Industrial development is the basic requirement of economic development in India. There is a policy shift observed from heavy basic industries towards MSMES in recent years. The central and state government is concentrate more on Micro, Small, Medium Enterprises (MSMEs) to achieve the twin objectives of employment promotion and entrepreneurship development. The present study aims at examining the contribution of promotional agencies in the industrial development of Karnataka and Gulbarga District. The study tentatively covers the period from 2000 to 2009. There is considerable scope for further work on the subject both in regard to the assessment of the existing complex and the directions in which the system should be reoriented to meet the challenges of industrial and economic development.