Karnataka Government Plans Platform to Connect MSMEs with Fintech Firms: M.B. Patil

• ByStartupStory     |    July 18, 2023

The Karnataka state government is set to launch an integrated platform that will facilitate access to fintech platforms for micro, small, and medium enterprises (MSMEs) in the state, according to Karnataka Industries Minister MB Patil. In a tweet, Minister Patil emphasized the state’s commitment to supporting job creators and enabling industries through fintech collaborations, stating that the platform will “unlock Karnataka’s manufacturing potential.” He also highlighted Karnataka’s emergence as a fintech hub and emphasized the role of fintech companies in fostering the growth of specific manufacturing industries.

Regarding the allocation of land to Foxconn, Minister Patil announced that the legal impediments have been resolved, and the 300-acre land will soon be handed over to the iPhone manufacturer for setting up a manufacturing plant. This development was shared during the State Legislative Assembly session in Karnataka.

In a separate initiative, Tata Technologies, a subsidiary of the Tata Group, has proposed the establishment of three Common Engineering Facilities Centers (CEFCs) in Karnataka. These centers, operating under a Public-Private Partnership (PPP) model with a 70-30 share (with the state contributing 30%), aim to support MSMEs in the state. The investment required for these facilities is estimated to be around Rs 2,000 crore.

Karnataka has been attracting significant foreign direct investment (FDI), with data from the Commerce Ministry indicating an FDI inflow of $44.46 billion to the state from October 2019 to March 2023, accounting for approximately 23.6% of India’s total FDI inflow during that period.

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