Karnataka sets up 15-member investment promotion task force to tap MNCs 'exiting China'

BENGALURU: The state government on Monday constituted a 15-member special investment promotion task force headed by chief secretary TM Vijay Bhaskar to tap multinational firms that are looking to move away from China, and get them to invest in Karnataka.

China may not be able to retain its edge as the largest manufacturer post Covid-19 as globally sentiments are building up against the country after the Covid-19 outbreak. Its rising wages, shortage of workforce and trade war with the US are factors that can play to Karnataka's advantage, Industries Minister Jagadish Shettar told ET.

As country after country prod their global corporations to move out of China as a de-risking strategy, states after states in India are gearing up their administrative machinery to get a large chunk of the foreign direct investment (FDI). “We have introduced a number of reforms for investors. We have made procedures for purchase of land by industries simple and will fast-track investment proposals,” the Minister said.


The task force will also have some foreign dignitaries, and once the entire committee is ready, the chief secretary will start calling for meetings, Shettar said. According to the government notification, multinationals from countries such as South Korea, Singapore, and Taiwan are looking to shutter their units in China and see India as an alternative.

India is not only looking at investments, but also transfer of technology. The firms will also find India attractive as it is a large consumer market.

The task force will identify sectors that can attract investments and suggest a special incentive package it can offer to investors. The team will also identify key infrastructure projects including dedicated townships for investors.