BENGALURU: With Union Finance Minister Nirmala Sitharaman announcing the creation of the Bengaluru-Hyderabad Industrial Corridor, the Karnataka government will have to rethink its existing industrial policies.
Karnataka will be looking at establishing industrial clusters as part of the corridor, and amp up its incentive models to counter a competitive neighbouring state keen on drawing investments and businesses.
The corridor includes the development of Orvakal Node: Orvakal, located off NH-40 in Kurnool district, Andhra Pradesh, is being developed as a mega industrial hub and will play a crucial role in the manufacturing sector. It will also be an integral link for other South Indian cities and economic corridors, including Bengaluru-Chennai and Vishakapatnam-Chennai, according to the National Industrial Corridor Development Corporation.
Under this, roads, rail, highways and towns will be be developed and multi-sectoral industrial townships created. Strengthening this corridor will help increase urban employment and infrastructure, an official said, adding that Industries Minister MB Patil had met Union Minister of Commerce and Industry Piyush Goyal and spoken on strengthening the industrial sector.
Experts, however, caution that the Karnataka government will have to come up with better policies and tailor its schemes accordingly.
“Earlier, Karnataka had announced the creation of industrial clusters, but only the toy cluster in Belagavi has progressed a little. The development of a mobility hub in Hindupur, bordering Karnataka, has been a big hit. Karnataka will now have to revamp its policies and tailor its incentive schemes to draw maximum investment along this corridor,” said an expert.