Factors Influencing Investment in Manufacturing Industry in Karnataka, India

Dr. Balagouda Patil, Hanumant Mosalagi


Karnataka is one of the major states which has been pursuing economic reforms to accelerate industrialisation. The state government has been pursuing a progressive industrial policy. It is the endeavour of the state government to improve its ranking in the industrial map of the country and become one of the foremost industrialised states by the turn of the century. In tune with the liberalised New Industrial / Economic and Trade Policy measures announced by the government of India since July 1991, the government of Karnataka has announced its New Industrial Policy and Package of Incentives and Concessions – 1993


Manufacturing dominates investment proposals that have come to the state. Steel and cement are major industries in terms of investment value. Though Bangalore is known as the software capital of India, the quantum of investment proposed for such projects is small (9 per cent) in relative terms. Karnataka has the best manufacturing process ratio of 2.63 with maximum value of goods being converted into finished goods valuing over Rs. 2,000 crores.

The study analyses the investment determinates and their relationship with investment during periods 1990-2000, 2000-10 and 2010-17 in three phases. The data required is obtained from the secondary courses. The study concludes that the sustainable growth of the manufacturing sector largely depends upon the existence of sound financial infrastructure as a major determinant along with Telecommunication and Land allotment schemes by the govt.

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ISSN : 2251-1555