Overview of

Karnataka
Profile

 Area: 1,92,000 sq. Km (eighth largest state in

India)

 Population :
52.73 million (eighth rank in India);
Urban Population: 28.5%

 Literacy : 38.5% (National average:36.2%);

Female Literacy:27.7%
Economy and Industry

 Economy largely depends on agriculture- 71%

engaged in farming

 Largest producer of coffee, raw silk,

sandalwood as well as cottage and mineral-
based industries

 Global economic player- electronics, software

and biotechnology
Economy and Industry

 With Bangalore considered to be India’s IT

entrepreneurial hotspot, home to some of the most
successful entrepreneurs in the new economy industries
 Eg: WIPRO, Infosys, Igate, Blue Star

 Accounted for 38%of the country’s IT exports which

amounted to revenue of $9 billion
Viewpoint of Entrepreneurs

 Karnataka scored just 3.13 on a scale of 5 in

entrepreneurial confidence - well below the
national average of 3.31.

 Entrepreneurs in Karnataka felt the state

lagged in providing government support,
infrastructure, systems and regulation to
support entrepreneurial ventures.
Viewpoint of Entrepreneurs

 Power -- its cost, quality and availability --

was seen to be a major deterrent.
 Poor roads, infrastructure and lack of a
sufficiently productive workforce particularly
in the manufacturing sector add to it.
 The state has potential but is not seen to be
progressive
Viewpoint of Entrepreneurs

The survey observed the need for a more evolved

funding framework channelled by angel investors
that go beyond the IT/ITeS sector, as well as
banks, with support from the state government.
Entrepreneurs have also expressed a need for
enhanced mentoring
Entrepreneurs also pointed out that most state
regulations were stifling to industry and a review
of the older regulations, some of which have been
in practise for decades, was necessary
CONCLUSION

 Karnataka's deteriorating competitiveness is

a matter of serious concern. It has been
widely articulated by the industry but ignored
by the political class. Now that perception is
being backed by hard data, it is time for the
establishment to put its house in order to
restore the state to its pre-eminent position
as the preferred destination to do business.