New Launch - India Real Estate Report 2026.
Karnataka Chief Minister DK Shivakumar has directed officials to identify five cities outside Bengaluru for industrial development. The instruction came during a progress review meeting of the Commerce and Industries Department.
The government plans to attract industries to these cities by offering special incentives to investors and creating more job opportunities, according to a statement from the Chief Minister's Office.
What the Cities Must Have
Shivakumar was specific about the criteria. The five cities must have airport connectivity and the necessary supporting infrastructure to function as credible industrial destinations.
The airport connectivity requirement is significant.
It signals a preference for locations that can attract manufacturing and service investments requiring international supply chain links, talent mobility and logistics access not just proximity to labour.
Single-Window Reform Gets a Push
To support the incoming industrial activity, Shivakumar directed all concerned departments to process applications within stipulated timeframes under the single-window system.
The system currently integrates 22 departments and 119 services, with an emphasis on digital and timely approvals. He said he would discuss the matter with the respective departmental ministers to ensure compliance.
Karnataka currently ranks ninth in NITI Aayog's Investor-Friendly Index, and the CM directed that measures be taken to improve this ranking further.
Also Read: Karnataka Draft Apartment Bill 2026: Key Proposals Explained
Where Karnataka Stands on Investment Attraction
The meeting revealed a strong underlying track record. Karnataka ranked third nationally in attracting manufacturing sector investments worth ₹5.58 lakh crore over the past three years.
Discussions with 80 CEOs at a consultative meeting titled Utpadana Manthana Manufacturing Churn produced 55 suggestions, of which 35 have already been addressed.
Special incentives are being offered for investments across several priority sectors:
- Semiconductors
- Aerospace and defence
- Clean mobility
- Cell manufacturing
- Other emerging sectors
Also Read: Karnataka's 8 New Bills: What They Mean for Property Owners
Benchmarking Against Other States
The review meeting also examined measures being taken by Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Madhya Pradesh to attract investments.
The benchmarking exercise suggests Karnataka is actively monitoring what is working elsewhere and looking to close any gaps in its own investor proposition.
The focus on cities outside Bengaluru reflects a broader policy intent to distribute industrial growth more evenly across the state, reducing the concentration of economic activity in the capital while building new commercial hubs that can anchor their own regional economies.
For investors evaluating Karnataka as a destination, the five-city identification exercise will be the next signal to watch both for which locations are chosen and what infrastructure commitments come alongside the selection.
Enjoyed this update? Visit PropTech Pulse for more real estate news, investment insights and property market trends.
