A file picture of Prime Minister Narendra Modi addressing the viewers throughout the inauguration of Invest Karnataka 2022 – Global Investors Meet, at Palace Grounds, in Bengaluru on November 2, 2022.
| Photo Credit: MURALI KUMAR Okay
Karnataka is one among the many few States that are prime locations for corporate investments. Karnataka secured 5th place amongst Indian States in attracting multi-State initiatives financed by choose banks and monetary establishments (FIs) throughout 2022-23.
Karnataka acquired 7.3% of the entire initiatives, value near ₹19,500 crore, funded by main non-public sector and international banks, and monetary establishments such as Industrial Financial Corporation of India (IFCI), Life Insurance Corporation (LIC), Power Finance Corporation (PFC), Rural Electrification Corporation of India (REC) and Export-Import Bank of India (EXIM), in line with Reserve Bank of India’s August 2023 bulletin.
Areas of funding
Investments are largely in energy, telecom, ports and airports, storage and water administration, particular financial zone, industrial, biotech and IT park, and roads & bridges. These investments haven’t coated initiatives funded by the Central or State governments, and trusts or academic establishments.
Top 5 States in undertaking funding
- Uttar Pradesh (16.2%)
- Gujarat (14%)
- Odisha (11.8%)
- Maharashtra (7.9%)
- Karnataka (7.3%)
Top 5 states — Uttar Pradesh (16.2%), Gujarat (14%), Odisha (11.8%), Maharashtra (7.9%) and Karnataka (7.3%) — collectively accounted for 57.2% share in complete undertaking value throughout 2022-23, which is increased than the 43.2% share throughout 2021-22.
About 547 initiatives received help from banks and FIs throughout 2022-23 with a report excessive complete undertaking value of ₹2,66,547 crore, in comparison with 401 initiatives having a complete undertaking value of ₹1,41,976 crore throughout 2021-22.
Karnataka’s share in the nation’s initiatives was 8.5% between 2013-14 and 2020-21, and 6.9% in 2021-22. These are initiatives with value exceeding ₹10 crore, and majority possession stake is with non-public corporate companies.
Purpose-wise sample of initiatives signifies that funding in inexperienced discipline (new) initiatives accounted for the biggest share of 93.1% in the entire value of initiatives financed by banks and FIs throughout 2022-23, in line with the pattern seen in the previous. A marginal share of 6.1% of complete undertaking value was directed in direction of growth and modernisation, in line with the RBI.
Multi-State initiatives
Karnataka is among the high recipients of multi-State initiatives which might be unfold over a couple of State largely owing to a variety of things, together with the accessibility to uncooked supplies, the provision of expert labour, the presence of sufficient infrastructure, the dimensions of the market, the expansion potential, the provision of suppliers, and the demand for the merchandise.
After experiencing a slowdown in funding since 2013-14, early indicators of revival in capital expenditure (capex) cycle, significantly of the non-public corporate sector, was seen from 2021-22, supported by a capital expenditure push by the federal government.
