BENGALURU: Union Minister for Labour and Employment as well as Minister for Micro, Small, and Medium Enterprises (MSMEs), Shobha Karandlaje, has said that the rising land prices in Karnataka have become a challenge for industrial investments, making it difficult for businesses to acquire land for their operations.
She urged the state to resolve land issues and assured full support from the Central government.
Speaking at the "SME Connect Awards" event, as part of the Global Investors' Meet (GIM) Invest Karnataka 2025, the Union Minister said on Thursday that entrepreneurs have voiced concerns that land acquisition costs are often higher than the actual investment required for the projects themselves.
Minister Karandlaje urged the state government to resolve these issues to boost industrial development.
She assured full support from the Central government for industrial growth through a cluster model, provided the state government addresses the land-related issues.
Minister Karandlaje highlighted that Karnataka has secured investments of Rs 820 crore from the UAE, including Saudi Arabia, Doha, and Dubai.
Additionally, the KLE Society's Shivashakti Sugars Factory is receiving a Rs 1, 000-crore investment, and Rs 250 crore has been invested in Inandar Sugars, she said.
"MSMEs are contributing to the country's GDP, accounting for nearly 30 per cent and providing employment to more than 25 crore people. Over the past decade, Rs 27.5 lakh crore in loans have been provided to seven lakh MSMEs across India, " the Union Minister stressed.
She noted that the MSME policy has been revised, with new classifications introduced.
She said the turnover limit for micro enterprises has been raised to Rs 10 crore, for small enterprises to Rs 100 crore, and for medium enterprises to Rs 500 crore.
Minister Karandlaje emphasised the need to consider both agriculture and industrial development in Karnataka.
The state has immense potential in food processing, particularly for ready-to-eat and ready-to-cook food products, she said.
She noted that foreign markets are increasingly seeking digital technologies and skilled workers from Karnataka, and the government needs to focus on equipping youth with the necessary skills to meet these global demands.
She presented the "SME Connect Awards" to more than 30 successful MSMEs in the state during the event.
Karnataka's Deputy Chief Minister D.K. Shivakumar highlighted the need for more water to support industries in Bengaluru.
He assured that an additional 6 tmc of water would be sourced from the Cauvery River to meet the demand.
Shivakumar also emphasised that the state is working to resolve the city's traffic congestion issues.
He urged entrepreneurs to actively participate in the government's 'Beyond Bengaluru' initiative, which encourages industrial development outside the city.
Karnataka Governor Thaawar Chand Gehlot, Ministers M.B. Patil, Ramalinga Reddy, and N. Chaluvaraya Swamy were also present at the event.