Karnataka emerges as India’s top FDI destination, CM Siddaramaiah hails investment milestone
The CM hailed the achievement, stating, “Karnataka has emerged as the No.1 state in Foreign Direct Investment, attracting ₹50,107 crore and surpassing Maharashtra after several years. This milestone reflects the trust and confidence of global investors in Karnataka."
- Sep 4, 2025,
- Updated Sep 4, 2025 9:34 PM IST
Karnataka has emerged as the leading state in attracting Foreign Direct Investment (FDI), pulling in ₹50,107 crore and surpassing Maharashtra, Chief Minister Siddaramaiah announced on social media. The CM hailed the achievement, stating, “Karnataka has emerged as the No.1 state in Foreign Direct Investment, attracting ₹50,107 crore and surpassing Maharashtra after several years. This milestone reflects the trust and confidence of global investors in Karnataka, made possible by our government’s policies that have created a truly investment-friendly environment.”
Data from the Department for Promotion of Industry and Internal Trade (DPIIT) supports this trend. Maharashtra and Karnataka together accounted for 51% of India’s total FDI inflows in FY 2024-25, with Karnataka receiving $6.62 billion (around Rs 50,000 crore) compared to Maharashtra’s USD 19.6 billion.
Analysts attribute Karnataka’s success to its strong technology and innovation ecosystem. Bengaluru, known as India’s Silicon Valley, hosts over 400 Fortune 500 R&D centers and dominates national software exports. The MSME Export Promotion Council highlighted that Karnataka secured more than ₹12 lakh crore in new investments between FY 2021-22 and 2024-25 across multiple sectors, reinforcing its status as a preferred investment destination.
A study titled Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25 by the MSME EPC revealed that projects announced during this period totaled Rs 12,01,175 crore, with Rs 1,40,476 crore completed and Rs 36,078 crore pending projects revived. Investments worth ₹9,49,370 crore are currently under implementation. D S Rawat, Chairman of MSME EPC, noted that these figures were sourced from the Centre for Monitoring of Indian Economy (CMIE).
Karnataka leads India in innovation, contributing 20% of the country’s exports. The state dominates aerospace exports with a 65% share and machine tools output by 50%, while IT exports account for about 42% of India’s total software exports.
Investment projects over four fiscal years were substantial: Rs 1,45,035 crore in 2021-22, Rs 5,13,364 crore in 2022-23, Rs 2,27,706 crore in 2023-24, and Rs 3,15,069 crore in 2024-25, including Rs 10,25,614 crore from private sector investment.
The state’s MSME sector hosts over 8.5 lakh units employing nearly 70 lakh people across electronics, food processing, garments, automotive components, and chemicals. Karnataka is also home to over 14,000 DPIIT-recognized startups and 45 unicorns, representing a significant share of India’s total.
The study noted Karnataka’s tourism potential, recommending focused infrastructure development, branding, and incentives for eco-lodges, resorts, and adventure parks. Empowering local communities to run homestays, nature tours, and handicraft hubs is also advised.
Karnataka’s agriculture sector grew by 4% in 2024-25, above the national rate of 3.8%, driven by high-value segments like horticulture and coffee. However, the study emphasized the need for improved irrigation, price support, equitable access to finance, and enhanced value-addition infrastructure to ensure sustainable growth and farmer prosperity.
(With PTI inputs)
Karnataka has emerged as the leading state in attracting Foreign Direct Investment (FDI), pulling in ₹50,107 crore and surpassing Maharashtra, Chief Minister Siddaramaiah announced on social media. The CM hailed the achievement, stating, “Karnataka has emerged as the No.1 state in Foreign Direct Investment, attracting ₹50,107 crore and surpassing Maharashtra after several years. This milestone reflects the trust and confidence of global investors in Karnataka, made possible by our government’s policies that have created a truly investment-friendly environment.”
Data from the Department for Promotion of Industry and Internal Trade (DPIIT) supports this trend. Maharashtra and Karnataka together accounted for 51% of India’s total FDI inflows in FY 2024-25, with Karnataka receiving $6.62 billion (around Rs 50,000 crore) compared to Maharashtra’s USD 19.6 billion.
Analysts attribute Karnataka’s success to its strong technology and innovation ecosystem. Bengaluru, known as India’s Silicon Valley, hosts over 400 Fortune 500 R&D centers and dominates national software exports. The MSME Export Promotion Council highlighted that Karnataka secured more than ₹12 lakh crore in new investments between FY 2021-22 and 2024-25 across multiple sectors, reinforcing its status as a preferred investment destination.
A study titled Investment, Development & Growth in Progressive Karnataka: 2021-22 to 2024-25 by the MSME EPC revealed that projects announced during this period totaled Rs 12,01,175 crore, with Rs 1,40,476 crore completed and Rs 36,078 crore pending projects revived. Investments worth ₹9,49,370 crore are currently under implementation. D S Rawat, Chairman of MSME EPC, noted that these figures were sourced from the Centre for Monitoring of Indian Economy (CMIE).
Karnataka leads India in innovation, contributing 20% of the country’s exports. The state dominates aerospace exports with a 65% share and machine tools output by 50%, while IT exports account for about 42% of India’s total software exports.
Investment projects over four fiscal years were substantial: Rs 1,45,035 crore in 2021-22, Rs 5,13,364 crore in 2022-23, Rs 2,27,706 crore in 2023-24, and Rs 3,15,069 crore in 2024-25, including Rs 10,25,614 crore from private sector investment.
The state’s MSME sector hosts over 8.5 lakh units employing nearly 70 lakh people across electronics, food processing, garments, automotive components, and chemicals. Karnataka is also home to over 14,000 DPIIT-recognized startups and 45 unicorns, representing a significant share of India’s total.
The study noted Karnataka’s tourism potential, recommending focused infrastructure development, branding, and incentives for eco-lodges, resorts, and adventure parks. Empowering local communities to run homestays, nature tours, and handicraft hubs is also advised.
Karnataka’s agriculture sector grew by 4% in 2024-25, above the national rate of 3.8%, driven by high-value segments like horticulture and coffee. However, the study emphasized the need for improved irrigation, price support, equitable access to finance, and enhanced value-addition infrastructure to ensure sustainable growth and farmer prosperity.
(With PTI inputs)