Bengaluru: Karnataka Urban Development Minister B S Suresha has asserted that no industry or investor has exited the state citing poor infrastructure, countering claims raised in the Legislative Council about companies moving out due to inadequate facilities.
Responding to allegations by BJP MLC N Ravi Kumar, Suresha said industries that had shut down or relocated did so due to factors such as financial losses and not because of shortcomings in infrastructure.
Minister refutes opposition claims
During the Council proceedings, Ravi Kumar had claimed that industries were leaving Karnataka due to dissatisfaction with facilities provided by the Karnataka Industrial Area Development Board (KIADB).
Rejecting the assertion, Suresha stated, “Companies have moved out or closed down for other reasons, including losses they have incurred. Till date, no industry or investor has left Karnataka citing problems with the state’s infrastructure.”
He was responding on behalf of Industries Minister M B Patil.
Strong investment inflow in recent years
Highlighting the state’s industrial growth, Suresha informed the House that Karnataka has approved 2,028 projects over the past three years, with a combined investment of ₹5,11,732.88 crore.
According to the minister, these projects have the potential to generate around 7,16,148 jobs, indicating sustained investor confidence in the state’s industrial ecosystem.
“In only the last two years, KIADB has allotted 2,954.52 acres of land to 1,445 companies,” he added.
Clarification on Toyota expansion
Addressing concerns raised about Toyota setting up a new facility in Maharashtra, Suresha clarified that the company had not relocated its operations from Karnataka.
“Toyota has not moved out of Karnataka but is merely setting up another branch in Maharashtra. Karnataka houses Toyota’s biggest plant in Bidadi,” he said.
The clarification comes amid growing competition among states to attract large-scale industrial investments, particularly in the manufacturing and automobile sectors.
Ongoing debate on infrastructure
The exchange in the Council reflects an ongoing debate over infrastructure quality and its impact on industrial growth in Karnataka. While the opposition has raised concerns about issues such as land availability, connectivity and administrative processes, the government maintains that the state continues to be a preferred investment destination.
Karnataka, especially Bengaluru, has remained a major hub for technology, manufacturing and startups, drawing both domestic and international investors.
Conclusion
The Karnataka government’s assertion that no industries have exited due to infrastructure concerns underscores its confidence in the state’s investment climate. With large-scale project approvals and significant job creation potential, the administration aims to reinforce Karnataka’s position as a leading industrial destination.
However, as competition intensifies among states, addressing infrastructure challenges and ensuring ease of doing business will remain crucial for sustaining long-term growth.