Karnataka draws $54.5 billion FDI, one of the highest in the country: CII state unit
Karnataka has emerged as one of the top investment destination for Foreign Direct Investment (FDI) in the country and attracted around $54.5 billion in recent years. The investments have come in high growth sectors such as IT, aerospace, mobile manufacturing, and semiconductors.
CII Karnataka State Council Chairman Rabindra Srikantan said that the bulk of the investment was seen across the services and manufacturing sectors, especially in Bengaluru and its surrounding industrial clusters. "Though IT and technology services continue to grow but off late we have seen huge capital flows into areas such as high-precision manufacturing, defence and aerospace, semiconductor, EV, mobile phone assembly units etc," said Srikantan.
The chairman said all the sectors had received good FDI inflows but the specific sector wise break up is still being compiled.
"There are 11 panels in different areas which are actively working and each of them organises and event to bring together different stake holders. As per the new industrial policy of the Karnataka government, there is an aim to generate 20 lakh jobs across the state over the next five years," pointed out Srikantan.
He further said that CII in Karnataka had more than 700 member companies out of which 50 to 60 percent were MSMES. He said that the CII remains an integral part of government delegations during both inbound and outbound visits and works closely with institutional partners abroad to promote Brand India.
The session also highlighted the developmental gap between South and North Karnataka. He remarked that the CII Karnataka is actively working in districts like Belagavi, Hubballi-Dharwad, and beyond. “We have member companies from agro-tech, high-tech manufacturing and services. North Karnataka has premier academic institutions and growing industrial potential, especially in Kalaburagi, where sectors like pharma, cement, and light engineering are gaining traction,” he said.
Though CII does not yet have a stand-alone office in Kalaburagi, the region is supported via the Belagavi and Hubballi-Dharwad offices, with potential for direct presence in the near future.
CII is also advancing its "Beyond Bengaluru" agenda through programmes like SENIOR — a two-day, fully funded skilling and mentoring initiative for MSMEs — and the soon-to-be-launched DSH programme, which connects local industries with academic institutions for AI, digital, and technology training.
The Young Indians (Yi) platform, operating in districts like Bidar and Ballari, was also highlighted for its work with schools, colleges and youth entrepreneurs, forming part of CII’s broader effort to build a future-ready workforce in Karnataka.
On the impact of geopolitical conflicts such as the Russia-Ukraine war and the Israel-Iran tensions, Srikantan said that global disruptions affect sectors unevenly and a few sectors such as energy and global supply chains face greater strain, while others remain relatively insulated. It depends on the industry cluster. He remarked that CII closely monitors developments and provides sector-specific guidance.
CII has an active partnership with the Karnataka government and works hand-in-hand with the Industries Department and Industries Commissioner. "We are committed to policy advocacy, MSME support, sustainability, digital transformation, and AI adoption. Karnataka’s economy is not only performing well but is also poised for a leap in global competitiveness," observed Srikantan.
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