Karnataka unveils agricultural, tourism policy; eyes ₹5,000 crore investment1 min read . Updated: 27 Sep 2020, 04:06 PM IST
- The new policy comes at a time when Karnataka has been looking for fresh inflow of capital to revive its fledgling finances
BENGALURU : Karnataka chief minister BS Yediyurappa on Sunday unveiled the state's new agricultural and a rural-themed tourism policy that has set a target to attract ₹5000 crore of investments and create one million direct and indirect jobs over the next five years.
The new policy also aims to increase the contribution of the sector from 14.8% to 20% of the Gross State Domestic Product (GSDP) by 2025.
“Agri Tourism and Rural Tourism are the core tourism themes of the Policy with the objective to promote not just agricultural and farming activities but also various aspects of rural life in Karnataka such as local cuisine, culture, traditions, arts etc," the government said in a press statemen.
The new policy comes at a time when Karnataka has been looking for fresh inflow of capital to revive its fledgling finances. With no option but to raise debt due to the centre’s decision not to pay goods and services tax (GST) compensation, floods and damage to agricultural activities and the covid-19 induced lockdown, Karnataka’s economy has felt one of the hardest impacts in recent times.
Karnataka has also announced a new industrial policy to bring in fresh investments and create new jobs in the state.
The policy outlines subsidies and incentives for fresh investments.
Under the proposed scheme, the state government aims to disburse ₹409.5 crores in subsidies over the next five years of the policy period. With these subsidies and incentives, the government aims to attract a minimum ₹2789 crore ($372 million) and around 190 tourism projects in the state.
It has also proposed to provide exemption on stamp duty, concessions on registration charges, reimbursement of land conversion charges, exemption on motor vehicle tax, complimentary infrastructure assistance among other benefits.
The policy aims to achieve sustainability goals set by the United Nations Organisation and encourages an analytics-driven approach for planning and decision-making and provide innovative digital solutions to enhance the quality of services across the tourism ecosystem, the government stated.