MSME Investment Promotion Subsidy under Karnataka Industrial Policy
Zone-based investment promotion / capital subsidy on Value of Fixed Assets (VFA) for micro and small enterprises: up to 30% of VFA in Zone 1, 25% in Zone 2 and 15% in Zone 3 (Karnataka Industrial Policy 2020-25). An additional incentive of 5% is provided for SC/ST, women, minority, physically-challenged and ex-servicemen entrepreneurs.
Eligibility
- Micro and small manufacturing enterprises in Karnataka
- Subsidy quantum depends on development zone (Zone 1/2/3) of the taluk
- Additional 5% for special-category entrepreneurs (SC/ST, women, minorities, PwD, ex-servicemen)
How to apply
Apply to the Department of Industries and Commerce / District Industries Centre (through investkarnataka.co.in / single-window) after commencement of commercial production.
Required documents
- Udyam registration
- Proof of investment in fixed assets
- Zone/location proof
- Category proof for special-category incentive
Official sources
Verification notes
Zone-wise VFA percentages (30/25/15%) and 5% special-category top-up from Karnataka Industrial Policy 2020-25. A successor Karnataka Industrial Policy 2025-30 exists (100% stamp duty exemption Zones 1-2, capital subsidy up to ~30% VFA, special-category max ~Rs 35 lakh). Confirm which policy is currently in force and verify exact percentages/caps against the official Invest Karnataka policy PDF before publishing. [AI-gathered from official sources on 2026-07-05; needs team review]