Opportunity in the times of COVID-19 has been saved
Opportunity in the times of COVID-19
Positioning Karnataka as a preferred investment destination
On 11 March 2020, the World Health Organization (WHO) officially declared the COVID-19 outbreak a pandemic, the highest level of health emergency. Estimates by international organisations highlight significant impact of COVID-19 on the global economy due to supply chain disruptions and demand contraction. India is estimated to be amongst the 15- most affected countries by the pandemic, per World Bank; the country’s growth is estimated to have slowed to 4.2 percent in 2019-20 and output is projected to contract by 3.2 percent in 2020-21.
Despite the challenges India observed in the past and those expected in the immediate future, it is projected to emerge as one of the fastest-growing economies (per estimates by IMF, World Economic Outlook). This can largely be attributed to the significant domestic demand driven by relatively higher disposable income levels, making it an attractive alternative destination for de-risking existing supply chains. Further, significant interventions by the Government of India to focus on import substitution and create a conducive business environment for investors is expected to facilitate inward investments.
Based on the findings and growth potential for the state of Karnataka along with feedback from the key investors in the state, both large and MSMEs, highlighted a set of key interventions required by the state government to help position it as a preferred investment destination for both domestic and global investors (some specific to a sector and some applicable across sectors). Further, there was feedback on key sector-specific issues to be addressed that fall within the realm of administrative powers of the central government. The sections in the report capture the key cross-sector and sector specific recommendations to address the concerns highlighted by investors.