Karnataka's employment, R&D policies to be out by May: CM Basavaraj Bommai

Karnataka will come out with comprehensive employment and R&D policies by May which will incentivise industry and create jobs, Chief Minister Basavaraj Bommai said.

The government policies will incentivise manufacturing and service sector and create a large number of jobs, Bommai told Business Today in an exclusive interview.

He said his government is not only thinking about investment but also looking at investment in a way that the state gains most from it. People need to be empowered through employment and once they have employment, the economy will also improve, he added.

Speaking on the state's R&D policy, Bommai said, "As far as R&D policy is concerned, I have already put a taskforce on that. Bangalore is a hub of R&D, 180 high-level research and development institutions are there. I want to take advantage of it, I want the new generation to always think ahead, create new things by R&D."

He said Karnataka wants to get investments in the areas of semiconductors, defense equipment, artificial intelligence, R&D, and all range of fast-moving consumer goods (FMCG).

Karnataka attracted foreign direct investment (FDI) worth Rs 1.6 lakh crore in financial year 2021-22 till January, which is more than 50 per cent of such investment received in the entire country. The investments were received in diverse businesses and technology areas, including aerospace and defence, agrotech, fintech, healthtech, biotechnology, nanotechnology, electronics, drone technology, hospitality, food processing, manufacturing, hardware and ESDM.

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According to Karnataka's economic survey, the state is set to register a GSDP growth of 18.4 per cent in the current fiscal year, the highest in the last five years, Bommai said, adding that Karnataka sees other industrial states, like Tamil Nadu, Gujarat, Maharashtra, among others, as competitors.

On being asked about providing relief to people of the state by cutting tax on petrol and diesel, he said, "I just presented the Budget and have not increased any of the taxes including petrol, diesel, and so we will see as it comes, (and) will take action accordingly."

Commenting on the 'ease of doing business', the chief minister said, "Basically the ecosystem has to be very investor friendly and we have to be little aggressive on that front...now we are not only looking for FDI, we have 'Make in India', so a lot of investment is coming within India by Indians."

He said a lot of Indian companies have already invested in a diverse range of sectors and industrial growth in not only dependent on FDI. "Indian banks have become strong. Therefore, industrial growth is no more depending on FDI only," he said.

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