The Karnataka government has proposed establishing a Central Business District modelled after Gujarat's GIFT City and sought expedited project approvals. IT & BT Minister Priyank Kharge, in a letter to Union Finance Minister Nirmala Sitharaman and Union IT Minister Ashwini Vaishnaw, highlighted Karnataka's vibrant economy and strategic location. The proposed CBD aims to boost economic growth, employment, and foreign investments. Karnataka, a leader in IT and electronics exports, plans to develop clusters under the EMC 2.0 scheme in Mysuru and Dharwad districts and seeks further financial support for infrastructure, skilling programmes, and research initiatives from the Union government.
Last week, the Karnataka Government advocated for the establishment of a dedicated Central Business District (CBD) in the state, inspired by Gujarat's GIFT City on the Sabarmati River in Ahmedabad. This proposal was part of a broader appeal for expedited clearance of various projects across multiple sectors. In anticipation of the Union Budget presentation by the Narendra Modi government in its third term, Karnataka's IT & BT Minister Priyank Kharge communicated his "wishlist" to Union Finance Minister Nirmala Sitharaman and Union IT, Electronics, and I&B Minister Ashwini Vaishnaw, seeking the Centre's attention and support.
In an official statement from the minister's office, Kharge expressed Karnataka's ambition to create a Central Business District that would serve as a global financial and IT hub. He drew parallels with the Gujarat International Finance Tec-City (GIFT City), which was launched with significant investment, initially estimated at USD 1 billion, and spans 886 acres of land. GIFT City features a conducive multi-service Special Economic Zone (SEZ) and an exclusive domestic tariff area (DTA), with these areas split in a 1:3 ratio.
Kharge emphasised Karnataka's dynamic economy, highlighting key sectors like IT, biotechnology, aerospace, automotive, textiles, and heavy industries as integral parts of its investment landscape. He noted that the state is strategically positioned to develop into a prominent business hub, drawing comparisons to Bengaluru as the tech hub and Silicon Valley of India. Kharge highlighted Bengaluru's emerging strengths in semiconductor and electronics, fintech, enterprise technology, e-commerce, and ed-tech sectors as significant contributors to Karnataka's economic growth and development.
He argued that establishing a GIFT City-like CBD in Karnataka would significantly boost economic growth, create numerous employment opportunities, and attract foreign investments. He highlighted Karnataka's unmatched IT credentials, noting that the state ranks third in India for electronic exports, valued at USD 4.5 billion. Additionally, Karnataka is the most innovative state with a 46 percent share of national innovation and contributes 10 percent to India's industrial output.
Kharge also pointed out that Karnataka is home to over 300 export-oriented manufacturing units. The state houses India's largest chip design hub, with more than 100 fabless chip design companies, and is a leading producer of aerospace and defence equipment. Moreover, it hosts numerous automobile manufacturing companies, medical device manufacturers, and heavy electrical machinery firms.
In his appeal, Kharge outlined efforts to bolster the ecosystem to attract investments in the Electronics System Design and Manufacturing (ESDM) sector. Karnataka is advancing plans for two land parcels-Kochanahalli industrial area in Mysuru district and Kotur-Belur industrial area in Dharwad district-to develop clusters under the Union government's Modified Electronics Manufacturing Cluster (EMC 2.0) scheme. He also mentioned plans to establish two additional EMCs in and around Bengaluru to further support the growth of the ESDM sector in Karnataka.
The minister strongly urged the Union government to expedite approvals as investors await the final land allotment. Notable projects requiring swift clearance include Adinarayanhosahalli in Bengaluru Rural district and Vasantanarsapura in Tumakuru district.
Kharge also sought financial support from the Union government to enhance infrastructure, develop industry-specific skilling programmes, bridge the gap between skill requirements and the available talent pool, and fund research and development initiatives. The minister's office stated that such support would galvanise the state's efforts in these areas and significantly contribute to its economic development.
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