Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises (capital subsidy) is a subsidy from Department of Industries and Commerce, Government of Karnataka (applications via Karnataka Udyog Mitra) for new manufacturing MSME investments (and expansions raising fixed investment by at least 25%) in Karnataka, with rates set by zone. It provides Up to ₹10 Cr, for manufacturing. Industrial Policy 2025-30, valid 5 years from 8 Feb 2025 — applications open.
Key facts
| Amount / benefit | Up to ₹10 Cr |
|---|---|
| Provider | Department of Industries and Commerce, Government of Karnataka (applications via Karnataka Udyog Mitra) |
| Where | Karnataka |
| Stage | Early Revenue, Growth, Scale |
| Sector | manufacturing |
| Deadline | Industrial Policy 2025-30, valid 5 years from 8 Feb 2025 — applications open |
What is Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises?
Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises (capital subsidy) — Capital subsidy on value of fixed assets by zone: micro 10-30% up to Rs 30 lakh (special category 15-35% up to Rs 35 lakh); small 10-25% up to Rs 2 crore (special category up to Rs 2.25 crore); medium 10-25% up to Rs 10 crore or a production-linked incentive; extra 3-5% in backward taluks — New manufacturing MSME investments (and expansions raising fixed investment by at least 25%) in Karnataka, with rates set by zone; a medium enterprise can choose a capital subsidy or a production-linked incentive. Stamp duty exemption, power subsidy and 50% of quality-certification cost (up to Rs 5 lakh) are also offered. It is run by Department of Industries and Commerce, Government of Karnataka (applications via Karnataka Udyog Mitra).
A subsidy reduces a specific cost — typically reimbursed or adjusted after you incur and document the expense, rather than paid upfront. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in manufacturing. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
Who is eligible for Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises?
New manufacturing MSME investments (and expansions raising fixed investment by at least 25%) in Karnataka, with rates set by zone; a medium enterprise can choose a capital subsidy or a production-linked incentive. Stamp duty exemption, power subsidy and 50% of quality-certification cost (up to Rs 5 lakh) are also offered. Not for: Service-sector enterprises, units on the ineligible activity list, and firms outside the policy's investment bands..
How much does Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises give, and in what form?
Up to ₹10 Cr.
Frequently asked questions
What kind of support is this?
A subsidy reduces a specific cost — typically reimbursed or adjusted after you incur and document the expense, rather than paid upfront.
Who runs this programme?
Karnataka Industrial Policy 2025-30: Incentives for MSME Enterprises (capital subsidy) is offered by Department of Industries and Commerce, Government of Karnataka (applications via Karnataka Udyog Mitra). Eligibility and approval rest with them; the criteria and amounts are set by the programme.
Is there a deadline to apply?
Programmes like this can be rolling or time-bound. Confirm the current window on the official programme page before you apply.
How do I know if I’m eligible?
Read “Who can apply” above for the programme’s own criteria. If you’d like a quick read on your specific case, our free 2-minute eligibility check maps your stage, sector and revenue to what you can realistically claim.
Related programmes
Browse similar subsidy programmes. See all karnataka startup and msme schemes. CapEasy handles this under MSME / Udyam registration.
Source and verification
No official page is linked for this programme yet. Verification date pending. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.