Invest Karnataka: FM Arun Jaitley asks state to grow 2-3% higher than national GDP

BENGALURU: Union Finance Minister Arun Jaitley on Wednesday urged Karnataka to take steps to achieve a growth rate 2-3 per cent higher than the national GDP. Karnataka has the potential to make this feat possible, he said. The centre, he said, will extend all necessary help to the state to facilitate this, he said in his his opening remarks at the 3-day Invest Karnataka meet.

"Karnataka has all human and institutional resources to grow faster than India. Each state in India is competing with each other in attracting investments. This is the most positive sign of national growth," the Finance Minister said. The state with consistent track records of stable politics, easy access of land and natural resources are the primary destinations of investments, he added.

There is no other solution to eliminate poverty other than making India grow, Jaitley said.

He hailed India's federal structure, and said federalism and democracy should be the strength of the government and not the obstacle.

"India is withstanding the adverse effects of the global economic slowdown. We are relatively un-impacted by some of the factors which have caused the global crisis," he said.

Chief Minister Siddaramaiah in his remarks requested Jaitley to consider allocating more funds to Karnataka in his forthcoming budget to facilitate further growth of the State.

On promoting investments, he said that his government might set up an industry-government partnership body to facilitate a host of services under the Invest Karnataka brand.

"We have taken up many steps in promoting the ease of doing business in Karnataka," he said.

To make these steps more effective, he said, he is exploring setting up a partnership body, the CM said.

Karnataka, Siddaramaiah said, has received FDI worth $5.2 billion since May 2013.

"We rank as the state with the second highest FDI in India. We have cleared more than 500 projects worth over $20 billion," he said.