Industrial Growth in Karnataka


           It’s with great pain that i note that industrial growth in Karnataka is far below expectations and lagging behind Gujarat, Maharashtra and Tamil Nadu.

          Few factors which influence slow growth in Karnataka(some of them are unique to Karnataka) are discussed here.

  • LAND CONVERSION: The most agonising factor in the industrial growth is the difficulty in converting agricultural land into industrial land (Non Agriculture). Neighbouring state of Telangana has a simple policy. Apply for conversion on onlineand if no concerned department objects for the same,then the land is deemed to be converted after30 days. Let’s not forget the fact that Telangana is now rated as the first among most business friendly states of India. What prevents our state from following that example is anybody’s guess.
  • CORRUPTBEREAUCRACY: Karnataka is generally considered as the most corrupt state in India. This did not happen in overnight. For the last two decades this has been steadily growing and political protection and involvement in this dubious growth is obvious. Nobody expects corruption to vanish,but at least it must be at manageable levels. Unfortunately it’s not so in Karnataka. Unless this issue is tackled effectively, industrial growth in Karnataka will remain a distant dream.
  • LACK OF INFRASTRUCTURE: Bad roads, lack of good seaports, inadequate and low quality power supply are other stumbling blocks. The worst affected districts are all in Kalyana Karnataka. With major thermal plants situated in Ballari and Raichur, our districts must have been having adequate power supply. On the contrary acute power shortage is the fixed fate of these districts and will remain so for many more years to come.
  • SKILL DEVELOPMENT: With central government setting aside Rs. 3,000 crores for skill development, and Karnataka government appointing a separate ministry, we should have had a huge work force of highly skilled and semi-skilled work force. Unfortunately lethargy on part of the government has contributed to poor growth in this vital sector.
  • LACK LUSTRE INDUSTRIAL POLICY: A very rosy industrial policy of Karnataka is being published periodically. But it remains only on paper and the reality is altogether different. As long as the policies are not effectively implemented, framing policies will serve no useful purpose.

I can go on and on but suffice is to say that our state will keep slipping in rating and we may find ourselves at the bottom of the list of ”ease of doing business”


Dr|| D. L. Ramesh Gopal,

Imm. Past President, BDCCI