorns produced, the average ticket size of funding or even the number of start-ups. The Indian Silicon Valley has been commanding around 40% of the share of the total start-up funding in India between 2014 and 2020.
Since late stage funding is where the most money is, Bengaluru is the de facto capital of India’s start-up ecosystem. Between Q1 2021 and Q1 2022, Bengaluru-based start-ups raised a total of $22 Billion in late stage funding, minting unicorns such as Amagi, LivSpace, Dealshare, Blackbuck, CRED and Zeta, among others. The city is home to a total of 39 unicorns to date.
Boosting semiconductor sector: Karnataka has invited investors to make use of its Open Land Reforms Policy and has planned to set up a semiconductor park and a testing lab to promote the Electronics System Design & Manufacturing, Skill Development sector.
Earlier, investors had to rely on the Karnataka Industrial Areas Development Board (KIADB) to get land, but that is not the case now, as they can directly buy the land at a cheaper cost, and are also allowed to generate power on their own. Labour reforms have been introduced. The Government has brought in many reforms in many aspects. All these have been done in line with the Union Government’s policy to encourage the ESDM sector.
The State is now taking tech activities beyond Bengaluru to other parts of Karnataka, such as Mysuru, Mangalore and Hubli-Dharwad as the next key emerging clusters in electronics design and manufacturing, cybersecurity, fintech, foundry and automobile. Karnataka is looking to build multiple Bengaluru-like tech hubs with each cluster bringing its own merit into play.
Agri Industrial Hubs through ODOP
The ODOP (One District One Product) scheme is being aggressively implemented in mission mode which will give a terrific boost to the farm economy as well as promote industrial hubs in the hinterlands.
Export Hub through PPP
In a manor policy push, the State Government will make available the 150 technology hubs inaugurated by the Prime Minister recently to start-ups to work on and test their products before they hit the market. To give a boost to the PPP collaboration, Tata Technologies along with the State Government, has turned around 150 industrial training institutes (ITIs) into technology hubs aiming to address the vast skill gaps industries are battling. Taken together, this can also help in turning the State into a prominent export hub in skill development & services.
Fillip to Entrepreneurs
Land reforms such as extending affidavit-based approval for conversion of agricultural land for non-agricultural purposes such as for running an industry within 3 days will give a fillip to entrepreneurial activity in rural Karnataka.
Further relaxation of norms by the KIADB to facilitate sale deed upon completion of 50% of project completion and reduction in period of issue of sale deed as well as the duration of lease, has enhanced the ease of doing business in Karnataka.
Goods & Service Tax (GST)
Under the leadership of Hon’ble Chief Minister Shri Basavaraj Bommai, at the Head of the Group of Ministers, Karnataka garnered the 2nd highest GST collection and first in compliance in the country.
Top in e-initiatives
Several e initiatives have been undertaken to expedite the approval from all State Government Departments. That’s how the Karnataka Government won the first place in Category 1 in e-governance initiatives, conferred by the Union Ministry of Panchayat Raj (MoPR), after assessing top performing States in facilitating the Information and Communication Technology (ICT) tools for empowerment of panchayats. As stated by the Union Ministry of Panchayat Raj, all the village panchayats in the State have been well established, and they are growing in terms of technology, connectivity and computers.
There is no doubt about the vision of our Hon’ble Chief Minister of Karnataka under the able leadership of Shri Basavaraj Bommai ji to make Karnataka as Nava Karnataka to Nava Bharath.We at FKCCI support all the initiatives of State Govt to make a vibrant economy. Our Hon’ble Chief Minister is a great visionary and have ambitious plan to make enhance per capita income of citizens beyond Bengaluru.