State IncentiveKarnataka Industries Dept. / KIADBVerified 11 May 2026Official source

Karnataka Industrial Policy — MSME Capital Investment Subsidy

Capital investment subsidy of 15–25% on fixed capital investment for MSMEs under the Karnataka Industrial Policy (KIP) 2020–25. Zone-based rates: Bangalore metro (Zone 1) gets lower incentives; backward districts (Zone 4) get the highest. Also provides power tariff concessions and interest subsidy. Electronics, engineering, and pharma are dominant MSME sectors.

Maximum amount
₹50.0L
Typical payout
₹15.0L
Processing time
8–20 weeks
Application window
Rolling — apply after capital investment with supporting invoices.

Eligibility criteria

Company type
Private Limited, LLP, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Karnataka
Sectors
manufacturing, electronics, engineering, pharma, food_processing, chemicals, textile, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate
Active Udyam registration
Tip: MSME registration is mandatory
2
Plant & Machinery Invoices
Capital investment invoices for eligible machinery
Tip: Higher zone units (Zone 3/4) qualify for higher subsidy rates
3
Premises in Karnataka
Factory / office documentation showing Karnataka address
Tip: KIADB industrial estate units get priority processing
4
GST Certificate
Active GSTIN registered in Karnataka
5
CA Certified Investment Statement
CA-certified statement of fixed capital investment

How to apply for KA MSME Subsidy

1
Obtain Udyam MSME registration at udyamregistration.gov.in
2
Apply on the Invest Karnataka portal or visit the nearest KIADB / District Industries CentreOpen portal
3
Submit investment documents and CA certificate for DIC verification (4-8 weeks)
4
Subsidy disbursed to bank account after DIC approval

Does your startup qualify for KA MSME Subsidy?

Answer a few questions about your company and get a personalised eligibility report across all active government schemes — including KA MSME Subsidy.

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Frequently asked questions

Who is eligible for KA MSME Subsidy?

KA MSME Subsidy is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Karnataka. Udyam (MSME) registration is required.

How much funding does KA MSME Subsidy provide?

KA MSME Subsidy provides up to ₹50.0L. Most applicants receive around ₹15.0L.

How long does KA MSME Subsidy approval take?

The typical processing time from submission to disbursement is 8–20 weeks.

Is KA MSME Subsidy currently accepting applications?

Yes, KA MSME Subsidy is currently active and accepting applications. Application window: Rolling — apply after capital investment with supporting invoices..

Do I need Udyam registration for KA MSME Subsidy?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

Information is based on publicly available scheme guidelines. Last verified 11 May 2026. Always verify with official sources before applying.