Karnataka’s IT Minister, Priyank Kharge, has accused Prime Minister Narendra Modi of pressuring companies to invest in Gujarat, thereby blocking investments intended for Karnataka. Speaking at Vikasa Soudha in Bengaluru, Kharge claimed that the Prime Minister has directly influenced several companies to shift their investments to Gujarat and Uttar Pradesh.
“We are making every effort to attract investors to Karnataka, but the PM himself is calling and pressuring them to invest in Gujarat and Uttar Pradesh,” Kharge stated. “At least 5-6 companies have moved to Gujarat due to these pressures.”
Although Kharge did not name the companies, he referenced a case mentioned by former Infosys CFO TV Mohandas Pai, where a company relocated from Karnataka to Telangana and subsequently to Gujarat.
Kharge’s allegations come amidst concerns raised by other Karnataka leaders. Union Minister for Heavy Industries and Steel HD Kumaraswamy had questioned the subsidies offered to US-based microchip manufacturer Micron Technology for setting up a facility in Gujarat. Karnataka Minister for Large and Medium Industries MB Patil also accused the Union government of favoring Gujarat, the Prime Minister’s home state.
Kharge announced plans to meet Union Finance Minister Nirmala Sitharaman on June 27 to seek similar incentives for companies interested in investing in Karnataka. “We are also trying to get a facility similar to Gujarat International Finance Tec-City (GIFT City) in Karnataka,” he added, emphasizing Karnataka’s substantial demand for human resources.
A recent delegation from the Karnataka Department of Electronics, IT, and BT visited the US, UK, France, and Germany to attract investments and promote collaboration in technology and innovation. Sharath Bachegowda, Chairman of Karnataka State Electronics Development Corporation Ltd, reported potential investments worth $6.2 billion from these visits. The proposed Global Capability Centers (GCCs) alone are expected to create 35,000 to 40,000 jobs in the state.
Bachegowda also mentioned plans for a new Electronic System Design and Manufacturing (ESDM) policy based on discussions with the semiconductor companies association.
The delegation held various strategic meetings, including discussions with Stanford Biodesign to open an office in Bengaluru. An MoU is expected to be signed soon for collaboration on Stanford Biodesign’s Med-Tech startup mentorship and accelerator programme.
In the US, meetings were conducted with Applied Materials, Jabil, Bloom Energy, Ambient Photonics Inc., and Microchip Technology Inc., focusing on semiconductor manufacturing and academic partnerships. Discussions with Arm Holdings explored expanding operations in Karnataka’s Beyond Bengaluru clusters.
In the UK, talks at the Microsoft Technology Centre covered AI frameworks, quantum technology, and digital transformations. At London Tech Week, discussions with Startup Genome centered on the 2024 Global Startup Ecosystem Report and the Hyper Growth Acceleration programme, aimed at supporting 100 startups in Enterprise Tech, SaaS, and Fintech with funding from private players and collaboration with 87 Venture Capitalists.
Kharge emphasized that Karnataka is not just competing with other Indian states but with global players like China and Vietnam, aiming to position itself as a significant player in the global technology and innovation landscape.
