The Cochin Special Economic Zone (CSEZ) continues to facilitate rapid industrial and export growth in Karnataka, which falls under its administrative jurisdiction along with Kerala, Lakshadweep, and Mahe. Currently, out of the 58 operational SEZs under CSEZ, 39 are located in Karnataka. These dedicated zones currently host 504 operational SEZ units within the state.

Several premier, sector-specific SEZs are driving innovation, manufacturing, and global trade competitiveness within Karnataka:

• Aerospace & Defence: The KIADB Aerospace SEZ at Devanahalli, Bengaluru, has emerged as a major centre for aerospace and defence manufacturing. This zone has strengthened Karnataka's position as a leading aerospace destination by promoting advanced manufacturing, research, exports, and high-quality employment.
• Biotechnology: The Biocon SEZ is one of the largest biotechnology-focused SEZs in the region. It is dedicated to the research, development, manufacturing, and export of biotechnology products and services, advancing India's biopharmaceutical sectors.
• Electronics Manufacturing: The Hubballi Durable Goods Cluster Private Limited SEZ is dedicated to the manufacture of electronic components. This project is expected to strengthen Karnataka's electronics manufacturing ecosystem, attract investments, and generate employment in the Hubballi-Dharwad region.
• IT & Business Hubs: Prominent operational zones in the state also include the Manyata Embassy Business Park and Mangalore SEZ.

In addition to Special Economic Zones, Karnataka boasts a strong footprint of Export Oriented Units (EOUs). Under the CSEZ framework, 261 EOUs currently operate within Karnataka across diverse sectors.

The combined SEZ ecosystem of Karnataka and Kerala has witnessed transformative growth over the past twelve years. Across the two states:

• Employment in these SEZs has increased by 159 percent, reaching 5.66 lakh persons.
• Exports from SEZs witnessed a 506 percent growth, rising from ₹0.49 lakh crore in 2013-14 to ₹2.98 lakh crore in 2025-26.
• Investment in the region grew by 423 percent during the same period, from ₹0.25 lakh crore to ₹1.30 lakh crore.

To maintain this momentum and support the Ease of Doing Business, CSEZ conducts a weekly Jan-Sunwai interaction. This platform enables SEZ developers, units, exporters, and employees to raise grievances, provide suggestions, and seek the resolution of issues related to infrastructure, compliance, and approvals.

Way forward

Moving forward, the focus will remain on enhancing the Ease of Doing Business through digitization, simplified procedures, and proactive stakeholder engagement, while attracting investments into high-growth sectors to further boost sustainable export-led growth.

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