Karnataka MSMEs employ 2.3 crore people, contribute 8.3% to GSDP: Chief Secretary

Bengaluru: Karnataka’s 50 lakh registered micro, small and medium enterprises (MSMEs) employ around 2.3 crore people and are playing a key role in driving the state’s economic growth, chief secretary Shalini Rajneesh said.

Speaking at the India Family Business Summit, jointly organised by FICCI and UK & Co at Prestige Towers in Bengaluru, Rajneesh said MSMEs account for 8.3% of Karnataka’s gross state domestic product (GSDP), 45% of its manufacturing output and 40% of the state’s exports.

She also released a survey report titled Karnataka’s Next Wave of Growth – Unleashing the Potential of SMEs.


“Many of the country’s large companies have their roots in small, family-owned businesses,” Rajneesh said, underlining the role of family enterprises in the broader economy.

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The survey found that a majority of entrepreneurs across the industrial and services sectors were satisfied with the Karnataka government’s policies and programmes. The government has taken note of recommendations to strengthen talent availability for small enterprises and improve awareness of government schemes, she said.

Rajneesh said family businesses face a need to adapt to changing global supply chains, access to finance, technology and evolving customer expectations.

“The challenge is not merely to preserve the old, but to transform businesses for the future,” she said, adding that succession should involve the transfer of values, knowledge and responsibility along with ownership and authority.

She also highlighted government initiatives aimed at encouraging women entrepreneurs. More than two crore women heads of households receive Rs 2,000 a month under the state’s financial assistance programme, which can provide capital support for small businesses. Groups of three to four women can also form joint liability groups and access collateral-free bank loans, she said.

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The government’s priority is to improve the ease of doing business, strengthen infrastructure, build a skilled workforce and connect local SMEs with global value chains, Rajneesh said.

She urged entrepreneurs attending the summit to use the platform to exchange experiences, adopt new ideas and explore partnerships.