Davos may spur momentum in Karnataka's economy

The ongoing World Economic Forum in Davos, Switzerland seems to be spurring rapid momentum in Karnataka's economy.

A high-level delegation from Karnataka, led by Minister for Large and Medium Enterprises and Infrastructure Development MB Patil, held a series of discussions with global technology and business leaders at the World Economic Forum meeting.

Calling upon them to consider further investment in the state, the minister assured them of his government's full support and cooperation for their future endeavors in Karnataka.

According to state government officials, several global technology companies, including Johnson & Johnson Group, IBM and Schneider Electric, are expanding their existing presence or making new investments in Karnataka in response to the call.

For example, Johnson & Johnson (J&J) is set to set up its global service center, which will create 200 new jobs in the state. The company also plans to increase its manufacturing presence in India, particularly in the medical technology and life sciences sectors.

IBM made a strategic announcement about its interest in exploring the North Bengaluru region, citing significant availability of talent, with its local talent pool reaching nearly 40,000, the majority in Karnataka. Of particular note is the rapid expansion of IBM's client engineering team dedicated to Gen AI, which has seen a significant increase from 300 to 2,000 people in the past three months, and plans to expand to 2,000 by 2025, according to a statement released by Mr. Patil's office.

Schneider Electric, with its recent acquisition of L&T's power business, has strategically positioned itself in the state, which is home to half of its 35,000-strong workforce, by setting up two installations in Karnataka, the statement said.

According to the report, Schneider is investing heavily in its Attibele facility, envisioning an expansive complex with five factories, expecting to double output through improved efficiency and integration of cutting-edge technologies. The company is exploring collaboration with six NGOs to carry out its Corporate Social Responsibility (CSR) activities to educate electricians in Bengaluru. Schneider also plans to expand the initiative by introducing interactive equipment to 400 schools and training 1,90,000 electricians.