As fighter jets and choppers roar over the Bengaluru skies displaying India’s military might and technological prowess, the Siddaramaiah government will go on an overdrive to woo investors. Jets and jet-setting CEOs from across the world will take centre-stage at Aero India 2025 and the Global Investors Meet (GIM)- Invest Karnataka 2025 this week. Perhaps, for the first time, two major events of immense economic and strategic importance are being held simultaneously in Bengaluru.
From the investors’ summit at Palace Grounds — around 16 km from Air Force Station Yelahanka, the airshow venue —the state is aiming to attract Rs 10 lakh crore worth of investments.
While the government pitches Karnataka as the best investment destination in this part of the world, the event’s success will boost its endeavours to spur economic activities and generate employment opportunities. It would help the government, which is accused of neglecting infrastructure development and focusing mostly on social welfare programmes, to strike a balance.
At the same time, the GIM’s success will be a shot in the arm for the chief minister who will present his record 16th state budget next month. Over the last 10 years, industries in Karnataka grew at the rate of 9.3% and the government aims to achieve a 15-16 % annual rate of growth to reach the goal of USD 1 trillion GDP by 2032.
Forums like GIM will play a major role in that direction with the participation of representatives from 19 countries and top industrialists in India. The challenge ahead is to get them to sign Memorandums of Understanding (MoUs) and convert those commitments into actual investments. Equally important is to take them beyond Bengaluru to other parts of that state.
Conversion of MoUs to investment is a bigger test. In the 2012 GIM, MoUs, and Expressions of Interest (EoIs) for Rs 7.56 lakh crore were signed, and the rate of conversion was just around 27%. A decade later, after the 2022 GIM, that improved to around 40% to 50%. This time around, the government has set an ambitious target of 70% realization.
With its vast pool of talented workforce, educational and research institutions, thriving industrial ecosystem, cosmopolitan work culture, warm and welcoming nature of people, and excellent weather — notwithstanding the summers that are getting hotter every year — Bengaluru is the most sought-after investment destination in the country. According to some estimates, the tech city alone hosts over 50% of India’s AI and Machine Learning professionals. It also hosts 400 of the Fortune 500 firms.
However, several states continue to pose a healthy competition to Karnataka. Taking steps to further increase the ease of doing business will enable Karnataka to maintain its edge over other states and compete at the global level. A new industrial policy that focuses on financial and non-financial incentives will also be unveiled during the investors’ meet.
Spreading industries to lesser developed parts of the state will ensure equitable benefits from the investments and, at the same time, ease the burden on Bengaluru.
Despite consistent efforts by successive governments, Bengaluru’s traffic remains a major concern. The city with a population of roughly 1.4 crore has 1.16 crore vehicles, placing a huge strain on urban infrastructure. Despite improvements in public transportation, the rapid rate at which the vehicle population is increasing will only make the situation grimmer with every passing year, unless we ease the burden on Bengaluru and develop other cities.
The government needs to emphasise its Beyond Bengaluru initiative to develop Tier II cities, where land is available for a much lower price. They are also well connected with airports, railways, and highways. It will be a win-win for industries as well as the state.
Also, the State Government needs to work in coordination with the Centre, especially Union Heavy Industries Minister and Minister of Steel HD Kumaraswamy, to develop industries in lesser-developed regions like Kalyan Karnataka. The state and central ministers must keep politics aside and avoid confrontation.
On the airshow front, the event will provide a platform for Indian defence and aerospace firms to explore business opportunities and collaboration. Bengaluru is the defence and aerospace hub in the country. It is home to state-owned aircraft maker Hindustan Aeronautics Limited (HAL), the Indian Space Research Organization (ISRO) and a number of Defence Research and Development Organization (DRDO) facilities and private firms.
The five-day show that takes off on Monday will also see the best of fighter jets, choppers, and transport aircraft from different countries trying to enthral spectators with their aerobatic manoeuvres, while global firms compete to win defence deals.
Be it the Global Investors Meet or the Aero India, ultimately business is what matters.