Karnataka is positioning itself as a diversified industrial and innovation hub beyond its established identity as India’s IT capital, with strong momentum across sectors such as aerospace, electronics manufacturing, and green energy, Industries Minister MB Patil said on Thursday.

Speaking at the Fortune India Startup Summit in Bengaluru, Patil highlighted the state’s evolving economic profile, noting that while Bengaluru continues to lead as India’s startup capital, Karnataka’s strengths now extend far beyond technology services.

“Bengaluru stands as the startup capital of India and one of the very few startup capitals in the world… but Karnataka has many more things to offer today,” he said.

Beyond IT: Aerospace, electronics, green energy

Patil said Karnataka has emerged as a leader in aerospace and defence, accounting for a major share of the country’s activity.

“We are number one in aerospace and defence, with almost 65% of the contribution in the country coming from Karnataka,” he said.

He also pointed to the state’s green energy push, noting that renewable sources account for a large portion of installed capacity.

“If you take the energy sector, we have 65% of our installed capacity as green energy,” he added.

Karnataka is also emerging as a key player in electronics manufacturing, with global supply chains increasingly shifting to India.

“With Foxconn coming here… with a massive investment of around $2.5 billion… Karnataka plays a major role in iPhone manufacturing and exports,” Patil said.

Semiconductors, new industrial policy in focus

The minister said the state is doubling down on advanced manufacturing, including semiconductors, with multiple companies setting up operations in and around Bengaluru.

“We have many semiconductor industries coming up in Karnataka… along with global players,” he said.

He added that a new industrial policy for 2025–30 is in the works, alongside reforms aimed at improving ease of doing business.

“We are coming up with a new industrial policy… with single-window clearances which will be among the best in the country,” Patil said.

The government is also making changes to land policies to address cost concerns and improve investor attractiveness.

Patil attributed Karnataka’s growth to a layered ecosystem built over time — starting from public sector units and education institutions to the current startup boom.

“The talent pool in Karnataka has been built over decades… from public sector units to higher education institutions,” he said.

He noted that Bengaluru continues to dominate India’s startup ecosystem.

Expanding beyond Bengaluru

While Bengaluru remains the core hub, the state is pushing to develop other regions such as Mysuru, Mangaluru and Belagavi as industrial centres.

Patil also highlighted upcoming projects such as KWIN City, aimed at integrating knowledge, innovation and wellbeing infrastructure.

“We are coming up with KWIN City… the first of its kind in Karnataka,” he said.

The minister said Karnataka is well-placed to benefit from shifting global supply chains and geopolitical changes.

“With changing geopolitical situations, Karnataka is going to lead… we have always been at the forefront,” he said.