Karnataka

  • Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world. The total exports from the state aggregated US$ 47.6 billion, which is approximately 12.7 per cent of India's total exports. The state has 22 operational, 40 notified, one valid in-principle approval and 61 formal approval special economic zones (SEZs).The natural resources, policy incentives and infrastructure in the state favour investments in the IT/ITeS, biotechnology, engineering, electronics, automotive, textiles, agri and food-processing sectors. Karnataka's favorable policies have encouraged industries to set up their research and development (R&D) centres in the state. The state has about 401 R&D centres, the most in India.
Capital | Population Bengaluru | 64.06 million
State GDP & Growth Rate - GDP State GDP is around US$ 98.5 billion and the growth rate is approx. 15.20%.
Per capita income The per capita income ranges from 86788 - (2013 to 2014).
Political Scenario The Government of Karnataka is a democratically elected body with the governor as the constitutional head. Indian National Congress (INC) is the ruling party since 2013.
Key Sectors / Industries IT and ITeS, biotechnology, engineering, electronics and telecom, automotive, textiles and apparel, aerospace, animations, tourism and renewable energy.
Emerging markets / opportunities
  • - Biotechnology
  • - Industries
  • - Agriculture
  • - Information Technology (IT)
Business Scenario /Government Initiatives
  • 12 biotechnology finishing schools are scheduled for development under the Millennium Biotech Policy. A 300-acre SEZ has been created in Belgaum to develop a precision engineering and manufacturing supply chain ecosystem, which would be a great driver for manufacturing industries. The government is in the process of announcing a Dedicated Automobile Policy. The state plans to develop a 230-acre textile SEZ, dedicated apparel zones in Silk City in Bengaluru. The cabinet of Karnataka approved the New Textile Policy, this policy offers various incentives for investments in the textile sector; these include credit linked capital subsidy, entry tax reimbursement and power subsidy.
  • Karnataka hosts more than 1,300 reputed software companies, including over 70 venture capital firms and more than 50% of the world’s SEI CMM Level 5 companies. Leading international firms, such as Monsanto, Astra Zeneca, Intel, GE, and Lucent, have put up research facilities in the state. Karnataka also has Electronics cities, sprawling information technology parks, agro and food processing parks, and other such facilities.
  • For a potential investor, there’s a wide scope of opportunities awaiting in sectors, such as information technology and software development, electronics, electronic hardware, pharmaceuticals, automobiles, seaports, airports, highways, industrial parks, and information technology and software development.
  • Karnataka is one of the largest and fastest-growing markets in India and is considered to be investor-friendly. Some prominent features of Karnataka that make it a hub for investors are:
    • Karnataka has a favourable climate, rich culture, congenial environment, good infrastructure, excellent education and healthcare facilities, and cosmopolitan lifestyle.
    • Besides having a stable government, Karnataka has an abundant and a highly skilled manpower base with a negligible number of cases associated with labor unrest.
    • It has good connectivity and logistic support for investments.
    • Karnataka has a very congenial environment and a good law and order system, which facilitates the normal business activities.
    • It has an excellent telecommunication system with optical fiber connectivity throughout the state.
    • Karnataka has investor-friendly, government-simplified procedures and transparent administration. It also encourages Fast Track approvals through a single-window mechanism.
Go To Top