Karnataka pulls out all stops to woo investors

Foreign investors urged to shift their gaze to sectors such as tourism, education

The Karnataka government has rolled out the red carpet for foreign investors, urging them to invest so that they “can reap rich dividends.”

At a special plenary session on Karnataka on the second day of the Confederation of Indian Industry’s Partnership Summit on Tuesday, Minister for Higher Education R.V. Deshpande urged foreign investors to not only focus on opportunities in manufacturing, information technology (IT) and biotechnology but shift their gaze to sectors such as tourism and education.

Mr. Deshpande pointed out that the State government had identified 25 to 30 beaches and 15 small islands that could be an attractive destination for foreign investment. “You are like our family members and you will be treated with respect and dignity,” he told investors gathered at the summit. The new industrial policy on the anvil would provide a host of incentives to investors, he said. Karnataka, he pointed out, was the fourth biggest destination for foreign direct investment (FDI) among States in India, Mr. Deshpande said.

Referring to the potential for investment in the IT sector, he urged investors to emulate Infosys, which had established a large campus in Mysore and had operations in Mangalore. “IT companies should, like Infosys, venture to cities such as Hubli, Mangalore and Mysore, and smaller towns,” he said.

Declaring that the “Indian growth story is still intact,” Mr. Deshpande said, “Yes, there has been a slowdown, but it is not of our making, but because of the global economic slowdown.”

“You will not repent investing in Karnataka,” he said.

Chief Secretary Kaushik Mukherjee said the single window mechanism for clearances for industrial projects needed to be “backed by statutory provisions.”