As around 31 large and medium industries in the state of Karnataka have been shut down over a period of 3 years, the livelihood of 4,257 people has been severely affected, as the state government had stringent reforms interfering with the ease-of-doing business rankings.
To the closure of industries, Industries Minister Jagadish Shettar told Deccan Herald, “There is no link between the industries that closed and our drop in the ease of doing business rankings… The industries that closed had their own reasons.”
As per the data tabulated in the Legislative Assembly and according to the government reports, 19 industries from the total 31 were based in North Karnataka, the location which attracts industrial investments.
Around 2,000 people lost their means of livelihood as the Falcon Tyres, Flair Garments, Indus Fila and Zenith textiles were shut down in the Mysuru district. In Koppal district, as the Hindustan Coco Cola Beverages was closed, citing the reason of ‘lingering labour issues’.
Nearly 2.68 lakh people still have employment considering the efficiently running 511 large and medium industries.
Karnataka drops down in ‘ease of doing business’ ranking
According to the ranking published by the Department for Promotion of Industry & Internal Trade (DPIIT) for the ‘ease of doing business’, Karnataka has fallen from the 8th position to the 17th rank.
To which, Shettar stated that, “The guidelines used for the rankings are not right and we have challenged the rankings.. The rankings were based on a period when the state witnessed political instability.”
From the month of August, the state has given clearance to 147 projects with an estimated worth of Rs. 22,110.84 crore with creating employment opportunities for 54,736 people. “Now that we have amended the Karnataka Industries (Facilitation) Act, we are confident that our ease of doing business rank will improve,” Shettar further added.