Karnataka Seeks Central Funding to Advance its Semiconductor Projects
Karnataka's Information Technology Minister Priyank Kharge met with Union IT Minister Ashwini Vaishnaw recently, requesting additional fiscal support from the central government to bolster the state's burgeoning electronics and chip manufacturing sector.
In a letter to Vaishnaw, Kharge outlined the various incentives Karnataka has introduced to attract investments in electronics design and manufacturing. However, he stressed that enhanced central funding would aid their efforts further.
As the nation focuses on building this strategically important industry, Karnataka is working assiduously to strengthen its ecosystem for semiconductor and electronics firms. The state boasts India's top cluster of innovative companies and a sizable share of the country's industrial output. It also leads in electronics exports.
To build on these strengths, Karnataka is developing specialized industrial areas in Mysuru and Dharwad under the Centre's Electronics Manufacturing Cluster program. Two additional clusters are planned near Bengaluru.
The letter highlighted the subsidies, tax waivers and production incentives Karnataka offers companies. As the nation's top chip design hub and a defense manufacturing powerhouse, enhanced central assistance would allow the state to upgrade facilities and accommodate more investments.
Kharge's appeal comes after claims some projects preferred other states over Karnataka. With its skilled talent pool, robust industrial base and pro-business initiatives, the state hopes to retain its position as India's electronics manufacturing leader with additional Central Government backing.
