Hubballi is set for a major economic boost as the central government recently approved an electronic special economic zone (SEZ) in the Hubballi-Dharwad area. This move, formally notified in the gazette on August 13, makes Hubballi a new center for making computer and mobile parts. Union Minister Pralhad Joshi has stated this 28-acre zone, part of Aequs Infra’s Hubballi Durable Goods Cluster, marks a big step towards creating new jobs and making the region a global hub for electronics. It promises to greatly help North Karnataka’s economy.
Big Boost for Hubballi
The city of Hubballi is set to see a big change with the approval of a new special economic zone (SEZ) focused on making electronic parts. This essential step was announced by Union Minister Pralhad Joshi on August 13, 2025. He said that this new zone will help Hubballi become a major place for making electronic products and create many new jobs. The central government has officially put out a notice about this new zone.
The new electronic SEZ is located in Ittigatti, on the edge of Dharwad. It covers 28 acres of land within the larger Hubballi Durable Goods Cluster, which is managed by Aequs Infra. The total land for this cluster is 391 acres. Another report states the electronic SEZ area is about 11. 55 hectares, which is almost 28. 5 acres, with plans for around 100 crore rupees to be put into it.
Building the Special Zone
A special economic zone is a specific area where business rules are different from the rest of the country. These areas are created to make it easier for businesses to set up and operate, often with benefits like lower taxes or easier trade rules. The goal is to bring in more businesses and create more jobs.
The Hubballi Durable Goods Cluster, which includes this new electronic SEZ, is planned to be a very advanced manufacturing hub. It will spread over about 400 acres. This area will have many benefits for businesses, including features of both a special economic zone and a domestic tariff area.
This big project will include about 4. 5 million square feet of factory space. It will also have other shared facilities that companies need. These include places for storage and moving goods, centers for teaching new work skills. areas for small and medium-sized businesses. There will also be health centers, eating places, power backup. housing for workers.
The area is well-connected, which is vital for businesses. It is close to National Highway 48 and about 33 kilometers from the Hubballi Domestic Airport. This good connection helps reduce the costs of moving goods. The group behind this project also focuses on keeping the environment safe. They plan to use methods like collecting rainwater and treating waste water to ensure growth happens without harming nature.
More Jobs for People
One of the main reasons for setting up this electronic SEZ is to create many work opportunities for people in North Karnataka. The Union Minister Pralhad Joshi has clearly stated that this new zone will help create more jobs.
The larger Durable Goods Cluster, where the SEZ is located, is expected to create 20,000 direct jobs and 10,000 indirect jobs. This growth is expected with a total investment of about 5,000 crore rupees.
Even before this latest SEZ approval, there was another big project in the area. In March 2023, the government approved an Electronics Manufacturing Cluster (EMC) in the Dharwad district, specifically in the Kotur-Balur Industrial Area. This EMC is about 224. 5 acres. It was expected to bring in more than 1,500 crore rupees in investments and create over 18,000 jobs. Nine companies, including new startups, had already promised to put in 340 crore rupees and create 2,500 jobs within this EMC.
The Karnataka Digital Economy Mission (KDEM) also reported that more than 200 acres of land were given for the Hubballi EMC. They had received plans from 11 electronics manufacturing companies to set up their businesses, bringing in over 300 crore rupees and creating more than 2,000 direct jobs. These efforts show a strong focus on increasing job numbers in the electronics sector in the region.
Helping the Local Economy Grow
Hubballi-Dharwad is already a very vital city in Karnataka. It is the second largest city in the state in terms of its size and the number of people living there. It is also seen as a key area for growth in India and is a main center for the North Karnataka region. The city has a good history of industries and has many smaller businesses making engineering items, electrical goods. farm tools. There are also many cotton spinning and ginning mills.
This new electronic SEZ is a big step to make the North Karnataka economy even stronger. The government’s aim is to attract more electronic companies, which will lead to more money flowing into the region. It will also help the area become less dependent on imports by making more electronic products inside the country.
The types of products that can be made in this cluster are wide-ranging. They include common household appliances like refrigerators, washing machines, air conditioners. ovens. It also covers electronic items such as mobile phones, computers, laptops, printers. televisions. Making these items locally will boost the overall industry in the area.
The state government is also working to bring more industries outside of Bengaluru, the capital city. They are offering special benefits and lower land prices in other cities like Mysuru and Hubballi. For example, they are focusing on electronic manufacturing, aerospace. fast-moving consumer goods (FMCG) parks in cities like Belagavi. This wider plan aims to spread industrial growth across Karnataka.
What Leaders Are Saying
Many government officials have welcomed the new electronic SEZ. Union Minister Pralhad Joshi stated that this approval is a “matter of joy and pride for North Karnataka, especially for the industrialists of Hubballi-Dharwad.” He believes it will be a big step towards making Hubballi a global center for making electronic goods. He also mentioned that Hubballi-Dharwad is ready for fast industrial growth, good job creation. economic progress because of its good location and skilled workers.
“Recognising the need for electronics manufacturing in this region, I had requested the Union Minister of Commerce and Industry, Piyush Goyal, to approve it. Out of the total 391 acres of land in Aequs Infra’s Hubballi Durable Goods Cluster, 28 acres have now been declared as an SEZ for electronics. In the coming days, as new electronics industries arrive, there is scope to expand the SEZ further.”
This statement highlights the long-term vision for the SEZ to grow as more businesses come in. The Union Minister also congratulated the Aequs Infra company for their efforts in getting the SEZ approved.
Earlier, in March 2023, Union Minister of State for Electronics & IT, Rajeev Chandrasekhar, had also spoken about the approval of the Electronics Manufacturing Cluster in Dharwad. He mentioned that Karnataka is becoming a global center for electronics manufacturing. He said these new investments are creating jobs and helping with development. The government is committed to making India a manufacturing hub.
In February 2025, Minister for IT, BT Priyank Kharge also shared plans to set up “flat-floor factories” with ready-to-use facilities in places like Hubballi-Dharwad. He said this announcement would be made in the coming budget. He also spoke about making the existing IT Park in Hubballi a skill training center and setting up a small global capability center there. He stressed that the people of the region are a strength. the government will help develop their skills.
Looking to the Future
The approval of the electronic SEZ is a result of recent changes to the Special Economic Zones rules. On June 9, 2025, the central government made essential changes to these rules to make it easier to set up units for making semiconductors and electronic parts. One big change was reducing the smallest land size needed for such SEZs from 50 hectares to just 10 hectares. This makes it much easier for companies to start businesses in this vital sector.
Another essential change in the rules allows SEZ units that make semiconductors and electronic parts to sell their products within India, after paying the required duties. This gives businesses more freedom and makes their operations more workable.
Beyond the SEZ, Hubballi is seeing other growth in the technology field. On August 7, 2025, Infosys opened a new center in Hubballi. This center will focus on advanced areas like artificial intelligence, protecting computer systems from attacks. space technology. This new center is part of Infosys’s global network of “Living Labs,” which help clients use new technologies. This shows that Hubballi is becoming an essential place for advanced technology work.
There are also plans to build a startup park on 100 acres of land between Belagavi and Hubballi. This is meant to help young business owners and encourage new ideas. These different projects together aim to create a strong ecosystem for technology and manufacturing in North Karnataka.
