Two high-octane events held earlier this week ended on an optimistic note. The Global Investors Meet -Invest Karnataka 2025 attracted Rs 10.27 lakh crore in investment commitments, while the 15TH edition of India’s premier airshow, Aero India 2025, showcased a big leap ahead for the domestic defence manufacturing sector. However, the real action begins now, as accomplishing the task set out requires much time, effort and focus.
The biggest takeaway from the Global Investors’ Meet is that 75% of the investment commitments are for outside Bengaluru. That is a big gain for the state and a relief to the state capital, which can no longer cope with burgeoning growth.
Chock-a-block roads, which caused traffic congestion for several hours on high-density airport corridors during the air show, yet again proved the limitations of the city’s infrastructure and the administrators. Given the profile of the two big events that had attendees from around the world, traffic should have been managed more aptly to give an even better impression of Bengaluru and India. A lack of coordination between the military and civil authorities was evident.
Notwithstanding its infrastructure limitations, Bengaluru and Karnataka continue to be among the top investment destinations. The investors’ meet again proved it. The real challenge is not attracting investments to Bengaluru — which has already attained a global status and a critical mass to continue on its growth trajectory — but to spread it to lesser developed regions of the state to ensure equitable growth and development in Karnataka.
North Karnataka — especially Kalyan Karnataka — needs a bigger push. It is encouraging to know that 45% of the investments committed during the investors’ meet are for North Karnataka. Although a district-wise break-up would throw more light, the government’s focus on taking industries beyond Bengaluru is a welcome move.
Minister for Industries and Infrastructure MB Patil is confident of converting commitments into investments and is realistic that the process will take its own time. Those associated with previous editions of investors’ meets and the process of following up with investors are cautiously optimistic about the outcome.
The Memorandums of Understanding (MoUs) merely reflect the intent of the firms to invest in the state and that the government will provide facilities and concessions as per its policies. The Industries Department has to pursue the investors keeping in mind that they will prefer the states which make quick decisions, offer a transparent system, and provide better incentives. The New Industrial Policy 2025 which was released during the investors’ summit, focuses on most of these aspects, including ease-of-doing business and incentivising investment in the backward regions.
However, given the big claims and poor conversion ratio in the past, the government should consider putting in place a transparent system that enables people to know the department’s efforts to realise investments. There can be plenty of reasons such as competitors taking advantage of such information for the lack of a transparent system. We need to address such concerns. Chief Minister Siddaramaiah and MB Patil should take proactive confidence-building measures to encourage investors and ensure accountability among the officers.
Veteran Congress legislator and former Industries Minister RV Deshpande, who pioneered the concept of investors’ meet in Karnataka, says investors have faith in assurances given by the state and would be more forthcoming with their commitments. The Federation of Karnataka Chamber of Commerce and Industries (FKCCI) is also buoyant about the prospects.
The investors’ summit and the airshow, held almost simultaneously, complemented each other. Many defence and aviation firms were part of both the events. While the airshow offered a peek into opportunities in the Indian defence and aviation sector, Karnataka, which is a hub of defence and aviation manufacturing, tried to woo global players in the sector. Both the events became platforms to explore investment opportunities and collaborations.
Many firms including Airbus, Rolls-Royce, and Safran are looking to scale up sourcing from India. Karnataka, which contributes around 67% of India’s aircraft and helicopter manufacturing for armed forces and 65% of aerospace exports, is the top destination for many firms. The state stands to gain from the investments coming from abroad, and also from the Union government’s push to encourage domestic production.
In the Union Budget 2025-26, a record allocation of Rs 6.81 lakh crore has been made to the Defence Ministry, including Rs 1.80 lakh crore for capital acquisition. Like earlier, 75% of the modernisation budget has been reserved for procurement through domestic sources. This shows the enormous potential of the domestic manufacturing sector.
The two big shows painted a bullish picture. Now, it’s time for the governments to walk the talk and accomplish the task they have set out on.