Karnataka Manufacturing Industry 2026: Policy & Key Sectors

Manufacturing in Karnataka in 2026 is being shaped by a policy push toward high-technology production and by an industrial footprint that now extends well beyond Bengaluru.

The Karnataka Industrial Policy 2025–30 targets Rs 7.5 lakh crore in investment, 20 lakh jobs by 2030 and 12 percent annual growth in manufacturing.

Investors can choose between a capital subsidy of up to 25 percent and a production-linked incentive of up to 2.5 percent for seven years. The state's draw is its dense base of engineering talent, research institutions and suppliers.

Chief Minister D K Shivakumar has said the state's exports of goods and services grew 9.5 percent in FY 2025-26 to nearly Rs 19.7 lakh crore. NITI Aayog's Export Preparedness Index 2024 also lists Karnataka among the top-performing large states.

Key Takeaways:

• Major Manufacturing Industries in Karnataka: Electronics leads by value, with Rs 24,103 crore committed at the March 2026 conclave, followed by aerospace and defense. Semiconductor activity is concentrated in equipment and materials, and the Aerospace Policy 2026–31 targets Rs 60,000 crore in investment.
• Top Manufacturing Companies in Karnataka 2026: Foxconn, Tata Electronics, Kaynes, HAL, Aequs, Mahindra Aerospace and Toyota Kirloskar have verified operations. Lam Research and Applied Materials are announcing projects.
• Major Manufacturing Hubs in Karnataka: Growth is spreading from Bengaluru–Devanahalli to Tumakuru, Kolar–Narasapura, Mysuru–Chamarajanagar and Belagavi–Hubballi. 75 percent of Invest Karnataka 2025 proposals are outside Bengaluru.
• Karnataka Manufacturing Investments 2026 & Future Outlook: Approvals and MoUs are large, including Rs 51,469 crore signed in March 2026 and Rs 29,679 crore cleared on 3 September 2026. Conversion into operating plants remains the key test.

Also Read: Manufacturing in Maharashtra 2026: Industries, Hubs & Investments