Shobha Karandlaje Urges MSMEs to Adopt Cluster Model for Expansion

Union Minister of State for Micro, Small, and Medium Enterprises (MSME), Shobha Karandlaje, encouraged businesses to establish operations using the cluster model, provided the state government addresses the challenge of escalating land prices. The cluster model involves grouping industries in designated zones to enhance efficiency and collaboration.  

Speaking at Invest Karnataka 2025, where more than 30 MSME entrepreneurs were recognized, Karandlaje emphasized the sector's crucial role, stating that 25 crore industrialists contribute 30% of India’s GDP. Highlighting Karnataka’s reputation as a peaceful state, she urged investors to consider it as a prime destination for industrial development. She also stressed the importance of fostering growth in the ‘Ready to Eat and Ready to Cook Food’ industry within the state.  

Discussing recent changes in MSME classification, Karandlaje mentioned that the 2025-26 budget has revised investment limits. The cap for micro industries has increased from ₹2.5 crore to ₹10 crore, for small industries from ₹10 crore to ₹100 crore, and for medium industries from ₹125 crore to ₹500 crore.  

As Minister of State for Labour and Employment, she underscored the necessity of equipping youth with relevant skills, stating that international markets anticipate India to supply skilled labor and expertise in digital technology.  

Deputy Chief Minister D K Shivakumar, who also oversees the irrigation portfolio, announced an allocation of 6 TMC water for Bengaluru’s industrial growth. While recognizing the need to provide land and infrastructure at competitive rates, he urged industries to extend their investments beyond Bengaluru and explore opportunities in tier-2 and tier-3 cities. He also encouraged businesses to focus on the ‘most backward’ and ‘more backward’ taluks identified in the D M Nanjundappa Committee’s 2002 report on regional disparities.