Karnataka CM promises specialized MSME sector to promote small industries

Chief Minister Siddaramaiah announced on Saturday that his government will establish a dedicated MSME department, including its own ministers, chief secretary and staff – so that small industries can get the focus they deserve.

Mr Siddaramaiah announced at his Platinum Jubilee event that Mr Siddaramaiah announced what he called “the largest structural reform for small businesses in Karnataka in decades”, announcing that the Minister of Labor, Income and Industry will meet within a few days to discuss the issue.

Deputy Chief Minister DK Shivakumar responded to this, promising to attract land, power and single-window permits over the next five years to attract investment and generate one million new MSME jobs over the next five years.

Kassia President MG Rajagopal welcomed the announcement but warned that spiral costs and regulatory barriers continue to threaten the competitiveness of small industries. Mr. Rajagopal raised questions in a memorandum to the Chief Minister, including an increase in minimum wage of 80 per cent, high electricity prices, mandatory E-KHATA for property documents, stamp duty hiking on mortgages and the lack of industrial land allocation for KIADB.

The memorandum also calls for a separate minimum wage policy for MSMES, a specialized industrial policy, and provides a fixed electricity bill for small businesses.

Kassia requires the assumption of stamp duty reduced from 0.5% to 0.1%, with a cap of Rs 25,000. The lack of a program approval mechanism in rural areas, the lack of power links to occupancy certificates and high property taxes are marked as urgent issues.

Cassia further urged the government to guide Kiadb to ensure 15% of the land allocated to MSMES in industrial areas and amend the Land Reform Act to allow KSSIDC to directly acquire and distribute small plots. At E-Khata, the association requires simplified implementation and temporary flexibility to enable transactions.

Founded in 1949, Kassia represents over 6,000 small units, marks its Jubilee Year by launching B2B electronic spending, employment platforms, procurement centers, and a 50,000 square foot skill and product center to support rural industrial readiness.