The Government of Karnataka has introduced the Industrial Policy 2025–30 with the objective of making Karnataka one of India’s most preferred destinations for manufacturing, technology, exports, and sustainable industrial development.
The policy offers a combination of financial incentives, infrastructure support, employment generation benefits, and ease of doing business measures to encourage both new and expanding industries.
Whether you are planning to establish a manufacturing unit, warehouse, food processing facility, logistics park, engineering unit, textile factory, pharmaceutical unit, or any other industrial project, understanding this policy can significantly improve the financial viability of your investment
The policy is relevant for various industries including:
Depending on the location, category of industry, investment size, and eligibility conditions, industries may be eligible for various incentives.
Some of the important benefits include:
Capital Investment Subsidy
Eligible industrial units may receive capital investment incentives that reduce the effective project cost.
Stamp Duty Concessions
The policy provides concessions on stamp duty for eligible industrial investments, reducing the initial cost of acquiring industrial land.
Registration Fee Concessions
Registration charges on eligible transactions may also be reduced for qualifying projects.
Land Conversion Support
Certain eligible industrial projects may receive assistance relating to land conversion charges.
Electricity Related Benefits
Industries may receive benefits such as:
These incentives can significantly reduce operating costs during the initial years.
MSME Support
Micro, Small and Medium Enterprises receive special attention through incentives designed to encourage:
Green Manufacturing
Industries adopting environmentally sustainable technologies may also be eligible for policy support, promoting cleaner production and energy-efficient manufacturing.
Capital Subsidy for Micro Industries
| Zone | General Category | Special Category |
|---|---|---|
| Zone 1 | 30% of Value of Fixed Assets (Maximum ₹30 lakh) | 35% of Value of Fixed Assets (Maximum ₹35 lakh) |
| Zone 2 | 25% of Value of Fixed Assets (Maximum ₹25 lakh) | 30% of Value of Fixed Assets (Maximum ₹30 lakh) |
| Zone 3 (Bengaluru Rural only) | 10% of Value of Fixed Assets (Maximum ₹10 lakh) | 15% of Value of Fixed Assets (Maximum ₹15 lakh) |
Capital Subsidy for Small Industries
| Zone | General Category | Special Category |
|---|---|---|
| Zone 1 | 25% of Value of Fixed Assets (Maximum ₹2 crore) | 30% of Value of Fixed Assets (Maximum ₹2.25 crore) |
| Zone 2 | 20% of Value of Fixed Assets (Maximum ₹1.5 crore) | 25% of Value of Fixed Assets (Maximum ₹1.75 crore) |
| Zone 3 (Bengaluru Rural only) | 10% of Value of Fixed Assets (Maximum ₹50 lakh) | 15% of Value of Fixed Assets (Maximum ₹75 lakh) |
Large, Mega and Ultra Mega Industries
| Incentive | Zone 1 | Zone 2 | Zone 3* |
|---|---|---|---|
| Capital Subsidy | 25% of VFA (Maximum ₹10 crore) | 20% of VFA (Maximum ₹8 crore) | 10% of VFA (Maximum ₹4 crore) |
| Production Linked Incentive (PLI) | 2.5% of Net Sales Turnover | 2.0% of Net Sales Turnover | Available as per policy provisions |
*Zone 3 benefits are limited to eligible areas such as Bengaluru Rural as specified in the policy.
The actual subsidy available depends on several factors, including:
The above table is intended as a quick reference. Specific incentives should always be verified against the latest policy provisions before making investment decisions.
A well-prepared Detailed Project Report (DPR) is often one of the most important documents in the project approval process.
A professional DPR generally includes:
Banks and financial institutions rely heavily on a structured DPR while evaluating project proposals.
The Karnataka Industrial Policy 2025–30 presents significant opportunities for entrepreneurs planning new industrial investments or expansion projects.
Understanding the policy at the planning stage can improve project feasibility, reduce capital costs through eligible incentives, and support smoother project implementation.
Whether you are planning a manufacturing facility, warehouse, food processing unit, logistics project, or any other industrial venture, early planning and proper documentation can make a substantial difference.
At BankOn Services, we assist entrepreneurs with:
If you are planning an industrial project in Karnataka, professional planning at the beginning can help avoid delays and improve the overall viability of your investment.
Disclaimer: The information provided here is for general informational purposes only. For the most accurate and up-to-date details on the scheme, including eligibility, application process, and specific benefits, please refer to the official scheme website
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