REDUCTION IN RED-TAPISM IN THE NEW INDUSTRIAL POLICY OF KARNATAKA 

 Due to the exacerbated situation caused because of COVID-19 pandemic, the employment crisis has occurred in the entire nation very crucially. Considering this uncertain situation, Karnataka cabinet, in order to encourage production-based performance (service-sector) , it has introduced a new industrial policy which aims to attract investment of worth Rs.5 crores and aims to generate employment opportunities to 2 million people of the state within 5 years which is going to generate humongous benefits and incentives for those employees. 

The State of Karnataka, has introduced a new industrial policy in which it has embraced a production turnover-based incentive system instead of having a tax-based system. This kind of industrial policy has been chosen for the first time in the history of industrial department of India. Through the new industrial policy, the districts which are industrially backward, will receive employment opportunities and as a result of that, the balance in the industrial development of the state will be increased. Which is going to help the State in terms of economic impact as the COVID-19 crisis is going on in the country. 

This policy also outlines the State’s target to reach the better position merchandise exports by 2025. In order to attract large investments, State Government has relaxed several laws which is governing industries, land and it has also diluted labor laws in the state. In order to attract large investments, State Government has relaxed several laws which is governing industries, land and it has also diluted labor laws in the State. 

The previous laws used to come under red-tapism, which used to delay the steps for clearance in the issues of land acquisition and other major issues which included big signings of the Global Investors Meet (GIM) and due to this red-tapism, Karnataka’s industries have been missing out investments as the large corporations in the state have ben offered excelled incentives and readily available land for use in other states than in their own. But now, due to the new industrial policy, the corporations which work from Karnataka can use the benefits which is being received through it 

Hence, considering the above-mentioned facts, it can be concluded that the new industrial policy which is adopted by the State of Karnataka, aims to emerge as a global leader in advanced manufacturing research and development and it also aims to create a better eco-system for the balanced development of the State.