Government of Karnataka Welcomes the Government & Business Fraternity of Israel

Government of KarnatakaWelcomes

the Government & Business Fraternity of Israel

www.advantagekarnataka.com

Advantage Karnataka

www.advantagekarnataka.com

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Advantage Karnataka

► Globally recognized brand – 3rd largest FDI inflows in the country

► Ranked 1st for a healthy business climate and attracting investments by World Bank’s Investment Climate Index

► 700+MNCs, 80+ Fortune 500 companies► Comprehensive infrastructure: 58 SEZs,

SKDC, 5 airports, 11 ports► Ease of doing business: Least time to

register a property, less time to export and import

► Bangalore – Best India City to Live in - 'Quality of Living Survey - Worldwide Rankings, 2011‘ – Mercer

► Huge pool of trained professionals adding up to the workforce every year

An indicative list of companies

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Quality of Life

► Leading provider in healthcare with world class facilities and super specialty hospitals

► Medical tourism enriched with abundant options in Ayurveda, Naturopathy, and Unani

► Knowledge Hub of Asia with► 187 Engineering colleges► 114 Medical colleges► 22 Universities► 13 International Schools

► Resorts, spas, golf clubs, Derby

► Wildlife parks► Heritage sites and

historic temples► Adventure sports► Modern multiplexes

Healthcare Education

Leisure

Established Industrial Bases

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Industrial Strength

► Aerospace► Producer of more than a quarter of India’s aircraft and spacecraft

► Boeing & Airbus have their Research & Technology Center and

Engineering Centre located here respectively

► Karnataka houses India’s first and top R&D centers in Aerospace &

Defence such as Indian Space Research Organisation (ISRO) and the

Defence Research and Development Organisation (DRDO)

► GoK has earmarked 984 acres of exclusive industrial area and sector

specific SEZ for Aerospace industries near Bangalore International

Airport

► India’s first Aerospace SEZ is operational at Belgaum

► On the anvil : Dedicated Aerospace policy (first in India)

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Industrial Strength

► Biotechnology and Pharmaceuticals

► Karnataka is the Biotech Capital of India, with over 60% of all biotechnology companies in India having a base here and driving 50% of the total revenues in the national biotechnology sector.

► Karnataka’s pharmaceutical sector exports 40% of the total pharma produce and accounts for 8% of the country’s total pharma revenue.

► Karnataka ranks 10th in the number of pharma manufacturing units in the country.

► Dedicated Biotechnology parks and centres planned such as Nutri/ Nutraceutical and Phyto -Pharmaceutical Park (N2P2) at Mysore, Marine Biotech Park at Mangalore, Agri Biotech Park at Dharwad, Vivarium (Animal House) at Bidar

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Industrial Strength

► Chemicals & Petrochemicals► The Chemicals sector is a growing investment focus area for the

Government of Karnataka► Mangalore Refinery and Petrochemicals Limited in Dakshina

Kannada is the only refinery in India to have two Hydrocrackers producing Premium Diesel and have two Continuous Catalytic Regeneration (CCRs) producing Unleaded Petrol of High Octane

► Aromatics complex by ONGC Mangalore Petrochemicals Ltd (OMPL) is producing para-xylene and benzene

► A 1800 acre dedicated Petrochemical Special Economic Zone (SEZ) is located in Mangalore

► A 1,370 km Dabhol – Bangalore Natural Gas Pipeline with a planned transmission capacity of 16 MMcm/d has opened opportunity for development of Gas based projects in the State

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Textile and Apparel

► India contributes 4 % share in total world textile exports and textiles & apparels constitute one of the top 10 export items of India.

► Produces over 20% of the national garment production and 45% of the national raw silk production

► Bangalore is known as the Garment Capital of India.► Sector-specific special economic zones for textiles at Hassan.► Largest producer and exporter of Silk & Silk products in India.► Contributes 4 % of total exports from the State.► Silk exports from Karnataka constitute 24% of the total value of silk goods

exported from India ► Presence of over 100 Skill Development Centres and 240 private training centres ► Presence of a 48-acre Integrated Textile Park and over 700 powerlooms

Industrial Strength

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Industrial Strength

► Agro & Food Processing► Contributes 70% of India's coffee.► Major producer of spices, flowers, fruits and vegetables.► Food Processing SEZ at Hassan.► Produces a variety of Agriculture Crops.► Presence of 7 national level Research Institutes in

Agriculture & Horticulture sectors.► Presence of 4 dedicated Food Parks and 1 Food Processing

SEZ.► Karnataka contributes 7% of Agricultural production of

the country.► Agro & Food processing contributes 2.52 % in State total

exports.

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Gems & Jewellery: ► India contributes 16.27% share in total world

export.► India possesses world's most competitive gems

and jewellery market due to its low cost production and availability of skilled labour.

► India has a large pool of skilled artisans with vast traditional knowledge and expertise in jewellery making.

► Gems and Jewellery contributes 11% in State total exports.

Industrial Strength

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Industry Friendly Policies

► Industrial Policy 2009-2014► Textile Policy, 2008-13► Solar Policy, 2011-16► Karnataka Tourism Policy, 2009-14► Information & Communication Technology Policy

2011► Infrastructure Policy 2009-14► Semiconductor policy 2010► Millennium Biotech Policy – 2► Renewable Energy Policy 2009-14► Karnataka Animation, Visual Effects, Gaming &

Comics Policy 2012

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Pro active State Govt. Policies

• First State in the country to announce IT Policy

• First State in the country to announce Millennium Biotech Policy

• Karnataka Semiconductor Policy –2010

• Electronics Hardware Policy - focus on promoting electronic manufacturing Hubs with world class facilities and Creation of Integrated Manufacturing Ecosystem.

• Karnataka Animation, Visual Effects, Gaming and Comics (KAVGC) Policy with a focus on promoting AVGC Park, Digital Art Centres, Centre of AVGC Excellence etc.

• Creating New Road Map for ICT -2020

• New Focused Policy for “ Electronics and Manufacturing Policy (ESDM)”

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Guiding investors and enabling fruitful investments

Karnataka Udyog Mitra (KUM)(A nodal agency of Government of Karnataka )

Single point contact for investors

• Responsible for attracting and guiding investments into the State

• Disseminates information on Karnataka, sectoral advantage, district highlights, infrastructure (land, water, power), statutory requirements, building regulations, etc.

• Provides information on policies and procedures, tax regime, incentives, etc.

• Coordinates the visit of investors, both national and international to the State

• Facilitates necessary clearances / approvals from the Government departments / agencies for the projects.

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Information Communication Technology(ICT)

► Bangalore is the 2nd largest technology cluster in the world.

► Total Annual ICT Revenues from Karnataka are $ 26 Bn.

► Karnataka ICT industry contributes to more than 35% of National ICT industry revenues.

► 400 out of Fortune 500 companies have outsourcing operations in Karnataka.

► ICT industry provides direct employment to the tune of 800,000 & Indirect employment to the tune of 2,500,000.

► Around 85 Chip Design houses are located in Karnataka.

► Largest no of Start-up companies in India.

► Highest Venture Capital Distribution in India.

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BANGALOREResearch and Development Hub

• Around 50,000 PhDs• 194 Engineering Colleges – 80,000 Engineers annually• 22 Universities; 20 International Schools • 361 R&D Centres (out of 819 in India)• R&D Talent Pool – 1,02,000• Scientific environment

• Basic Research• Austro Physics• Aeronautical Engineering• Aero Space Labs• Telecom• Bio Technology

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Karnataka ICT Roadmap for 2020

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RevenueUS$ 26 B

Direct Employment800,000

Help to incubate1000 start-ups

RevenueUS$ 75 B

Direct Employment2,000,000

Entrepreneurs1000

2012 2020

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Four Dimensions of Growth for 2020

19

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Karnataka Stimulating “ESDM” investments

• Proactive Policies to encourage “Karnataka ESDM Company ” as a company which does 30% value addition and employs 50% workforce in Karnataka.

• Augment the National Electronics Policy 2012 and National telecom Policy 2012 and implement them in Karnataka

• Provide Capital incentives for both High Tech Manufacturing as well as the developing Electronics Manufacturing Clusters.

• Provide “post-performance” fiscal incentives for Karnataka ESDM companies to reduce their bottlenecks and increase their competitiveness

• Set up Institute of Semiconductor and Embedded Technologies

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Annual ICT Flagship Events In Bangalore

► Bangalore IT. Biz - is scheduled every year in the month of October-November

► ISA vision Summit is scheduled every year in the month of February

► Bangalore Nano is scheduled every year in the month of December

► Global Investors Meet is scheduled every two years in the month of June ► GIM 2014 on June 2-3

Biennial Flagship Event In Bangalore

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Science and Technology Initiatives► Scientific Hub is proposed in 10,000 acres, about 200 kms from

Bangalore.

► Premier Science and Technology Institutions such as IISc, ISRO, DRDO are establishing their campus at the Scientific Hub.

► Proposed to develop Bangalore as Nano Science and Technology Hub.

► Science Centres are proposed to portray the growth of science and technology.

► Proposed to develop Karnataka Geographical Information System.

► Collaborative programs in the area of Science and Technology with International institutions are proposed

Infrastructure

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Robust Infrastructure: Initiatives

► Special Investment Regions like IT investment region (ITIR)

► Exclusive sector specific industrial areas for Aerospace, Automotive, Drugs, Chemicals, Engineering and Machine Tools, Textiles, Plastics and related industries, etc.

► Special Economic Zones► Land Bank : Ready to allot land for industrial

purpose

Karnataka has been at the forefront of industrial and investment facilitationKarnataka has been at the forefront of industrial and investment facilitation

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IT/ITeS 48

Biotech 3

Textiles 1

Engineering & related industries

1

Food processing 1

Precision engineering (auto, aerospace & industrial)

1

Pharmaceutical 2

Petrochemicals & petroleum products

1

Airport based SEZ/ Aerospace 2

FTWZ 1

61 Special Economic Zones provide duty-free enclave for driving FDI and exports Policy incentives and facilities offered to units

in SEZs

With investments of US$ 6.76-billion, the state’s operational SEZs have generated 97,313 jobs, and exports of US$ 11.45-billion

Bengaluru Urban

Bengaluru Rural

*Separate incentives for SEZ developersSource: www.sezindia.com

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Strong infrastructure base: Airports, Sea Ports, Rail & Road Connectivity

Airports2 international, 3 domestic

Ports 11

National highways 4,396 km; 14 NHs

State highways 20528 km; 114, SHs

Railways 3250 km

Coastline 321 km

Metro42.3 km (33.48 km of elevated and 8.82 km of underground)

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► To be developed on around 10000 Acres near Bangalore International Airport, Devanahalli

► An integrated IT Township with world-class facilities, residential / social / educational / health infrastructure

► Projected Employment:► Direct –255,000► Indirect– 857,000

► Estimated Investments by 2030 – US $ 20 Billion

ICT INFRASTRUCTURE

Information Technology Investment Region:

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ICT INFRASTRUCTURE

IT / ITeS / EHM

State promoted IT Parks :

• Shimoga

• Gulbarga

• Mysore

• Mangalore

• Belgaum

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Doing Business in Karnataka Key Highlights of GIM 2012

► Presence of over 200 Industry leaders► 10,000 delegates► 40,000 visitors► 30+ countries► 15+ Indian states ► 460 Exhibitors in GIM Expo► 500+ B-to-B meetings ► 14 Technical sessions► 7000+ investment interests

► Valued at 1,30,909 US$ Millions

Partner Countries

Japan

Partner State

State of Bavaria, Germany

Mexico

Strategic Partners

METI, JapanProMexico, Mexico

Participating Countries*

*Indicative illustration

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Global Investors Meet 20142-3 June, 2014

► We welcome Israel as Partner country► Israel Pavilion - Exhibition space► Trade and Investments facilitation► BTB/BTG - Networking meetings► Delegation from Israel

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We invite you to explore investment opportunities in Karnataka –

Come be a part of our growth story!

Infrastructure

Transport Infrastructure•Roads•Rail•Ports•Airports

Transport Infrastructure•Roads•Rail•Ports•Airports

Power•Generation•Transmission•Distribution•Renewable Energy

Power•Generation•Transmission•Distribution•Renewable Energy

Industrial Infrastructure•SEZ’s•Industrial Areas•Industrial Estates•Development Corridors

Industrial Infrastructure•SEZ’s•Industrial Areas•Industrial Estates•Development Corridors

Services Sector

IT/ITES•Software Development•IT Services•IT Hardware•KPO/BPO

IT/ITES•Software Development•IT Services•IT Hardware•KPO/BPO

Health Care•Multi specialty Hospitals •Health city • Public health facilities

Health Care•Multi specialty Hospitals •Health city • Public health facilities

Tourism & Lifestyle• Resorts, spas, golf clubs, Derby •Heritage sites and historic temples•Adventure sports•Modern multiplexes•International Schools, Colleges & Universities

Tourism & Lifestyle• Resorts, spas, golf clubs, Derby •Heritage sites and historic temples•Adventure sports•Modern multiplexes•International Schools, Colleges & Universities

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Niche AreasManufacturing & Engineering

Engineering•Automobile•Aerospace•Precision Engineering•Industrial machinery and machine tools

Engineering•Automobile•Aerospace•Precision Engineering•Industrial machinery and machine tools

Textile•Conventional Textiles•Technical Textiles•Infrastructure Development

Textile•Conventional Textiles•Technical Textiles•Infrastructure Development

Chemical & Petrochemical

•Paraxylene based PET/ PTA•Petrochemical downstream

Chemical & Petrochemical

•Paraxylene based PET/ PTA•Petrochemical downstream

Minerals Based•Gold•Cement •Steel•Granite•Sand mining

Minerals Based•Gold•Cement •Steel•Granite•Sand mining

Knowledge Economy

•Knowledge city • R&D centres• Polytechnics

Knowledge Economy

•Knowledge city • R&D centres• Polytechnics

Biotechnology and Pharma

•R&D facilities•Biotechnology parks•Bioservices

Biotechnology and Pharma

•R&D facilities•Biotechnology parks•Bioservices

We invite you to explore investment opportunities in Karnataka –

Come be a part of our growth story!

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Contact persons

Principal Secretary to Government of Karnataka

Commerce & Industries Department

# 106, 1st Floor, Vikasa Soudha

Dr. Ambedkar Veedhi,

Bangalore 560 001, India.

Email : [email protected]

Commissioner for Industrial Development and

Director of Industries & Commerce

2nd Floor, Khanija Bhavan

No.49, Race Course Road, Bangalore – 560 001

Email : [email protected]

Visit us at : http://www.karnatakaindustry.gov.in

Karnataka Udyog MitraManaging Director, Karnataka Udyog Mitra,3rd Floor, Khanija Bhavan (South Wing), No.49, Race Course Road,Bangalore – 560 001Ph : 91-80-2228 2392, 2228 5659; 2238 1232, 2228 6632Fax : 91-80-2226 6063Email : [email protected] us at : www.kumbangalore.com

Principal Secretary to Government                                           Department of Information Technology, Biotechnology and Science & Technology 6th Floor, 5th Stage, MS Building, Ambedkar Veedhi, Bangalore-560001 Phone: 080-2228 0562/ 080-2203 2434 /080-22374314Fax: 080-2228 8340 e-mail: [email protected]

     Visvesvaraya Industrial Trade Centre,Managing Director, Visvesvaraya Industrial Trade CentreVITC Building, III FloorKasturba Road, Bangalore – 560 001.Ph: 22864281 / 22860853 / 22861828Fax:22865202Email: [email protected]

Thank You

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US$(Millions)Sl.

No

Commodity 2009-10 2010-11 2011-12

1Electronics & Computer Software 16497.19 19154.69 24665.53

2 Readymade Garments 931.82 1248.31 1480.473 Petroleum & Petroleum products 2007.53 2654.99 4257.884 Engineering 797.56 1331.69 1502.35

5 Iron Ore and Minerals (incl granites) 853.27 175.99 206.206 Silk Products 127.56 123.24 122.427 Coffee Products 258.75 397.10 576.97

8 Basic Chemicals, Pharamaceuticals and Cosmetics 501.98 525.96 923.03

9Agriculture and Processed Food Products

120.47 121.87 138.7210 Gem and Jewellery 3165.33 3617.60 4314.1911 Cashew and Cashew Kernals 117.12 106.68 160.4012 Handicrafts 46.78 53.23 48.6113 Leather Products 35.27 36.76 58.1214 Chemicals and Allied Products 56.59 61.60 87.2515 Marine Products 74.96 95.95 109.9116 Plastic Goods 59.47 102.32 109.7617 Spices 69.41 81.77 127.2918 Wool & Woollen Products 26.25 16.54 23.4119 Miscellaneous and Others 229.33 188.80 876.12  Total 25976.62 30095.10 39788.62

Page 36 36YEAR

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Page 37 Export & Flourish 37

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Industrial Strength

► Leather Products:► Top ten foreign exchange earners for the country.

► Availability of raw materials, skilled manpower, innovative

technology, industry compliance to international

environmental standards and the dedicated support of the

allied industries are major strengths.

► Trained / Skilled manpower at competitive wage levels.

► World-class institutional support for Design & Product

Development.

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► Machine tools & Foundry► US $ 10.41-billion foundry industry ► Industry dependent on state for mining

operations (40% of country’s total iron ore)

► 50% of machine tool industry in the country

► Largest foundry clusters in Belgaum; Proposed dedicated Machine Tool Park in Vasanthnarsapur, Tumkur

Industrial Strength

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► Handicrafts: ► Karnataka is a leader in production of high quality handicrafts.

► Karnataka has a rich knowledge of exquisite craftsmanship.

► Major crafts practiced are sandal wood, rose wood furniture, inlay

and carvings, bronze statues, bidriware, lacquer ware, batiks and

home décors products.

► Craftsmen endowed with high skill levels entirely devoted to

producing quality handicrafts.

► 13 craft complexes spread across the state provide common

facilities centre, design input and marketing support.

Industrial Strength

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Driving the way as Industry champion

► Largest number of R&D centers in India

► Largest software exporter in the country

► Largest biotechnology hub in India

► Largest number of medical institutes and Industrial Training Institutes in the country

► Leading producer of horticulture products

► 3rd largest number of engineering colleges in India

Source: Economic Survey of Karnataka, 2010-11

► 1st Aircraft Manufacturing

Unit in the country

► 1st Space Research Center

► 1st Institute of Biotech &

Bioinformatics in the country

► 1st International Technology

Park in India

► 1st State to Introduce

Industrial Policy

► 1st State to Introduce

Sectoral Policies

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Facilitating fast track approvals for key investments

Project Approval Committee

Investment range Salient features

State High Level Clearance Committee (SHLCC)

More than $US 9 millions

• Chaired by the Chief Minister of Karnataka with the concerned Ministers / Officers as members

• Committee has representatives from all the departments/ authorities concerned

State Level Single Window Clearance Committee (SLSWCC)

Upto $ US 9 millions

• Chaired by the Minister for Large & Medium Industries, Govt. of Karnataka

• Heads of major departments and agencies concerned with industries are represented in this committee.

• Meeting of SLSWCC takes place generally once in a month

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E Udyami: G2B Online Portal A New Initiative

► The portal is only accessible for registered Investors

► Features: Dashboard for investors, Workflow management, escalation matrix, helpdesk, etc.

► The portal can be accessed online via www.advantagekarnataka.com

► Consolidated information about the investment process in Karnataka

► In depth information about the current status of their investment projects.

► Aids in smooth facilitation and monitoring of investments and provides transparency to investors to monitor the status of their projects

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10 Initiatives to Achieve Karnataka ICT Targets for 2020

ESDM(Electronics System Design & Manufacturing)

Leveraging the growth in this emerging sector that has national focus

Education

Talent Development & Job creation

Promote Innovation, IP Creation, R & D and Karnataka ICT Innovation Fund

Entrepreneurship Development & Mentoring

Development of Emerging ICT (EMICT) Centres in KarnatakaICT relationship with other Countries & Focused Marketing

Eco-Friendly Integrated Infrastructure

Use technology to enhance capabilities

Capacity Building

Increase Value addition

Creating new opportunities and jobs

Develop other centers beyond Bangalore

Leverage the global eco-system

Supporting the growth needs of the industry

Highlight Karnataka to be the Global ICT investment destination

Branding

KIG 2020 GOALS

US $ 72.72 B

20,00,000Direct

> 1000

New Startups

Employment

Revenues

Continued emphasis on growthIT/BPO

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Karnataka Strengthening the Education Base

“E-Ready children with improved Quality” 

1. Create “Karnataka Knowledge Network (KKN)” a fully wired state with the following:

a. Provide Free Wi-Fi in Bangalore

b. Set up a Karnataka School Network

c. Set up a Karnataka College network connecting all Govt & Private colleges with high speed bandwidth

2. Provide all school children from standard 7 and above with a Tablet with wireless and 3G preloaded bi-lingual teaching material for each class and access to a portal where they can download the latest teaching material

3. Provide all students and faculty of government colleges/University a Tablet/laptop preloaded with content with wireless/3G

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Promotion of Innovation, IP Creation, R&D and Funding

• Created US $200 million Karnataka ICT & Innovation fund to take care of financial needs of the ICT industry from startup to growth as debt /working capital.

• Special program to identify 100 Innovators and Entrepreneurs.

• Proposed to set up ESDM/VLSI Incubation Centres across the state

• Facilitate IP development by Indian industry by providing incentives for patent filing and maintenance.

• Provide 20% R&D Grant subject to a of maximum 2% of annual turnover of Karnataka ESDM companies

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KarnatakaDevelopment of other ICT Centres

The Government needs to develop each ICT Centre, E.g. Mangalore, around the elements depicted in the picture which trigger growth

Industry Promotion

ESDM Innovation & Incubation

Centres

Land &Infrastructure

support

Talent DevelopmentCentre

Rural Technology &Business Operations

Non-IT Skill Dev Centre(Garv)

Key Enablers of Other ICT Centers in

Karnataka

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Robust Infrastructure: Backbone of Industrial growth

Decentralization

Industrial Infrastructure

7the largest urbanised state in the country

Karnataka’s urban population has grown by 31.3% since 2001

Water supply coverage of 85% to 90% in core city areas

7the largest urbanised state in the country

Karnataka’s urban population has grown by 31.3% since 2001

Water supply coverage of 85% to 90% in core city areas

Support Infrastructure

Urban Infrastructure

Fuelling the growth ofIndustry in KarnatakaFuelling the growth ofIndustry in Karnataka