Investment

Karnataka Initiates Visionary KHIR City Project to Drive Economic Growth and Innovation

• ByStartupStory     |    November 11, 2023

The Karnataka government has initiated discussions on the conceptualization of a groundbreaking project—the Knowledge, Healthcare, Innovation & Research (KHIR) City—on the outskirts of Bengaluru. The government’s vision is to attract a whopping Rs 40,000 crore in investments across healthcare, innovation, and knowledge sectors, with the goal of generating 80,000 jobs within the proposed KHIR City.

Spread over 2,000 acres within a 60-kilometer radius of Bengaluru, the new investment region will be developed in phases. Shri M B Patil, the honorable minister for large and medium industries and infrastructure development, expressed, “We are embarking on a transformative journey to build a city that goes beyond conventional boundaries — a Knowledge, Healthcare, Innovation & Research City (KHIR City).”

The Ideation Session for setting up KHIR City witnessed participation from a diverse and influential group, including representatives from the government, medical institutes, private companies, research centers, academia, and the Strategic Investment Committee of Karnataka. Shri Patil emphasized the collaborative effort, stating, “It’s a convergence of minds that holds tremendous potential, and I believe, collectively, we possess the potential to create not just a city but a hub of excellence.”

The ambitious project aims not only to create job opportunities and attract investments from global and Indian entities but also to contribute significantly to the state’s Gross Domestic Product (GDP). Shri Patil stated, “Besides attracting investments, it is aimed at contributing at least Rs 1 lakh crore to the state GDP.”

Industry leaders from healthcare, medical education, real estate, financial services, and insurance sectors attended the ideation session, providing valuable suggestions. Notable figures such as Shri Kris Gopalakrishnan, Dr. Devi Prasad Shetty, Dr. C N Manjunath, Smt Gitanjali Kirloskar, and others shared their insights.

Bengaluru, already boasting the largest skilled talent pool in India, is positioned as the ideal location for KHIR City’s development. Karnataka’s robust innovation ecosystem, hosting numerous global companies’ R&D units, further solidifies the state’s appeal.

The proposed KHIR City aims to attract investments from leading global and national hospitals, research institutions, universities, and private companies, strengthening Bengaluru’s position as a medical tourism hub. Shri Patil highlighted Karnataka’s current status, noting, “About 60% of India’s biotech companies are in Karnataka.”

KHIR City is poised to redefine Bengaluru’s global standing by fostering cutting-edge knowledge institutions, healthcare facilities, innovation hubs, and research centers. Karnataka, already among the top five states in India in terms of economic value, is set to further strengthen its position through initiatives like KHIR City.

Shri Priyank Kharge, the honorable minister for IT/BT, and S&T, envisions KHIR City as a unique knowledge center, transforming Bengaluru from a call center hub to a global center of research and innovation.

The government plans to formulate a separate policy to promote medical tourism in the state. Kris Gopalkrishnan emphasized the importance of swift implementation and the generation of intellectual property owned by India or Karnataka to create jobs and wealth.

Drawing inspiration from global models like Singapore’s Biopolis Cluster and Japan’s Kobe Biomedical Innovation Cluster, the Government of Karnataka is actively involving private companies through various models for the establishment of KHIR City.

The collaboration efforts for KHIR City include a comprehensive plan, clear objectives, and subgroups for a strategic approach, ensuring balanced private and government participation.

Industry representatives also stressed the need for skill development, focusing on life sciences, and suggested a roadshow to attract capital into the sector. Prashanth Prakash highlighted the importance of incentivizing job creation through IP-based research.

Dr. Devi Prasad Shetty emphasized the significance of hospital groups as partners in KHIR City, stating, “Once this city supports them, then the product that comes out in the market will bring startups and end-users together.”

In conclusion, the establishment of KHIR City marks a significant stride for Karnataka, promising not just economic growth but also a transformation into a global center for knowledge, healthcare, innovation, and research. The government’s agile approach and collaboration with diverse stakeholders set the stage for a pioneering venture with far-reaching impacts.

 

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