Table of Contents
- MSME Schemes in Karnataka
- Why Karnataka Is a Major MSME State
- Objectives of Karnataka MSME Policy
- Major MSME Schemes in Karnataka 2025
- Karnataka Industrial Policy 2020–2025
- Capital Investment Subsidy
- Interest Subsidy
- Power Tariff & Electricity Duty Concessions
- Stamp Duty & Land Cost Rebate
- SGST Reimbursement
- Karnataka Startup & Innovation Schemes
- Quality Certification & Patent Support
- Cluster Development in Karnataka
- KSSIDC Support for MSMEs
- Central MSME Schemes Available in Karnataka
- District Industries Centres (DICs) in Karnataka
- How to Apply for MSME Schemes in Karnataka
- Documents Required
- Common Mistakes to Avoid
1. MSME Schemes in Karnataka 2025
MSME Schemes in Karnataka 2025 are among the most progressive in India, especially due to the state’s strong industrial base in:
IT and software services
Aerospace & defense manufacturing
Electronics and semiconductors
Textiles and garments
Food processing
Heavy engineering
Printing & packaging
Automobile components
Karnataka has a powerful industrial ecosystem supported by Karnataka Industrial Policy 2020–25, KSSIDC, and Startup Karnataka Mission.
For MSME schemes across all states, visit:
👉 State-Wise MSME Schemes in India 2025
https://eudyamaadhar.org/state-wise-msme-schemes-in-india-2025/
2. Why Karnataka Is a Major MSME State
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One of India’s top 3 industrial economies
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Bengaluru – global IT & R&D hub
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Strong startup ecosystem
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Access to international airports & seaports
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Highly skilled labour force
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Specialized clusters in every district
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3. Objectives of Karnataka MSME Policy
Promote balanced industrial growth
Support rural and backward districts
Encourage technology adoption
Improve energy efficiency
Boost exports
Support women, SC/ST and minority entrepreneurs
4. Major MSME Schemes in Karnataka (2025 Updated)
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Capital investment subsidy
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Interest subsidy
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Power tariff concession
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Electricity duty exemption
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Stamp duty & land rebate
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SGST reimbursement
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Technology upgradation subsidy
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Patent & quality certification subsidy
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Startup funding support
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Cluster development assistance
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Tool room training
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5. Karnataka Industrial Policy 2020–2025
This is the core policy offering incentives to MSMEs and industries.
Key Features:
Subsidies based on taluka category
Strong incentives for backward regions
Higher benefits for women & SC/ST entrepreneurs
Priority for sunrise sectors
Support for export-oriented units
6. Capital Investment Subsidy
The subsidy is based on the district category (Zone 1–4):
Micro Enterprises
30% – 40% subsidy on investment
Additional 10% for women and SC/ST units
Small Enterprises
20% – 30% subsidy
Medium Enterprises
15% – 25% subsidy
Backward regions (Hyderabad-Karnataka, Kalyana Karnataka) receive higher slab benefits.
7. Interest Subsidy
Up to 6% interest subsidy
Provided for 5–7 years
Higher benefit for women-led units
Valid for both term loan & working capital
8. Power Tariff & Electricity Duty Concessions
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₹1.00–₹2.00 per unit reimbursement
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100% electricity duty exemption for MSMEs
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Additional benefit for green manufacturing
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9. Stamp Duty & Land Cost Rebate
| Region Zone | Stamp Duty Exemption |
|---|---|
| Zone 1 & 2 (Most backward) | 100% |
| Zone 3 | 75% |
| Zone 4 | 50% |
Additionally:
25% land cost rebate in industrial areas
Concessions for lease, purchase, mortgage
10. SGST Reimbursement
SGST reimbursements for 5–7 years
Based on turnover and category
Helps reduce operational costs
11. Karnataka Startup & Innovation Schemes
Startup Karnataka Mission
Benefits include:
Seed funding
Product development grants
Market access support
R&D funding
Incubation support
Elevate 2025
State’s flagship startup funding contest
Grants for early-stage companies
12. Quality Certification & Patent Support
Certification Support:
Up to 75% subsidy (₹3 lakh)
ISO, HACCP, BIS, CE, ZED
Patent Subsidy:
Up to ₹5 lakh for national & international patents
13. Cluster Development in Karnataka
Major clusters include:
Peenya Engineering Cluster
Mysore Silk Cluster
Shivamogga Foundry Cluster
Mangaluru Petrochemical Cluster
Bellary Textile Cluster
Hubballi Machine Tools Cluster
Cluster benefits:
Common Facility Centres
Testing labs
Design & tech development
Infrastructure support
14. KSSIDC Support for MSMEs
Karnataka State Small Industries Development Corporation offers:
Industrial sheds
Industrial plots
Machinery on hire purchase
Marketing support
Tool rooms & training centres
KSSIDC is essential for new manufacturing units.
15. Central MSME Schemes Applicable in Karnataka
CGTMSE
PMEGP
MUDRA loans
CLCSS
ZED Certification
PMFME
PM Vishwakarma
Stand-Up India
Combining state + central schemes maximizes total subsidy.
16. District Industries Centres (DICs) in Karnataka
DICs assist with:
PMEGP
Registration
Project reports
Training
Subsidy applications
Major DICs:
Bengaluru Rural, Bengaluru Urban, Mysuru, Mangaluru, Belagavi, Hubballi, Bellary, Hassan, Tumakuru, Kalaburagi, Udupi, Raichur, Kolar, Mandya.
17. How to Apply for MSME Schemes in Karnataka
Register on Udyam Portal
Prepare project report
Apply through DIC or state portal
Submit documents
Await verification
Receive subsidy approval
18. Documents Required
Udyam Registration
Aadhaar + PAN
Bank statement
Project report
Machinery quotations
Land / rental agreement
Electricity bill
Caste certificate (if applicable)
GST certificate
19. Common Mistakes to Avoid
❌ Applying without Udyam
❌ Wrong district category (Zone mismatch)
❌ Outdated machinery quotations
❌ Missing land documents
❌ Not applying through DIC
👉 For MSME schemes in all Indian states, visit:
State-Wise MSME Schemes in India 2025
https://eudyamaadhar.org/state-wise-msme-schemes-in-india-2025/
Want assistance for Karnataka MSME subsidies, SGST reimbursement, or capital subsidy filing?
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