Over ₹12 lakh crore poured in to Karnataka in investment boom since 2021, finds study: Report

Karnataka attracts over ₹12 lakh crore in investment proposals from 2021 to 2025, with significant contributions from private companies and MSMEs.

Published on: Sep 4, 2025, 18:56:08 IST

By HT News Desk, Bengaluru

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Bengaluru and Karnataka are buzzing with big investment energy: A recent study by the MSME Export Promotion Council has revealed that the state pulled in fresh investment proposals worth over ₹12 lakh crore between 2021 and 2025.

Karnataka leads in software exports and has a growing agriculture sector, alongside untapped tourism potential.

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This investment wave covers everything from tech and aerospace to tourism and agriculture. The study, based on data from the Centre for Monitoring Indian Economy (CMIE), shows that projects worth ₹1.4 lakh crore have already been completed, and another ₹9.5 lakh crore are actively in progress, as per news agency PTI.

“During the said period, the new investment projects announced amounted to ₹12,01,175 crore. Projects completed were worth ₹1,40,476 crore, and pending projects valued at ₹36,078 crore were revived during the period,” the chairman of the council said, as quoted by the agency.

Private companies alone are behind over ₹10 lakh crore of the total investment. And it’s not just the big players - more than 8.5 lakh MSMEs from Karnataka are booming, employing nearly 70 lakh people across industries like garments, food processing, electronics and auto components, the report stated.

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With over 14,000 DPIIT-recognized start-ups and 45 unicorns, the state continues to lead the way in software exports (42 per cent of India’s total), aerospace (65 per cent), and machine tools (50 per cent).

Karnataka’s agriculture sector is also growing at 4 per cent, outpacing the national average, especially in areas like coffee and horticulture. Tourism is another untapped goldmine, the study says, calling for better branding, infrastructure and support for local businesses like homestays and eco-tours.

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From high-tech innovation to rural growth, Karnataka is shaping up as a model of balanced development - where start-ups, farmers and factories all grow together.

(With inputs from PTI)

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