karnataka - ibefstrong growth in export karnataka has 52 universities, 4,519 pre-university...
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For updated information, please visit www.ibef.org April 2018
KARNATAKA
THE SILICON VALLEY OF INDIA
LOTUS MAHAL IN HAMPI, KARNATAKA
Table of Content
Advantage State………………………..…...5
Karnataka Vision 2020……………………..6
Karnataka – An Introduction….…….……...7
Karnataka Budget 2018-19…………..……20
Infrastructure Status..................................23
Business Opportunities…………...............44
Doing Business in Karnataka……………...79
State Acts & Policies..................................80
Executive Summary……………….….…….3
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EXECUTIVE SUMMARY … (1/2)
Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2017-18 Department of Industrial Policy & Promotion
At current prices, the Gross State Domestic Product (GSDP) of Karnataka is estimated to be about Rs12.69
trillion (US$ 196.88 billion) in 2017-18F.
The per capita GSDP increased to Rs 193,409 (US$ 3,001) growing at a CAGR of 14.32 per cent between 2011-
12 & 2017-18F.
Strong growth in GSDP
Karnataka is the IT hub of India & home to the 4th largest technology cluster in the world*. Karnataka has 19
operational IT/ITeS SEZs, 5 software technology parks & dedicated IT investment regions.
Exports of electronics and computer software from the state reached US$ 62.66 billion 2016-17. Exports of IT &
electronic products accounted for around 38.99 per cent share in India's electronics and computer software
exports & 76.36 per cent share in Karnataka’s overall exports.
IT hub of India
Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech & heavy engineering industries.
The state has sector-specific SEZs for key industries such as IT, nanotechnology, biotechnology, engineering,
food processing and aerospace.
Vibrant industrial base
The cumulative FDI inflows in the state from April 2000 to December 2017 were recorded at US$ 28.82 billion, the
3rd highest in India after Maharashtra and New Delhi and accounted for a share of 8.0 per cent in India’s
cumulative FDI inflows.
One of the preferred
investment destinations
Note: F – Forecast, *As per latest data available
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EXECUTIVE SUMMARY … (2/2)
Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2017-18 Karnataka State Budget 2018-19,2017-18* - (April-Sept), # Advance Estimates of Agriculture Dept,2017 ̂up to November 2017
During 2017-18*, the total exports of the state were recorded at US$ 39.38 billion. During 2016-17, exports
contributed about 47 per cent in the state’s economy. Sectors such as biotechnology, computer software and
electronics are major contributors in the overall exports from the state.
Strong growth in export
Karnataka has 52 universities, 4,519 pre-university colleges, 535 Technical Institutions, 206 engineering colleges
& 314 polytechnics, 47 medical colleges & 38 dental colleges.
The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies outsource their IT
services to firms in Bengaluru.
Strong knowledge
infrastructure
Sugarcane is the major crop of the state with production of about 31.5 million tonnes in 2017-18#. The
state’s total food grain production is estimated to be 10.77 million tonnes in 2017-18. Karnataka is also the
third largest producer of plantation crops in the country.
Significant agriculture
base
Karnataka boasts of a diverse flora & fauna & a 320 km natural coast line, which makes it a nature tourist's
paradise. Tourist arrivals in the state increased from 36.7 million in 2006 to 102.3 million in 2017^. The state
has world heritage sites at Hampi & Pattadakal. The sector contributes 14.8 per cent to GSDP of Karnataka;
plans are afoot to expand to 26 per cent by 2020.
Strong growth in tourism
sector
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ADVANTAGE: KARNATAKA
High economic growth
GSDP expanded at a CAGR of 14.32 per cent between
2011-12 and 2017-18.
Buoyant services (IT, tourism) and industries driving
economic growth.
Sector specific SEZs and SIRs facilitating growth.
Rich talent pool
Karnataka is termed as the Knowledge Capital of India.
The state has successfully attracted skilled labour,
especially, in the knowledge sector. Karnataka is
among the states that produce a large number of
doctors, engineers and medical technicians in the
country.
Policy support
Wide range of fiscal and policy incentives for
businesses under the Karnataka Industrial Policy,
2014-19.
Investor-friendly sector-specific policies to promote
industries such as IT, biotechnology, tourism and
manufacturing.
Simplified procedures for investment.
In January 2017, Karnataka department of Commerce
and Industries introduced an NRI policy to attract
investments from non-resident Kannadigas.
Karnataka i4 policy to incentivise the new IT / ITeS to
set up their facility in Tier 2/3 cities across Karnataka
Infrastructure
Well-developed social, physical and industrial
infrastructure.
Good road, rail, water and air connectivity and
substantial port infrastructure.
Well-developed telecom infrastructure.
Excellent healthcare facilities.
March
2018
Capacity
allocated for
solar energy-
8561.48MW
2022
target
Solar energy
share in total
energy
consumption
is expected
to reach 3
per cent
Advantage
Karnataka
Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade Promotion Centre.
For updated information, please visit www.ibef.org KARNATAKA 6
Healthcare/
Social Amenities
Education/
Skill Development Infrastructure
Women
Empowerment
Governance Poor and
Backward Classes
Tourism
Improve access and availability of
quality healthcare for all.
Build infrastructure to boost productive
potential of the economy.
Various metro rail and mono rail projects
are in progress.
Develop the state as a vibrant knowledge
society.
Focus on job oriented growth through
skill development of the workforce.
Enhance opportunities and empower
women across economic, social and
political spheres.
Better governance through wider
participation and deep democratic
decentralisation.
Encourage transparency and
accountability.
Increase rural incomes through
greater viability of agriculture and
allied activities.
Bridge the gap between socially
backward and vulnerable groups
and rest of the people.
Preserve and promote Karnataka’s rich
heritage.
Karnataka Tourism Vision Group (KTVG)
was set up in October 2013 to advise on
promoting tourism in state.
Industry Build and sustain Bangalore’s
leadership in science, technology
and knowledge based industries.
Achieve a sustainable and orderly
process of industrialisation and
urbanisation.
Vision 2020
KARNATAKA VISION 2020
Source: State Planning Department
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KARNATAKA FACT FILE
Source: Economic Survey of Karnataka 2017-18, Census 2011 Office of Registrar General, India.
Karnataka is located in the southern region of India. The state is
surrounded by the Arabian Sea in the west, Goa in the northwest,
Maharashtra in the north, Andhra Pradesh in the east, Tamil Nadu in
the southeast, and Kerala in the southwest.
Languages spoken are Kannada, Tulu, Kodava, Hindi and English.
Some of the prominent cities in the state are Ankola, Bengaluru,
Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur, Chitradurga,
Dandeli, Hubli-Dharwad, Mangalore, Mysore and Shimoga.
Karnataka has a tropical climate with three major seasons: warm
and dry from February to May, monsoon from June to October and
winter from November to January.
Source: Maps of India
Parameters Karnataka
Capital Bengaluru
Geographical area (sq km) 192,000
Administrative districts (No) 30
Population density (persons per sq km) 319
Total population (million) 61.1
Sex ratio (females per 1,000 males) 973
Literacy rate (%) 75.6
Male literacy rate 82.5
Female literacy rate 68.1
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KARNATAKA IN FIGURES … (1/2)
Parameter Karnataka All states Source
Economy 2017-18 2017-18
GSDP as a percentage of all states’ GSDP 7.6 100.0 Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
GSDP growth rate (in Rs) (%) 13.11 9.8 Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
Per capita GSDP (US$) 3,001 1,975.05 Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
Physical Infrastructure
Installed power capacity (MW) 24,612.77 340,526.58 Central Electricity Authority, as of March 2018
Wireless subscribers (No) 67,277,163 1,151,936,422 Telecom Regulatory Authority of India - as of January
2018
Internet subscribers (Mn) 29,97,000 445,960,000 Telecom Regulatory Authority of India - as of
December 2017
National Highway length (km) 6,791 115,435 NHAI - as of June 2017
Major and minor ports (No) 1 + 10 13+187 India Ports Association
Airports (No) 5 125 Airports Authority of India
Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45
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KARNATAKA IN FIGURES … (2/2)
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
Parameter Karnataka All states Source
Social Indicators
Literacy rate (%) 75.6 73.0 Census, 2011
Birth rate (per 1,000 population) 18.1 21.6 Karnataka Economic Survey 2016-17
Investment
FDI equity inflows (US$ billion) 28.82 368.10 Department of Industrial Policy & Promotion, April
2000 to December 2017
Industrial Infrastructure
PPP projects completed & operational (No) 24 740 Department of Economic Affairs, Ministry of Finance,
Government of India, July 2016
Operational SEZs (No) 26 204 Department of Commerce, Ministry of Commerce &
Industry, December 2017
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ECONOMIC SNAPSHOT – GSDP
GSDP of Karnataka at current prices
12
6.3
8
12
7.7
2
13
4.9
9
14
9.2
5
15
4.7
2
16
8.7
9
19
6.8
8
6.0
6
6.9
5 8
.17
9.1
3
10
.13
11
.32
12
.69
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0.00
50.00
100.00
150.00
200.00
250.00
201
1-1
2
201
2-1
3
201
3-1
4
201
4-1
5
201
5-1
6
201
6-1
7
201
7-2
01
8F
US$ billion Rs trillion
CAGR (in Rs) 13.11%
At current prices, the Gross State Domestic Product (GSDP) of
Karnataka stood at about Rs12.69 trillion (US$ 196.88 billion) in
2017-18F.
The GSDP (in Rs) of the state grew at a CAGR of 13.11 per cent
between 2011-12 and 2017-18F.
Growth has been mainly driven by secondary and tertiary sectors.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2017-18
Note: F- Forecast, exchange rates used are averages of each year, provided on page 56
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ECONOMIC SNAPSHOT – NSDP
NSDP of Karnataka at current prices
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2017-18
11
5.7
4
11
6.7
9
12
3.4
0
13
4.8
3
13
9.5
3
15
2.3
0 17
7.6
8
5.5
5
6.3
6 7.4
7
8.2
5 9.1
3
10
.22
11
.45
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
201
1-1
2
201
2-1
3
201
3-1
4
201
4-1
5
201
5-1
6
201
6-1
7
201
7-1
8F
US$ billion Rs billion
CAGR (in Rs) 12.83%
The Net State Domestic Product (NSDP) of Karnataka was recorded
at about Rs 11,45 trillion (US$ 177.68 billion) in 2017-18.
The NSDP (in Rs) of the state grew at a CAGR of 12.83 per cent
between 2011-12 and 2017-18F.
Note: F- Forecast, exchange rates used are averages of each year, provided on page 56
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ECONOMIC SNAPSHOT – PER CAPITA GSDP
GSDP per capita of Karnataka at current prices
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million US$/Population in million
2,0
56
2,0
55
2,1
49
2,3
50
2,4
10
2,6
01
3,0
01
98
,56
7
11
1,8
91
12
9,9
86
14
3,7
01
15
7,7
55
17
4,4
83
19
3,4
09
0.00
50000.00
100000.00
150000.00
200000.00
250000.00
-
500
1,000
1,500
2,000
2,500
3,000
3,500
201
1-1
2
201
2-1
3
201
3-1
4
201
4-1
5
201
5-1
6
201
6-1
7
201
7-1
8F
US$ Rs
CAGR (in Rs) 11.89%
The state’s per capita GSDP was Rs 193,409 (US$ 3,001) in 2017-
18.
The per capita GSDP (in Rs) increased at a CAGR of 11.89 per cent
between 2011-12 and 2017-18.
Note: F- Forecast, exchange rates used are averages of each year, provided on page 56
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ECONOMIC SNAPSHOT – PER CAPITA NSDP
NSDP per capita of Karnataka at current prices
1,8
82
.44
1,8
79
.14
1,9
64
.12
2,1
23
.03
2,1
73
.34
2,3
46
.64
2,7
08
.32
90
,26
3
10
2,3
19
11
8,8
29
12
9,8
23
14
2,2
67
15
7,4
36
17
4,5
51
0.0
20000.0
40000.0
60000.0
80000.0
100000.0
120000.0
140000.0
160000.0
180000.0
200000.0
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
201
1-1
2
201
2-1
3
201
3-1
4
201
4-1
5
201
5-1
6
201
6-1
7
201
7-1
8
US$ Rs
CAGR: (in Rs) 11.62%
The state’s per capita NSDP& in 2017-18 was Rs1,74,551 (US$
2,708.32).
The per capita NSDP (in Rs) increased at a CAGR of 11.62 per cent
between 2011-12 and 2017-18.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office per capita NSDP& -calculated using NSDP million US$/Population in million
Note: exchange rates used are averages of each year, provided on page 56
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ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSVA
In 2017-18F, the tertiary sectorµ contributed 66.63 per cent to the
state’s GSVA at current prices, followed by the secondary sector
(21.75 per cent) and the primary sector (11.62 per cent).
At a CAGR* of 19.17 per cent, the tertiary sector has been the
fastest growing among the three sectors from 2011-12 to 2017-18F.
The growth has been driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services.
The secondary sectorµ grew at a CAGR* of 9.24 per cent between
2011-12 and 2017-18F. This was driven by manufacturing,
construction and electricity, gas & water supply.
The primary sectorµ grew at a CAGR* of 10.45 percent between
2011-12 and 2017-18F.
Visakhapatnam port traffic (million tonnes) GSVA composition by sector
14.50% 11.62%
28.67%
21.75%
56.84% 66.63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2017-18F
10.45%
19.17%
9.24%
CAGR*
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, Aranca Research Sector-wise %share of GSDPµ -Karnataka Socio Economic Survey 2017-18
Note: F- Forecast,*CAGR in Rs term
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ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
Sugarcane is a major crop of the state with production estimates of
about 31.5 million tonnes in 2017-18*. The state’s total food grain
production is estimated to be 10.7 million tonnes during 2017-18*.
During 2017-18*, major oilseeds production in the state was
0.97million tonnes. Production of cereals and pulses in the state is
estimated to be 8.73 million tonnes & 2.03 million tonnes,
respectively, in 2017-18.
In 2017-18*, total production of major fruits in the state was 7.55
million tonnes.
Production of major crops in Karnataka (lakh tonnes)
Crop 2016-17** 2017-18*
Cereals 79.58 87.37
Pulses 20.41 20.28
Total food grains 99.99 107.65
Oilseeds 8.05 9.7
Cotton 10.24 12.24
Sugarcane 273.78 315
Tobacco 0.65 0.89
Source: Department of Agriculture & Corporation, Government of Karnataka, ** Final Estimates of DE&S, *Advance Estimates of Agriculture Dept
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ECONOMIC SNAPSHOT – EXPORTS…(1/3)
During 2017-18*, exports from the state contributed about 47 per
cent to the state’s economy, with biotechnology, computer software
and electronics being the major exports.
In 2017-18*, total exports from the state aggregated to US$ 39.38
billion. Karnataka’s exports increased at a CAGR of 15.84 per cent
during 2010-11 to 2016-17.
Electronics and software exports from the state reached US$ 62.67
billion in FY17.
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka,* up to September 2018
Karnataka exports by commodity (US$ million)
Commodity 2015-16 2016-17 2017-18*
Electronics & computer software 60,503.00 62,666.37 30,413.21
Readymade garments 2,273.72 2,231.81 1,161.28
Petroleum & petroleum products 1,841.34 1,713.51 652.57
Engineering goods 3,082.71 4,093.65 2,718.46
Iron ores & minerals (incl granites) 122.89 136.17 97.60
Exports from Karnataka (in US$ billion)
33
.97
40
.10
45
.08
78
.43
79
.76
82
.06
39
.38
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
CAGR: 15.84%
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ECONOMIC SNAPSHOT – EXPORTS…(2/3)
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka, Economic Survey 2017-2018,* up to September 2018
Commodity 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
Silk products 139.83 120.42 107.83 91.90 74.19 58.54 23.23
Coffee products 659.26 650.71 596.88 824.98 480.54 507.33 319.99
Basic chemicals,
pharmaceuticals and cosmetics 1,054.85 1,331.80 1,376.91 978.10 1,680.65 1,994.13 1,005.06
Agriculture & processed food
products 158.53 211.56 215.66 229.43 803.54 650.51 301.37
Gems and jewellery 4,929.98 4,508.01 4,010.45 3,649.30 5,119.41 5,430.03 1,547.27
Cashew and cashew kernels 183.25 155.96 199.07 249.67 111.60 155.61 98.39
Handicrafts 55.47 68.86 85.60 90.91 194.48 172.18 93.93
Leather products 66.49 83.23 74.65 90.08 55.10 57.29 49.08
Chemicals and allied products 99.73 90.41 93.23 158.43 74.50 80.12 39.56
Marine products 125.70 116.37 177.01 217.82 118.58 162.52 79.37
Plastic goods 125.49 145.09 116.12 62.38 121.53 137.88 69.32
Spices 145.44 166.45 190.78 186.79 50.13 49.18 29.47
Wool & woollen products 26.80 27.62 29.20 31.69 0.93 0.15 0.94
Miscellaneous 1,001.04 881.79 923.19 958.36 3214.48 1292.85 683.23
Karnataka exports by commodity (US$ million)
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ECONOMIC SNAPSHOT – EXPORTS…(3/3)
Industrial Policy 2014-19 Karnataka Tourism Policy 2009
Karnataka State Mineral Policy 2008 Karnataka Semi Conductor Policy 2010
Grape Processing & Wine Policy 2007 Karnataka Solar Policy 2011
Karnataka Renewable Energy Policy 2009 Karnataka Integrated Agribusiness Development policy 2011
Karnataka SEZ Policy 2009 Karnataka Animation Visual Effects & Comic Policy 2012
Karnataka Pharmaceutical Policy 2013 Karnataka New Infrastructure Policy 2013
Source: Economic Survey of Karnataka 2015-16
Incentives & concessions for export in Karnataka
Exemption from entry tax
Refund of certification charges
Refund of cost incurred for export consultancy / market Intelligence studies
Brand promotion and quality assurance
Support for the establishment of CFS and other export infrastructure
Compensation of export Credit.
Support for development of exports in gherkins, rose onions and floriculture.
Market development assistance for trade promotion and overseas trade delegations.
Policies for export promotion
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ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
Source: Department of Industrial Policy & Promotion Directorate of Economics and Statistics, Government of Karnataka
Investment intentions in terms of IEMs filed, LOIs/DILs issued in Karnataka
The state has a stable political environment. Successive state
governments have recognised the importance of industries in the
state and have provided a conducive business environment to attract
domestic as well as foreign entities. Karnataka is ranked 5th in terms
of attracting private sector investments in India. According to the
Department of Industrial Policy & Promotion (DIPP), the cumulative
FDI inflows from April 2000 to December 2017 were recorded at US$
$ 28.82 billion, the 3rd highest in India after Maharashtra and Delhi
and accounted for a share of 8.0 per cent in India’s cumulative FDI
inflows.
With a private equity & venture capital investment of US$ 2.51 billion
from 280 deals, Karnataka stood at the 2nd position, among all other
states.
FDI equity inflows, 2008-09 to 2017-18 (US$ billion)
2.0
2
1.0
9
1.1
2
1.5
3
1.0
2
1.8
9 3
.44
4.1
2
2.1
3
6.4
4
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
2014-1
5
2015-1
6
2016-1
7
2017-1
81
Note: 1During April to December 2017
21
7
16
9
11
0
89
10
6.0
28
5.0
19
4.0
14 14.54 7.33 1.54 3.34 4.84 23.93 23.50
0
50
100
150
200
250
300
2011 2012 2013 2014 2015 2016 2017 2018
Number of Investment Intentions Proposed Investments (US$ Billion)
0.24
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ANNUAL BUDGET 2018-19 … (1/3)
Total consolidated budget size for 2018-19 was US$ 32.44 billion.
Budget highlights:
• For the second successive year Karnataka has occupied the first position in attracting industrial investments.
• Rs 2,500 crore (US$ 386.16 million) has been allocated for development of Bengaluru.
• Setting up of 11 new industrial townships has been proposed by the state government
• Creation of a Detailed Project Report (DPR) for 105.55 km long phase-III of Namma Metro will be soon be undertaken
• The state government is going to come out with a new logistics policy to create a Multi-Modal Transportation Network. Also, a logistics park
will be set up on 400 acres of land near Bengaluru and 50 acres near Hubbali.
• To promote innovation culture in the state, setting up of Karnataka Innovation Authority under the chairmanship of the chief minister has been
announced.
Source: Government of Karnataka, Budget 2016-17
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ANNUAL BUDGET 2018-19 … (2/3)
Primary & Secondary education :
The state government has taken various initiatives such as,
“Athyuthama S.D.M.C.” award in each taluk to the best performing
School Development and Management Committee at Government
Primary and High schools.
The state government, along with Agasthya Foundation, is going to
undertake establishment of Science Committee’s at all high schools
and pre-university colleges.
Higher education:
To encourage women in post graduation ,government has given
exemption to all girls taking admission in Government Pre-
University, Degree and Post Graduation courses.
To excellence in higher education , government has facilitate with the
grant of Rs.1 crore (US$0.02 million) for each to establish post
graduate centre at Chikkamagaluru under Kuvempu University and a
post graduate centre at Jamakhandi of Bagalkote under Rani
Channamma University.
Sector
Annual
allocation
(US$ million)
2016-17
Annual
allocation
(US$ million)
2017-18
Annual
allocation
(US$ million)
2018-19
Primary &
secondary
education
2,653.98 2,835.13 3,452.27
Higher education 710.51 683.10 697.25
Energy 1,929.72 1,594.36 2,183.50
Water resources 2,211.57 2,472.4 2,471.12
Urban
development 2,269.01 2,131.39 2,656.16
Social welfare 834.70 987.62 1008.34
Health and family
welfare 768.71 794.38 1026.41
Agriculture 663.61 788.49 903.46
Horticulture 115.03 169.34 153.69
Sericulture 56.06 66.59 70.59
Fisheries 46.13 52.3 38.92
Forest,
environment
and Ecology
245.79 268.83 301.05
Major sector-wise allocations as per budget, 2016-17,2017-18
and 2018-19
For updated information, please visit www.ibef.org KARNATAKA 22
ANNUAL BUDGET 2018-19 … (3/3)
Agriculture:
The state has come up with the a scheme “Raitha Belaku” to give direct income assistance to mitigate the miseries of dryland farmers. Under this
scheme US$77.23 per hectare subject to maximum of US$154.46 for each farmer who cultivates rain fed crops , would be directly transferred to
the bank account, due to which 70 lakhs farmer would be benefited.
To encourage and nurture innovations in the agriculture sector , an Agri-Innovation Centre would be set up in association with the Centre for
Cellular and Molecular Platforms (C-CAMP).
Full interest of amount of Rs.124.70 crore (US$192.62 million) has been waived off in respect of farm loans overdue as on 30-09-2015 and also
for who have paid the principal amount within 31st March 2017.
Implementation of online market system to 157 markets in states to ensure fair price to farmers and to prevent the hindrance caused by middle
men has become model to country.
Energy:
From 2018-19, electricity consumption expenses of 7 hours per day will be reimbursed to consumers in respect of private HT and LT Community
Lift Irrigation units of cooperative societies of members with a capacity of 10 HP and less.
During the year 2018-19, to strengthen the transmission network, 35 power sub-stations will be established through Karnataka Power
Transmission Corporation.
Water Resources:
Upper Krishna Project Stage-2 would be taken up at a cost of Rs.750 crore (US$ 115.85 million) for Modernization of Narayanpura right bank
canal from 0.00 km to 95.00 km .
As per state budget 2018-19, US$ 2.47 billion has been allocated for the Water Resource Department.
For updated information, please visit www.ibef.org KARNATAKA 23
PHYSICAL INFRASTRUCTURE – ROADS
Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2018-19
As per budget 2018-19, the state government is going to establish
eight separate quality control sub-divisions for protecting the quality
of management and development of rural roads.
Completion of construction of five roads of 300 km through KRDCL
with the assistance of World Bank
In May 2017, the state government revealed its plans for widening
and redeveloping four roads on the city outskirts to bring down traffic
congestion. The Karnataka Road Development Corporation Ltd. has
estimated the cost for improving 155Km of roads at US$ 216.42
million.
Up to September 2017, under NABARD loan assistance scheme, an
amount of Rs 182.32 crore (US$ 28.36 million) has been sanctioned
in RIDF-XXIII.
Public Works Department (PWD) of the state is using hi-tech
vehicles to help in improvement of roads. The vehicles will be used
to check the status of 20,000 km of core roads in the state according
to the department.
In November 2017,the central government has given permission to
upgrade 6,233 km of State Highways as National Highways
Source: Maps of India Road infrastructure in Karnataka (km)
Road type 2016-17
National highways 6,572
State highways 27,163
Major district roads 55,515
Municipal roads 8,366
Rural roads 177,542
For updated information, please visit www.ibef.org KARNATAKA 24
PHYSICAL INFRASTRUCTURE – RAILWAYS
Karnataka is well connected to other parts of the country through the
railways. The state has a railway network of 3,250 km.
Karnataka Rail Infrastructure Development Corporation (K-RIDE)
has been set up with the objective of developing and implementing
rail infrastructure projects in Karnataka with private sector
participation wherever feasible. K-RIDE has a chief executive officer
deputed from the Railways Department and principal secretary,
Infrastructure Development Department, as its chairman.
As of September 2017, 42.3 km of Karnataka’s metro network is
operational.
Further, the state government granted contracts for two reaches of
phase II, which are slated for completion by 2020.
Commencement of Rail Coach Factory in Kolar district at a cost of
Rs.1,461 crore(US$225.67) wherein , 50 per cent of the cost along
with the land would be contributed by state. An MoU for this project
was signed with Ministry of Railways in 2014.
In the Union Budget 2018-19, the government has approved for the
160km rail network sum of Rs. 17,000 crore (US$ 2.53 billion) for
the growth of the Bengaluru metropolis and is expected to be
executed by both State and Central government in the 50:50 ratio.
Source: Economic Survey of Karnataka, 2017-18, State Budget 2017-18
Type of railway BG (km) MG
(km)
NG
(km)
Total
(km)
South Central
Railways 268 0 0 268
South Western
Railways 2,516 97 84 2,697
Southern Railways 37 0 0 37
Konkan Railways 248 0 0 248
Total 3,069 97 84 3,250
Railway project Status
Ramanagara-Mysuru doubling track Commissioned for transport
Bidar-Kalaburagi new railway line Completed
Bengaluru-Hasana railway line Commissioned
Bagalakote-Kuduchi railway line
Approved by Government of
Karnataka; amount released for
land acquisition
Ginigera-Rayachuru railway line
Gadaga-Wadi railway line
TumakuruRayadurga railway line
Karnataka railway network
Status of major railway projects in Karnataka (2016-17)
For updated information, please visit www.ibef.org KARNATAKA 25
PHYSICAL INFRASTRUCTURE – AIRPORTS
Work on planning and preparation of terminal 2 and second parallel
runway of Kempegowda International Airport has been initiated. This
construction will enable the airport to handle around 35 million
passengers per year. The construction work is expected to be
completed by September 2019.
Further, work on development of Kalaburagi airport by PWD is
expected to be concluded by February 2018.
In March the government gave ‘in principle’ approval for construction
of an airport at Shimoga.
Upgradation works were undertaked for Belagavi airport in 2015.
The upgraded Belagavi airport was inaugurated in September 2017.
Modernisation of the airport was done at a cost of US$ 18.67 million
and it now has capacity to handle over 300 passengers.
The state has five domestic airports. These are located in
Bengaluru, Mangalore, Hubli, Mysore and Belgaum. International
flights operate from the airports at Bengaluru (Kempegowda
International Airport) and Mangalore (Mangalore International
Airport).
Bengaluru International Airport; the country’s first greenfield
international airport, has been developed at Devanahalli in
Bengaluru as a passenger and cargo department hub. This was
developed under PPP and started operations in May 2008.
Karnataka airport statistics (2016-17)
Airport Passenger
traffic (No.)
Aircraft
movement (No.)
Freight
(tonnes)
Bengaluru 22,881,392 177,271 319,344
Mangalore 1,734,810 15,405 1,242
Karnataka airport statistics (2017-18)1
Bengaluru 24,360,908 177,687 316,407
Mangalore 2,054,005 17,813 2,326
Source: AAI, Global Investors Meet, Budget 2017-18
Note: 1From April to January 2018
For updated information, please visit www.ibef.org KARNATAKA 26
PHYSICAL INFRASTRUCTURE – PORTS… (1/2)
Source: Indian Port Association
There are 13 ports in Karnataka, of which New Mangalore is a major
port. New Mangalore Port is the ninth major port in India with the
deepest inner harbour on the west coast.
The work on development of the second stage of Karwar port has
been initiated under the concept of D-BOOST in PPP mode.
However, the bid document issue is under consideration by the state
government.
As per budget 2017-18, in order to promote Import/Export activities in
Karwar Port, a detailed project report will be prepared to construct an
additional dock measuring 1508 meter for stationing 5 ships of 14
metres depth.
Karwar Port
New Mangalore Port
Cargo handled by New Mangalore port (in ‘000 tonnes)
31
,35
0
32
,94
1
37
,03
6
39
,36
5
36
,56
6
35
,59
0
39
,94
0
42
,05
5
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Ports
Major ports New Mangalore Port
Minor ports
Karwar
Belekeri
Tadri
Honavar
Bhatkal
Kundapur
Hangarkatta
Malpe
Padubidri
Old Mangalore
1
Note: 1From April to February 2018
For updated information, please visit www.ibef.org KARNATAKA 27
PHYSICAL INFRASTRUCTURE – PORTS… (2/2)
Cargo handled by various minor ports in Karnataka (‘000 MT)
Minor Port 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 (up to
Nov 2017)
Old Mangalore 165.93 120.26 115.89 98.00 121.67 25.61
Karwar 441.19 377.10 525.07 714.00 582.80 349.35
Malpe, Belekeri, Hangarkatta &
Kundapur 4.74 3.00 2.31 3.00 3.05 0.72
Total 611.86 500.36 643.27 815.00 707.52 375.68
The state government has initiated the work on development of Pavinakurve port, under PPP mode, in the district of Uttar Kannada. The draft
concessional agreement and pre-feasibility report preparations related to the port are under process.
Additionally, the Infrastructure Development Department (IDD) has initiated the development of Tadri sea port at a projected amount of US$
458.29 million.
Source: Karnataka Economic Survey 2017-18
For updated information, please visit www.ibef.org KARNATAKA 28
PHYSICAL INFRASTRUCTURE – POWER
As per the budget 2018-19, the state government has allocated US$
2.18 billion for enhancement of the power sector in the state.
The establishment work of a gas-based power plant in Yelahanka is
estimated to be initiated during 2016-17 by the state government.
Further, KPCL is expected to create a 200 MW solar power plant
during 2016-17.
As of February 2018, the state had an installed power generation
capacity of 24,612.77 MW. Out of this, central utilities contributed
3,527.20 MW, private utilities contributed 12,182.52 MW and
8,903.05 MW was under state utilities.
Of the total installed power generation capacity, 9,960.82 MW was
contributed by thermal power. Capacities of 698.00 MW and
10,354.15 MW were contributed by nuclear & renewable power,
respectively, while hydropower contributed 3,599.80 MW.
Karnataka Renewable Energy Development Limited (KREDL) was
established in 1996 to promote the development of renewable energy
sources in the state.
In July 2017, commercial production started from an 800 MW unit at
Kudgi plant of NTPC in Karnataka.
As of March 2018, the installed capacity for solar power in the state
reached 4,835.56 MW
Installed Power Capacity (GW)
8.5 8.7 11.4 12.1
13.9 14.0 15.1 17.3
21.3
24.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18*
Note: *As of February 2018
Source: Central Electricity Authority
Source: Central Electricity Authority, News Articles
For updated information, please visit www.ibef.org KARNATAKA 29
PHYSICAL INFRASTRUCTURE – TELECOM
The state government is planning to provide technology at the gram
panchayat level by providing free Wi-Fi to the youth. Moreover it
would provide 1GB free Wi-Fi to every user with in 1sqkm of the
service provider.
According to Telecom Regulatory Authority of India (TRAI), there
were 67.27 million wireless subscribers and 2.23 million wire-line
subscribers in Karnataka, as of January 2018.
The entire state is networked through optical fibre cables (OFCs) of
the state-owned company, Bharat Sanchar Nigam Limited (BSNL),
as well as private companies such as Bharti, Reliance, VSNL and
TATA Tele Services.
Last mile access is provided by BSNL as well as Tata Tele Services
in various parts of the state. Bharti and Reliance Communications
provide the last-mile access directly to the customers in all major
cities of Karnataka.
By the end of January 2018, 35,273,397 subscribers had submitted
requests for mobile number portability in Karnataka.
Out of the total allocated amount of US $91.65 million in Bharat Net
project, BSNL invested US $61.10 million to increase the speed of
gram panchayat connectivity in Karnataka, through high-speed
broadband and FTTH (fibre-to-the-home).
Telecom Infrastructure (As of January 2018)
Wireless subscribers 67,277,163
Wire-line subscribers 2,239,531
Internet subscribers(1)
29,970,000
Post offices(2)
9,666
Teledensity (in %) 109.66
Performance status of NOFN Project (As of November 2017)
No. of GPs in Phase-I 6,092
Pipe laid (km)(3)
11,784
Cable laid (km) 12,914
GPs for which cable laid 6,062
No of GPs lit(3)
4,835
Source: Telecom Regulatory Authority of India,Economic Survey of Karnataka
Note: (1) As of December 2017, (2) As of March 2017, (3)As of July 2017
For updated information, please visit www.ibef.org KARNATAKA 30
DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE… (1/2)
Karnataka is among the top ten most urbanised states in India. The
state is projected to reach an urban population proportion of 50 per
cent by 2026. Some of the key areas of development are roads and
flyovers, water supply, storm-water drainage, sewerage and urban
transport.
The Karnataka Urban Water Supply and Drainage Board (KUWSDB)
is responsible for providing water supply & sewerage facilities in 218
urban areas of the state, except the areas serviced by the Bruhath
Bengaluru Mahanagar Palike (provides services in Bengaluru city &
surrounding areas).
Karnataka has ten city corporations, 57 city municipal councils, 113
town municipal councils, 90 town panchayats & 4 notified area
committees.
As per budget 2018-19, an amount of US$ 2.66 billion has been
proposed for urban development.
In August 2017, the third phase of Nagorathna scheme was
launched. The objective of the scheme is to provide infrastructure in
towns and cities in the state. It also aims to free the state of open
defecation by October 2018. An amount of US$ 386.85 million has
been allocated for this phase.
As of March 2017, Nabard is planning to help the state with
technologies at a low cost, for conservation and efficient use of water
in the drought-affected districts, with the help of modern technologies
such as water management practices, micro irrigation (more crop per
drop) & adopting improved packages of agronomic practices. Source: JNNURM, Ministry of Urban Development
Water supply Sewerage system
KUWSDB has implemented
surface-based drinking water supply
schemes in 187 urban areas to
provide assured safe drinking water.
KUWSDB is implementing 26
schemes for shifting the source of
water from ground water to assured
surface water. They are to be
completed by 2013.
Cauvery Water Supply Scheme
(CWSS) Stage IV, Phases I–IV are
being implemented to supply 810
MLD of water to about 600,000
connections.
The Bengaluru Water
Supply and Sewerage
Board (BWSSB) is
responsible for providing
water supply, sewerage
system & sewage
disposal in the
Bengaluru Metropolitan
area.
42 urban areas have
been provided with
Underground Drainage
(UGD) facilities in the
state.
In December 2017, the Central Government asked NICDIT to
expedite the process of Chennai-Bengaluru Industrial Corridor. The
project is expected to boost commerce by enabling quicker
movement of goods and generate investment, industrial units and
employment.
Moreover, the state government finished 42.3-km network of Metro
Rail under phase-1 of the Metro Rail project and two lines have been
made operational.
For updated information, please visit www.ibef.org KARNATAKA 31
DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE … (2/2)
Development projects under Directorate of Municipal Administration:
Construction of 22,133 houses (DUs) at a cost of US$ 85.37 million under Rajeev Awas Yojana will be completed by the authority during 2017-18.
Infrastructure works for drinking water supply scheme for citizens for small and medium towns will be started during 2017-18 at a cost US$ 447.95
million.
Under “Housing for all”, construction of 60,000 houses at a cost of US$ 405.42 million will be implemented through urban local bodies and Rajeev
Gandhi Rural Housing Corporation during 2017-18.
During 2017-18, it is targeted to construct 0.33 million personal toilets, 9,104 capacity community toilets, 4,522 capacity public toilets under Solid
Waste Management Scheme.
As per Budget 2017-18, master plans will be prepared for all of the 274 urban local bodies of the state.
To mitigate the scarcity of drinking water in Mangalore, a desalination plant will be established with public-private-participation (PPP).
During 2018-19 , to encourage increased cycle distribution schemes and commuting by pedestrians, Government of Karnataka is planning to
develop cycling infrastructure in tier-2 cities at a cost of Rs.25 crore (US$3.86 million).
Source: : Budget 2017-18
For updated information, please visit www.ibef.org KARNATAKA 32
DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (1/2)
Under construction PPP projects - Karnataka
Source: Department of Economic Affairs, Government of India
Project name Sector Status Total cost (US$ million)
Road Upgradation (Karnataka) Project Transport Under construction 108.66
Setting up of mechanized iron ore handling facilities at deep
draft multi-purpose berth of NMPT Transport Under construction 45.97
Six laning of Belgaum - Dharwad Section Road Transport Under construction 79.63
Sports City cum International Convention Centre cum Star
Hotel cum Shopping Complex cum Residential Complex
Social and commercial
infrastructure Under construction 149.3
Airport (Hassan) Project Transport Under construction 497.68
Waste to Energy Project Mandur Water sanitation Under construction 9.95
Bus Terminal-cum-Commercial complex at Puttur Transport Under construction 1.21
Water Supply Scheme (Mysore) Water sanitation Under construction 32.27
Construction and Maintenance of Public Toilets in Bengaluru Social and commercial
infrastructure Under construction 1.99
Water Supply Scheme (Nanjangud) Water sanitation Under construction 4.74
For updated information, please visit www.ibef.org KARNATAKA 33
DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (2/2)
Project name Sector Status Total cost (US$ million)
Development of integrated solid Waste Treatment (100
TPD) and Landfill Facilities at Belgaum Water sanitation Under construction 0.85
Development of International Convention Centre at
Devanahalli
Social and commercial
infrastructure Under construction 174.19
Integrated Disposal Facility (Mysore) Water sanitation Under construction 4.62
Integrated Municipal solid waste treatment Kannahalli Water sanitation Under construction 4.15
Integrated Municipal solid waste treatment Mavalipura Water sanitation Under construction 6.64
Karnataka Urban Water Sector Improvement Project Water sanitation Under construction 11.61
Kudgi TPS Transmission Line Project Energy Under construction 223.95
Malleshwaram Market - Re-development Social and commercial
infrastructure Under construction 21.9
New Puttanna Theatre and Parking Social and commercial
infrastructure Under construction 41.85
Road Upgradation (Goa/Karnataka Border-Kundapur)
Project Transport Under construction 437.79
Road Upgradation (Hoskote-Dobespet) Project Transport Under construction 191.27
Source: Department of Economic Affairs, Government of India
PPP Projects – Karnataka
For updated information, please visit www.ibef.org KARNATAKA 34
69%
3%
4%
4%
4% 4%
4% 4% 4%
IT/ITeS
Biotechnology
Hi-tech Engineering Productsand related services
Electronics Hardware andSoftware/ITES
Aerospace and Industry
Pharmaceuticals
Textile
Multi Product
Precision Engineering Product
DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL
CLUSTERS … (1/4)
The state has 26 operational, 51 notified SEZs and 62 formally
approved SEZs as of December 2017. The Karnataka Industrial
Areas Development Board has developed 141 industrial areas
spread across the state. The state plans to develop and upgrade
eight clusters around Bengaluru with an investment of US$ 348.4
million in coming years.
The Karnataka State Industrial & Infrastructure Development
Corporation has promoted more than 135 start-up ventures in the
state through equity participation and has provided debt to core
industries such as steel, cement, mining and textiles, as well as new
sectors such as IT, aerospace and telecom.
In October 2017, the government approved the setting up of a new
industrial park in Harohalli. The proposed multi-product industrial
park will be built by Karnataka Industrial Areas Development Board
(KIADB) on an area of about 904.86 hectares. The park is expected
to entail an investment of US$ 242.8 million and generate more than
23,500 jobs.
Karnataka is the first in the country to provide bespoke policy
ecosystem for automobile sector .The state has introduced a
comprehensive and well-designed Electric Vehicle and Energy
Storage Policy.
Source: : Department of Commerce, Ministry of Commerce & Industry
Sector-wise Operational SEZs In Karnataka (as of
December 2017)
For updated information, please visit www.ibef.org KARNATAKA 35
DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL
CLUSTERS … (2/4)
Name/Developer Location Primary industry
Biocon Special Economic Zone Anekal Taluk, Bangalore, Karnataka Biotechnology
Shyamaraju and Company (India)
Pvt. Ltd. Kundalahalli Village, Karnataka IT/ITES enabled services
Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS
Wipro Limited (Electronic City) Varthur Hubli, Electronic City,
Banglore, Karnataka IT
Wipro Limited (Sarjapur) Varthur Hobli, Sarjapur Road,
Karnataka IT
Vrindavan Tech Villages SEZ Devarabeesanahalli Village, Karnataka IT/ITeS
RMZ Ecoworld Infrastructure Pvt.
Ltd. Devarabeesanahalli, Karnataka IT/ITeS
Cessna Business Park Pvt. Ltd. Varthur
Hobli, District Banglore, Karnataka IT/ITeS
Tanglin Development Ltd. Pattengere/Mylasandra Villages, Karnataka IT/ITeS
Infosys Technologies Limited Hebbal Industrial area, District Mysore, Karnataka IT/ITES
Source: Department of Industries and Commerce, Karnataka
Some of the operational SEZs in Karnataka
For updated information, please visit www.ibef.org KARNATAKA 36
DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL
CLUSTERS … (3/4)
Source: Department of Industries and Commerce, Karnataka
Name/Developer Location Primary industry
Information Technology Park
Limited
Sadaramangala and Pattandur Agrahara
Village, District Bangalore, Karnataka IT/ITeS
Karnataka Industrial Area Development Board
(KIADB) Village Perumenahally, Karnataka Textile
Infosys Technologies Limited Hebbal Industrial area, District Mysore,
Karnataka IT/ITeS
HCL Technologies Ltd. Bangalore Karnataka IT/ITeS
Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS
Karnataka Industrial Area Development Board
(KIADB) District Hassan, Karnataka Pharmaceuticals
Aspen Infrastructures Limited (formerly Synefra
Engineering construction Ltd. (Suzlon
Infrastrucutre Ltd.)
Udupi Taluk, Karnataka Hi-tech engineering, products and related
services
Karle Infra Pvt. Ltd. Bangalore Karnataka IT/ITeS
Mangalore Special Economic Zone Bangalore Karnataka Multi product
Bagmane Construction Pvt. Ltd K R Puram, Bangalore North, Karnataka IT/ITES
Bagmane Construction Pvt. Ltd K R Puram, Bangalore North, Karnataka IT/ITES
Some of the operational SEZs in Karnataka
For updated information, please visit www.ibef.org KARNATAKA 37
DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL
CLUSTERS … (4/4)
Source: Department of Industries and Commerce, Karnataka
Some of the operational SEZs in Karnataka
Name/Developer Location Primary industry
Quest special Economic Zone Belgaum district, Karnataka Precision engineering
Products
Gopalan Enterprises (India) Private Limited. Bengaluru, Karnataka IT/ITES
Karnataka State Electronics Development
Corporation Limited (KEONICS) District Shimoga, Karnataka Electronics Hardware and Software/ ITES
Larsen & Toubro Limited District Mysore,Karnataka IT/ITeS
Karnataka Industrial Areas Development Board Bengaluru, Karnataka Aerospace and industry
Milestone Buildcon Private Limited Village Chokkanahalli, Taluka Yelahanka Hobli
Bangalore North, Karnataka IT/ITES
Milestone Buildcon Private Limited Village Chokkanahalli, Taluka Yelahanka Hobli
Bangalore North, Karnataka IT/ITES
For updated information, please visit www.ibef.org KARNATAKA 38
SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
The state has a literacy rate of 75.6 per cent, the male literacy rate is
82.8 per cent and the female literacy rate is 68.1 per cent.
In terms of the number of universities, Karnataka ranks fifth among
all Indian states and union territories, with 44 universities. Of these,
24 are state public universities and 11 are private deemed
universities.
The state has 4,519 pre-university colleges to impart general
education. There are more than 1 million students in the
pre-university colleges.
There are 293 polytechnics and 206 engineering colleges to provide
technical education in the state.
For the development of basic facilities such as – laboratory, library,
new buildings, toilets, drinking water facility in government schools
and colleges, an amount worth US$ 18.25 million would be provided.
Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE
would be upgraded. Under this scheme, Shaikshanika Adhalath and
TESS education centers would be opened in the offices of BEOs,
DIETs, DDPIs and CTEs in the state.
Literacy rates (%)
Literacy rate 75.6
Male literacy 82.5
Female literacy 68.1
Educational infrastructure (2017-18)
Institute type Number Enrolments
Medical colleges 53 6,786
Ayurvedic colleges 72 4,675
Homoeopathic colleges 11 950
Unani colleges 5 290
Naturopathy & Yogic Sciences
(BNYS) 5 420
Dental colleges 38 2,719
Pharmacy colleges 61 4,784
Nursing colleges 294 17,369
Source: Economic Survey of Karnataka 2017-18 Census 2011
For updated information, please visit www.ibef.org KARNATAKA 39
SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
As per economic survey 2016-17, the state participation in primary
education is significant as 81.23 per cent of the lower primary and
63.40 per cent of the higher primary schools are managed by
Department of Education.
As per Budget 2018-19, an amount of US$ 697.25 million has been
proposed for higher education.
In November 2017, foundation stone for a new government medical
college was laid in Bengaluru. The cost of the project is pegged at
US$ 31.11 million and the college is expected to be functional from
2018 itself.
Karnataka is home to several premier institutions:
• Indian Statistical Institute.
• Indian Institute of Science.
• Indian Institute of Management.
• National Law School of India University.
• Institute for Social and Economic Change.
• University of Agricultural Sciences, Bengaluru.
• Kannada University, Hampi.
Karnataka education statistics (2016-17)
Source: Economic Survey of Karnataka 2017-18
Number of schools
Lower primary: 26,696
Higher primary: 35,498
Secondary schools: 15,773
School dropout rate (in %) Lower primary: 1.03
Higher primary: 2.30
Pupil-teacher ratio
Average: 23.18:1
Private Aided schools: 55.48:1
Unaided schools: 31.61:1
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SOCIAL INFRASTRUCTURE – HEALTH... (1/2)
In February 2018, the state government announced Universal Health
Coverage (UHC) scheme which aims to bring all government health
schemes under one roof . The objective is to bring the entire population
of state under this scheme without any cap on the medical expenditure
on the patient.
The policy of the Government is to establish 1 primary health centre for
every 30,000 inhabitants, 1 dispensary for every 15,000–20,000
inhabitants & 1 sub-centre for every 5,000 inhabitants.
As of February 9, 2018, the state has 12,695 active health institutions
out of total 13,121 health institutions in the state.
Under the assistance of National Health Mission, at a cost of US$ 8.09
million, trauma centres will be established across 5 places, under the
scheme of Aapathbandhava for offering emergency treatment to
highway accident victims.
In June 2017, the state government announced an initiative to install RO
systems in 147 taluk & 20 district hospitals across the state. The plants
will be jointly set up by the state health & rural development and
panchayat raj departments. An amount of US$ 1.49 million has been
allocated for the project.
In December 2017, the state government initiated a digital
transformation drive by ensuring complete use of electronic medical
records (EMR) which is a single documentation that contains complete
and accurate information of a patient. The initiative is expected to enable
seamless flow of information for better healthcare delivery and co-
ordination.
Health indicators (2016)
Birth rate
17.6
Death rate
6.7
Infant mortality rate
24
Natural Growth Rate
10.9
Source: Economic Survey of Karnataka 2015-16,Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live
births, 3As of 9th February 2018
Life expectancy at birth (years)
Male (2015) 63.6
Female (2015) 67.1
No of institutions Total Facilities (February 2018) 3
Subcenters 9,589
Community health centres 317
Primary health centres 2,633
Sub district hospital 539
District hospital 43
Total institutions 13,121
For updated information, please visit www.ibef.org KARNATAKA 41
SOCIAL INFRASTRUCTURE – HEALTH ... (2/2)
Various other programmes to be included under the National Health Mission during 2017-18 include:
• Establishment of dialysis centres in 114 taluks of the state.
• Establishment of Intensive Care Units having 3 bedded capacity with ventilator facility in all taluk hospitals to provide treatment in cases having
respiratory problem, serious illness and accidents
• Commencement of DNB post graduate course in government colleges.
• Establishment of Ayush Treatment Centres in all taluk hospitals to provide integrated, comprehensive health service.
As per Budget 2017-18, RO+UV drinking water facility will be provided in all district hospitals, taluk hospitals and community health centres.
Under National Free Diagnosis Programme, free diagnosis facility will be provided in all Government hospitals.
Blood Transfusion Units will be established in 10 district hospitals of Bagalkot, Vijayapura, Chamarajnagar, Chickmagaluru, Chitradurga, Haveri,
Kodagu, Kolar, Tumkuru and Uttara Kannada at a cost of US$ 0.93 million.
Integrated Ayush Hospitals having 50 beds will be established in Chitradurga and Chickmagaluru District hospitals at a total cost of US$ 0.93
million.
Source: Economic Survey of Karnataka 2015-16,Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live
births
For updated information, please visit www.ibef.org KARNATAKA 42
CULTURAL INFRASTRUCTURE
There are several sports complexes in Bengaluru, Mysore, Mangalore & other cities. Cricket, hockey & football are the major sports, although
other games are also popular. The main sports arenas are the M. Chinnaswamy Stadium & the Sree Kanteerava Stadium in Bengaluru,
Chamundi Vihar Stadium in Mysore & the Mangala Stadium in Mangalore. The Bengaluru Golf Course & the Karnataka Golf Association are
well-known golf courses in the state.
Karnataka is also home to numerous convention centres used for exhibitions, both indoor & outdoor, such as Palace Grounds & the Bengaluru
International Exhibition Centre.
Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna & Kodagu have been developed. Schemes are
being prepared to develop rural tourism at other places also to showcase the rural life, art & culture and heritage.
Ranga Shankara & Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru & are the performing spaces for dance, music & theatre
artists. An international mega convention centre, with a seating capacity of 6,000, is being planned near the Bengaluru International Airport.
To conserve and popularize the Bayalata artform, a separate Bayalata Academy will be established in North Karnataka.
The monuments of Srirangapatna & Hoysalas along with the monuments and forts of Deccan Sultanate have been registered in the provisional list
of World Heritage sites during 2015-16.
As per the budget 2017-18, US$ 3.104 million will be provided to organize World Kannada Conference to commemorate 60 years of unification of
Karnataka State.
Also, complete literary works of Sri M.M. Kalaburgi will be published through Fa.Gu. Halakatti Research Centre of Vijayapura.
Indian tennis star Rohan Bopanna was honoured by the state government on winning the maiden Grand Slam title of his 14 year career at the
French Open in June 2017, becoming the 4th Indian to win a Grand Slam title.
In 2017-18, US$ 65.8 million has been allocated to Kannada and culture department.
For updated information, please visit www.ibef.org KARNATAKA 43
SMART CITIES
Seven cities of Karnataka have been selected under the Smart Cities
Mission to be developed as smart cities.
27 cities from Karnataka were selected under the central
government’s Atal Mission for Rejuvenation and Urban
Transformation Scheme (AMRUT). In 2017-18, an amount of US$
29.63 million was released by the central government for
implementation of the mission.
Population, area & literacy rate of identified smart cities in
Karnataka
Cities Population Area (sq km) Literacy rate
Mangaluru 774,785 184.45 94.03%
Belgaum 488,292 94 78%
Shimoga 322,505 70.1 88.02%
Hubli-Dharwad 943,788 200 86.79%
Tumakuru 2,678,980 10,597 75.14%
Davangere 434,971 72 84.90%
Bengaluru 8,499,399 709 89.56%
Source: : Census 2011 & TechSci Research
Mangaluru
Devengere
Hubali-Dharwad
Badami
Belagavi
Shivamoga Tumakuru
Bengaluru
For updated information, please visit www.ibef.org KARNATAKA 44
KEY INDUSTRIES
The natural resources, policy incentives and infrastructure in the state
favour investments in the IT/ITeS, biotechnology, engineering,
electronics, automotive, textiles, agri- & food-processing sectors.
Karnataka’s favourable policies have encouraged industries to set up
their R&D centres in the state. Bengaluru has about 401 R&D centres,
the most in India.
Karnataka is making significant investments in industrial infrastructure,
such as setting up industrial clusters & SEZs & PPP projects to
provide an impetus to further industrial development.
The formation of Invest Karnataka 2016 in the state is expected to
offer US$ 26.73 million for the enhancement of infrastructure facilities
among existing areas of industrialisation. Further, it is also projected to
set up a new cashew technology centre in the district of Uttar Kannada
of the state.
In June 2017, Siemens Industry Software India Pvt. Ltd. signed an
MoU with the state government Tool Room & Training Center &
Design Tech Systems Ltd. to establish four Centers of Excellence in
Karnataka. The estimated cost of the project is US$ 302.22 million, out
of which, US$ 32.62 million will be contributed by the state
government & Siemen’s share will be US$ 271.08 million.
Key industries in Karnataka
IT and ITeS Agro and food processing
(floriculture)
Biotechnology Aerospace
Engineering Animation
Electronics and telecom Electronic hardware
Automotive Tourism
Source: Directorate of Industries and Commerce, Economic Survey of Karnataka, 2017-18
Total number of micro, small and medium enterprises in
Karnataka
Year MSME units Employment Employment per
unit
2013-14 25,966 167,347 6.44
2014-15 28,742 175,469 6.10
2015-16 25,656 221,706 8.64
2016-17 39,170 508,966 12.99
2017-18 (up
to Nov 2017) 29,369 263,497 8.97
For updated information, please visit www.ibef.org KARNATAKA 45
KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(1/2)
Karnataka has emerged as an information technology (IT) hub of
India. Bengaluru is the fourth largest technological cluster in the
world after Silicon Valley, Boston and London.
About 50 per cent of the world's SEI CMM Level 5 certified
companies are located in Bengaluru.
The state is India’s largest software exporter, with electronics and
computer software exports totalling to US$ 30.41 billion during 2017-
18*.
Karnataka has 47 IT/ITeS SEZs and dedicated IT investment
regions. There are 3,500 IT companies in the state. The state houses
550,000 IT professionals or 1/3rd of the total IT professionals in the
country.
At least 400 Fortune 500 companies have outsourcing operations in
Karnataka. As of September 2015, the total enrolments of people in
the sector was recorded to be 0.446 million.
The state government has formulated a new Karnataka Startup
Policy for assessing the progress of startup companies during 2015-
16.
During 2016-17, the state government aims to establish 10 new
incubators in the state’s graduate and professional institutes, under
the network of New Age Incubation.
23.1 28.2 28.7 29.5
58.9 60.5 62.7
30.4
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
201
0-
11
201
1-
12
201
2-
13
201
3-
14
201
4-
15
201
5-
16
201
6-
17
201
7-
18*
Some of the key players
Wipro Technologies
Infosys
Genpact
Accenture
Source: : Visvesvaraya Trade Promotion Centre;*(April-Sept)
Electronics and software exports from Karnataka (US$ billion)
CAGR: 8.66%
National Bureau of Soil and Land Use Planning at the Indian Council
of Agriculture Research, Bengaluru conducted GPS-enabled soil
sampling and nutrient analysis in Karnataka, Tamil Nadu and Kerala
in April 2017. The analysis was done to help coffee growers in
checking soil properties and nutrient status via Kshemam app
For updated information, please visit www.ibef.org KARNATAKA 46
KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(2/2)
Wipro Ltd was established in 1945 and recorded revenues of US$ 8.5 billion during 2016-17. The company has
presence in areas such as IT services, product engineering, technology infrastructure services, BPO and other
consulting solutions. The company provides services such as application development, deployment and
maintenance, business intelligence and customer relationship management.
Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific centres of
excellence in more than 54 countries. In September 2009, the company launched its centre of excellence at its
Electronic City campus to work with other leading IT firms for developing innovative IT solutions.
Infosys Technologies Ltd was set up in 1981 and posted revenues of US$ 10.21 billion in 2016-17. The company
operates in areas such as IT consulting, modular global sourcing, process re-engineering and BPO services.
Infosys has 73 offices and 94 development centres in the US, India, China, Australia, Japan, the UK, Germany,
France and many other countries and has marketing and technological alliances with companies such as IBM, HP,
Microsoft and Oracle. The company has operations at multiple locations in Bengaluru, Mangalore and Mysore.
Genpact was set up in 1997 in India. Formerly known as GE Capital International Services, the company’s net
revenues in 2016 stood at US$ 2.57 billion. The company provides a wide range of business process, technology
and knowledge services including finance and accounting, collections and customer relations, insurance,
procurement and supply chain, analytics, software and IT infrastructure. Genpact employs around 60,200
employees. The company has one office in Bengaluru in Karnataka.
Accenture is a global management consulting, technology services and outsourcing company with approximately
275,000 people serving clients in more than 120 countries. In 2016-17, Accenture generated revenues of US$ 35
billion. The company has one consulting office and seven delivery centres in Bengaluru.
Wipro Ltd
Infosys
Technologies Ltd
Accenture
Genpact
For updated information, please visit www.ibef.org KARNATAKA 47
KEY INDUSTRIES – BIOTECHNOLOGY … (1/2)
Karnataka has played a key role in India’s emergence as a
significant player in the global biotechnology industry. Karnataka is
home to nearly 60.0 per cent of the country’s biotech units.
The state consists of over 300 Biotech companies and has more
than 6,800 scientists involved in biotech research.
Premier life sciences institutions such as Indian Institute of Science,
National Centre for Biological Science and Jawaharlal Nehru Centre
for Advanced Scientific Research are present in the state.
Sector-focused SEZs have been set up in Mysore, Mangalore, Hubli-
Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya.
Twelve biotechnology finishing schools are scheduled for
development under the Millennium Biotech Policy.
An 86-acre biotechnology park, Bengaluru Helix, comprising the 52-
acre Alexandria Knowledge Park operates in the capital city.
More than 60 per cent of the biotechnology companies in India have
a base in Bangalore and the state drives 50 per cent of the total
revenues in India’s biotechnology sector.
Karnataka Government is making an effort to spur innovation in the
biotechnology and information technology (BT/IT) sector. The state
has foreseen that the future is not only defined by IT but also
through a fusion of biological digital and physical platform. State has
taken initiative ‘Innovate Karnataka’ to create an umbrella brand for
emerging technologies like Artificial Intelligence (AI), block chain,
robotics and nanotechnology which helps to speed up the start-up
ecosystem.
India’s biotechnology industry is expected to reach US$ 100 billion
by 2025, with Bangalore forming a significant part of it.
The state government has established Bengaluru Bio-innovation
Centre with an investment of US$ 8.55 million for enabling MSMEs
to access high-end laboratory and instrumentation facilities.
In August 2017, the State Government launched the second phase
of the Biotechnology Skill Enhancement Programme (BiSEP). The
programme will be conducted in 18 host institutes.
Source: : Economic Survey of Karnataka 2015-16
Some of the key players
Biocon
AstraZeneca India
Jubilant Life Sciences Ltd
GlaxoSmithKline Pharmaceuticals Ltd
For updated information, please visit www.ibef.org KARNATAKA 48
KEY INDUSTRIES – BIOTECHNOLOGY … (2/2)
Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of Ireland and an
Indian entrepreneur, Kiran Mazumdar-Shaw. The company is among the leaders in biopharmaceuticals and
bioservices. Biocon has its corporate headquarter in Bengaluru. In 2016-17, the company recorded revenues of
about US$ 633.11 million.
AstraZeneca India was established in 1979. The company is involved in the areas of manufacturing/marketing of
bulk drug chemicals, liquid formulations, tablets and capsules, injectibles and ointments for various disease
segments such as cardiovascular, respiratory and maternal healthcare.
The company’s manufacturing plant is located at Yelhanka and R&D centre is located in Bengaluru.
Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated pharmaceuticals and life sciences
company. The company is the largest Custom Research and Manufacturing Services (CRAMS) company and
provides leading drug discovery & development solutions outside India.
The company’s revenue was about US$ 932.21 million during FY 2017. Jubilant has a manufacturing facility in
Nanjangud, with around 625 employees.
GlaxoSmithKline Pharmaceuticals Ltd was established in 1924 and is one of the oldest pharmaceutical companies
in India.
During 2016-17, the company recorded a revenue of US$ 457.57 million.
GSK India product portfolio includes prescription medicines and vaccines. The company has a clinical
development centre in Bengaluru.
Biocon
AstraZeneca India
GlaxoSmithKline
Pharmaceuticals Ltd
Jubilant Life Sciences
Ltd
For updated information, please visit www.ibef.org KARNATAKA 49
KEY INDUSTRIES – ENGINEERING … (1/2)
The engineering industry in Karnataka has positive prospects, given
its performance.
Exports of engineering products have increased from US$ 1,605
million in 2010-11 to US$ 3,130.25 million in 2015-16, The
engineering segment is the fastest growing sector of the state, which
grew at a CAGR of 14.22 per cent between 2010-11 and 2015-16.
The state is exporting engineering products to Germany, China,
South Korea, Brazil, USA, Malaysia, Thailand, South Africa and
Singapore. A majority of the exporters in state are based in
Bengaluru, Hubli, Mysore, Belgaum, Mangalore, and Shimoga.
The state exported engineering products worth US$ 2.72 billion in
2017-18 (up to September 2017).
Exports include machine tools, industrial machinery, cutting tools,
castings, automotive components, electrodes, welding equipment,
construction and earthmoving equipment, and helicopter spares.
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. Bharat Earth
Movers Limited, Hindustan Machine Tools Limited and Bharat Heavy
Electricals Limited are among the leading companies in this sector in
the state.
1.61 1.72
2.31
3.09 3.38
3.08
4.09
2.72
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
Some of the key players
Bharat Earth Movers Limited (BEML)
Hindustan Machine Tools Limited (HMT)
Bharat Heavy Electricals Limited (BHEL)
Saint-Gobain India
Source: : Visvesvaraya Trade Promotion Centre, Government of Karnataka
Engineering products exports (US$ billion)
CAGR: 14.22%
Note: Economic Survey 2017-18
For updated information, please visit www.ibef.org KARNATAKA 50
KEY INDUSTRIES – ENGINEERING … (2/2)
BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML manufactures a wide range
of earth moving and other heavy industrial equipment for the mining and civil engineering industries.
BEML has a registered office in Bengaluru and units in Kolar Gold Fields, Mysore and Bengaluru. During 2016-17,
the company recorded revenues of US$ 448.8 million.
HMT was established in 1953. The company manufactures various types of machine tools including watches,
tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems &
bearings.
During the third quarter of 2015-16, the company earned revenues of US$ 1.67 million. HMT has a manufacturing
plant in Bengaluru.
Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in India in the
energy-related/infrastructure sector. The company has 16 manufacturing divisions, two repair units, four regional
offices, eight service centres, eight overseas offices and 15 regional centres.
BHEL has an electronics division at Bengaluru. The company recorded revenues of US$ 4.69 billion in 2016-17.
Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing companies in India
for various products ranging from glass to engineering products.
In the second quarter of 2015, the company recorded revenues of US$ 6.51 million. The company has a
manufacturing plant in Bengaluru.
BEML Limited
HMT Ltd
Saint-Gobain India
BHEL
For updated information, please visit www.ibef.org KARNATAKA 51
KEY INDUSTRIES – TELECOMMUNICATIONS AND
ELECTRONICS … (1/2)
Karnataka is a leading state of the country in electronics and
telecommunication.
The state has high-end research and development organisations
such as Indian Institute of Science, Cosmic Industrial Laboratories
Ltd, Indian Space Research Organisation (ISRO), CSIR Centre for
Mathematical Modelling and Computer Simulation (CMMACS),
National Aerospace Laboratories, Centre for Soft Matter Research
and John F. Welch Technology Centre.
Karnataka has excellent telecom infrastructure with 140 of 170 towns
connected by Optic Fibre Cables (OFC) network.
Bengaluru district is the major hub of the electronics and
telecommunications industries. The other districts of Hassan,
Tumkur, Mysore, Mangalore and Shimoga are the new destinations
for promotion of electronics and hardware industries.
The state houses global giants such as Sanyo, AT&T, Siemens, GE,
Motorola, Sony and Alcatel as well as national heavyweights such as
BPL Limited and Indian Telephone Industries Limited.
In December 2017, Bharti Airtel launched VoLTE services in
Karnataka to provide users with the flexibility of high-quality voice
calls and fast data sessions in parallel. Vodafone is also going to
launch VoLTE sevices in the state.
In 2015, the state government of Karnataka announced plans to set
up an Information Technology Investment Region (ITIR) near the
Kempegowda International Airport (KIA) and proposed an investment
of US$ 2.35 billion. The construction will be completed in two phases
and the Karnataka Industrial Areas Development Board (KIADB) is in
the process of acquiring 2,072 acres land for the first phase. The
ITIR is first of its kind and is projected to be developed over 20 years.
The first phase is expected to be completed by 2020 while the
second phase will be developed in following 15 years.
The start-ups warehouse set up by the state government in
association with Nasscom has attracted 170 start-ups. However,
during 2015-16, the functioning of second start-up warehouse in
collaboration with NASSCOM with was initiated in the state.
In order to provide venture capital to semiconductor companies, the
state government has formed Karnataka Semiconductor Venture
Fund with a total fund size of US$ 15.27 million.
Source: : Department of Industries and Commerce
Some of the key players
Bharat Electronics Ltd
Nokia
Siemens
Philips Electronics India Ltd
For updated information, please visit www.ibef.org KARNATAKA 52
KEY INDUSTRIES – TELECOMMUNICATIONS AND
ELECTRONICS … (2/2)
Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit, multi-technology
company. Products manufactured by BEL are mainly categorised as systems/turnkey solutions, defence and non-
defence products.
The company has a manufacturing unit in Bengaluru and achieved revenues of US$ 1.19 billion during 206-17.
Nokia is among the world leaders in mobile technology. The company started its India operations in 1995. India
holds the distinction of being the second largest market for the company globally.
The company has an R&D facility and a design studio in Bengaluru.
Siemens set up operations in India in 1957. The Siemens Group in India is a unique player in the field of electrical
and electronics engineering. The Group employs approximately 10,933 people and has 23 manufacturing facilities
in India. Siemens has several offices in Bengaluru. During the second quarter ending March 2016, the company
recorded revenues of US$ 425.25 million
Philips has been operating in India for more than 75 years. The company is a leader in consumer electronics,
healthcare and lighting systems. Philips employs more than 4,500 people in India.
The company has an R&D facility – Philips Innovation Campus – in Bengaluru.
Bharat Electronics Ltd
Nokia
Philips Electronics
India Ltd
Siemens
For updated information, please visit www.ibef.org KARNATAKA 53
KEY INDUSTRIES – AUTOMOTIVE … (1/2)
Karnataka has a vibrant auto industry with investments of around
US$ 713 million and annual revenues of US$ 604 million.
The state is the fourth largest state in India in terms of automotive
production. The main locations for automobile industries are
Bengaluru, Ramanagara, Kolar, Shimoga, Dharwad & Belgaum.
General Motors Technical Centre, located in Bengaluru, is actively
involved in research, design, analysis and development of vehicles
and power trains for foreign destinations as well as the domestic
market.
The state has 3 auto clusters, one industrial valve cluster and one
auto component cluster. 2 manufacturing hubs are coming up in
Narsapur & Vemagal Industrial Areas in Kolar District.
The Government is in the process of announcing a Dedicated
Automobile Policy.
Automotive industry of Karnataka grew at a CAGR of 15 per cent
during 2009 to 2014. The state is considered to be the 4th largest in
manufacturing and developing automobiles in the country. On the
back of this, the state contributes 8.5 per cent to the overall
automobile sector of the country.
The state government is aiming to make Karnataka the automobile
capital of India.
In 2016-17 (up to December 2016), total transport and non-transport
vehicles recorded in Karnataka were 17.44 million, out of which,
transport vehicles were 1.62 million whereas non-transport vehicles
were 15.79 million.
As per the final draft of Karnataka Industrial Policy 2014-19, the state
will study the feasibility of setting up major auto parks at Dharwad,
Kolar and Bidadi in Ramanagara district; and smaller auto parks in
Belgaum, Shimoga, Mysore and Gulbarga.
In September 2017, the Government of Karnataka passed the
‘Karnataka Electric Vehicle and Energy Storage Policy 2017’. Electric
vehicles manufacturing in Karnataka is expected to attract
investments worth US$ 4.82 billion and create 55,000 jobs by 2022.
Source: : Economic Survey of Karnataka 2015-16
Some of the key players
Toyota Kirloskar
Volvo India
TVS Motor Company
Delphi Automotive Systems Pvt Ltd
For updated information, please visit www.ibef.org KARNATAKA 54
KEY INDUSTRIES – AUTOMOTIVE … (2/2)
Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.
The company has manufacturing facilities at Bidadi.
Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the Volvo Group has about
115,000 employees, production facilities in 19 countries & sales activities in more than 190 countries.
The company has increased its capacity to around 1,500-1,700 buses per annum in 2013-14 from 1,100 buses per
annum earlier.
Volvo India plans to invest US$ 115.6 billion to set up a truck & bus manufacturing facility in Malur, Kolar.
TVS Motor Company is one of the largest 2-wheeler manufacturers in India. The company is the flagship company
of the TVS Group. TVS Motor has 4 manufacturing plants across India including Mysore.
The company achieved a turnover of US$ 2.13 billion during 2016-17.
Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. The company is a leading global
supplier of electronics & technologies for automotive, commercial vehicles and other market segments.
Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside the US.
Toyota Kirloskar
Volvo India
Delphi Automotive
Systems Pvt Ltd
TVS Motor Company
For updated information, please visit www.ibef.org KARNATAKA 55
KEY INDUSTRIES – TEXTILES AND APPAREL … (1/4)
Karnataka is one of the leading producers of cotton, silk and wool,
which are the key raw materials required for textile manufacturing
units. The production of cotton during 2016-17 was recorded to be
2.1 million bales. The state produces 31.62 per cent of India’s silk.
Raw silk production in the state was recorded at 9.57 thousand MT
2016-17.
Karnataka is a major apparel sourcing destination for the global
market. The state accounts for 20 per cent of the national garment
production. During 2015-16, the state contributed around 65 per
cent, 12 per cent and 6 per cent of silk, wool and cotton production,
respectively to the country. Moreover, the state recorded 144 skill
development centres and 168 private training centres during 2016-
17. There are approximately 0.38 million manufacturing units
engaged in the textiles and garments sector at the organised and
unorganised level. Under the New Textile Policy 2013-18, the state
government is planning to invest US$ 1,650 million in the textile
sector. The Textile Policy offers various incentives for investments in
the textile sector; these include credit-linked capital subsidy, entry
tax reimbursement and power subsidy.
Union Textiles Minister has given assurance to construct Rs. 100
crore (US$ 15.52 million) textile park for Karnataka .Moreover power
loom owners would be able to upgrade the plain power looms to
semi-automatic by redeeming Rs 20,000 (US$ 310.32) per loom
from the minister.
As of September 2017, the state had one operational SEZ (KIADB
SEZ Hassan - Textiles) for the textile sector at Hasan, Karnataka.
In 2016-17 (up to September 2016) 32.50 million meters of handloom
textiles was produced in Karnataka providing employment to 0.09
million persons.
Karnataka has an apparel park at Dodaballapur near Bengaluru and
other mega textile parks in the other parts of the state.
During 2016-17, Karnataka’s textile sector received FDI worth US$
9.08 million.
The state offers financial assistance to the tune of 40 per cent to
textile industries for infrastructure facilities in greenfield & brownfield
zones.
The Textile Policy offers various incentives for investments in the
textile sector; these include credit linked capital subsidy, entry tax
reimbursement and power subsidy.
Source: : Karnataka Economic Survey 2015-16, Directorate of Industries and Commerce
Some of the key players
Gokaldas Exports Limited
Karnataka Silk Industries Corporation (KSIC)
Himatsingka Seide
Shahi Exports Private Limited
For updated information, please visit www.ibef.org KARNATAKA 56
KEY INDUSTRIES – TEXTILES AND APPAREL … (2/4)
0.270
0.411
0.254
0.014
0.000
0.050
0.100
0.150
0.200
0.250
0.300
0.350
0.400
0.450
2012-13 2013-14 2014-15 2015-16
Financial assistance to handloom weavers (in US$ million)
Source: Economic Survey of Karnataka, 2015-16, Department of Industries, Handloom, Government of Karnataka
For updated information, please visit www.ibef.org KARNATAKA 57
KEY INDUSTRIES – TEXTILES AND APPAREL … (3/4)
Handloom weavers and looms in Karnataka
Description Rural Urban Total
Total weaver households 33,854 3,826 37,680
Weaver population 121,688 12,650 134,338
Weaving workforce 69,686 7,163 76,849
Looms 35,662 4,826 40,486
Production and employment in handloom and power-loom industries in Karnataka
Description Units 2013-14 2012-13 2014-15 2015-16 2016-17
Handloom production Million metres 46.09 47.63 43.58 25.79 32.50
Handloom employment Lakh 0.82 1.12 0.85 0.71 0.90
Power loom production Million metres 328.99 353.59 304.02 290.35 -
Power loom employment Lakh 2.56 2.60 2.96 4.42 -
Power loom weavers and power looms in Karnataka
No. of weaver households No. of weavers No. of looms
30,988 127,535 88,566
Spun yarn production (‘000 kg)
2013-14 37,750
2014-15 34,269
2015-16 (up to September 2015) 15,580
Source: Ministry of Textiles
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KEY INDUSTRIES – TEXTILES AND APPAREL … (4/4)
Gokaldas is one of the largest garment exporters in the country. The company commenced operations in 1979.
During the 2016-17, the company generated revenues of US$ 144.42 million.
Headquartered in Bengaluru, the company has 30 factories across India. Gokaldas employs around 28,000 people
and has a manufacturing capacity of 2.45 million garments per month as of 2014-15.
Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise and is a leading
manufacturer of silk.
The company has two modern factories in T. Narasipura & Mysore, which are engaged in manufacturing silk
goods from raw silk yarn to silk fabrics.
Himatsingka Seide, incorporated in 1985, is a Bengaluru-based company dealing in natural silk fabric. In 2016-17,
the company generated revenue of US$ 331.91 million.
The company’s focus area is textile designing and manufacturing. Himatsingka Seide has a spinning division as
well as a weaving division. The company’s brand atmosphere is India’s first luxury home textile brand, with an
exclusive collection of more than 2,500 products and an installed capacity of 25 million metres per annum.
Shahi Exports is among the top home furnishing exporters in the country. The company began operations in 1974
in Delhi and started manufacturing in Bengaluru in 1988. Shahi Exports has manufacturing facilities in Delhi,
Bengaluru, Salem and Tirupur
Gokaldas Exports Ltd
KSIC
Shahi Exports Pvt Ltd
Himatsingka Seide
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KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (1/3)
Karnataka, with a good agricultural base including various food crops, offers immense scope for the development of food processing industries.
Karnataka is the largest producer of coffee & cocoa in the country.
The state is the country’s largest coffee producer and accounts for around 71.3 per cent of the country’s total coffee production. Coffee production
in the state stood at 233,230 MT in 2014-15, 251,520 MT in 2015-16 and 226,300 MT in 2016-17. Post blossom estimate of coffee production in
the state in 2017-18 is 251,760 MT, as per Coffee Board.
During 2015-16, the state government implemented the scheme - “Krishi Bhagya” across 129 talukas of 25 districts. Moreover, under the program
of Bhoochethana-2, which is being executed across 66.88 lakh hectares of area, a total of about 11 lakh farmers have been profited. In Budget
2017-18, US$ 93.12 has been granted for implementation of this scheme.
With more than three-fourths of the state facing severe drought and drinking water crisis, Karnataka government released a US$ 39.41 million
input subsidy directly to bank accounts of 4.47 lakh farmers in April 2017.
Source: Coffee Board, Government of India
Karnataka’s coffee production
Location Elevation
(m MSL)
Rainfall
(mm) Main coffee types
Total area under
coffee (hectares)
Average
production (MT) Main intercrops
Bababudangiris 1,000-1,500 1,750-2,200 Arabica 15,000 10,500 Pepper, cardamom,
arecanut
Chikmagalur 700-1,200 1,000-4,500 Arabica, Robusta Arabica - 37,000
Robusta - 23,000
Arabica - 29,000
Robusta - 30,000
Pepper, cardamom,
arecanut, orange,
vanilla
Coorg 750-1,100 1,000-2,500 Arabica, Robusta Arabica - 26,000
Robusta - 56,000
Arabica - 24,000
Robusta - 69,000
Pepper, cardamom,
orange, banana,
arecanut
Manjarabad 900-1,100 1,000-2,500 Arabica, Robusta Arabica - 31,700
Robusta - 9,400
Arabica - 21,000
Robusta - 9,500
Pepper, cardamom,
orange, arecanut,
banana
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325 342 300
479
659 651 620
813
473 507
320
0
100
200
300
400
500
600
700
800
900
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
201
4-1
5
201
5-1
6
201
6-1
7*
201
7-1
8*
KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (2/3)
Karnataka is the first state to go online mandis ,which would
integrate 150 mandis on a single online platform.
The state is one of the leading producer of flowers, spices, fruits and
vegetables. Government of Karnataka had approved the
establishment of food parks in 6 districts: Bengaluru rural, Tumkur,
Shimoga, Davangere, Bijapur & Belgaum. These parks are in
advanced stages of implementation. Most of the civil infrastructure
work has been completed in Malur, Hiriyur, Bagalkot & Jewargi food
parks, which had been approved by Ministry of Food Processing
Industries, Government of India.
The export of agriculture and processed food in the state grew at a
CAGR of 22.96 per cent between 2010-11 & 2015-16. The export
value has increased from US$ 146.9 million in 2010-11 to US$
412.92 million in 2015-16. Agricultural exports from the state were
US$ 204.72 million in 2016-17, up to September 2016.
Some of the key players
Hindustan Unilever Limited
Nestle India
Britannia Industries Limited
United Breweries Group
Source: : Economic Survey of Karnataka 2017-18, Coffee Board,*Up to September 2018
Final estimate of coffee production (2016-17) in MT
District Arabica Robusta Total
Chikmagalur 36,150 34,860 71,010
Kodagu 17,035 102,825 119,860
Hassan 17,325 13,550 30,875
Sub total 70,510 151,235 221,745
Coffee exports from Karnataka (US$ million)
CAGR: 13.99%
Source: 2016-17; * Upto September 2017
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KEY INDUSTRIES – AGRO AND FOOD PROCESSING …
(3/3)
Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods (FMCG) company, with
leadership in home & personal care products and foods & beverages. The company recorded revenues of US$
4.2 billion during 2015-16. HUL employs more than 16,000 people nationwide. During 2016-17, the company
recorded revenues of Rs 34,487.00 crore (US$ 5.4 billion).
The company has a manufacturing plant and an R&D centre at Bengaluru.
Nestle has been in India for almost a century, with seven production facilities across the country, including one at
Nanjangud, Karnataka. The company produces chocolates and confectionaries, prepared dishes and cooking
aids, beverages and milk products and nutritional supplements. During 2017, the company recorded revenues of
Rs 10,192.18 (US$ 1.58 billion).
Britannia is a leading food processing company in India. The company manufactures food products such as
biscuits, cheese and bread. Based in Bengaluru, the company recorded revenues of Rs 8,684.39 crore (US$ 1.29
billion) in 2016-17.
United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also referred to as the
beer division of the UB Group and is based in Bengaluru. UBL recorded a net turnover of US$ 778.41 million in
2014-15., the company recorded total revenue of Rs 10,228.16 (US$ 1.58 billion) In 2016-2017.
The company has around 2,489 employees and manufactures products primarily under the Kingfisher, London
Pilsner and UB Premium Ice brands.
Hindustan Unilever Ltd
Nestle India
United Breweries Ltd
Britannia
Industries Ltd
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KEY INDUSTRIES – AEROSPACE … (1/2)
Karnataka is known as the pioneer in the Indian aerospace industry
after the establishment of Hindustan Aeronautics Limited (HAL) in
Bangalore in 1940. Karnataka produces more than a quarter of
India’s aircrafts and spacecrafts.
Around 984 acres of land is earmarked for an exclusive industrial
area and sector-specific SEZ for aerospace industries near
Bengaluru International Airport. In February 2015, the aerospace
park started its operations.
India’s first aerospace SEZ of 300 acres is operational at Belgaum.
Karnataka is the first state which announced the aerospace policy in
the country. Karnataka Aerospace Policy has identified an
investment potential of US$ 12.5 billion in this sector during 2013–23
and plans to develop aerospace clusters in different regions of the
state.
Companies such as Air India, Boeing and Jupiter Aerospace have
selected Karnataka for the development of MRO facilities.
The state government plans to develop an aerospace park spread
over 1,000 acres near the Bengaluru International Airport (BIAL) with
an investment of US$ 1.7 billion, with the intention of attracting global
and domestic players in the Indian aerospace industry. The park is
expected to be operational by 2017.
Dornier 228 aircraft, manufactured by Hindustan Aeronautics, the
Bengaluru-headquartered defence public sector unit, gets clean chit
from aviation regulator for civilian use.
In 2016, Karnataka approved amendments to the Karnataka
Aerospace Policy 2013-23 to provide special incentives for
development of Maintenance, Repair and Overhaul (MRO) sector.
The state is exporting aerospace products to US, UK, Germany,
Russia Mauritius, Malaysia, Nepal, Oman and Ecuador. In order to
boost aerospace industry in the state, the Government of Karnataka
has proposed to reduce the VAT imposed on articles made from
nickel, titanium, etc. under the heading of HSN 7505, 7506 and 8108,
from 14.5 per cent to 5.5 per cent during 2016-17.
Aerospace Technology Centre (ATC) in Bengaluru would be
established under the PPP model.
Source: : Global Investors Meet 2012, MRO India, NRI Forum Karnataka, Karnataka Aerospace Policy 2012
Some of the key players
Boeing
Hindustan Aeronautics Limited
Airbus Engineering Centre
BEML Ltd
Gokaldas Exports Limited
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KEY INDUSTRIES – AEROSPACE … (2/2)
In India, Boeing is represented through its wholly owned subsidiary, Boeing International Corporation India Private
Limited (BICIPL).
Boeing established its first R&D centre in India – the Boeing Research & Technology Centre – in Bengaluru in
2009. The centre develops high-end technology solutions, particularly in the areas of aero structures and avionics.
Hindustan Aeronautics Limited (HAL) is ranked 40th in Flight International's list of the World’s Top 100 aerospace
companies in 2008.
HAL has 19 production units and nine research and development centres in seven locations across India; of
which, eight production units and four R&D centres are located in Bengaluru.
Airbus’ industrial cooperation with India began in 1988 when an agreement was reached with Hindustan
Aeronautics Limited (HAL) to manufacture passenger doors for the A320 aircraft.
Specialising in high-tech aeronautical engineering, the Airbus Engineering Centre works hand-in-hand with other
Airbus engineering offices around the world, as well as with the Indian aviation industry.
Bharat Earth Movers Limited (BEML), a ‘Miniratna-Category-1’, plays a pivotal role and serves India’s core sectors
such as defence, rail, power, mining and infrastructure.
BEML is involved in the manufacturing of aircraft components/assemblies and MRO activities related to aerospace
applications.
Boeing
HAL
BEML Ltd
Airbus
Source: : Global Investors Meet 2012, KUM Karnataka, Airbus, BEML Ltd
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KEY INDUSTRIES – ANIMATION … (1/2)
Major suppliers to the industry such as HP, AMD, NVIDIA and
Microsoft are located in Bengaluru.
There has been a considerable increase in AVGC business
outsourcing to Bengaluru.
A great deal of content for global blockbuster animation movies such
as Life of Pi, Harry Potter, Kung Fu Panda, Prometheus and Pirates
of the Caribbean was developed in Karnataka.
The state government is in process of establishing digital art training
centres across willing colleges, in collaboration with Association of
Bangalore Animation Industries (ABAI) for imparting new skills to
people under the program designed by the experts of ABAI.
As per economic survey 2016-17, four projects are being
implemented under Karnataka Animation Visual Gaming & Comic
Policy (KAVGC).
As per State Budget 2017-18, an AVGC venture fund of US$ 3.1
million is being set up to provide venture capital to companies in the
AVGC sector.
The state government in partnership with ABAI, the trade association
for the animation, visual effects, gaming and comics sector, had
announced ‘Bengaluru B2B AVGC Summit’ to be held in November
2017. At the summit, ABAI signed an MOU with Game Developers’
Association of Australia (GDAA) to promote India-Australia gaming
corridor.
In July 2017, the government approved the Karnataka Animation,
Visual Effects and Comics Policy (AVGC) 2017-22. The policy is
expected to generate 15,000 jobs and propel Karnataka as a global
leader in AVGC. Also, setting up of a Centre of Excellence for
Animation in Bengaluru was announced by the Government.
Out of 44 ,7 start ups in animation, visual effects, gaming and comics
(AVGC) sector received grants from AVGC Fund .The grants were
varied from US$ 80 thousand to US$ 310 thousand.
Source: PwC Report , Karnataka AVGC Policy
Some of the key players
Boeing
Hindustan Aeronautics Limited
Airbus Engineering Centre
BEML Ltd
Gokaldas Exports Limited
Source: Karnataka AVGC Policy 2017-22, News Articles
Note: ABAI – Association of Bangalore Animation Industry
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KEY INDUSTRIES – ANIMATION … (2/2)
Technicolor is a worldwide technology leader in the media and entertainment sector.
Technicolor India offers world-class design and production services in animation and visual effects for motion
pictures and television broadcast productions.
Technicolor has been operating in India since 2007 and employs about 1,238 people.
Tata Elxsi is a listed company and is headquartered in Bengaluru.
The company is a global design company and offers key services including embedded product design, industrial
design, animation & visual effects and systems integration.
The company recorded revenues of US$ 191.37 million in FY17.
Zynga Inc is the world's leading provider of social gaming services with more than 240 million monthly active users
playing its games, which include CityVille, Zynga Poker and Scramble with Friends.
Zynga's Bengaluru centre, started in 2010, has rapidly expanded to become the company's second largest
operation in the world after its San Francisco centre.
DreamWorks Animation creates high-quality entertainment, including CG animated feature films, television
specials and series and live entertainment properties.
DreamWorks Animation has been named one of the “100 Best Companies to Work For” by FORTUNE® Magazine
for four consecutive years.
The company has theatrically released a total of 25 animated feature films, including the franchise properties of
Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.
Boeing
Tata ELXSI
DreamWorks
Zynga Inc
Source: : Technicolor, TATA Elxsi, Zynga, DreamWorks
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KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)
Karnataka is among the top chip designing hubs in the country.
Around 70 per cent of chip designers in India are found in Bengaluru
city.
The state has the advantage of having low-cost skilled/technical
manpower compared with other states.
Bengaluru is a global hub for R&D activity in the software industry,
which will greatly aid the electronic hardware industry.
The ESDM (Electronic System Design & Manufacturing) Policy is
expected to provide for development of three ESDM innovation
centres that will provide complete infrastructure with the requisite
design tools.
ESDM Policy also plans to set up seven high-class ESDM
Manufacturing Clusters (EMCs) to provide infrastructure support
including electronic manufacturing services and component
manufacturing by 2020.
As per the policy, by 2020, ESDM sector is expected to generate
turnover of US$ 400 billion, including exports to the tune of US$ 80
billion, with an investment of US$ 100 billion.
As per the new Electronic Systems Design and Manufacturing
(ESDM) policy 2017-2022, the sector is expected to generate around
US$ 4 billion in revenue till 2022 and is expected to create 2 million
direct and indirect jobs by 2022.
The state government has announced a new programme, Yuva
Yuga, to train more than 100,000 persons in the electronics and IT
sector.
In budget 2017-18, the state government proposed to establish VLSI
Incubator and Brown Field ESDM Cluster in Hubballi in collaboration
with Entrepreneurs to create new conceptual innovative
environment system and vibrant technology in 2/3rd phase cities.
In August 2017, the state government picked 27 ESDM startups for
its ELEVATE 100 programme under which selected 100 startups will
receive a combined US$ 62.5 million in funding.
Source: : Department of Electronics and Information Technology, GoI, Department of IT, BT and S&T, Karnataka,ESDM Policy 2013, Karnataka
Some of the key players
Intel
AMD
Qualcomm Inc
Nvidia
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KEY INDUSTRIES – ELECTRONIC HARDWARE … (2/2)
Intel, headquartered in Santa Clara, is the world’s largest and highest valued semiconductor chip maker based on
revenue.
The Intel India Development Centre is a critical engineering design and development centre for key Intel products
across CPUs, graphics, platforms and software with strong IT expertise and factory automation.
AMD India plays a significant role in the design of microprocessors, AMD’s family of Accelerated Processing Units
(APU), SoCs, graphics and media solutions.
AMD has two design centres in India located in Hyderabad and Bengaluru.
Qualcomm Incorporated is an America-based global semiconductor company that designs, manufactures and
markets digital wireless telecommunications products and services.
Qualcomm India Private Limited established its India operations in 1996 and has R&D centres in Bengaluru and
Hyderabad.
Nvidia manufactures Graphics Processing Units (GPUs) as well as System-on-a-Chip units (SOCs) for the mobile
computing market.
Nvidia established its design centre in Bengaluru in 2005. The centre includes a state-of-the-art facility and data
centre that facilitates top-to-bottom designing of advanced graphics and digital media processors for a wide range
of platforms.
Intel
AMD
DreamWorks
Qualcomm Inc
Source: : Company websites
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KEY INDUSTRIES – TOURISM ... (1/2)
In April 2017, the state government has decided to convert the
backwaters of four dams - Kabini, Gorur, Bhadra and Hidkal - into
adventure tourism hubs. This decision was taken to tap into the
scenic beauty of these reservoirs as well as promote adventure
sports and entertainment facilities.
As per Budget 2018-19, the state government has decided to
allocate Rs.459 crore (US$70.90 million) to tourism department.
Further, integrated development of heritage tourist infrastructure will
be undertaken. As per the budget 2017-18, an amount of US$ 88.78
million has been allocated to the tourism department.
Karnataka boasts of a diverse flora and fauna and a 320-km natural
coast line, which makes it a nature tourist's paradise. The state is
ranked fourth in terms of the number of tourist arrivals in India.
The Palace on Wheels of South India – the Golden Chariot Train tour
– has been rated by Vanity Fair, UK, as among the top seven train
journeys in the world. Karnataka has World Heritage Sites at Hampi
and Pattadakal. Good infrastructure in the form of better road and rail
connectivity as well as improving hospitality is also aiding tourism.
The state attracted 129.8 million domestic tourists and 0.46 million
international tourists in 2016. During 2005–2016, tourist arrivals in the
state increased at a CAGR of 16.11 per cent.
According to research conducted by the Associated Chambers of
Commerce and Industry of India (ASSOCHAM), Karnataka could
attract over 150 million domestic tourist and about 1 million foreign
tourist by 2019.
The sector contributes 14.8 per cent to the GSDP of Karnataka; plans
are afoot to expand to 26 per cent by 2020.
In budget 2016-17, the state government announced the launch of
new policy on tourism for the period 2015-2020 for strengthening and
boosting private investments across the tourism sector.
To provide new experience to tourist ,government has proposed to
introduce floating restaurants through KSTDC.
Karnataka government has taken the initiative to imitate New York’s
famous Time Square in Bengaluru by constructing Bengaluru’s Time
Square to attract more tourists in the state.
Source: : Socio Economic Survey 2017-18, Government of Karnataka ,*upto November 2017provisional
Tourist Visits to Karnataka (million)
25
.2
36
.7
38
.4
37
.5
33
.0
38
.5
84
.1
94
.7
98
.6
11
8.8
12
0.5
13
0.3
10
2.4
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7*
For updated information, please visit www.ibef.org KARNATAKA 69
KEY INDUSTRIES – TOURISM ... (2/2)
Source: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012
Karnataka is India’s most preferred destination for advanced medical care, and is referred to as the medical
tourism hub of India.
The state has the highest number of approved health systems, multi-specialty health centres and alternative
health therapies in India.
Karnataka represents wide variations in topography – high mountains, hills and long coastal stretches.
The state has five national parks, 26 wild life sanctuaries, pelicanries, heronries and elephant camps.
Karnataka’s geography provide a vast spectrum of diverse attractions, making it a heaven for adventure
sports and outdoor activities.
Major attractions include white water rafting on the Kali river and aero sports at the Nandi hills.
Medical tourism
Eco tourism
Adventure tourism
Major attractions
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KEY INDUSTRIES – RENEWABLE ENERGY … (1/4)
As of March 2018, renewable energy was recorded at 10,354.15 MW out of the total installed capacity of 24,612.77 MW. Therefore, it contributed
a total of 42.1 per cent into the state’s total installed power capacity.
Karnataka Renewable Energy Development Limited (KREDL) has issued a tender for grid-connected solar projects in 43 selected taluks in
Karnataka for allotment of 860 MW (20 MW x 43 Taluks).
Karnataka is endowed with high renewable energy potential such as wind, hydro, solar, tidal & geothermal energy resources.
The renewable energy potential for the state is estimated at 30.2 GW, primarily from wind, solar, small hydro, co-generation and biomass sectors.
The government has allotted projects of 23,292.35 MW, amounting to nearly 73.1 per cent of the total potential of renewable energy sources.
Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10 per cent of the land of SEZs
and dedicating it for renewable energy.
The policy also mandates to keep aside 10.0 per cent of barren Government land for renewable energy.
In September 2017, renewable energy developer Siemens Gamesa secured a contract to set up a Wind-Solar hybri renewable energy project in
Karnataka.
During 2016-17, various projects totalling 1,900.18 MW of renewable energy were commissioned in Karnataka. Out of this total, 882.3 MW
belonged to wind projects, 869.88 MW to solar projects, 134 MW to Co-Gen projects, 8 MW to Small Hydro projects and 6 MW to Biomass
projects.
In March 2017, ABB India modernised & restored the 1,035 MW Sharavathi seamless integration hydropower plant in the state, which generates
25 per cent of Karnataka Power Corporation’s output. The project is a perfect example for future ready renewable technology which enables the
Industrial Internet of Things (IIOT) & synchronises with the government’s strategy for round the clock reliable power.
The Power Purchase Agreements (PPAs) for grid-connected solar photovoltaic (PV) projects adding up to 640 MW, to be established in various
taluks of Karnataka, have been inked between successful bidders and distribution companies (DISCOMs) of the state.
Source: Economic Survey Karnataka 2014-15, Tea Board of India
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KEY INDUSTRIES – RENEWABLE ENERGY … (2/4)
Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy
Progress in renewable energy as of March 2018
No Renewable energy source Available potential (MW) Capacity allotted (MW) Installed capacity (MW)
1 Wind 55,857 1,7685.47 4,556.66
2 Hydro 3,000 3012.55 851.96
3 Biomass 1,000 391.18 134.03
4 Co-generation 2,000 2,177.65 1,618.16
5 Solar 24,700 8,561.48 4,813.76
Grand total 86,557 31,828.33 11,974.57
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KEY INDUSTRIES – RENEWABLE ENERGY … (3/4)
Karnataka’s total wind energy potential has been estimated at
approximately 55,857 MW* by National Institute of Wind Energy.
By the end of January 2018, the installed capacity for wind energy
was recorded to be 3,840.36 MW. Wind energy accounted for 17.23
per cent of the total installed capacity recorded by the end of January
2018.
During 2017-18 (up to November), 41.7 MW of wind power projects
were commissioned in the state.
Wind velocity in the state ranges from 0.85 m/s to 8.27 m/s.
Potential areas for wind power plants in the state include
Chitradurga, Gadag, C`hikmaglur, Bellary, Davangere, Koppal,
Bijapur, Bagalkot and Belgaum.
Karnataka is counted among the top five destinations for wind energy
in India.
Source: Centre for Wind Energy, Chennai
Karnataka wind energy density map
0 – 100
100 – 200
200 – 250
250 – 300
300 – 400
400 – 500
Wind power
density W/Sq m
Wind energy
Note: *100 metres above ground level
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KEY INDUSTRIES – RENEWABLE ENERGY … (4/4)
Source: Karnataka Solar Policy 2014-21, News articles
Karnataka solar resource map
The state has a solar energy potential of 10,000 MW. Karnataka
Solar Policy 2014-2021 plans to add solar generation of minimum
2,000 MW by 2021. The total capacity installed for solar energy in
January 2018 was recorded to be 2,665.38 MW.
Many districts, especially coastal areas, receive solar radiation in the
range of 5.1-6.4 kWh/m2 during summer, which is best suited for
solar PV projects.
The central government’s policy mandates that solar energy
consumption should increase to 3.0 per cent of the total consumption
by 2022, up from the present consumption of 1.5 per cent.
A 2,000 MW Solar Park is being set up in Pavagada taluk of
Karnataka with an investment of Rs 14,425 crore (US$ 2.2
billion).The first phase of the project will generate 600 MW and is
expected to be ready by December 2017.
Karnataka Renewable Energy Development Limited (KREDL) has
issued a tender for a 1200 MW grid-connected solar PV project
which would be deployed in Pavagada Solar Park. The project will be
spread over 253 acres and will be connected to dedicated
substations being developed by the Karnataka Solar Power
Development Corporation Limited (KSPDCL).
One of Asia’s largest renewable energy company, Equis Energy, has
commissioned a 100 MW (135MWp) solar PV project in Bagalkot
District in Karnataka.
Solar energy
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KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description Contact information
Department of Industries
and Commerce
(DIC)
Anchor department for development/establishment of
industries in Karnataka.
Responsible for formulating and implementing industrial
policies in the state.
No 49, South Block, Khanija Bhavan
Race Course Road
Bengaluru - 560 001
Phone: 91-80 2238 9901-08
Fax: 91-80-2238 9909
E-mail: [email protected]
Website: www.karnatakaindustry.gov.in
Karnataka Udyog Mitra
(KUM)
Single contact point for investors in the state
Considers/forwards proposals to concerned agencies and
communicates status to investors.
Monitors implementation of approved projects.
Single point of contact for information on various aspects
including land availability, statutory approvals and
coordination.
No 49, South Block, Khanija Bhavan
East Entrance, Race Course Road
Bengaluru - 560 001
Phone: 91-80-2228 2392/5659,
Fax: 91-80-2226 6063
E-mail: [email protected]
Website: kum.karnatak.gov.in
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KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description
District Level Single Window Clearance
Committee (DLSWCC)
Functions under the chairmanship of respective Deputy Commissioners for industrial projects for
investments less than US$ 0.65 million.
State Level Single Window Clearance
Committee (SLSWCC)
Functions under the chairmanship of Minister for Large and Medium Industries for investments
that range between US$ 0.65–10.9 million.
State High Level Clearance Committee
(SHLCC)
Functions under the chairmanship of the Chief Minister for projects involving investment of more
than US$ 10.9 million.
District Industries Centres Nodal agencies for approval of projects at the district level.
Primary focus is to promote small scale, village and cottage industries.
Other departments
Various sector specific departments such as Department of Tourism, Department of Information
Technology and Biotechnology, Department of Food Processing, Department of Textiles and
Department of Mines and Geology.
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KEY APPROVALS REQUIRED … (1/2)
List of approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration Department of Industries and Commerce Department, Karnataka Udyog Mitra (Single Window
Agency)
Allotment of land/shed Karnataka Industrial Areas Development Board
Permission for land use State Department of Industries, Department of Town and Country Planning
Site environmental approval State Pollution Control Board and Ministry of Environment and Forests
No objection certificate under Water and Air Act Karnataka State Pollution Control Board
Approval for construction activity and building plan Development Authority/Urban Local Body
Sanction of power State Electricity Board
No objection certificate Fire Department and Directorate of Factories and Boilers
Provisional trade tax registrations Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments
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KEY APPROVALS REQUIRED … (2/2)
List of approvals and clearances required Departments to be consulted
Before commencement of production
No objection certificate under Water and Air Act State Pollution Control Board
No objection certificate Fire Department and Directorate of Factories and Boiler
Permanent Trade Tax registration Central and State Excise Departments
Registration under Central Sales Tax Act, 1956 Central and State Excise Departments
After commencement of production/activity
Registration Department of Industries and Commerce and respective sector departments such as
IT/BT/Tourism etc.
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COST OF DOING BUSINESS IN KARNATAKA
Cost parameter Cost estimate
Industrial land (US$ per hectare) 129,191.51
Power cost (US cents per kWh) Metropolitan area: 12.13
Non metro area: 8.7
Labour (US$/man year) 1,522
Occupation costs (US$/sq ft/year) 16.44
Employee cost (US$/ man year)
Software developers 6,383
Team leads 14,893
Architects 21,276.5
Project managers 31,915
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ELECTRONICS SYSTEMS DESIGN AND
MANUFACTURING POLICY 2013
Electronic Systems Design and Manufacturing (ESDM) is the fastest growing segment of the Information and Communications Technology (ICT)
sector.
According to Ministry of Electronics and Information Technology (MeitY), ESDM to be a part of national IT policy to encourage state to come up
with more productive policy which could attract more private investment in ESDM sector.
As per the National Electronics Policy – 2012 (NEP-2012), ESDM is expected to grow to US$ 400 billion by the year 2020 and will generate a total
employment of over 28 million.
The objective of the Karnataka ESDM Policy is to facilitate, promote and develop the “ESDM” sector in the State of Karnataka and make
Karnataka a preferred destination for investment in Telecommunications, Defense, Medical, Industrial, Automotive, Consumer Products,
applications and components, parts, and accessories required for the aforesaid products and applications. The following targets are set for
Karnataka ESDM Policy:
• Emerge as the leading contributor to India's ESDM sector by accounting for at least 10 per cent of the US$ 400 billion by 2020
• Generate over 20 per cent of the country's total ESDM exports target of US$ $80 billion by 2020.
• Develop core competencies in specific ESDM verticals such as telecom, defence electronics, avionics and energy.
• Make Karnataka the country's preferred destination for investments in ESDM.
• Generate at least 240,000 new jobs, 25 per cent of India's PhDs and 5000 patent filings in ESDM sector in Karnataka by 2020.
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KARNATAKA STARTUP POLICY 2015 – 20
A Karnataka Startup Cell has been set up to address the needs and demands of the rapidly expanding Startup Community and promote
Karnataka's Startup Ecosystem.
Following are the highlights of the startup policy:
• Capacity Building through New Age Incubation Network
• Technology Based Incubators: Fostering links between R&D and Commercialization of Technologies.
• IDEA2PoC Fund: Taking ideas to Proof of Concept.
• Startup Fund of Funds.
• Incentives and Concessions: VAT/CST and ST, Patent and Marketing Reimbursements
• ‘Elevate 100’ scheme to identify 100 innovative start-ups and support them till the next level of success.
• Capacity Building Through Exposure Visits and Workshops
• Creating incubation infrastructure through PPP
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STATE ACTS & POLICIES … (1/5)
Karnataka Start-up
Policy 2015-20
To encourage the growth of 20,000 technology based start-ups in the state by 2020.
To enable the establishment of around 25 innovative technology solutions in the state.
To create around 0.6 million direct as well as 1.2 million indirect employment opportunities in
technology sector.
To boost private investments across the tourism sector.
To develop Karnataka as a dynamic, sustainable and most-favoured tourism destination by increasing domestic &
international visitations, offering high quality experience to visitors, facilitating and accelerating investments and
improving livelihood opportunities at the local level.
To add solar generation of at least 2,000 MW by 2021 in a phased manner.
To encourage PPP model and R&D and innovation in the sector.
To promote Roof Top Generation and Technologies.
To transform Karnataka into an investor friendly state.
To make Karnataka the most preferred investment destination through inclusive, sustainable and balanced growth.
Karnataka Tourism
Policy 2015-20
Solar Policy 2014-21
Karnataka Industrial
Policy 2014-19
Objectives
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STATE ACTS & POLICIES … (2/5)
ESDM Policy 2013 To facilitate, promote and develop the ESDM sector in Karnataka and make Karnataka a preferred destination for
investment in this sector.
To position Karnataka as a vibrant aerospace hub of Asia and a globally recognized aerospace destination by
enabling the environment for holistic and sustained growth of the aerospace sector.
Increase the contribution of the aerospace sector towards enhancing the share of industry in the state’s GSDP
from 28.0 per cent to 32.0 per cent by 2022.
Encourage and support appropriate manpower development, infrastructure development and business
development in the AVGC sector.
To maintain Karnataka’s leadership in outsourced IT services.
To retain Karnataka’s position as the state with the largest skilled workforce in India for IT services, products and
R&D.
To enable Karnataka to be the most preferred destination for MSMEs (micro, small and medium
enterprises).
Aerospace Policy 2013-
23
AVGC Policy 2017-22
Information and
Communication
Technology Policy 2011
Objectives
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STATE ACTS & POLICIES … (3/5)
Integrated Agribusiness
Development Policy
2011
To position Karnataka on a sustained growth path in the field of agricultural and allied sectors through global
technologies and innovative tools by creating enabling frameworks and state-of-the-art infrastructure facilities,
thereby generating higher returns for farming communities.
Development, propagation and promotion of renewable energy resources and technologies.
Creation of a suitable environment for private sector participation in renewable energy power generation.
To facilitate and expedite establishment of SEZs, at the same time safeguarding the environment and the interests
of land owners.
To increase the quality of human resources by supporting education and research institutions like the Institute of
Agri-Biotechnology (IABT), the Institute of Bioinformatics and Applied Biotechnology (IBAB), the Centre for Human
Genetics (CHG) and BT finishing schools; to create specific infrastructure such as focused biotech parks in the
areas of agriculture, marine biotech and animal husbandry; to provide specific fiscal incentives.
Renewable Energy
Policy 2009-14
State Policy for Special
Economic Zones 2009
Millennium Biotech
Policy II 2009
Objectives
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STATE ACTS & POLICIES … (4/5)
Karnataka Mineral Policy
2008
To optimise the state’s geological potential by scientific and detailed prospecting. State-of-the-art techniques will
be encouraged by combining the resources of the private and public sectors.
To resolutely pursue the policy of preserving flora, fauna, and bio-diversity and ensure that the invaluable forest
wealth is safeguarded while granting mineral concessions. To promote transparency in granting mining
concessions. The applicants who propose establishment of industries for value addition within the vicinity of the
mineral bearing areas will be given priority.
Objectives
To provide a fair and transparent policy framework for facilitating economic growth and encouraging Public–Private
Partnerships (PPP) in infrastructure.
Infrastructure Policy
2007
Read more
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The policy was introduced in January 2017, to attract investments from non-resident Kannadigas. The policy aims
at helping improve the privileges and speedy services to NRKs, through a card. NRI Policy 2017
Read more
To make Karnataka a preferred investment destination for manufacturing of electric vehicles, promote a conducive
manufacturing ecosystem in the industry and develop human capital required by the industry.
Karnataka State Electric
Vehicle and Energy
Storage Policy 2017
Read more
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STATE ACTS & POLICIES … (5/5)
Policy Department
Semiconductor policy 2010 Department of IT /BT and Science & Technology, Government of Karnataka
I4 (IT, ITeS, Innovation, Incentives) policy Department of Information Technology, Biotechnology and Science & Technology, Government of
Karnataka
Karnataka Pharmaceutical policy 2012 Health and Family Welfare Department, Government of Karnataka
New textiles policy 2013-18 Department of Handlooms and Textiles, Government of Karnataka
Upcoming policies:
Karnataka Biotechnology Policy (2017-2022) Version 3.0
Karnataka Medical and Wellness Tourism Policy
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EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve bank of India, Average for the year
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DISCLAIMER
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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
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Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
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