Karnataka Chief Minister D K Shivakumar announced a new industrial policy framework designed to shift manufacturing and service-sector investment away from Bengaluru and into smaller urban centers.
The state government will offer Floor Area Ratio (FAR) concessions to companies that establish operations in tier-2 and tier-3 cities, aiming to create local employment opportunities and reduce the pressure of migration to the state capital.
The initiative includes the launch of 'Yuva Setu,' a program intended to bridge the gap between local job seekers and industrial employers in these emerging hubs.
Additionally, the government plans to construct 2,000 schools funded through Corporate Social Responsibility (CSR) contributions, addressing infrastructure deficits that often deter private investment in smaller municipalities.
This policy marks a strategic pivot for Karnataka, which has long relied on Bengaluru as its primary economic engine.
By incentivizing decentralization, the state seeks to replicate the industrial growth seen in other Indian states that have successfully leveraged secondary cities for manufacturing and logistics.