Karnataka bets on Foxconn investment to drive job creation

The Karnataka government has announced ₹6,970 crore in incentives for Apple supplier Foxconn under the state’s Electronics System Design and Manufacturing (ESDM) policy (2020-2025). The move is aimed at boosting investment, strengthening the electronics manufacturing ecosystem, and generating employment opportunities.

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Foxconn is setting up a ₹21,911 crore iPhone assembly plant in the Devanahalli Industrial Area, spanning Doddaballapur and Devanahalli taluks. The project, codenamed Project Elephant, will be developed on 300 acres within the ITIR Industrial Area.

Under the ESDM policy, the government offers incentives such as a 25% capital investment subsidy on land, a 20% subsidy on plant and machinery, and 100% reimbursement of stamp duty, registration charges, and land conversion fees. The policy aims to attract large-scale manufacturing, positioning Karnataka as a hub for high-end electronics production.

To further ease business operations, the state government is introducing the Karnataka Employer’s Compliance Decriminalisation and Digitisation Bills, which will simplify industry regulations and improve the ease of doing business.

With its sectoral focus on IT, tourism, and biotechnology, Karnataka is aggressively pushing for economic expansion and job creation. By facilitating Foxconn’s entry and offering incentives, the state hopes to generate thousands of jobs and establish itself as a key player in India’s electronics manufacturing sector.