BENGALURU: India’s southern state of Karnataka has received investment proposals worth nearly 10 trillion rupees ($115.31 billion), a government spokesperson said, as the country tries to bolster its manufacturing sector and generate jobs in a slowing economy.
The proposed investments would focus on areas such as renewable energy, steel, semiconductors and automobiles, the spokesperson said at the ‘Invest Karnataka’ event on Tuesday.
To be sure, not all proposals have been confirmed and the government has not provided a timeline for these investments.
The state government aims to implement at least 70% of proposals, up from 40% to 50% after the event’s 2022 edition, the New Indian Express newspaper reported last week, citing a state minister.
Companies that have pledged investments included India’s Mahindra and Mahindra and JSW Group, Germany’s Bosch , Japan’s Toyota Motor and Taiwan-based Foxconn.
Karnataka, which includes the IT hub of Bengaluru, is among the top contributors to India’s economy and is a major exporter of software, IT services and manufactured goods.
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The investment commitments also come amid New Delhi’s push to boost domestic manufacturing and reduce imports as it looks to take advantage of Sino-U.S. tensions that have led companies such as Apple to diversify their manufacturing operations away from China..
Inaugurating the event, Indian Defence Minister Rajnath Singh said India’s growing economy and strong consumption make it an investment target, with recent moves like a personal income tax cut set to fuel demand.
The JSW Group, whose business spans industries including cement, steel, paints and energy, will invest 1.2 trillion Indian rupees ($13.84 billion) to expand its operations in the state, Chairman and Managing Director Sajjan Jindal said.
Mahindra, which already has a strong presence in Karnataka, plans to invest nearly 400 billion Indian rupees in the state($4.61 billion) over the next few years, chairman Anand Mahindra said at the event.
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