The State’s industries in general, and small industries in particular, are facing several challenges -- apart from the Covid scare -- in the form of a slide in demand, spiralling cost of raw materials, rising cost of energy and transportation, etc. Coupled with this is a lack of proper infrastructure in government as well as private industrial estates. This sector was looking for relief in the form of reduction in fuel prices, property taxes, higher allocation for efficient energy supply etc. But the Chief Minister has given last priority to industry, clubbing it with other miscellaneous departments.
With the budget on Women’s Day, the CM has given more than Rs 31,000 crore worth of incentives, including marketing facility for women entrepreneurs’ products from small and micro enterprises. He has also announced a separate property tax slab for industries in municipal areas, which is welcome. The only positives are three parks -- Plastic and Petroleum Products Park in Mangaluru at Rs 66 crore, Textile Park in Koppal and Food Park in Vijayapura district.
He announced a Global Investors’ Meet in the current fiscal, in the hope of attracting large and multinational manufacturing industries into Karnataka. Establishing the Peenya Industrial Township at a cost of Rs 100 crore is fulfilment of a long-standing demand.Overall, the State Budget has given a major portion of its resources to Agriculture, Social Welfare and caste corporations, while neglecting employment generating manufacturing sector.