From Our Special Correspondent
Daijiworld Media Network
Bengaluru, Oct 27: Karnataka has successfully attracted investment proposals worth Rs. 7,59,936 crores, with the highest surge recorded in 2022-23 since 2018-19. The state has welcomed new projects valued at Rs. 4,51,516 crores in the past year, significantly surpassing the cumulative figure of Rs 3,08,419.6 crores in the preceding four fiscal years. These findings are detailed in a study titled "Investment, Growth & Development in Karnataka between 2018-19 and 2022-23" conducted by the MSME Export Promotion Council in collaboration with the Confederation of Organic Food Producers and Marketing Agencies (COII).
Dr D S Rawat, chairman of MSME EPC, unveiled the study report on Friday. As per data sourced from the Centre for Monitoring of Indian Economy (CMIE), the state received new investment proposals of Rs 4,51,516.2 crores in 2022-23. This marked a substantial increase over the preceding fiscal years, where the figures were Rs 79,816.4 crores in 2021-22, Rs 74,967.7 crores in 2020-21, Rs 94,361.8 crores in 2019-20, and Rs 59,273.8 crores in 2018-19.
The study also reveals that Karnataka has successfully completed projects worth Rs 39,664.05 crores in 2022-23, Rs 21,336.2 crores in 2021-22, and Rs 11,415.5 crores in 2020-21. Between 2018-19 and 2022-23, a total of Rs 1,43,094.2 crores' worth of projects have been completed.
In 2022-23, the state had outstanding projects valued at Rs 1,64,346.6 crores, with projects under implementation worth Rs 82,207.04 crores. Upon the successful implementation of these outstanding projects, the study predicts the generation of over 500,000 additional direct and indirect jobs in the state.
In this context, the study recommends the establishment of a monitoring committee chaired by the Chief Minister or Deputy Chief Minister. Furthermore, it suggests that the state government should enhance support for startups and ancillaries to ensure inclusive sustainable development.
During the fiscal year 2022-23, there was a notable increase in the announcement of new investment projects by the private sector, amounting to Rs 4,07,855.5 crores. Foreign private investment also saw growth in 2022-23. The projects announced were valued at Rs 66,334.9 crores, with completed projects totaling Rs 6,288.5 crores. The total value of outstanding investment projects was Rs 79,664.7 crores, with projects under implementation amounting to Rs 7,606.2 crores. The export of all commodities reached Rs. 2,23,894 crores.
Karnataka is home to more than 8.5 lakh micro, small, and medium enterprises, providing employment for over 60 lac people. Over the past five years, the state has invested over Rs 4 lac crores and is ranked 5th in the country for industrial growth. According to the World Bank, an estimated 70-90% of MSMEs in Karnataka are family-run and typically employ less than ten people.
Although the state government is actively promoting MSMEs through various policy incentives, small businesses still face several challenges due to severe global competition. The study underscores the need for support in terms of entrepreneurial skills, timely and affordable credit, technology adoption, quality production, and a competitive edge to succeed in a competitive market. This includes leveraging digital marketing, online platforms, and other digital resources to enhance visibility, engagement, and customer base.