KARNATAKA - IBEF · Karnataka has vibrant automobile, agro, aerospace, ... Bijapur, Chikmagalur, Chitradurga, Dandeli, Hubli-Dharwad, Mangalore, Mysore and Shimoga.

For updated information, please visit www.ibef.org February 2018

KARNATAKA

THE SILICON VALLEY OF INDIA

Table of Content

Advantage State………………………..…...5

Karnataka Vision 2020……………………..6

Karnataka – An Introduction….…….……...7

Karnataka Budget 2017-18…………..……20

Infrastructure Status..................................23

Business Opportunities…………...............44

Doing Business in Karnataka……………...79

State Acts & Policies..................................80

Executive Summary……………….….…….3

For updated information, please visit www.ibef.org KARNATAKA 3

EXECUTIVE SUMMARY … (1/2)

Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2015-16 Department of Industrial Policy & Promotion

At current prices, the Gross State Domestic Product (GSDP) of Karnataka is estimated to be about US$ 197.8

billion in 2017-18F.

The per capita GSDP increased to US$ 2,708.9, growing at a CAGR of 12.11% between 2011-12 & 2016-17.

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 % share in India's electronics and computer software exports &

76.36% 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, biotechnology, engineering, food

processing and aerospace.

Vibrant industrial base

The cumulative FDI inflows in the state from April 2000 to September 2017 were recorded at US$ 27.095

billion, the 3rd highest in India after Maharashtra and New Delhi and accounted for a share of 8.0% in India’s

cumulative FDI inflows.

One of the preferred

investment destinations

Note: F – Forecast, *As per latest data available


EXECUTIVE SUMMARY … (2/2)

Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2015-16 Karnataka State Budget 2016-17

During 2016-17, the total exports of the state were recorded at US$ 82.06 billion. During 2016-17, exports

contributed about 47% 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, 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 23.541 million tonnes in 2016-17. The state’s

total food grain production is estimated to be 9.64 million tonnes in 2016-17. 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 25.2 million in 2005-06 to 133 million in 2016-17. The

state has world heritage sites at Hampi & Pattadakal. The sector contributes 14.8% to GSDP of Karnataka;

plans are afoot to expand to 26% by 2020.

Strong growth in tourism

sector


ADVANTAGE: KARNATAKA

High economic growth

GSDP expanded at a CAGR of 13.33% between 2011-

12 and 2016-17.

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.

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.

January

2018

Capacity

allocated for

solar energy-

7,736.75

MW

2022

target

Solar energy

share in total

energy

consumption

is expected

to reach 3%

Advantage

Karnataka

Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade Promotion Centre.


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


KARNATAKA FACT FILE

Source: Economic Survey of Karnataka 2015-16, 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


KARNATAKA IN FIGURES … (1/2)

Parameter Karnataka All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 8.30 100.0 Directorate of Economics & Statistics of Karnataka,

Central Statistics Office

GSDP growth rate (%) 11.4 11.52 Directorate of Economics & Statistics of Karnataka,


Per capita GSDP (US$) 2,708.9 1,611 Directorate of Economics & Statistics of Karnataka,


Physical Infrastructure

Installed power capacity (MW) 21,632.09 330,860.58 Central Electricity Authority, as of December 2017

Wireless subscribers (No) 66,731,410 1,162,470,432 Telecom Regulatory Authority of India - as of

November 2017

Internet subscribers (No) 29,110,000 429,240,000 Telecom Regulatory Authority of India - as of

September 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


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) 27.095 357.345 Department of Industrial Policy & Promotion, April

2000 to September 2017

Industrial Infrastructure

PPP projects completed & operational (No) 129 1,246 Department of Economic Affairs, Ministry of Finance,

Government of India, July 2016

Operational SEZs (No) 26 222 Department of Commerce, Ministry of Commerce &

Industry, December 2017


ECONOMIC SNAPSHOT – GSDP

GSDP of Karnataka at current prices (US$ billion)

94

.1

10

7.9

12

6.8

14

1.7

15

7.8

17

5.8

19

7.8

0.0

50.0

100.0

150.0

200.0

250.0

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

CAGR 15.21%

At current prices, the Gross State Domestic Product (GSDP*) of

Karnataka stood at about US$ 197.8 billion in 2017-18F.

The GSDP of the state grew at a CAGR of 15.21% 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 2015-16

Note: F- Forecast


ECONOMIC SNAPSHOT – NSDP

NSDP of Karnataka at current prices (US$ billion)

Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2015-16

86

.1 98

.7 1

15

.9

12

8.0

14

2.4

15

8.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 12.99%

The net state domestic product (NSDP#) of Karnataka was recorded

at about US$ 158.6 billion in 2016-17.

The NSDP of the state grew at a CAGR of 12.99% between 2011-12

and 2016-17.


ECONOMIC SNAPSHOT – PER CAPITA GSDP

GSDP per capita of Karnataka at current prices (US$)

Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million US$/Population in million

15

29

.9

17

36

.7

20

17

.6

22

30

.4

24

58

.5

27

08

.9

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 12.11%

The state’s per capita GSDP^ was US$ 2,708.9 in 2016-17.

The per capita GSDP increased at a CAGR of 12.11% between

2011-12 and 2016-17.


ECONOMIC SNAPSHOT – PER CAPITA NSDP

NSDP per capita of Karnataka at current prices (US$)

14

01

.0

15

88

.1

18

44

.4

20

15

.0

22

18

.1

24

44

.2

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR: 11.77%

The state’s per capita NSDP& in 2016-17 was US$ 2,444.2.

The per capita NSDP increased at a CAGR of 11.77% between

2011-12 and 2016-17.

Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office per capita NSDP& -calculated using NSDP million US$/Population in million


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

In 2016-17, the tertiary sectorµ contributed 65.75% to the state’s

GSVA at current prices, followed by the secondary sector (22.39%)

and the primary sector (11.86%).

At a CAGR of 16.24%, the tertiary sector has been the fastest

growing among the three sectors from 2011-12 to 2016-17. 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 7.46% between 2011-12

and 2016-17. This was driven by manufacturing, construction and

electricity, gas & water supply.

The primary sectorµ grew at a CAGR of 8.47% between 2011-12 and

2016-17.

Visakhapatnam port traffic (million tonnes) GSVA composition by sector

14.50% 11.86%

28.67%

22.39%

56.84% 65.75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2016-17

9.61%

16.31%

11.50%

CAGR

Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, Aranca Research Sector-wise %share of GSDPµ -Karnataka Socio Economic Survey 2015-16


ECONOMIC SNAPSHOT – AGRICULTURAL

PRODUCTION

Sugarcane is a major crop of the state with production estimates of

about 36.13 million tonnes in 2016-17. The state’s total food grain

production is estimated to be 9.15 million tonnes during 2016-17.

During 2016-17, major oilseeds production in the state was 0.718

million tonnes. Production of cereals and pulses in the state is

estimated to be 7.75 million tonnes & 1.401 million tonnes,

respectively, in 2016-17.

In 2016-17, total production of major fruits in the state was 6.91

million tonnes.

Production of major crops in Karnataka (lakh tonnes)

Crop 2015-16 2016-17

Cereals 85.92 77.53

Pulses 10.52 14.01

Total food grains 96.44 91.54

Oilseeds 7.09 7.18

Sugarcane 363.14 361.25

Tobacco 0.49 0.82

Source: Department of Agriculture & Corporation, Government of Karnataka


ECONOMIC SNAPSHOT – EXPORTS…(1/3)

During 2016-17, exports from the state contributed about 47% to the

state’s economy, with biotechnology, computer software and

electronics being the major exports.

In 2016-17, total exports from the state aggregated to US$ 82.06

billion. Karnataka’s exports increased at a CAGR of 21.35% 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

Karnataka exports by commodity (US$ million)

Commodity 2014-15 2015-16 2016-17

Electronics & computer software 58,900.00 60,503.00 62,666.37

Readymade garments 1,726.43 2,273.72 2,231.81

Petroleum & petroleum products 6,680.11 1,841.34 1,713.51

Engineering goods 3,377.91 3,082.71 4,093.65

Iron ores & minerals (incl granites) 122.44 122.89 136.17

Exports from Karnataka (in US$ billion)

25

.69

33

.97

40

.10

45

.08

78

.43

79

.76

82

.06

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

CAGR: 21.35%



Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka

Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Silk products 148.62 139.83 120.42 107.83 91.90 74.19 56.91

Coffee products 478.74 659.26 650.71 596.88 824.98 480.54 493.1

Basic chemicals,

pharmaceuticals and cosmetics 634.15 1,054.85 1,331.80 1,376.91 978.10 1,680.65 830.34*

Agriculture & processed food

products 146.87 158.53 211.56 215.66 229.43 803.54 632.22

Gems and jewellery 4,361.46 4,929.98 4,508.01 4,010.45 3,649.30 5,119.41 2,567.23*

Cashew and cashew kernels 128.67 183.25 155.96 199.07 249.67 111.60 151.23

Handicrafts 64.23 55.47 68.86 85.60 90.91 194.48 81.49*

Leather products 44.28 66.49 83.23 74.65 90.08 55.10 30.42*

Chemicals and allied products 74.09 99.73 90.41 93.23 158.43 74.50 40.82*

Marine products 115.74 125.70 116.37 177.01 217.82 118.58 63.79*

Plastic goods 123.41 125.49 145.09 116.12 62.38 121.53 66.28*

Spices 98.64 145.44 166.45 190.78 186.79 50.13 47.8

Wool & woollen products 19.95 26.80 27.62 29.20 31.69 0.93 1.09*

Miscellaneous 227.53 1,001.04 881.79 923.19 958.36 3214.48 632.81*

Karnataka exports by commodity (US$ million)

Note: *Up to September 2016



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


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

26

9

21

7

16

9

11

0

89

10

6

28

5

19

4

21.43 14.54 7.33 1.54 3.34 4.84 23.93 23.50

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017

Number of Investment Intentions Proposed Investments (US$ Billion)

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 September 2017 were recorded at

US$ 27.095 billion, the 3rd highest in India after Maharashtra and

Delhi and accounted for a share of 8.0% 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

3.4

4 4.1

2

2.1

3

4.7

2

0.000.501.001.502.002.503.003.504.004.505.00

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

2015-1

6

20

16-1

7

20

17-1

81

Note: 1During April to September 2017


ANNUAL BUDGET 2017-18 … (1/3)

Total consolidated budget size for 2017-18 was US$ 28.96 billion.

Budget highlights:

• 150 Electric Buses will be introduced in Bengaluru City and 50 Electric Buses in Mysuru.

• Karnataka State Road Safety Authority will be constituted, to reduce road accidents and to improve road safety.

• Krishi Bhagya to be implemented for the first time in Horticulture Department – US$ 31.04 million.

• Upgradation of 302 primary veterinary centers to veterinary dispensaries. .

• Setting up of 25 new Government Polytechnics at a cost of US$ 0.62 million each in rural areas.

• Development of 4,386 km of roads under “Namma Grama Namma Raste”- phase 4 – US$ 273.95 million.

• Works amounting to US$ 447.95 million to be implemented under Nagarothana (Municipality) phase-3 project in small and medium towns.

Source: Government of Karnataka, Budget 2016-17



Primary & Secondary education :

The state government has taken various initiatives such as, “Nali

Kali”, “not for profit organization”, etc., for enhancement of quality

education across all government schools in the state.

A comprehensive e-content programme, “IT@Schools in Karnataka”

will be launched by high school teachers for delivering digital literacy

to government high school students.

Reassurance of yoga education in government schools.

Higher education:

For accentuating knowledge as well as fiscal necessities in the state,

Karnataka Education Policy will be deployed.

For presenting the state’s educational and cultural legacy, the state

government has decided to develop Karnataka Heritage Centre at a

cost of US$ 0.30 million in Karnataka Folklore University.

The state government has allocated US$ 1.52 million for allowing the

government colleges to obtain UGC grant by getting the NAAC

recognition.

Sector

Annual

allocation

(US$ million)

2015-16

Annual

allocation

(US$ million)

2016-17

Annual

allocation

(US$ million)

2017-18

Primary &

secondary

education

2,475.40 2,653.98 2,835.13

Higher education 595.17 710.51 683.10

Energy 2,125.08 1,929.72 1,594.36

Water resources 2,149.30 2,211.57 2,472.4

Urban

development 1,891.9 2,269.01 2,131.39

Social welfare 756.4 834.70 987.62

Health and family

welfare 1,007.7 768.71 794.38

Agriculture 644.16 663.61 788.49

Horticulture 126.07 115.03 169.34

Sericulture 30.85 56.06 66.59

Fisheries 49.27 46.13 52.3

Forest,

environment

and Ecology

291.47 245.79 268.83

Major sector-wise allocations as per budget 2015-16, 2016-17

and 2017-18



Agriculture:

“Krishi Bhagya” scheme will be extended to Costal and Malnad areas(excluding command areas) covering all the taluks at a cost of US$ 93.13

million in the year 2017-18.

Drip and sprinkler irrigation units will be distributed at 90% subsidy for up to 2 hectares and 50% subsidy for up to 5 hectares covering an area of

1.8 lakh hectares.

It is proposed to set up 250 more centres at hoblis under the “Krishi Yanthradhare Programme” at a cost of US$ 18,94 million.

Energy:

40 new sub stations will be established to strengthen the transmission network.

It is proposed to add 3,975 MW capacity during the year 2017-18 including 1,600 MW from Yaramaras project, 1,000 MW from Solar Energy Park

of Pavagada and 1,375 MW from renewable energy sources.

As per state budget 2017-18, US$ 1.59 billion has been allocated for the Energy Department.

5 villages in each MLA constituency will be converted into Model Electricity Villages by taking steps for the efficient usage of electricity.

Water Resources:

Construction of field irrigation canals for 35,000 hectares of area, construction of field drains for 28,000 hectare area and development of saline

and alkaline lands of 12,500 hectare area.

As per state budget 2017-18, US$ 2.47 billion has been allocated for the Water Resource Department.


PHYSICAL INFRASTRUCTURE – ROADS

Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2016-17

The state is well-connected to its five neighbouring states and other

parts of India through 39 national highways that run through the

state, as of June 2017. The Karnataka State Road Transport

Corporation (KSRTC), established in August 1961, provides state

road transport services.

Phase IV is going to be taken up under “Namma Grama Namma

Rasthe”, with an allocated sum of Rs 1,765 crore (US$ 263.08

million) for rural roads of 4386 km.

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 6.502.29

State highways 27,163

Major district roads 55,515

Municipal roads 8,366

Other roads 155,545


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.

In State Budget 2017-18, the government released a grant of US$

244 million for Rail Over Bridge and Rail Under Bridge works under

progress.

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, 2015-16, State Budget 2016-17

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)


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 19,420,524 142,260 261,040

Mangalore 1,654,660 14,415 1,983

Source: AAI, Global Investors Meet, Budget 2016-17

Note: 1From April to September 2017


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

34

,79

8

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 January 2017


PHYSICAL INFRASTRUCTURE – PORTS… (2/2)

Cargo handled by various minor ports in Karnataka (‘000 MT)

Minor Port 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 (up to

Dec 2016)

Old Mangalore 87.83 165.93 120.26 115.89 98.00 48.52

Karwar 497.20 441.19 377.10 525.07 714.00 426.24

Malpe, Belekeri, Hangarkatta &

Kundapur 6.81 4.74 3.00 2.31 3.00 1.32

Total 591.84 611.86 500.36 643.27 815.00 476.08

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 2016-17


PHYSICAL INFRASTRUCTURE – POWER

As per the budget 2017-18, the state government has allocated US$

1.37 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 January 2018, the state had an installed power generation

capacity of 22,289.96 MW. Out of this, central utilities contributed

3,127.20 MW, private utilities contributed 10,259.71 MW and

8,903.05 MW was under state utilities.

Of the total installed power generation capacity, 9,560.82 MW was

contributed by thermal power. Capacities of 698.00 MW and

8,431.34 MW were contributed by nuclear & renewable power,

respectively, while hydropower contributed 3,599.80 MW.

As per the Budget 2017-18, the state plans to add 3,975 MW of

power in 2017-18, out of which renewable energy accounts for 2,375

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 January 2018, the installed capacity for solar power in the state

reached 2,665.38 MW

Installed Power Capacity (GW)

8.5 8.7

11.4 12.1 13.9 14.0

15.1 17.3

21.3 22.3

0.0

5.0

10.0

15.0

20.0

25.0

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

FY

18*

Note: *As of January 2018

Source: Central Electricity Authority

Source: Central Electricity Authority, News Articles


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 66.73 million wireless subscribers and 2.26 million wire-line

subscribers in Karnataka, as of November 2017.

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 November 2017, 34,358,105 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 November 2017)

Wireless subscribers 66,731,410

Wire-line subscribers 2,258,469

Internet subscribers(1)

29,110,000

Post offices(2)

9,666

Teledensity (in %) 108.98

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 September 2017, (2) As of March 2017, (3)As of July 2017


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% 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 2017-18, an amount of US$ 2.13 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.


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 Mangaluru, a desalination plant will be established with public-private-participation (PPP).

Source: : Budget 2016-17


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


Water Supply Scheme (Nanjangud) Water sanitation Under construction 4.74


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


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


New Puttanna Theatre and Parking Social and commercial


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


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)



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



CLUSTERS … (3/4)



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




CLUSTERS … (4/4)




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


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

The state has a literacy rate of 75.6%, the male literacy rate is 82.8%

and the female literacy rate is 68.1%.

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 (2016-17)

Institute type Number Enrolments

Medical colleges 55 8,125

Ayurvedic colleges 66 4,170

Homoeopathic colleges 11 925

Unani colleges 4 230

Naturopathy & Yogic Sciences

(BNYS) 4 345

Dental colleges 39 2,770

Pharmacy colleges 61 4,784

Nursing colleges 248 13,840

Source: Economic Survey of Karnataka 2015-16 Census 2011


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

As per economic survey 2016-17, the state participation in primary

education is significant as 81.23% of the lower primary and 63.40%

of the higher primary schools are managed by Department of

Education.

The Karnataka government is expecting investments of US$ 777.72

million in higher education sector which will raise the Gross

Enrollment Ratio (GER) to 40% in the state.

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 2015-16

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


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


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


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.


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.

For the Smart City Mission project, the government is set to release

US$ 176.71 million, during 2017-18.

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


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, 2015-16

Total number of micro, small and medium enterprises in

Karnataka

Year MSME units Employment Employment per

unit

2012-13 24,206 155,551 6.43

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 (up

to Dec 2016) 28,784 372,348 12.93


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% 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$ 62.66 billion during 2016-

17.

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.

As per the state budget 2016-17, the state government will set up a

technology incubation centre during 2016-17 in Doddaballapura town

for the endorsement of startups related to technology in association

with Texas University.

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

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

Some of the key players

Wipro Technologies

Infosys

Genpact

Accenture

Source: : Visvesvaraya Trade Promotion Centre;

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


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 2015-16, Accenture generated revenues of US$

8.97 billion. The company has one consulting office and seven delivery centres in Bengaluru.

Wipro Ltd

Infosys

Technologies Ltd

Accenture

Genpact


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% 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% of the biotechnology companies in India have a base

in Bangalore and the state drives 50% of the total revenues in India’s

biotechnology sector.

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


Biocon

AstraZeneca India

Jubilant Life Sciences Ltd

GlaxoSmithKline Pharmaceuticals Ltd


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


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% 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$ 2.26 billion in

2016-17 (up to September 2016).

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

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


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%


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


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


Bharat Electronics Ltd

Nokia

Siemens

Philips Electronics India Ltd


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


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% 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% 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


Toyota Kirloskar

Volvo India

TVS Motor Company

Delphi Automotive Systems Pvt Ltd


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


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% 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% of the national garment

production. During 2015-16, the state contributed around 65%, 12%

and 6% 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.

The Textile Policy offers various incentives for investments in the

textile sector; these include credit linked capital subsidy, entry tax

reimbursement and power subsidy.

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% to textile

industries for infrastructure facilities in greenfield & brownfield zones.

Source: : Karnataka Economic Survey 2015-16, Directorate of Industries and Commerce


Gokaldas Exports Limited

Karnataka Silk Industries Corporation (KSIC)

Himatsingka Seide

Shahi Exports Private Limited



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



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



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


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% 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


325 342 300

479

659 651 620

813

473

271

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*

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% 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.


Hindustan Unilever Limited

Nestle India

Britannia Industries Limited

United Breweries Group

Source: : Economic Survey of Karnataka 2015-16, Coffee Board

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 2016


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 US$ 5.6 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 2016, the company recorded revenues of

US$ 1.43 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 US$ 1.47 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. In the second quarter of 2015, the company recorded revenues of US$ 187.89 million.

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


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.

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% to 5.5% 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


Boeing

Hindustan Aeronautics Limited

Airbus Engineering Centre

BEML Ltd



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


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


Boeing

Hindustan Aeronautics Limited

Airbus Engineering Centre

BEML Ltd


Source: Karnataka AVGC Policy 2017-22, News Articles

Note: ABAI – Association of Bangalore Animation Industry


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


KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)

Karnataka is among the top chip designing hubs in the country.

Around 70% 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


Intel

AMD

Qualcomm Inc

Nvidia


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


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 2017-18, the state government has decided to

develop 16 tourist centres into world class tourist destinations.

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%.

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% to the GSDP of Karnataka; plans are

afoot to expand to 26% 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.

Source: : Socio Economic Survey 2014-15, Government of Karnataka

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

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


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


KEY INDUSTRIES – RENEWABLE ENERGY … (1/4)

As of December 2017, renewable energy was recorded at 7,773.47 MW out of the total installed capacity of 21,632.09 MW. Therefore, it

contributed a total of 35.9% 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 19,284.16 MW, amounting to nearly 64% of the total potential.

Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10% of the land of SEZs and

dedicating it for renewable energy.

The policy also mandates to keep aside 10.0% 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% 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.

Source: Economic Survey Karnataka 2014-15, Tea Board of India



Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy

Progress in renewable energy as of January 2018

No Renewable energy source Available potential (MW) Capacity allotted (MW) Installed capacity (MW)

1 Wind 55,857 17319.47 3,840.36

2 Hydro 3,000 3012.55 851.96

3 Biomass 1,000 391.18 134.03

4 Co-generation 2,000 2138.65 1,538.16

5 Solar 24,700 7736.75 2665.38

Grand total 86,557 30,598.60 9,029.89



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% 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



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% of the total consumption by

2022, up from the present consumption of 1.5%.

Karnataka is the only state to have supported solar projects under

the REC (Renewable Energy Certificate) mechanism.

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).

Solar energy


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


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.


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


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.


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


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% of the US$ 400 billion by 2020

• Generate over 20% 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% of India's PhDs and 5000 patent filings in ESDM sector in Karnataka by 2020.


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.


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

Read more

Read more

Read more

Read more

http://www.investkarnataka.co.in/assets/downloads/industrial-policy.pdf

http://www.gokenergy.gov.in/documents/Solar Policy English.pdf

http://kredlinfo.in/solargrid/Solar Policy 2014-2021.pdf

http://karnatakatourism.org/policy/Tourism_Policy.pdf

http://www.startup.karnataka.gov.in/docs/Startup_Policy_Karnataka.pdf



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% to 32.0% 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

Read more

Read more

Read more

Read more

http://www.bangaloreit.biz/IT_2011/pdf/govt_karnataka_policy.pdf

http://itbt.karnataka.gov.in/Documents/KAVGCPolicy2017-2022.pdf

http://meity.gov.in/writereaddata/files/Karnataka_ESDM_Policy_2013.pdf

http://www.investkarnataka.co.in/assets/downloads/aerospace-policy.pdf



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

Read more

Read more

Read more

Read more

http://www.sezindia.nic.in/writereaddata/statePolicies/state policy of sez 20091.pdf

http://kredlinfo.in/general/Renewable Energy Policy 2009-14.pdf

http://raitamitra.kar.nic.in/Integrated Agri Business.pdf

https://www.nriforumkarnataka.org/policy/Bio Technology Policy.pdf



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

Read more

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

http://idd.kar.nic.in/docs/infra_policy.pdf

http://www.investkarnataka.co.in/assets/downloads/karnataka-mineral-policy.pdf

http://nriforumkarnataka.org/imgs/2016/NRI_Policy_book_Final.pdf

http://www.investkarnataka.co.in/assets/downloads/Karnataka-State-Electric-Vehicle-&-Energy-Storage-Policy-2017.pdf



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


EXCHANGE RATES

Source: Reserve Bank of India

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 67.09

Q1 2017-18 64.46

Q2 2017-18 64.29

Q3 2017-18 64.74

Exchange Rates (Fiscal Year)


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