Karnakata Unveils New Industrial Policy

Karnataka on Tuesday unveiled a new industrial policy that aims at 9-10 percent growth in the state’s economy over the next five years. The state had achieved an 8.7 percent growth in the gross state domestic product (GSDP) during last fiscal (2005-06).

Releasing the policy in Banglore, Deputy Chief Minister Y.S. Yediyurappa said that the government would offer incentives to attract investments in small and medium industries too.

‘The thrust of the policy will be on strengthening the manufacturing sector and increasing the state’s share in national exports to 20 percent from the current 15 percent. We have set a target of one million jobs by 2011 through sustained and growth-oriented industrialisation,’ he said.

Capital investment subsidy up to 25 percent will be granted to small-scale industries (SSIs) and tiny industries in the first zone and 20 percent in the second zone. Similarly, all industries will be eligible for a 100 percent exemption on stamp duty in zone 1 and 75 percent in zone 2.