Karnataka pushes for deregulation, eyes investor-friendly ecosystem to boost businesses

Karnataka has taken a significant step towards regulatory simplification with a high-level meeting on Compliance Reduction and Deregulation, chaired by the Chief Secretary Shalini Rajneesh. The session saw the participation of Manoj Joshi, IAS, Secretary, Department of Land Resources, Government of India, emphasising the state’s commitment to fostering a business-friendly environment.

The discussions focused on streamlining regulatory frameworks through Government Process Reengineering, aiming to strengthen trust-based governance. Key topics included simplifying processes related to land use changes, building plan approvals, construction permits, labour laws, and other regulatory requirements.

The reforms are particularly expected to benefit MSMEs by reducing procedural hurdles. Labour law reforms were another focal point including the potential relaxation of conditions for employing women at night in factories and across various sectors.

To ensure the swift execution of these reforms, the Karnataka government has established a State-level Task Force that will oversee implementation and monitor progress. This initiative is expected to enhance transparency, reduce compliance bottlenecks, and position Karnataka as a competitive hub for investment and economic growth.

Senior officials, including Uma Mahadevan, Additional Chief Secretary-cum-Development Commissioner; Rajender Kumar Kataria, Principal Secretary, Revenue Department; Selvakumar S, Principal Secretary, Commerce & Industries; Deepa Cholan, Secretary, Urban Development Department; and Gunjan Krishna, Commissioner for Industrial Development, actively participated in the discussions. Industry associations also played a key role by providing feedback on regulatory challenges and suggesting areas for improvement.

Deliberations also touched on zoning flexibility, addressing restrictions on setbacks, parking spaces and Floor Area Ratio in industrial zones, which have led to land underutilisation. There was a strong emphasis on promoting commercial and affordable housing projects along transit-oriented development (TOD) corridors and integrating GIS-based master plans by Urban Development Authorities (UDAs) to optimise land use.

The government is also exploring ways to reduce regulatory burdens by introducing perpetual licensing, real-time approvals, and self-certification mechanisms to enhance efficiency in government-to-business (G2B) and government-to-citizen (G2C) services.