Over the last few months, Karnataka has been in the news for various communal issues, raising concerns over its impact on the state’s investment scenario. Industries Minister Murugesh Nirani, however, ruled out any impact on the state’s ability to attract investments, and termed the recent developments as a flicker that will fade out soon. Excerpts:
How do you allay apprehensions among investors as the state has been in the news for several months over communally sensitive issues?
Karnataka has always been an investors’ paradise. World-class facilities and investment opportunities offered by our state are unparalleled in the country. The noises over some issues, be it hijab or halal meat, have no bearing on the investment climate in the state. These issues are blown out of proportion by the Opposition parties for political gains and some vested interests trying to stunt Karnataka’s growth. Let me assure our business community that there is no cause for worry. Karnataka is one of the best governed states in India and is known for peace and maintenance of law and order. I will also like to state in unequivocal terms that we in the government will not tolerate any attempts to disturb peace. We will deal firmly with any group or individuals that try to vitiate the atmosphere and pose a hindrance to growth and development. Our police force and other law enforcement agencies are capable enough to deal with such inimical forces.
What will be the impact of issues like the hijab row, campaign against halal meat, preventing Muslim traders from doing business at temples and now regulating loudspeakers at mosques, on the investment scenario in the short and long term?
These issues have nothing to do with the investment scenario in the state. The hijab issue is related to the rule of the law. The High Court has passed an order after a section of girls challenged the school uniform rule and sought an exemption. Now, the matter is before the Supreme Court. Halal meat is related to food habits and some rituals and it is for individuals to choose what kind of meat they want to consume. Some groups have called for preventing Muslim traders from opening shops on temple premises citing a rule passed during the Congress government. There has also been a tit-for-tat call by some Muslim leaders against Hindu shop owners with some mischievous elements giving a call to boycott Hindu shops during Ramazan. But the government is not taking sides. We are committed to upholding the rule of law. And regulating the use of loudspeakers is not restricted to mosques alone; the police department and pollution board have issued notices to temples, mosques and churches, asking them to adhere to the court rulings on decibel level to check noise pollution. And these issues will in no way affect the investment climate. Other states in the country are also dealing with such issues, but some people are making noises to sully Karnataka’s image.
Any plans to hold meetings with industries and prospective investors to address their concerns in the wake of latest developments?
Our engagements with industries, business leaders and industry bodies have been constant. We are always receptive to ideas coming from industry leaders and have always tried to address their concerns. Being an industrialist myself, I know the problems faced by the business community. We are here to help them conduct their businesses in a smooth and peaceful atmosphere. We are always ready to address their grievances and allay any apprehensions. I can assure them that Karnataka will always be an investor- friendly state and there is absolutely no need to worry. We will consider holding meetings with industries to reassure them if they have any concerns.
Are you concerned as these issues are coming to the fore at a time when you and your department are preparing for the Global Investors Meet?
Absolutely not. Let me make it clear that these issues are in no way going to affect our preparations for the mega Global Investors Meet in November 2022. The GIM is going to be a grand success and the state will attract investments surpassing our expectations and create massive number of jobs. These issues are a flicker and fade out soon. Ultimately people want peace, growth and prosperity.
The Opposition Congress says politics of polarisation kills a state’s composite culture, economy and investment prospects. How do you respond?
By making such irresponsible statements, the Congress is in fact damaging Karnataka’s prospects and its reputation. It’s not the BJP, but the Opposition Congress and JD(S) that are indulging in politics of polarisation by making issues out of non-issues, twisting facts and giving a communal colour to current issues for political gains. They are doing it keeping the vote banks in their mind as the state is heading for the polls next year. They are deliberately giving a communal colour to put our party in a bad light, but the people of Karnataka are clever enough to see their designs, which are appeasement and vote bank politics. I urge the Opposition to play a constructive role and join hands with the government for the state’s growth, rather than making unfounded allegations which will only cause damage to our state and help our detractors.
Employment generation is one of the major challenges for the government. What steps are being taken on that front?
Growth without jobs is no growth at all. Employment generation is key for any economy to grow. Our government has been giving preference to investment proposals that have the potential to create jobs. In recent times, we have cleared several investment proposals worth thousands of crores through State-Level Single Window Clearance Committee (SLSWCC) meetings. These investments have the potential to generate massive jobs across the state. We are setting up cluster-based industrial parks in many districts, which will generate a lot of employment opportunities. We are also giving sops to industries that provide jobs to our youths.
Telangana seems to be aggressive in trying to attract investors from Karnataka. How does Karnataka plan to counter it?
It is but natural for every state to strive to attract investments, create jobs and achieve economic growth. But this should be done in a healthy way and not at the cost of others. States can compete with others to attract investors. The key point here is that Karnataka is not competing with other states in the country, we are competing at the global level. Karnataka has already emerged as the top investment destination and top recipient with 48 per cent share of the total FDIs in India in the last three quarters.
The response received from investors during our visit to Dubai Expo 2020 was overwhelming. Others states can fight for the distant second position. We have become a global hub for manufacturing and a key player in the global supply chain. It is amusing to see my counterpart in Telangana trying to wean away investors from investing in Karnataka and asking them to shift their bases from Bengaluru to Hyderabad citing infrastructure and other issues. I will say that this is in poor taste.
Bengaluru is a global technology hub and top contributor to India’s GDP. Nobody can snatch its place and nobody can match its robust ecosystem. Be it Telangana or any other state, they have the right to woo investors by showcasing their strengths, but should desist from sabotaging other’s growth and achievement.
Karnataka ranks no.3 in the Export Preparedness Ranking, a leap from its previous 9th position. None of the investors or industry is going anywhere and they are here stay as the state provides the best business environment among others.