BCG to help Karnataka's government attract investments
Boston Consulting Group has been appointed by the Karnataka State Government for a period of 12 months to help the state attract investments. The contract is worth Rs. 12 crore for the entire period.
BCG’s task is to help the state attract funds to a variety of industries, including aerospace, biotechnology, IT and food processing, among others. One central goal for the state, according to Livemint reports, is to position itself to capitalise on investments that are moving out of China due to the Covid-19 crisis.
Experts have been calling for India to market itself as a substitute, and the Karnataka government has reportedly established a specialist task force to target businesses that are looking to move out of China. The bottom line is to draw investments and rescue the Karnataka economy – a process of which Boston Consulting Group (BCG) will now be an integral part.
The state economy was already struggling with liquidity before the pandemic hit at the start of this year, and the economic lockdown has only served to worsen the situation. Alongside the establishment of a specialist task force and the appointment of BCG, the government has taken several measures to draw investments, including a relaxation of labour laws in the state.
Another initiative being taken by the government is a Global Investors Meet, due to be held in November this year, aimed at publicising the investment opportunities available in Karnataka to global investors. Big Four accounting and advisory firms EY and PwC were reportedly brought on board as partners for the event, which has now been thrown into uncertainty by the pandemic.
The state government is yet to confirm whether the event will go ahead. In the mean time, BCG will work with the government for the next 12 months to try and draw investments into the state. Investments are likely to start flowing as the economy opens up in India and around the world, and BCG will help ensure that Karnataka projects itself as a bright spot to attract funds.
This is not the first time the consulting firm has been appointed to help a state government in India with its development plans. Late last year, BCG was called upon by the Andhra Pradesh government to resolve a deadlock on how best to move forward with its economic development strategy.
BCG put together a comprehensive set of recommendations at the start of this year, suggesting a region-wise development plan. The Karnataka government will hope that the firm’s previous experience will come in handy to help achieve its economic objectives.
