Mission MSME boost: Target is to create 20 lakh jobs in sector by 2029, says Minister

Bengaluru: Large and Medium Industries Minister M.B. Patil has said that the Karnataka government was now focused on integrating Medium, Micro and Small Enterprises (MSMEs) into the global supply chain, thereby helping boost the employment potential of the sector. 

Speaking at the inaugural session of the MSME Conclave — a three-day event organised by KASSIA, FKCCI, and the Peenya Industries Association — he said the MSME sector formed the backbone of Karnataka’s industrial ecosystem.

“I affirm the government’s commitment to fostering its growth through proactive collaboration with the Central Government,” he added.

“Karnataka’s vision is clear. We want to become a $1 trillion economy by 2032, powered by our MSMEs. Our objective is to build a more inclusive, sustainable, and globally competitive industrial future,” he emphasised.

The Minister explained: “For the same amount of investment, MSMEs generate significantly more jobs than large-scale industries. For instance, with an investment of ₹10,000 crore, while large industries might create around 10,000 jobs, MSMEs can generate nearly 1.25 lakh jobs.”

He noted that mega industries required a robust supply chain for efficient functioning, and strengthening MSMEs was critical to meeting this demand.

The government would continue to support MSMEs through targeted incentives and industry-friendly policies, he assured.

“Across Karnataka, MSMEs — from cutting-edge startups to traditional manufacturers — are building world-class products, boosting exports, and creating jobs. At the national level, MSMEs contribute 30 percent to India’s GDP, generate ₹15 lakh crore in exports, and provide employment to over 15 crore people. Karnataka is proud to lead with over 38 lakh MSMEs, setting an example in innovation-led and inclusive industrial growth,” Patil remarked.

Karnataka new Industrial Policy includes targeted incentives such as capital subsidies, power concessions, and easier land access in backward regions. Through the SME Connect initiative, over 1,800 MSMEs have been engaged on Industry 4.0, with more than 60 already adopting advanced technologies.

Platforms such as VentuRISE are enabling startups and small manufacturers to scale through mentorship and funding, the Minister highlighted.

“We are also expanding industrial infrastructure in tier-2 and tier-3 cities to ensure balanced development beyond Bengaluru. These initiatives aim to boost annual manufacturing growth to 12 percent and create 2 million jobs by 2029. The government is simplifying approvals, promoting digital governance, and integrating MSMEs into global supply chains — where many are already thriving as suppliers and innovators,” Patil noted.

He also acknowledged the challenges MSMEs face — such as access to credit, availability of skilled labour, and testing facilities — and assured that the government was actively addressing these issues through targeted policy interventions.

Deputy Chief Minister D.K. Shivakumar, Minister for Small Scale Industries Sharanabasappa Darshanapura, Union Minister of State for Micro, Small and Medium Enterprises Shobha Karandlaje, FKCCI President M.G. Balakrishna, KASSIA President M.G. Rajagopal, KSSIDC Chairman T. Raghumurthy, and MSME Department Director Nitish Patil were present at the event.