Karnataka Must Move Faster on Reforms to Stay Globally Competitive: CII Karnataka Chairman

The Confederation of Indian Industry (CII) Karnataka on Friday unveiled its roadmap for 2026-27 under the theme of "Accelerating Karnataka's Competitiveness: Growth, Resilience, Inclusion, Sustainability and Trust."

The industry body laid out priorities including AI-led transformation, advanced manufacturing, MSME development, sustainability, talent development and balanced regional growth beyond Bengaluru.

Announcement of the roadmap was made at a press conference in Bengaluru, which was attended by CII Karnataka Chairman Guruprasad Mudlapur, who is also President of Bosch Group India and Managing Director of Bosch Limited, Sam Cherian, Vice Chairman, CII Karnataka State Council 2026-27 and Radhika Dhall, State Head Karnataka & Senior Director CII.

The agenda will focus on policy advocacy, ease of doing business, AI-driven industrial transformation and strengthening the capabilities of micro, small and medium enterprises (MSMEs).

According to CII Karnataka, the state's priorities for FY27 will revolve around six major focus areas policy and infrastructure, AI-led transformation, ESG and energy transition, partnerships and talent development, leadership development, and sunrise sectors such as semiconductors, deep technology, space technology, drone technology and green hydrogen.

Focus on Mysuru, Belagavi and Hubballi-Dharwad

A major emphasis of the roadmap is the "Beyond Bengaluru" initiative, which is expected to bring industrial growth in Tier-2 and Tier-3 cities across Karnataka.

CII plans to consolidate its regional industrial ecosystems in cities such as Mysuru, Belagavi and Hubballi-Dharwad through infrastructure development, investment promotion, entrepreneurship support and improved market access.

Slow policy action could hurt Karnataka's growth: Bosch India chief

"Karnataka's ability to quickly adapt policies, implement reforms and respond to intensifying global competition will be the single biggest factor determining its growth trajectory over the next five years" said Guruprasad Mudlapur, Chairman of CII Karnataka State Council 2026-27 and President of Bosch Group India.

Responding to a question from GoodReturns.on the biggest risk that may slow Karnataka's growth story, Mudlapur said the challenge is no longer limited to domestic competition, as countries across the world are increasingly offering incentives, subsidies and policy support to attract investments.

"The biggest risk we see is in terms of being agile to adapt to the changes that are happening not just within Karnataka, but outside in India and around the world. How quickly are we able to make policy changes if required, bring them on the ground, get reforms implemented and ensure that we are able to scale," he said

Global competition for investments is increasing

He added that industries today are competing not only with businesses in other Indian states but also with economies across the globe.
"More and more in many sectors, we see that our competition is not just internal, it is also external. A lot of countries outside also offer initiatives, incentives and subsidies. We need to stay one step ahead to get where we need to go," Mudlapur said.

Despite highlighting challenges, Mudlapur is positive about Karnataka's growth prospects,since Karnataka has been successful in attracting Global Capability Centres (GCCs).

"GCC success in India is a benchmark in terms of how things can be done well. While there are still gaps in infrastructure, energy costs and other areas, there are several successful models that can be replicated across sectors," he said.

AI, Semiconductors & MSMEs among Top Priorities

Sam Cherian, Vice Chairman of CII Karnataka State Council 2026-27 and Managing Director of Schevaran Laboratories, "India is the focus of the world today. The available resources are much larger than any other country can think of. We have the talent, we have the opportunities, and we must focus on leveraging them,"

For FY27, CII Karnataka will focus on policy advocacy, infrastructure connectivity, AI-led industrial transformation, ESG and energy transition, talent development, MSME competitiveness and sunrise sectors including semiconductors, deep-tech, drone technology and green hydrogen.
The industry body said it would continue working with government, academia and industry stakeholders to improve competitiveness and support Karnataka's ambition of becoming a globally preferred destination for technology, manufacturing