Promises aplenty, what about investment?

Karnataka Industries Minister M B Patil has announced that over 5,000 delegates from across the world will participate in the Invest Karnataka 2025-Global Investors Meet (GIM) scheduled for February 2025. The state aims to increase industrial growth by 15-16% annually and achieve a $1 trillion economy by 2032. It hopes to shift its focus from over-saturated Bengaluru to underdeveloped regions, particularly Kalyana Karnataka, to meet this goal. While the excitement surrounding these events is hard to ignore, history shows that many of the promises made earlier have failed to materialise. This recurring pattern raises a pertinent question: Why do these investment pledges rarely lead to real outcomes?

Earlier GIMs held in 2010, 2012 and 2022 were also marked by grand promises of investments and were presented with much fanfare and optimism. However, when it came to actual numbers, the promised investments fell short, leaving many sceptical about the effectiveness of such summits. This raises serious concerns about the credibility of the numbers presented, prompting calls for a more transparent and accurate approach. A key issue with past GIMs has been their emphasis on showmanship and optics, rather than on fostering an environment conducive to sustained investment. For many industrialists, these events have become networking opportunities where they can hobnob with politicians and get strategic inputs about their competitors, rather than engaging in meaningful business discussions. As a result, the MoUs signed, with promises of millions of dollars in investments, have often remained nothing more than agreements on paper. Thus, Karnataka’s industrial landscape has not seen the transformative growth that was promised. The lack of adequate infrastructure in the districts is also a significant challenge. Additionally, navigating the complex and notorious bureaucratic red tape often discourages investors who initially show enthusiasm.

To address this, the government must evolve a more transparent and accountable approach. One important step would be to release a white paper detailing the outcomes of previous GIMs. The document should outline the investments that were committed, the projects that were successfully implemented, and the reasons behind those that failed to materialise. This will help rebuild trust with investors and allow for a more honest evaluation of the effectiveness of such summits. While Invest Karnataka 2025 holds promise, its success will depend on the government’s ability to move beyond grand announcements and focus on actionable plans that lead to tangible growth. Karnataka must ensure that these investments do not remain merely figures on paper, but evolve into real industries that drive the state’s economic development. Only then can the state truly ‘reimagine growth’.