BENGALURU: Deputy Chief Minister DK Shivakumar has urged businesses to shift their focus from Bengaluru and invest in Tier-2 and -3 cities, promising government support in infrastructure development and incentives for such investments.
If businesses are looking for cheaper labour, Tier-2 and -3 cities are the best option. The state will ensure that necessary infrastructure is developed in these cities, so investors need not worry, he said, highlighting the advantages of expanding outside Bengaluru.
Speaking during the Small and Medium Enterprises (SME) Award Ceremony at Invest Karnataka 2025, he emphasised the state’s commitment to industrial growth beyond Bengaluru.
“Our new industrial policy, led by Industries and Commerce Minister MB Patil, prioritizes small enterprises and investments in backward taluks identified by the Nanjundappa report. Businesses investing in these areas will receive incentives, and we are also considering setting up industrial parks at the taluk level,” he said.
He underscored the role of enterprises in Karnataka’s economy, stating, “The state grows when businesses grow, and employment is largely driven by small enterprises. Bengaluru was the first city in Asia to receive electricity, and India’s space programme took shape in Peenya’s industrial area. Karnataka has a strong business ecosystem.”
Referring to his tenure as power minister, he said, “I established a large solar park to make the state energy-sufficient. A gas-based electricity plant is now operational in Yelahanka. Karnataka also has world-class educational institutions, producing a strong talent pool that attracts global attention,” the DCM said.
Addressing Bengaluru’s infrastructure challenges, he outlined major projects, including Metro expansion, double-decker bridges, tunnel roads and an additional supply of six tmcft of Cauvery water.
He also mentioned that Karnataka expects investments worth Rs 10 lakh crore, with companies from 19 countries already signing agreements. “Apart from industrial growth, we are also focusing on tourism development, with plans to develop a 300-km coastal belt under a new tourism policy,” he added.
During the award ceremony, companies were recognised in various categories, including Best Performer in the District, Sector Excellence Award, Outstanding Woman Entrepreneur Award, and Empowerment Achievement Award.