Karnataka April 20181

LOTUS MAHAL IN HAMPI, KARNATAKA
KARNATAKA
THE SILICON VALLEY OF INDIA
For updated information, please visit www.ibef.org April 2018

Table of Content
Executive Summary……………….….…….3
Advantage State………………………..…...5
Karnataka Vision 2020……………………..6
Karnataka – An Introduction….…….……...7
Karnataka Budget 2018-19…………..……20
Infrastructure Status..................................23
Business Opportunities…………...............44
Doing Business in Karnataka……………...79
State Acts & Policies..................................80

EXECUTIVE SUMMARY … (1/2)
 At current prices, the Gross State Domestic Product (GSDP) of Karnataka is estimated to be about Rs12.69
trillion (US$ 196.88 billion) in 2017-18F.
Strong growth in GSDP
 The per capita GSDP increased to Rs 193,409 (US$ 3,001) growing at a CAGR of 14.32 per cent between 2011-
12 & 2017-18F.
 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.
IT hub of India  Exports of electronics and computer software from the state reached US$ 62.66 billion 2016-17. Exports of IT &
electronic products accounted for around 38.99 per cent share in India's electronics and computer software
exports & 76.36 per cent share in Karnataka’s overall exports.
 Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech & heavy engineering industries.
Vibrant industrial base The state has sector-specific SEZs for key industries such as IT, nanotechnology, biotechnology, engineering,
food processing and aerospace.
 The cumulative FDI inflows in the state from April 2000 to December 2017 were recorded at US$ 28.82 billion, the
One of the preferred
3rd highest in India after Maharashtra and New Delhi and accounted for a share of 8.0 per cent in India’s
investment destinations cumulative FDI inflows.
Note: F – Forecast, *As per latest data available

Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2017-18 Department of Industrial Policy & Promotion
3 KARNATAKA For updated information, please visit www.ibef.org

EXECUTIVE SUMMARY … (2/2)
 During 2017-18*, the total exports of the state were recorded at US$ 39.38 billion. During 2016-17, exports
Strong growth in export contributed about 47 per cent in the state’s economy. Sectors such as biotechnology, computer software and
electronics are major contributors in the overall exports from the state.
 Karnataka has 52 universities, 4,519 pre-university colleges, 535 Technical Institutions, 206 engineering colleges
Strong knowledge & 314 polytechnics, 47 medical colleges & 38 dental colleges.
infrastructure  The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies outsource their IT
services to firms in Bengaluru.
 Sugarcane is the major crop of the state with production of about 31.5 million tonnes in 2017-18#. The
Significant agriculture
state’s total food grain production is estimated to be 10.77 million tonnes in 2017-18. Karnataka is also the
base third largest producer of plantation crops in the country.
 Karnataka boasts of a diverse flora & fauna & a 320 km natural coast line, which makes it a nature tourist's
Strong growth in tourism paradise. Tourist arrivals in the state increased from 36.7 million in 2006 to 102.3 million in 2017^. The state
sector has world heritage sites at Hampi & Pattadakal. The sector contributes 14.8 per cent to GSDP of Karnataka;
plans are afoot to expand to 26 per cent by 2020.
Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2017-18 Karnataka State Budget 2018-19,2017-18* - (April-Sept),
# Advance Estimates of Agriculture Dept,2017^ up to November 2017

ADVANTAGE: KARNATAKA
March High economic growth Rich talent pool 2022

2018  GSDP expanded at a CAGR of 14.32 per cent between  Karnataka is termed as the Knowledge Capital of India. target
2011-12 and 2017-18.  The state has successfully attracted skilled labour,
Capacity  Buoyant services (IT, tourism) and industries driving especially, in the knowledge sector. Karnataka is Solar energy
allocated for economic growth. among the states that produce a large number of share in total
solar energy-  Sector specific SEZs and SIRs facilitating growth. doctors, engineers and medical technicians in the energy
8561.48MW country. consumption
is expected
to reach 3
per cent
Advantage
Karnataka
Infrastructure Policy support
 Well-developed social, physical and industrial  Wide range of fiscal and policy incentives for
infrastructure. businesses under the Karnataka Industrial Policy,
2014-19.
 Good road, rail, water and air connectivity and
substantial port infrastructure.  Investor-friendly sector-specific policies to promote
industries such as IT, biotechnology, tourism and
 Well-developed telecom infrastructure.
manufacturing.
 Excellent healthcare facilities.
 Simplified procedures for investment.
 In January 2017, Karnataka department of Commerce
and Industries introduced an NRI policy to attract
investments from non-resident Kannadigas.
 Karnataka i4 policy to incentivise the new IT / ITeS to
set up their facility in Tier 2/3 cities across Karnataka
Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade Promotion Centre.

KARNATAKA VISION 2020
 Develop the state as a vibrant knowledge

 Build infrastructure to boost productive
society.
potential of the economy.
 Focus on job oriented growth through
 Various metro rail and mono rail projects
skill development of the workforce.
are in progress.
 Increase rural incomes through

Education/  Better governance through wider
greater viability of agriculture and Infrastructure Skill Development
allied activities. participation and deep democratic
decentralisation.
 Bridge the gap between socially
backward and vulnerable groups  Encourage transparency and
Poor and Governance
and rest of the people. accountability.
Backward Classes
Vision 2020
Healthcare/ Industry  Build and sustain Bangalore’s
Social Amenities leadership in science, technology
 Improve access and availability of and knowledge based industries.
Women
quality healthcare for all. Tourism  Achieve a sustainable and orderly
Empowerment
process of industrialisation and
urbanisation.
 Preserve and promote Karnataka’s rich

heritage.  Enhance opportunities and empower
women across economic, social and
 Karnataka Tourism Vision Group (KTVG)
political spheres.
was set up in October 2013 to advise on
promoting tourism in state.
Source: State Planning Department

KARNATAKA FACT FILE
 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.
Parameters Karnataka
Source: Maps of India
Capital Bengaluru
Geographical area (sq km) 192,000

 Karnataka is located in the southern region of India. The state is
Administrative districts (No) 30
surrounded by the Arabian Sea in the west, Goa in the northwest,
Maharashtra in the north, Andhra Pradesh in the east, Tamil Nadu in Population density (persons per sq km) 319
the southeast, and Kerala in the southwest.
Total population (million) 61.1
 Languages spoken are Kannada, Tulu, Kodava, Hindi and English.
Sex ratio (females per 1,000 males) 973
Literacy rate (%) 75.6
Male literacy rate 82.5
Female literacy rate 68.1
Source: Economic Survey of Karnataka 2017-18, Census 2011 Office of Registrar General, India.

KARNATAKA IN FIGURES … (1/2)
Parameter Karnataka All states Source
Economy 2017-18 2017-18
Directorate of Economics & Statistics of Karnataka,

GSDP as a percentage of all states’ GSDP 7.6 100.0
Central Statistics Office
GSDP growth rate (in Rs) (%) 13.11 9.8
Per capita GSDP (US$) 3,001 1,975.05
Physical Infrastructure
Installed power capacity (MW) 24,612.77 340,526.58 Central Electricity Authority, as of March 2018
Telecom Regulatory Authority of India - as of January

Wireless subscribers (No) 67,277,163 1,151,936,422
2018
Telecom Regulatory Authority of India - as of
Internet subscribers (Mn) 29,97,000 445,960,000
December 2017
National Highway length (km) 6,791 115,435 NHAI - as of June 2017
Major and minor ports (No) 1 + 10 13+187 India Ports Association
Airports (No) 5 125 Airports Authority of India
Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45

KARNATAKA IN FIGURES … (2/2)
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
Department of Industrial Policy & Promotion, April

FDI equity inflows (US$ billion) 28.82 368.10
2000 to December 2017
Industrial Infrastructure
Department of Economic Affairs, Ministry of Finance,

PPP projects completed & operational (No) 24 740
Government of India, July 2016
Department of Commerce, Ministry of Commerce &
Operational SEZs (No) 26 204
Industry, December 2017
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

ECONOMIC SNAPSHOT – GSDP
 At current prices, the Gross State Domestic Product (GSDP) of GSDP of Karnataka at current prices
Karnataka stood at about Rs12.69 trillion (US$ 196.88 billion) in
2017-18F.
250.00 14.0
CAGR (in Rs) 13.11%
 The GSDP (in Rs) of the state grew at a CAGR of 13.11 per cent
between 2011-12 and 2017-18F.
12.69
12.0
200.00
 Growth has been mainly driven by secondary and tertiary sectors.
11.32
196.88
10.0
10.13
168.79
9.13
150.00
154.72
8.0
149.25
8.17
134.99
127.72
126.38
6.95
6.0
100.00
6.06
4.0
50.00
2.0
0.00 0.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-2018F
US$ billion Rs trillion
Note: F- Forecast, exchange rates used are averages of each year, provided on page 56
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2017-18

ECONOMIC SNAPSHOT – NSDP
 The Net State Domestic Product (NSDP) of Karnataka was recorded NSDP of Karnataka at current prices
at about Rs 11,45 trillion (US$ 177.68 billion) in 2017-18.
 The NSDP (in Rs) of the state grew at a CAGR of 12.83 per cent 200.00 14.0
CAGR (in Rs) 12.83%
between 2011-12 and 2017-18F.
180.00
12.0
177.68
160.00
11.45
152.30
140.00 10.0
10.22
139.53
134.83
9.13
120.00
123.40
8.0
8.25
116.79
115.74
100.00
7.47
6.0
6.36
80.00
5.55
60.00 4.0
40.00
2.0
20.00
0.00 0.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18F
US$ billion Rs billion
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2017-18

ECONOMIC SNAPSHOT – PER CAPITA GSDP
 The state’s per capita GSDP was Rs 193,409 (US$ 3,001) in 2017- GSDP per capita of Karnataka at current prices
18.
 The per capita GSDP (in Rs) increased at a CAGR of 11.89 per cent 3,500 250000.00
CAGR (in Rs) 11.89%
between 2011-12 and 2017-18.
3,000
3,001
200000.00
193,409
2,500
2,601
174,483
2,410
2,350
150000.00
157,755
2,149
2,000
2,056
2,055
143,701
129,986
1,500
111,891
100000.00
98,567
1,000
50000.00
500
- 0.00
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18F
US$ Rs
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million US$/Population in million

ECONOMIC SNAPSHOT – PER CAPITA NSDP
 The state’s per capita NSDP& in 2017-18 was Rs1,74,551 (US$ NSDP per capita of Karnataka at current prices
2,708.32).
 The per capita NSDP (in Rs) increased at a CAGR of 11.62 per cent 3000.00 200000.0
CAGR: (in Rs) 11.62%
between 2011-12 and 2017-18.
180000.0
2,708.32
2500.00
174,551
160000.0
157,436
2,346.64
140000.0
2,173.34
2000.00
142,267
2,123.03
1,964.12
129,823
120000.0
1,882.44
1,879.14
118,829
1500.00 100000.0
102,319
90,263
80000.0
1000.00
60000.0
40000.0
500.00
20000.0
0.00 0.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
US$ Rs
Note: exchange rates used are averages of each year, provided on page 56
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 2017-18F, the tertiary sectorµ contributed 66.63 per cent to the Visakhapatnam
GSVA composition
port trafficby
(million
sectortonnes)
state’s GSVA at current prices, followed by the secondary sector
(21.75 per cent) and the primary sector (11.62 per cent).
100%
 At a CAGR* of 19.17 per cent, the tertiary sector has been the 56.84% CAGR* 66.63%
fastest growing among the three sectors from 2011-12 to 2017-18F. 90%
The growth has been driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services. 80%
 The secondary sectorµ grew at a CAGR* of 9.24 per cent between 70%
2011-12 and 2017-18F. This was driven by manufacturing, 19.17%
construction and electricity, gas & water supply. 60%
 The primary sectorµ grew at a CAGR* of 10.45 percent between

50%
2011-12 and 2017-18F.
40% 28.67% 9.24%
30% 21.75%
20%
10.45%
10% 14.50%
11.62%
0%
2011-12 2017-18F
Note: F- Forecast,*CAGR in Rs term

Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, Aranca Research Sector-wise %share of GSDPµ -Karnataka Socio Economic Survey 2017-18

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
Production of major crops in Karnataka (lakh tonnes)  Sugarcane is a major crop of the state with production estimates of
about 31.5 million tonnes in 2017-18*. The state’s total food grain
production is estimated to be 10.7 million tonnes during 2017-18*.
Crop 2016-17** 2017-18*
 During 2017-18*, major oilseeds production in the state was
Cereals 79.58 87.37 0.97million tonnes. Production of cereals and pulses in the state is
estimated to be 8.73 million tonnes & 2.03 million tonnes,
Pulses 20.41 20.28
respectively, in 2017-18.
Total food grains 99.99 107.65
 In 2017-18*, total production of major fruits in the state was 7.55
Oilseeds 8.05 9.7 million tonnes.
Cotton 10.24 12.24
Sugarcane 273.78 315
Tobacco 0.65 0.89
Source: Department of Agriculture & Corporation, Government of Karnataka, ** Final Estimates of DE&S, *Advance Estimates of Agriculture Dept

ECONOMIC SNAPSHOT – EXPORTS…(1/3)
 During 2017-18*, exports from the state contributed about 47 per Exports from Karnataka (in US$ billion)
cent to the state’s economy, with biotechnology, computer software
and electronics being the major exports.
90.00 CAGR: 15.84%
 In 2017-18*, total exports from the state aggregated to US$ 39.38 80.00
82.06
billion. Karnataka’s exports increased at a CAGR of 15.84 per cent
79.76
78.43
70.00
during 2010-11 to 2016-17.
60.00
 Electronics and software exports from the state reached US$ 62.67 50.00
billion in FY17. 40.00
45.08
40.10
39.38
30.00
33.97
20.00
10.00
-
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
Karnataka exports by commodity (US$ million)
Commodity 2015-16 2016-17 2017-18*
Electronics & computer software 60,503.00 62,666.37 30,413.21

Readymade garments 2,273.72 2,231.81 1,161.28
Petroleum & petroleum products 1,841.34 1,713.51 652.57
Engineering goods 3,082.71 4,093.65 2,718.46
Iron ores & minerals (incl granites) 122.89 136.17 97.60
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka,* up to September 2018

Karnataka exports by commodity (US$ million)
Commodity 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
Silk products 139.83 120.42 107.83 91.90 74.19 58.54 23.23
Coffee products 659.26 650.71 596.88 824.98 480.54 507.33 319.99
Basic chemicals,
1,054.85 1,331.80 1,376.91 978.10 1,680.65 1,994.13 1,005.06
pharmaceuticals and cosmetics
Agriculture & processed food
158.53 211.56 215.66 229.43 803.54 650.51 301.37
products
Gems and jewellery 4,929.98 4,508.01 4,010.45 3,649.30 5,119.41 5,430.03 1,547.27
Cashew and cashew kernels 183.25 155.96 199.07 249.67 111.60 155.61 98.39
Handicrafts 55.47 68.86 85.60 90.91 194.48 172.18 93.93
Leather products 66.49 83.23 74.65 90.08 55.10 57.29 49.08
Chemicals and allied products 99.73 90.41 93.23 158.43 74.50 80.12 39.56
Marine products 125.70 116.37 177.01 217.82 118.58 162.52 79.37
Plastic goods 125.49 145.09 116.12 62.38 121.53 137.88 69.32
Spices 145.44 166.45 190.78 186.79 50.13 49.18 29.47
Wool & woollen products 26.80 27.62 29.20 31.69 0.93 0.15 0.94
Miscellaneous 1,001.04 881.79 923.19 958.36 3214.48 1292.85 683.23
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka, Economic Survey 2017-2018,* up to September 2018

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
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

ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
 The state has a stable political environment. Successive state FDI equity inflows, 2008-09 to 2017-18 (US$ billion)
governments have recognised the importance of industries in the
state and have provided a conducive business environment to attract 7.00
domestic as well as foreign entities. Karnataka is ranked 5th in terms
6.00
6.44
of attracting private sector investments in India. According to the
5.00
Department of Industrial Policy & Promotion (DIPP), the cumulative
4.00
FDI inflows from April 2000 to December 2017 were recorded at US$
4.12
3.00
3.44
$ 28.82 billion, the 3rd highest in India after Maharashtra and Delhi
and accounted for a share of 8.0 per cent in India’s cumulative FDI 2.00
2.13
2.02
1.09
1.12
1.53
1.02
1.89
inflows. 1.00
0.00
 With a private equity & venture capital investment of US$ 2.51 billion
2017-181
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2016-17
2015-16
from 280 deals, Karnataka stood at the 2nd position, among all other
states.
Investment intentions in terms of IEMs filed, LOIs/DILs issued in Karnataka
300
285.0
250
200
217
194.0
150
169
100
110
106.0
89
50 14.54 23.93 23.50 14

7.33 1.54 3.34 4.84
0.24
0
2011 2012 2013 2014 2015 2016 2017 2018
Number of Investment Intentions Proposed Investments (US$ Billion)
Note: 1During April to December 2017

Source: Department of Industrial Policy & Promotion Directorate of Economics and Statistics, Government of Karnataka

ANNUAL BUDGET 2018-19 … (1/3)
 Total consolidated budget size for 2018-19 was US$ 32.44 billion.
 Budget highlights:
• For the second successive year Karnataka has occupied the first position in attracting industrial investments.
• Rs 2,500 crore (US$ 386.16 million) has been allocated for development of Bengaluru.
• Setting up of 11 new industrial townships has been proposed by the state government
• Creation of a Detailed Project Report (DPR) for 105.55 km long phase-III of Namma Metro will be soon be undertaken
• The state government is going to come out with a new logistics policy to create a Multi-Modal Transportation Network. Also, a logistics park
will be set up on 400 acres of land near Bengaluru and 50 acres near Hubbali.
• To promote innovation culture in the state, setting up of Karnataka Innovation Authority under the chairmanship of the chief minister has been
announced.
Source: Government of Karnataka, Budget 2016-17

Primary & Secondary education : Major sector-wise allocations as per budget, 2016-17,2017-18
and 2018-19
 The state government has taken various initiatives such as,
“Athyuthama S.D.M.C.” award in each taluk to the best performing Annual Annual Annual
School Development and Management Committee at Government allocation allocation allocation
Sector
Primary and High schools. (US$ million) (US$ million) (US$ million)
2016-17 2017-18 2018-19
 The state government, along with Agasthya Foundation, is going to
undertake establishment of Science Committee’s at all high schools Primary &
and pre-university colleges. secondary 2,653.98 2,835.13 3,452.27
education
Higher education:
Higher education 710.51 683.10 697.25
 To encourage women in post graduation ,government has given
Energy 1,929.72 1,594.36 2,183.50
exemption to all girls taking admission in Government Pre-
University, Degree and Post Graduation courses. Water resources 2,211.57 2,472.4 2,471.12
 To excellence in higher education , government has facilitate with the Urban

2,269.01 2,131.39 2,656.16
grant of Rs.1 crore (US$0.02 million) for each to establish post development
graduate centre at Chikkamagaluru under Kuvempu University and a Social welfare 834.70 987.62 1008.34
post graduate centre at Jamakhandi of Bagalkote under Rani
Channamma University. Health and family
768.71 794.38 1026.41
welfare
Agriculture 663.61 788.49 903.46
Horticulture 115.03 169.34 153.69
Sericulture 56.06 66.59 70.59
Fisheries 46.13 52.3 38.92
Forest,
environment 245.79 268.83 301.05
and Ecology

Agriculture:
 The state has come up with the a scheme “Raitha Belaku” to give direct income assistance to mitigate the miseries of dryland farmers. Under this
scheme US$77.23 per hectare subject to maximum of US$154.46 for each farmer who cultivates rain fed crops , would be directly transferred to
the bank account, due to which 70 lakhs farmer would be benefited.
 To encourage and nurture innovations in the agriculture sector , an Agri-Innovation Centre would be set up in association with the Centre for
Cellular and Molecular Platforms (C-CAMP).
 Full interest of amount of Rs.124.70 crore (US$192.62 million) has been waived off in respect of farm loans overdue as on 30-09-2015 and also
for who have paid the principal amount within 31st March 2017.
 Implementation of online market system to 157 markets in states to ensure fair price to farmers and to prevent the hindrance caused by middle
men has become model to country.
Energy:
 From 2018-19, electricity consumption expenses of 7 hours per day will be reimbursed to consumers in respect of private HT and LT Community
Lift Irrigation units of cooperative societies of members with a capacity of 10 HP and less.
 During the year 2018-19, to strengthen the transmission network, 35 power sub-stations will be established through Karnataka Power
Transmission Corporation.
Water Resources:
 Upper Krishna Project Stage-2 would be taken up at a cost of Rs.750 crore (US$ 115.85 million) for Modernization of Narayanpura right bank
canal from 0.00 km to 95.00 km .
 As per state budget 2018-19, US$ 2.47 billion has been allocated for the Water Resource Department.

PHYSICAL INFRASTRUCTURE – ROADS
 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)
 As per budget 2018-19, the state government is going to establish

eight separate quality control sub-divisions for protecting the quality Road type 2016-17
of management and development of rural roads.
National highways 6,572
 Completion of construction of five roads of 300 km through KRDCL
with the assistance of World Bank
State highways 27,163
 In May 2017, the state government revealed its plans for widening
and redeveloping four roads on the city outskirts to bring down traffic Major district roads 55,515
congestion. The Karnataka Road Development Corporation Ltd. has
estimated the cost for improving 155Km of roads at US$ 216.42 Municipal roads 8,366
million.
Rural roads 177,542
Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2018-19

PHYSICAL INFRASTRUCTURE – RAILWAYS
 Karnataka is well connected to other parts of the country through the Karnataka railway network
railways. The state has a railway network of 3,250 km.
 Karnataka Rail Infrastructure Development Corporation (K-RIDE) MG NG Total

Type of railway BG (km)
has been set up with the objective of developing and implementing (km) (km) (km)
rail infrastructure projects in Karnataka with private sector South Central
268 0 0 268
participation wherever feasible. K-RIDE has a chief executive officer Railways
deputed from the Railways Department and principal secretary, South Western
Infrastructure Development Department, as its chairman. 2,516 97 84 2,697
Railways
 As of September 2017, 42.3 km of Karnataka’s metro network is Southern Railways 37 0 0 37
operational.
Konkan Railways 248 0 0 248
 Further, the state government granted contracts for two reaches of
Total 3,069 97 84 3,250
phase II, which are slated for completion by 2020.
 Commencement of Rail Coach Factory in Kolar district at a cost of Status of major railway projects in Karnataka (2016-17)
Rs.1,461 crore(US$225.67) wherein , 50 per cent of the cost along
with the land would be contributed by state. An MoU for this project
Railway project Status
was signed with Ministry of Railways in 2014.
Ramanagara-Mysuru doubling track Commissioned for transport
 In the Union Budget 2018-19, the government has approved for the
Bidar-Kalaburagi new railway line Completed
160km rail network sum of Rs. 17,000 crore (US$ 2.53 billion) for
the growth of the Bengaluru metropolis and is expected to be Bengaluru-Hasana railway line Commissioned
executed by both State and Central government in the 50:50 ratio. Bagalakote-Kuduchi railway line
Ginigera-Rayachuru railway line Approved by Government of
Karnataka; amount released for
Gadaga-Wadi railway line land acquisition
TumakuruRayadurga railway line
Source: Economic Survey of Karnataka, 2017-18, State Budget 2017-18

PHYSICAL INFRASTRUCTURE – AIRPORTS
 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
 Work on planning and preparation of terminal 2 and second parallel
developed under PPP and started operations in May 2008.
runway of Kempegowda International Airport has been initiated. This
construction will enable the airport to handle around 35 million Karnataka airport statistics (2016-17)
passengers per year. The construction work is expected to be
completed by September 2019. Passenger Aircraft Freight
Airport
 Further, work on development of Kalaburagi airport by PWD is traffic (No.) movement (No.) (tonnes)
expected to be concluded by February 2018. Bengaluru 22,881,392 177,271 319,344
 In March the government gave ‘in principle’ approval for construction Mangalore 1,734,810 15,405 1,242
of an airport at Shimoga. Karnataka airport statistics (2017-18)1
Bengaluru 24,360,908 177,687 316,407
Mangalore 2,054,005 17,813 2,326
Note: 1From April to January 2018

Source: AAI, Global Investors Meet, Budget 2017-18

PHYSICAL INFRASTRUCTURE – PORTS… (1/2)
Cargo handled by New Mangalore port (in ‘000 tonnes)
45000
40000
42,055
39,940
39,365
35000
37,036
36,566
35,590
30000
32,941
31,350
Karwar Port 25000
20000
15000
10000
5000
New Mangalore Port 0
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1
 There are 13 ports in Karnataka, of which New Mangalore is a major Ports

port. New Mangalore Port is the ninth major port in India with the
deepest inner harbour on the west coast. Major ports  New Mangalore Port
 The work on development of the second stage of Karwar port has  Karwar
been initiated under the concept of D-BOOST in PPP mode.  Belekeri
However, the bid document issue is under consideration by the state  Tadri
government.  Honavar
 Bhatkal
 As per budget 2017-18, in order to promote Import/Export activities in Minor ports
 Kundapur
Karwar Port, a detailed project report will be prepared to construct an
 Hangarkatta
additional dock measuring 1508 meter for stationing 5 ships of 14
 Malpe
metres depth.
 Padubidri
 Old Mangalore
Note: 1From April to February 2018
Source: Indian Port Association

PHYSICAL INFRASTRUCTURE – PORTS… (2/2)
Cargo handled by various minor ports in Karnataka (‘000 MT)
2017-18 (up to
Minor Port 2012-13 2013-14 2014-15 2015-16 2016-17
Nov 2017)
Old Mangalore 165.93 120.26 115.89 98.00 121.67 25.61
Karwar 441.19 377.10 525.07 714.00 582.80 349.35
Malpe, Belekeri, Hangarkatta &

4.74 3.00 2.31 3.00 3.05 0.72
Kundapur
Total 611.86 500.36 643.27 815.00 707.52 375.68
 The state government has initiated the work on development of Pavinakurve port, under PPP mode, in the district of Uttar Kannada. The draft
concessional agreement and pre-feasibility report preparations related to the port are under process.
 Additionally, the Infrastructure Development Department (IDD) has initiated the development of Tadri sea port at a projected amount of US$
458.29 million.
Source: Karnataka Economic Survey 2017-18

PHYSICAL INFRASTRUCTURE – POWER
 As of February 2018, the state had an installed power generation Installed Power Capacity (GW)
capacity of 24,612.77 MW. Out of this, central utilities contributed
3,527.20 MW, private utilities contributed 12,182.52 MW and
30.0
8,903.05 MW was under state utilities.
25.0
 Of the total installed power generation capacity, 9,960.82 MW was 24.6
20.0
contributed by thermal power. Capacities of 698.00 MW and 21.3
10,354.15 MW were contributed by nuclear & renewable power, 15.0 17.3
13.9 14.0 15.1
respectively, while hydropower contributed 3,599.80 MW. 10.0 12.1
11.4
8.5 8.7
 Karnataka Renewable Energy Development Limited (KREDL) was 5.0
established in 1996 to promote the development of renewable energy 0.0
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18*
sources in the state.
 In July 2017, commercial production started from an 800 MW unit at

Kudgi plant of NTPC in Karnataka.
Note: *As of February 2018
Source: Central Electricity Authority
 As of March 2018, the installed capacity for solar power in the state
reached 4,835.56 MW
 As per the budget 2018-19, the state government has allocated US$
2.18 billion for enhancement of the power sector in the state.
 The establishment work of a gas-based power plant in Yelahanka is

estimated to be initiated during 2016-17 by the state government.
Further, KPCL is expected to create a 200 MW solar power plant
during 2016-17.
Source: Central Electricity Authority, News Articles

PHYSICAL INFRASTRUCTURE – TELECOM
 The state government is planning to provide technology at the gram Telecom Infrastructure (As of January 2018)
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 Wireless subscribers 67,277,163
service provider.
Wire-line subscribers 2,239,531
 According to Telecom Regulatory Authority of India (TRAI), there (1)
were 67.27 million wireless subscribers and 2.23 million wire-line Internet subscribers 29,970,000
subscribers in Karnataka, as of January 2018. Post offices
(2)
9,666
 The entire state is networked through optical fibre cables (OFCs) of
Teledensity (in %) 109.66
the state-owned company, Bharat Sanchar Nigam Limited (BSNL),
as well as private companies such as Bharti, Reliance, VSNL and
TATA Tele Services.
Performance status of NOFN Project (As of November 2017)
 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 No. of GPs in Phase-I 6,092
cities of Karnataka. (3)
Pipe laid (km) 11,784
 By the end of January 2018, 35,273,397 subscribers had submitted
Cable laid (km) 12,914
requests for mobile number portability in Karnataka.
GPs for which cable laid 6,062
 Out of the total allocated amount of US $91.65 million in Bharat Net
(3)
project, BSNL invested US $61.10 million to increase the speed of No of GPs lit 4,835
gram panchayat connectivity in Karnataka, through high-speed
broadband and FTTH (fibre-to-the-home).
Note: (1) As of December 2017, (2) As of March 2017, (3)As of July 2017
Source: Telecom Regulatory Authority of India,Economic Survey of Karnataka

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE… (1/2)
 Karnataka is among the top ten most urbanised states in India. The Water supply Sewerage system
state is projected to reach an urban population proportion of 50 per
 KUWSDB has implemented  The Bengaluru Water
cent by 2026. Some of the key areas of development are roads and
surface-based drinking water supply Supply and Sewerage
flyovers, water supply, storm-water drainage, sewerage and urban
schemes in 187 urban areas to Board (BWSSB) is
transport.
provide assured safe drinking water. responsible for providing
 The Karnataka Urban Water Supply and Drainage Board (KUWSDB) water supply, sewerage
 KUWSDB is implementing 26
is responsible for providing water supply & sewerage facilities in 218 system & sewage
schemes for shifting the source of
urban areas of the state, except the areas serviced by the Bruhath disposal in the
water from ground water to assured
Bengaluru Mahanagar Palike (provides services in Bengaluru city & Bengaluru Metropolitan
surface water. They are to be
surrounding areas). area.
completed by 2013.
 Karnataka has ten city corporations, 57 city municipal councils, 113  42 urban areas have
 Cauvery Water Supply Scheme
town municipal councils, 90 town panchayats & 4 notified area been provided with
(CWSS) Stage IV, Phases I–IV are
committees. Underground Drainage
being implemented to supply 810
 As per budget 2018-19, an amount of US$ 2.66 billion has been MLD of water to about 600,000 (UGD) facilities in the
proposed for urban development. connections. state.
 In August 2017, the third phase of Nagorathna scheme was

 In December 2017, the Central Government asked NICDIT to
launched. The objective of the scheme is to provide infrastructure in
expedite the process of Chennai-Bengaluru Industrial Corridor. The
towns and cities in the state. It also aims to free the state of open
project is expected to boost commerce by enabling quicker
defecation by October 2018. An amount of US$ 386.85 million has
movement of goods and generate investment, industrial units and
been allocated for this phase.
employment.
 As of March 2017, Nabard is planning to help the state with
 Moreover, the state government finished 42.3-km network of Metro
technologies at a low cost, for conservation and efficient use of water
Rail under phase-1 of the Metro Rail project and two lines have been
in the drought-affected districts, with the help of modern technologies
made operational.
such as water management practices, micro irrigation (more crop per
drop) & adopting improved packages of agronomic practices.
Source: JNNURM, Ministry of Urban Development

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE … (2/2)
Development projects under Directorate of Municipal Administration:
 Construction of 22,133 houses (DUs) at a cost of US$ 85.37 million under Rajeev Awas Yojana will be completed by the authority during 2017-18.
 Infrastructure works for drinking water supply scheme for citizens for small and medium towns will be started during 2017-18 at a cost US$ 447.95
million.
 Under “Housing for all”, construction of 60,000 houses at a cost of US$ 405.42 million will be implemented through urban local bodies and Rajeev
Gandhi Rural Housing Corporation during 2017-18.
 During 2017-18, it is targeted to construct 0.33 million personal toilets, 9,104 capacity community toilets, 4,522 capacity public toilets under Solid
Waste Management Scheme.
 As per Budget 2017-18, master plans will be prepared for all of the 274 urban local bodies of the state.
 To mitigate the scarcity of drinking water in Mangalore, a desalination plant will be established with public-private-participation (PPP).
 During 2018-19 , to encourage increased cycle distribution schemes and commuting by pedestrians, Government of Karnataka is planning to
develop cycling infrastructure in tier-2 cities at a cost of Rs.25 crore (US$3.86 million).
Source: : Budget 2017-18

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (1/2)
Under construction PPP projects - Karnataka
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

Transport Under construction 45.97
draft multi-purpose berth of NMPT
Six laning of Belgaum - Dharwad Section Road Transport Under construction 79.63
Sports City cum International Convention Centre cum Star Social and commercial
Under construction 149.3
Hotel cum Shopping Complex cum Residential Complex infrastructure
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
Social and commercial

Construction and Maintenance of Public Toilets in Bengaluru Under construction 1.99
infrastructure
Water Supply Scheme (Nanjangud) Water sanitation Under construction 4.74
Source: Department of Economic Affairs, Government of India

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (2/2)
PPP Projects – Karnataka
Project name Sector Status Total cost (US$ million)

Development of integrated solid Waste Treatment (100
Water sanitation Under construction 0.85
TPD) and Landfill Facilities at Belgaum
Development of International Convention Centre at Social and commercial
Under construction 174.19
Devanahalli infrastructure
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 Under construction 21.9
infrastructure
New Puttanna Theatre and Parking Under construction 41.85
infrastructure
Road Upgradation (Goa/Karnataka Border-Kundapur)
Transport Under construction 437.79
Project
Road Upgradation (Hoskote-Dobespet) Project Transport Under construction 191.27
Source: Department of Economic Affairs, Government of India

DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL
CLUSTERS … (1/4)
 The state has 26 operational, 51 notified SEZs and 62 formally Sector-wise Operational SEZs In Karnataka (as of
approved SEZs as of December 2017. The Karnataka Industrial December 2017)
Areas Development Board has developed 141 industrial areas
spread across the state. The state plans to develop and upgrade IT/ITeS
eight clusters around Bengaluru with an investment of US$ 348.4
million in coming years. Biotechnology
 The Karnataka State Industrial & Infrastructure Development
Corporation has promoted more than 135 start-up ventures in the Hi-tech Engineering Products
and related services
state through equity participation and has provided debt to core 4%4%
4%
4% Electronics Hardware and
industries such as steel, cement, mining and textiles, as well as new
4% Software/ITES
sectors such as IT, aerospace and telecom. 4%
Aerospace and Industry
 In October 2017, the government approved the setting up of a new 4%
3%
industrial park in Harohalli. The proposed multi-product industrial Pharmaceuticals
69%
park will be built by Karnataka Industrial Areas Development Board
(KIADB) on an area of about 904.86 hectares. The park is expected Textile
to entail an investment of US$ 242.8 million and generate more than
23,500 jobs. Multi Product
 Karnataka is the first in the country to provide bespoke policy

Precision Engineering Product
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

CLUSTERS … (2/4)
Some of the operational SEZs in Karnataka
Name/Developer Location Primary industry
Biocon Special Economic Zone Anekal Taluk, Bangalore, Karnataka Biotechnology
Shyamaraju and Company (India)

Kundalahalli Village, Karnataka IT/ITES enabled services
Pvt. Ltd.
Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS
Varthur Hubli, Electronic City,
Wipro Limited (Electronic City) IT
Banglore, Karnataka
Varthur Hobli, Sarjapur Road,
Wipro Limited (Sarjapur) IT
Karnataka
Vrindavan Tech Villages SEZ Devarabeesanahalli Village, Karnataka IT/ITeS
RMZ Ecoworld Infrastructure Pvt.

Devarabeesanahalli, Karnataka IT/ITeS
Ltd.
Varthur
Cessna Business Park Pvt. Ltd. IT/ITeS
Hobli, District Banglore, Karnataka
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

CLUSTERS … (3/4)
Information Technology Park Sadaramangala and Pattandur Agrahara

IT/ITeS
Limited Village, District Bangalore, Karnataka
Karnataka Industrial Area Development Board

Village Perumenahally, Karnataka Textile
(KIADB)
Hebbal Industrial area, District Mysore,

Infosys Technologies Limited IT/ITeS
Karnataka
HCL Technologies Ltd. Bangalore Karnataka IT/ITeS
Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS
Karnataka Industrial Area Development Board
District Hassan, Karnataka Pharmaceuticals
(KIADB)
Aspen Infrastructures Limited (formerly Synefra

Hi-tech engineering, products and related
Engineering construction Ltd. (Suzlon Udupi Taluk, Karnataka
services
Infrastrucutre Ltd.)
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)
Precision engineering
Quest special Economic Zone Belgaum district, Karnataka
Products
Gopalan Enterprises (India) Private Limited. Bengaluru, Karnataka IT/ITES
Karnataka State Electronics Development

District Shimoga, Karnataka Electronics Hardware and Software/ ITES
Corporation Limited (KEONICS)
Larsen & Toubro Limited District Mysore,Karnataka IT/ITeS
Karnataka Industrial Areas Development Board Bengaluru, Karnataka Aerospace and industry
Village Chokkanahalli, Taluka Yelahanka Hobli

Milestone Buildcon Private Limited IT/ITES
Bangalore North, Karnataka
Village Chokkanahalli, Taluka Yelahanka Hobli

Milestone Buildcon Private Limited IT/ITES
Bangalore North, Karnataka

SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
 The state has a literacy rate of 75.6 per cent, the male literacy rate is Literacy rates (%)
82.8 per cent and the female literacy rate is 68.1 per cent.
Literacy rate 75.6
 In terms of the number of universities, Karnataka ranks fifth among
all Indian states and union territories, with 44 universities. Of these, Male literacy 82.5
24 are state public universities and 11 are private deemed
Female literacy 68.1
universities.
 The state has 4,519 pre-university colleges to impart general

education. There are more than 1 million students in the Educational infrastructure (2017-18)
pre-university colleges.
 There are 293 polytechnics and 206 engineering colleges to provide Institute type Number Enrolments
technical education in the state. Medical colleges 53 6,786
 For the development of basic facilities such as – laboratory, library,
Ayurvedic colleges 72 4,675
new buildings, toilets, drinking water facility in government schools
and colleges, an amount worth US$ 18.25 million would be provided. Homoeopathic colleges 11 950
 Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE Unani colleges 5 290
would be upgraded. Under this scheme, Shaikshanika Adhalath and
Naturopathy & Yogic Sciences
TESS education centers would be opened in the offices of BEOs, 5 420
(BNYS)
DIETs, DDPIs and CTEs in the state.
Dental colleges 38 2,719
Pharmacy colleges 61 4,784
Nursing colleges 294 17,369
Source: Economic Survey of Karnataka 2017-18 Census 2011

SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
 As per economic survey 2016-17, the state participation in primary Karnataka education statistics (2016-17)
education is significant as 81.23 per cent of the lower primary and
63.40 per cent of the higher primary schools are managed by Lower primary: 26,696
Number of schools Higher primary: 35,498
Department of Education.
Secondary schools: 15,773
 As per Budget 2018-19, an amount of US$ 697.25 million has been
Lower primary: 1.03
proposed for higher education. School dropout rate (in %)
Higher primary: 2.30
 In November 2017, foundation stone for a new government medical Average: 23.18:1
college was laid in Bengaluru. The cost of the project is pegged at Pupil-teacher ratio Private Aided schools: 55.48:1
US$ 31.11 million and the college is expected to be functional from Unaided schools: 31.61:1
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.
Source: Economic Survey of Karnataka 2017-18

SOCIAL INFRASTRUCTURE – HEALTH... (1/2)
 In February 2018, the state government announced Universal Health Health indicators (2016)
Coverage (UHC) scheme which aims to bring all government health
schemes under one roof . The objective is to bring the entire population Birth rate 17.6
of state under this scheme without any cap on the medical expenditure
Death rate 6.7
on the patient.
 The policy of the Government is to establish 1 primary health centre for Infant mortality rate 24
every 30,000 inhabitants, 1 dispensary for every 15,000–20,000
Natural Growth Rate 10.9
inhabitants & 1 sub-centre for every 5,000 inhabitants.
 As of February 9, 2018, the state has 12,695 active health institutions
Life expectancy at birth (years)
out of total 13,121 health institutions in the state.
 Under the assistance of National Health Mission, at a cost of US$ 8.09 Male (2015) 63.6
million, trauma centres will be established across 5 places, under the
scheme of Aapathbandhava for offering emergency treatment to Female (2015) 67.1
highway accident victims.
 In June 2017, the state government announced an initiative to install RO No of institutions Total Facilities (February 2018) 3
systems in 147 taluk & 20 district hospitals across the state. The plants Subcenters 9,589
will be jointly set up by the state health & rural development and
panchayat raj departments. An amount of US$ 1.49 million has been Community health centres 317
allocated for the project.
Primary health centres 2,633
 In December 2017, the state government initiated a digital
transformation drive by ensuring complete use of electronic medical Sub district hospital 539
records (EMR) which is a single documentation that contains complete District hospital 43
and accurate information of a patient. The initiative is expected to enable
seamless flow of information for better healthcare delivery and co- Total institutions 13,121
ordination.
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

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.
Badami
 27 cities from Karnataka were selected under the central
Belagavi
government’s Atal Mission for Rejuvenation and Urban
Hubali-Dharwad
Transformation Scheme (AMRUT). In 2017-18, an amount of US$
Devengere
29.63 million was released by the central government for
Shivamoga Tumakuru
implementation of the mission.
Mangaluru
Bengaluru
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

KEY INDUSTRIES
 The natural resources, policy incentives and infrastructure in the state Key industries in Karnataka
favour investments in the IT/ITeS, biotechnology, engineering,
electronics, automotive, textiles, agri- & food-processing sectors.  IT and ITeS  Agro and food processing
(floriculture)
 Karnataka’s favourable policies have encouraged industries to set up
 Biotechnology  Aerospace
their R&D centres in the state. Bengaluru has about 401 R&D centres,
the most in India.  Engineering  Animation
 Karnataka is making significant investments in industrial infrastructure,  Electronics and telecom  Electronic hardware
such as setting up industrial clusters & SEZs & PPP projects to
 Automotive  Tourism
provide an impetus to further industrial development.
 The formation of Invest Karnataka 2016 in the state is expected to

Total number of micro, small and medium enterprises in
offer US$ 26.73 million for the enhancement of infrastructure facilities
Karnataka
among existing areas of industrialisation. Further, it is also projected to
set up a new cashew technology centre in the district of Uttar Kannada Employment per
of the state. Year MSME units Employment
unit
 In June 2017, Siemens Industry Software India Pvt. Ltd. signed an 2013-14 25,966 167,347 6.44
MoU with the state government Tool Room & Training Center &
Design Tech Systems Ltd. to establish four Centers of Excellence in 2014-15 28,742 175,469 6.10
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 2015-16 25,656 221,706 8.64
government & Siemen’s share will be US$ 271.08 million.
2016-17 39,170 508,966 12.99
2017-18 (up
29,369 263,497 8.97
to Nov 2017)
Source: Directorate of Industries and Commerce, Economic Survey of Karnataka, 2017-18

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(1/2)
 Karnataka has emerged as an information technology (IT) hub of Electronics and software exports from Karnataka (US$ billion)
India. Bengaluru is the fourth largest technological cluster in the
world after Silicon Valley, Boston and London.
70.00 CAGR: 8.66%
 About 50 per cent of the world's SEI CMM Level 5 certified
60.00
companies are located in Bengaluru. 60.5 62.7
50.00 58.9
 The state is India’s largest software exporter, with electronics and 40.00
computer software exports totalling to US$ 30.41 billion during 2017- 30.00
18*. 20.00 28.2 28.7 29.5 30.4
23.1
 Karnataka has 47 IT/ITeS SEZs and dedicated IT investment 10.00
regions. There are 3,500 IT companies in the state. The state houses 0.00
2010-
2011-
2012-
2013-
2014-
2015-
2016-
2017-
550,000 IT professionals or 1/3rd of the total IT professionals in the
18*
11
12
13
14
15
16
17
country.
 At least 400 Fortune 500 companies have outsourcing operations in
Karnataka. As of September 2015, the total enrolments of people in Some of the key players
the sector was recorded to be 0.446 million.
 Wipro Technologies
 The state government has formulated a new Karnataka Startup
 Infosys
Policy for assessing the progress of startup companies during 2015-
16.  Genpact
 During 2016-17, the state government aims to establish 10 new  Accenture

incubators in the state’s graduate and professional institutes, under
the network of New Age Incubation.  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
Source: : Visvesvaraya Trade Promotion Centre;*(April-Sept)

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
Wipro Ltd 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,
Infosys France and many other countries and has marketing and technological alliances with companies such as IBM, HP,
Technologies Ltd 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
Genpact employees. The company has one office in Bengaluru in Karnataka.
 Accenture is a global management consulting, technology services and outsourcing company with approximately
275,000 people serving clients in more than 120 countries. In 2016-17, Accenture generated revenues of US$ 35
billion. The company has one consulting office and seven delivery centres in Bengaluru.
Accenture

KEY INDUSTRIES – BIOTECHNOLOGY … (1/2)
 Karnataka has played a key role in India’s emergence as a  India’s biotechnology industry is expected to reach US$ 100 billion
significant player in the global biotechnology industry. Karnataka is by 2025, with Bangalore forming a significant part of it.
home to nearly 60.0 per cent of the country’s biotech units.
 The state government has established Bengaluru Bio-innovation
 The state consists of over 300 Biotech companies and has more Centre with an investment of US$ 8.55 million for enabling MSMEs
than 6,800 scientists involved in biotech research. to access high-end laboratory and instrumentation facilities.
 Premier life sciences institutions such as Indian Institute of Science,  In August 2017, the State Government launched the second phase
National Centre for Biological Science and Jawaharlal Nehru Centre of the Biotechnology Skill Enhancement Programme (BiSEP). The
for Advanced Scientific Research are present in the state. programme will be conducted in 18 host institutes.
 Sector-focused SEZs have been set up in Mysore, Mangalore, Hubli-
Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya. Some of the key players
 Twelve biotechnology finishing schools are scheduled for
 Biocon
development under the Millennium Biotech Policy.
 AstraZeneca India
 An 86-acre biotechnology park, Bengaluru Helix, comprising the 52-
acre Alexandria Knowledge Park operates in the capital city.  Jubilant Life Sciences Ltd
 More than 60 per cent of the biotechnology companies in India have  GlaxoSmithKline Pharmaceuticals Ltd
a base in Bangalore and the state drives 50 per cent of the total
revenues in India’s biotechnology sector.
 Karnataka Government is making an effort to spur innovation in the
biotechnology and information technology (BT/IT) sector. The state
has foreseen that the future is not only defined by IT but also
through a fusion of biological digital and physical platform. State has
taken initiative ‘Innovate Karnataka’ to create an umbrella brand for
emerging technologies like Artificial Intelligence (AI), block chain,
robotics and nanotechnology which helps to speed up the start-up
ecosystem.
Source: : Economic Survey of Karnataka 2015-16

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.
Biocon
 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.
AstraZeneca India
 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.
Jubilant Life Sciences  The company’s revenue was about US$ 932.21 million during FY 2017. Jubilant has a manufacturing facility in
Ltd 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.

GlaxoSmithKline  GSK India product portfolio includes prescription medicines and vaccines. The company has a clinical
Pharmaceuticals Ltd development centre in Bengaluru.

KEY INDUSTRIES – ENGINEERING … (1/2)
 The engineering industry in Karnataka has positive prospects, given Engineering products exports (US$ billion)
its performance.
4.50
 Exports of engineering products have increased from US$ 1,605 CAGR: 14.22%
4.00
million in 2010-11 to US$ 3,130.25 million in 2015-16, The 4.09
3.50
engineering segment is the fastest growing sector of the state, which
3.00 3.38
grew at a CAGR of 14.22 per cent between 2010-11 and 2015-16. 3.09 3.08
2.50 2.72
The state is exporting engineering products to Germany, China, 2.00 2.31
South Korea, Brazil, USA, Malaysia, Thailand, South Africa and 1.50
1.61 1.72
Singapore. A majority of the exporters in state are based in 1.00
Bengaluru, Hubli, Mysore, Belgaum, Mangalore, and Shimoga. 0.50
 The state exported engineering products worth US$ 2.72 billion in 0.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*
2017-18 (up to September 2017).
 Exports include machine tools, industrial machinery, cutting tools,

castings, automotive components, electrodes, welding equipment,
construction and earthmoving equipment, and helicopter spares.
Some of the key players
 A 300-acre SEZ has been created in Belgaum to develop a precision
 Bharat Earth Movers Limited (BEML)
engineering and manufacturing supply chain ecosystem, which
would be a great driver for manufacturing industries. Bharat Earth  Hindustan Machine Tools Limited (HMT)
Movers Limited, Hindustan Machine Tools Limited and Bharat Heavy
 Bharat Heavy Electricals Limited (BHEL)
Electricals Limited are among the leading companies in this sector in
the state.  Saint-Gobain India
Note: Economic Survey 2017-18

Source: : Visvesvaraya Trade Promotion Centre, Government of Karnataka

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.
BEML Limited
 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
HMT Ltd 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.
BHEL
 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.
Saint-Gobain India

KEY INDUSTRIES – TELECOMMUNICATIONS AND
ELECTRONICS … (1/2)
 Karnataka is a leading state of the country in electronics and  In 2015, the state government of Karnataka announced plans to set
telecommunication. up an Information Technology Investment Region (ITIR) near the
Kempegowda International Airport (KIA) and proposed an investment
 The state has high-end research and development organisations
of US$ 2.35 billion. The construction will be completed in two phases
such as Indian Institute of Science, Cosmic Industrial Laboratories
and the Karnataka Industrial Areas Development Board (KIADB) is in
Ltd, Indian Space Research Organisation (ISRO), CSIR Centre for
the process of acquiring 2,072 acres land for the first phase. The
Mathematical Modelling and Computer Simulation (CMMACS),
ITIR is first of its kind and is projected to be developed over 20 years.
National Aerospace Laboratories, Centre for Soft Matter Research
The first phase is expected to be completed by 2020 while the
and John F. Welch Technology Centre.
second phase will be developed in following 15 years.
 Karnataka has excellent telecom infrastructure with 140 of 170 towns
 The start-ups warehouse set up by the state government in
connected by Optic Fibre Cables (OFC) network.
association with Nasscom has attracted 170 start-ups. However,
 Bengaluru district is the major hub of the electronics and during 2015-16, the functioning of second start-up warehouse in
telecommunications industries. The other districts of Hassan, collaboration with NASSCOM with was initiated in the state.
Tumkur, Mysore, Mangalore and Shimoga are the new destinations
 In order to provide venture capital to semiconductor companies, the
for promotion of electronics and hardware industries.
state government has formed Karnataka Semiconductor Venture
 The state houses global giants such as Sanyo, AT&T, Siemens, GE, Fund with a total fund size of US$ 15.27 million.
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  Bharat Electronics Ltd
calls and fast data sessions in parallel. Vodafone is also going to
 Nokia
launch VoLTE sevices in the state.
 Siemens
 Philips Electronics India Ltd
Source: : Department of Industries and Commerce

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.
Bharat Electronics Ltd
 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.

Nokia
 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
Siemens
 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.
Philips Electronics  The company has an R&D facility – Philips Innovation Campus – in Bengaluru.
India Ltd

KEY INDUSTRIES – AUTOMOTIVE … (1/2)
 Karnataka has a vibrant auto industry with investments of around  In 2016-17 (up to December 2016), total transport and non-transport
US$ 713 million and annual revenues of US$ 604 million. vehicles recorded in Karnataka were 17.44 million, out of which,
transport vehicles were 1.62 million whereas non-transport vehicles
 The state is the fourth largest state in India in terms of automotive
were 15.79 million.
production. The main locations for automobile industries are
Bengaluru, Ramanagara, Kolar, Shimoga, Dharwad & Belgaum.  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,
 General Motors Technical Centre, located in Bengaluru, is actively
Kolar and Bidadi in Ramanagara district; and smaller auto parks in
involved in research, design, analysis and development of vehicles
Belgaum, Shimoga, Mysore and Gulbarga.
and power trains for foreign destinations as well as the domestic
market.  In September 2017, the Government of Karnataka passed the
‘Karnataka Electric Vehicle and Energy Storage Policy 2017’. Electric
 The state has 3 auto clusters, one industrial valve cluster and one
vehicles manufacturing in Karnataka is expected to attract
auto component cluster. 2 manufacturing hubs are coming up in
investments worth US$ 4.82 billion and create 55,000 jobs by 2022.
Narsapur & Vemagal Industrial Areas in Kolar District.
 The Government is in the process of announcing a Dedicated

Automobile Policy.
 Automotive industry of Karnataka grew at a CAGR of 15 per cent Some of the key players
during 2009 to 2014. The state is considered to be the 4th largest in
 Toyota Kirloskar
manufacturing and developing automobiles in the country. On the
back of this, the state contributes 8.5 per cent to the overall  Volvo India
automobile sector of the country.  TVS Motor Company
 The state government is aiming to make Karnataka the automobile  Delphi Automotive Systems Pvt Ltd
capital of India.
Source: : Economic Survey of Karnataka 2015-16

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.
Toyota Kirloskar
 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  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.

TVS Motor Company
 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 Automotive  Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside the US.
Systems Pvt Ltd

KEY INDUSTRIES – TEXTILES AND APPAREL … (1/4)
 Karnataka is one of the leading producers of cotton, silk and wool,  As of September 2017, the state had one operational SEZ (KIADB
which are the key raw materials required for textile manufacturing SEZ Hassan - Textiles) for the textile sector at Hasan, Karnataka.
units. The production of cotton during 2016-17 was recorded to be
 In 2016-17 (up to September 2016) 32.50 million meters of handloom
2.1 million bales. The state produces 31.62 per cent of India’s silk.
textiles was produced in Karnataka providing employment to 0.09
Raw silk production in the state was recorded at 9.57 thousand MT
million persons.
2016-17.
 Karnataka has an apparel park at Dodaballapur near Bengaluru and
 Karnataka is a major apparel sourcing destination for the global
other mega textile parks in the other parts of the state.
market. The state accounts for 20 per cent of the national garment
production. During 2015-16, the state contributed around 65 per  During 2016-17, Karnataka’s textile sector received FDI worth US$
cent, 12 per cent and 6 per cent of silk, wool and cotton production, 9.08 million.
respectively to the country. Moreover, the state recorded 144 skill  The state offers financial assistance to the tune of 40 per cent to
development centres and 168 private training centres during 2016- textile industries for infrastructure facilities in greenfield & brownfield
17. There are approximately 0.38 million manufacturing units zones.
engaged in the textiles and garments sector at the organised and
unorganised level. Under the New Textile Policy 2013-18, the state  The Textile Policy offers various incentives for investments in the
government is planning to invest US$ 1,650 million in the textile textile sector; these include credit linked capital subsidy, entry tax
sector. The Textile Policy offers various incentives for investments in reimbursement and power subsidy.
the textile sector; these include credit-linked capital subsidy, entry
tax reimbursement and power subsidy.
 Union Textiles Minister has given assurance to construct Rs. 100
crore (US$ 15.52 million) textile park for Karnataka .Moreover power  Gokaldas Exports Limited
loom owners would be able to upgrade the plain power looms to  Karnataka Silk Industries Corporation (KSIC)
semi-automatic by redeeming Rs 20,000 (US$ 310.32) per loom
 Himatsingka Seide
from the minister.
 Shahi Exports Private Limited
Source: : Karnataka Economic Survey 2015-16, Directorate of Industries and Commerce

Financial assistance to handloom weavers (in US$ million)
0.450
0.400 0.411
0.350
0.300
0.250 0.270
0.254
0.200
0.150
0.100
0.050
0.014
0.000
2012-13 2013-14 2014-15 2015-16
Source: Economic Survey of Karnataka, 2015-16, Department of Industries, Handloom, Government of Karnataka

Spun yarn production (‘000 kg) Power loom weavers and power looms in Karnataka
2013-14 37,750 No. of weaver households No. of weavers No. of looms

2014-15 34,269
30,988 127,535 88,566
2015-16 (up to September 2015) 15,580
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 -
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
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.
Gokaldas Exports Ltd
 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.
KSIC
 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
Himatsingka Seide 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
Shahi Exports Pvt Ltd

KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (1/3)
 Karnataka, with a good agricultural base including various food crops, offers immense scope for the development of food processing industries.
Karnataka is the largest producer of coffee & cocoa in the country.
 The state is the country’s largest coffee producer and accounts for around 71.3 per cent of the country’s total coffee production. Coffee production
in the state stood at 233,230 MT in 2014-15, 251,520 MT in 2015-16 and 226,300 MT in 2016-17. Post blossom estimate of coffee production in
the state in 2017-18 is 251,760 MT, as per Coffee Board.
 During 2015-16, the state government implemented the scheme - “Krishi Bhagya” across 129 talukas of 25 districts. Moreover, under the program
of Bhoochethana-2, which is being executed across 66.88 lakh hectares of area, a total of about 11 lakh farmers have been profited. In Budget
2017-18, US$ 93.12 has been granted for implementation of this scheme.
 With more than three-fourths of the state facing severe drought and drinking water crisis, Karnataka government released a US$ 39.41 million
input subsidy directly to bank accounts of 4.47 lakh farmers in April 2017.
Karnataka’s coffee production
Elevation Rainfall Total area under Average

Location Main coffee types Main intercrops
(m MSL) (mm) coffee (hectares) production (MT)
Pepper, cardamom,
Bababudangiris 1,000-1,500 1,750-2,200 Arabica 15,000 10,500
arecanut
Pepper, cardamom,
Arabica - 37,000 Arabica - 29,000
Chikmagalur 700-1,200 1,000-4,500 Arabica, Robusta arecanut, orange,
Robusta - 23,000 Robusta - 30,000
vanilla
Pepper, cardamom,
Coorg 750-1,100 1,000-2,500 Arabica, Robusta orange, banana,
arecanut
Pepper, cardamom,
Manjarabad 900-1,100 1,000-2,500 Arabica, Robusta orange, arecanut,
banana
Source: Coffee Board, Government of India

KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (2/3)
 Karnataka is the first state to go online mandis ,which would Coffee exports from Karnataka (US$ million)
integrate 150 mandis on a single online platform.
 The state is one of the leading producer of flowers, spices, fruits and 900 CAGR: 13.99%
800
vegetables. Government of Karnataka had approved the 700 813
establishment of food parks in 6 districts: Bengaluru rural, Tumkur, 600 659 651
500 620
Shimoga, Davangere, Bijapur & Belgaum. These parks are in
400 479 473 507
advanced stages of implementation. Most of the civil infrastructure 300
325 342 300 320
work has been completed in Malur, Hiriyur, Bagalkot & Jewargi food 200
100
parks, which had been approved by Ministry of Food Processing
0
Industries, Government of India.
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17*
2017-18*
 The export of agriculture and processed food in the state grew at a
CAGR of 22.96 per cent between 2010-11 & 2015-16. The export
value has increased from US$ 146.9 million in 2010-11 to US$ Source: 2016-17; * Upto September 2017
412.92 million in 2015-16. Agricultural exports from the state were
US$ 204.72 million in 2016-17, up to September 2016.
Final estimate of coffee production (2016-17) in MT  Hindustan Unilever Limited
 Nestle India
District Arabica Robusta Total
 Britannia Industries Limited
Chikmagalur 36,150 34,860 71,010
 United Breweries Group
Kodagu 17,035 102,825 119,860
Hassan 17,325 13,550 30,875
Sub total 70,510 151,235 221,745
Source: : Economic Survey of Karnataka 2017-18, Coffee Board,*Up to September 2018

KEY INDUSTRIES – AGRO AND FOOD PROCESSING …
(3/3)
 Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods (FMCG) company, with
leadership in home & personal care products and foods & beverages. The company recorded revenues of US$
4.2 billion during 2015-16. HUL employs more than 16,000 people nationwide. During 2016-17, the company
recorded revenues of Rs 34,487.00 crore (US$ 5.4 billion).
Hindustan Unilever Ltd  The company has a manufacturing plant and an R&D centre at Bengaluru.
 Nestle has been in India for almost a century, with seven production facilities across the country, including one at
Nanjangud, Karnataka. The company produces chocolates and confectionaries, prepared dishes and cooking
aids, beverages and milk products and nutritional supplements. During 2017, the company recorded revenues of
Rs 10,192.18 (US$ 1.58 billion).
Nestle India
 Britannia is a leading food processing company in India. The company manufactures food products such as
biscuits, cheese and bread. Based in Bengaluru, the company recorded revenues of Rs 8,684.39 crore (US$ 1.29
Britannia billion) in 2016-17.
Industries Ltd
 United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also referred to as the
beer division of the UB Group and is based in Bengaluru. UBL recorded a net turnover of US$ 778.41 million in
2014-15., the company recorded total revenue of Rs 10,228.16 (US$ 1.58 billion) In 2016-2017.
 The company has around 2,489 employees and manufactures products primarily under the Kingfisher, London
United Breweries Ltd Pilsner and UB Premium Ice brands.

KEY INDUSTRIES – AEROSPACE … (1/2)
 Karnataka is known as the pioneer in the Indian aerospace industry  In 2016, Karnataka approved amendments to the Karnataka
after the establishment of Hindustan Aeronautics Limited (HAL) in Aerospace Policy 2013-23 to provide special incentives for
Bangalore in 1940. Karnataka produces more than a quarter of development of Maintenance, Repair and Overhaul (MRO) sector.
India’s aircrafts and spacecrafts.
 The state is exporting aerospace products to US, UK, Germany,
 Around 984 acres of land is earmarked for an exclusive industrial Russia Mauritius, Malaysia, Nepal, Oman and Ecuador. In order to
area and sector-specific SEZ for aerospace industries near boost aerospace industry in the state, the Government of Karnataka
Bengaluru International Airport. In February 2015, the aerospace has proposed to reduce the VAT imposed on articles made from
park started its operations. nickel, titanium, etc. under the heading of HSN 7505, 7506 and 8108,
from 14.5 per cent to 5.5 per cent during 2016-17.
 India’s first aerospace SEZ of 300 acres is operational at Belgaum.
 Aerospace Technology Centre (ATC) in Bengaluru would be
 Karnataka is the first state which announced the aerospace policy in
established under the PPP model.
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. Some of the key players
 Companies such as Air India, Boeing and Jupiter Aerospace have  Boeing
selected Karnataka for the development of MRO facilities.  Hindustan Aeronautics Limited
 The state government plans to develop an aerospace park spread  Airbus Engineering Centre
over 1,000 acres near the Bengaluru International Airport (BIAL) with
 BEML Ltd
an investment of US$ 1.7 billion, with the intention of attracting global
and domestic players in the Indian aerospace industry. The park is  Gokaldas Exports Limited
expected to be operational by 2017.
 Dornier 228 aircraft, manufactured by Hindustan Aeronautics, the

Bengaluru-headquartered defence public sector unit, gets clean chit
from aviation regulator for civilian use.
Source: : Global Investors Meet 2012, MRO India, NRI Forum Karnataka, Karnataka Aerospace Policy 2012

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.
Boeing
 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.
HAL
 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.
Airbus
 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.
BEML Ltd
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 Some of the key players
Microsoft are located in Bengaluru.
 Boeing
 There has been a considerable increase in AVGC business
 Hindustan Aeronautics Limited
outsourcing to Bengaluru.
 Airbus Engineering Centre
 A great deal of content for global blockbuster animation movies such
as Life of Pi, Harry Potter, Kung Fu Panda, Prometheus and Pirates  BEML Ltd
of the Caribbean was developed in Karnataka.  Gokaldas Exports Limited
 The state government is in process of establishing digital art training Source: PwC Report , Karnataka AVGC Policy
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.  In July 2017, the government approved the Karnataka Animation,
 As per economic survey 2016-17, four projects are being Visual Effects and Comics Policy (AVGC) 2017-22. The policy is
implemented under Karnataka Animation Visual Gaming & Comic expected to generate 15,000 jobs and propel Karnataka as a global
Policy (KAVGC). leader in AVGC. Also, setting up of a Centre of Excellence for
Animation in Bengaluru was announced by the Government.
 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  Out of 44 ,7 start ups in animation, visual effects, gaming and comics
AVGC sector. (AVGC) sector received grants from AVGC Fund .The grants were
varied from US$ 80 thousand to US$ 310 thousand.
 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.
Note: ABAI – Association of Bangalore Animation Industry

Source: Karnataka AVGC Policy 2017-22, News Articles

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.
Boeing  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.
Tata ELXSI  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.
Zynga Inc
 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.
DreamWorks  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.
Source: : Technicolor, TATA Elxsi, Zynga, DreamWorks

KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)
 Karnataka is among the top chip designing hubs in the country.  The state government has announced a new programme, Yuva
Around 70 per cent of chip designers in India are found in Bengaluru Yuga, to train more than 100,000 persons in the electronics and IT
city. sector.
 The state has the advantage of having low-cost skilled/technical  In budget 2017-18, the state government proposed to establish VLSI
manpower compared with other states. Incubator and Brown Field ESDM Cluster in Hubballi in collaboration
with Entrepreneurs to create new conceptual innovative
 Bengaluru is a global hub for R&D activity in the software industry,
environment system and vibrant technology in 2/3rd phase cities.
which will greatly aid the electronic hardware industry.
 In August 2017, the state government picked 27 ESDM startups for
 The ESDM (Electronic System Design & Manufacturing) Policy is
its ELEVATE 100 programme under which selected 100 startups will
expected to provide for development of three ESDM innovation
receive a combined US$ 62.5 million in funding.
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 Some of the key players
turnover of US$ 400 billion, including exports to the tune of US$ 80  Intel
billion, with an investment of US$ 100 billion.
 AMD
 As per the new Electronic Systems Design and Manufacturing
 Qualcomm Inc
(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  Nvidia
direct and indirect jobs by 2022.
Source: : Department of Electronics and Information Technology, GoI, Department of IT, BT and S&T, Karnataka,ESDM Policy 2013, Karnataka

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.
Intel
 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  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
Qualcomm Inc 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
DreamWorks
of platforms.
Source: : Company websites

KEY INDUSTRIES – TOURISM ... (1/2)
 Karnataka boasts of a diverse flora and fauna and a 320-km natural Tourist Visits to Karnataka (million)
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.
140.0
 The Palace on Wheels of South India – the Golden Chariot Train tour
120.0
130.3
– has been rated by Vanity Fair, UK, as among the top seven train
120.5
118.8
100.0
journeys in the world. Karnataka has World Heritage Sites at Hampi
102.4
98.6
94.7
and Pattadakal. Good infrastructure in the form of better road and rail 80.0
84.1
connectivity as well as improving hospitality is also aiding tourism. 60.0
 The state attracted 129.8 million domestic tourists and 0.46 million 40.0
38.5
38.4
37.5
36.7
international tourists in 2016. During 2005–2016, tourist arrivals in the
25.2
33.0
20.0
state increased at a CAGR of 16.11 per cent.
0.0
2017*
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
 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.
 In April 2017, the state government has decided to convert the
 The sector contributes 14.8 per cent to the GSDP of Karnataka; plans
backwaters of four dams - Kabini, Gorur, Bhadra and Hidkal - into
are afoot to expand to 26 per cent by 2020.
adventure tourism hubs. This decision was taken to tap into the
 In budget 2016-17, the state government announced the launch of scenic beauty of these reservoirs as well as promote adventure
new policy on tourism for the period 2015-2020 for strengthening and sports and entertainment facilities.
boosting private investments across the tourism sector.
 As per Budget 2018-19, the state government has decided to
 To provide new experience to tourist ,government has proposed to
allocate Rs.459 crore (US$70.90 million) to tourism department.
introduce floating restaurants through KSTDC.
 Further, integrated development of heritage tourist infrastructure will
 Karnataka government has taken the initiative to imitate New York’s
be undertaken. As per the budget 2017-18, an amount of US$ 88.78
famous Time Square in Bengaluru by constructing Bengaluru’s Time
million has been allocated to the tourism department.
Square to attract more tourists in the state.
Source: : Socio Economic Survey 2017-18, Government of Karnataka ,*upto November 2017provisional

KEY INDUSTRIES – TOURISM ... (2/2)
Major attractions
 Karnataka is India’s most preferred destination for advanced medical care, and is referred to as the medical
tourism hub of India.
Medical tourism
 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.
Eco tourism
 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
Adventure tourism sports and outdoor activities.
 Major attractions include white water rafting on the Kali river and aero sports at the Nandi hills.
Source: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

KEY INDUSTRIES – RENEWABLE ENERGY … (1/4)
 As of March 2018, renewable energy was recorded at 10,354.15 MW out of the total installed capacity of 24,612.77 MW. Therefore, it contributed
a total of 42.1 per cent into the state’s total installed power capacity.
 Karnataka Renewable Energy Development Limited (KREDL) has issued a tender for grid-connected solar projects in 43 selected taluks in
Karnataka for allotment of 860 MW (20 MW x 43 Taluks).
 Karnataka is endowed with high renewable energy potential such as wind, hydro, solar, tidal & geothermal energy resources.
 The renewable energy potential for the state is estimated at 30.2 GW, primarily from wind, solar, small hydro, co-generation and biomass sectors.
 The government has allotted projects of 23,292.35 MW, amounting to nearly 73.1 per cent of the total potential of renewable energy sources.
 Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10 per cent of the land of SEZs
and dedicating it for renewable energy.
 The policy also mandates to keep aside 10.0 per cent of barren Government land for renewable energy.
 In September 2017, renewable energy developer Siemens Gamesa secured a contract to set up a Wind-Solar hybri renewable energy project in
Karnataka.
 During 2016-17, various projects totalling 1,900.18 MW of renewable energy were commissioned in Karnataka. Out of this total, 882.3 MW
belonged to wind projects, 869.88 MW to solar projects, 134 MW to Co-Gen projects, 8 MW to Small Hydro projects and 6 MW to Biomass
projects.
 In March 2017, ABB India modernised & restored the 1,035 MW Sharavathi seamless integration hydropower plant in the state, which generates
25 per cent of Karnataka Power Corporation’s output. The project is a perfect example for future ready renewable technology which enables the
Industrial Internet of Things (IIOT) & synchronises with the government’s strategy for round the clock reliable power.
 The Power Purchase Agreements (PPAs) for grid-connected solar photovoltaic (PV) projects adding up to 640 MW, to be established in various
taluks of Karnataka, have been inked between successful bidders and distribution companies (DISCOMs) of the state.
Source: Economic Survey Karnataka 2014-15, Tea Board of India

Progress in renewable energy as of March 2018
No Renewable energy source Available potential (MW) Capacity allotted (MW) Installed capacity (MW)
1 Wind 55,857 1,7685.47 4,556.66
2 Hydro 3,000 3012.55 851.96
3 Biomass 1,000 391.18 134.03
4 Co-generation 2,000 2,177.65 1,618.16
5 Solar 24,700 8,561.48 4,813.76
Grand total 86,557 31,828.33 11,974.57
Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy

Wind energy Karnataka wind energy density map
 Karnataka’s total wind energy potential has been estimated at

approximately 55,857 MW* by National Institute of Wind Energy.
 By the end of January 2018, the installed capacity for wind energy
was recorded to be 3,840.36 MW. Wind energy accounted for 17.23
per cent of the total installed capacity recorded by the end of January
2018.
 During 2017-18 (up to November), 41.7 MW of wind power projects

were commissioned in the state.
 Wind velocity in the state ranges from 0.85 m/s to 8.27 m/s.
 Potential areas for wind power plants in the state include

Chitradurga, Gadag, C`hikmaglur, Bellary, Davangere, Koppal,
Wind power
Bijapur, Bagalkot and Belgaum.
density W/Sq m
 Karnataka is counted among the top five destinations for wind energy
0 – 100
in India.
100 – 200
200 – 250
250 – 300
300 – 400
400 – 500
Note: *100 metres above ground level

Source: Centre for Wind Energy, Chennai

Solar energy Karnataka solar resource map
 The state has a solar energy potential of 10,000 MW. Karnataka

Solar Policy 2014-2021 plans to add solar generation of minimum
2,000 MW by 2021. The total capacity installed for solar energy in
January 2018 was recorded to be 2,665.38 MW.
 Many districts, especially coastal areas, receive solar radiation in the
range of 5.1-6.4 kWh/m2 during summer, which is best suited for
solar PV projects.
 The central government’s policy mandates that solar energy
consumption should increase to 3.0 per cent of the total consumption
by 2022, up from the present consumption of 1.5 per cent.
 A 2,000 MW Solar Park is being set up in Pavagada taluk of
Karnataka with an investment of Rs 14,425 crore (US$ 2.2
billion).The first phase of the project will generate 600 MW and is
expected to be ready by December 2017.
 Karnataka Renewable Energy Development Limited (KREDL) has
issued a tender for a 1200 MW grid-connected solar PV project
which would be deployed in Pavagada Solar Park. The project will be
spread over 253 acres and will be connected to dedicated
substations being developed by the Karnataka Solar Power
Development Corporation Limited (KSPDCL).
 One of Asia’s largest renewable energy company, Equis Energy, has
commissioned a 100 MW (135MWp) solar PV project in Bagalkot
District in Karnataka.
Source: Karnataka Solar Policy 2014-21, News articles

KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description Contact information
No 49, South Block, Khanija Bhavan

Race Course Road
Anchor department for development/establishment of
Department of Industries Bengaluru - 560 001
industries in Karnataka.
and Commerce Phone: 91-80 2238 9901-08
Responsible for formulating and implementing industrial
(DIC) Fax: 91-80-2238 9909
policies in the state.
E-mail: commissioner@karnatakaindustry.gov.in
Website: www.karnatakaindustry.gov.in
Single contact point for investors in the state No 49, South Block, Khanija Bhavan
Considers/forwards proposals to concerned agencies and East Entrance, Race Course Road
communicates status to investors. Bengaluru - 560 001
Karnataka Udyog Mitra
Monitors implementation of approved projects. Phone: 91-80-2228 2392/5659,
(KUM)
Single point of contact for information on various aspects Fax: 91-80-2226 6063
including land availability, statutory approvals and E-mail: md@kumbangalore.com
coordination. Website: kum.karnatak.gov.in

KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description
District Level Single Window Clearance  Functions under the chairmanship of respective Deputy Commissioners for industrial projects for
Committee (DLSWCC) investments less than US$ 0.65 million.
State Level Single Window Clearance  Functions under the chairmanship of Minister for Large and Medium Industries for investments
Committee (SLSWCC) that range between US$ 0.65–10.9 million.
State High Level Clearance Committee  Functions under the chairmanship of the Chief Minister for projects involving investment of more
(SHLCC) than US$ 10.9 million.
 Nodal agencies for approval of projects at the district level.

District Industries Centres
 Primary focus is to promote small scale, village and cottage industries.
 Various sector specific departments such as Department of Tourism, Department of Information

Other departments 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
Department of Industries and Commerce Department, Karnataka Udyog Mitra (Single Window
Registration
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
Department of Industries and Commerce and respective sector departments such as

Registration
IT/BT/Tourism etc.

COST OF DOING BUSINESS IN KARNATAKA
Cost parameter Cost estimate
Industrial land (US$ per hectare) 129,191.51
Metropolitan area: 12.13

Power cost (US cents per kWh)
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 per cent of the US$ 400 billion by 2020
• Generate over 20 per cent of the country's total ESDM exports target of US$ $80 billion by 2020.
• Develop core competencies in specific ESDM verticals such as telecom, defence electronics, avionics and energy.
• Make Karnataka the country's preferred destination for investments in ESDM.
• Generate at least 240,000 new jobs, 25 per cent of India's PhDs and 5000 patent filings in ESDM sector in Karnataka by 2020.

KARNATAKA STARTUP POLICY 2015 – 20
 A Karnataka Startup Cell has been set up to address the needs and demands of the rapidly expanding Startup Community and promote
Karnataka's Startup Ecosystem.
 Following are the highlights of the startup policy:
• Capacity Building through New Age Incubation Network
• Technology Based Incubators: Fostering links between R&D and Commercialization of Technologies.
• IDEA2PoC Fund: Taking ideas to Proof of Concept.
• Startup Fund of Funds.
• Incentives and Concessions: VAT/CST and ST, Patent and Marketing Reimbursements
• ‘Elevate 100’ scheme to identify 100 innovative start-ups and support them till the next level of success.
• Capacity Building Through Exposure Visits and Workshops
• Creating incubation infrastructure through PPP

STATE ACTS & POLICIES … (1/5)
Objectives
 To encourage the growth of 20,000 technology based start-ups in the state by 2020.
Karnataka Start-up  To enable the establishment of around 25 innovative technology solutions in the state.
Policy 2015-20
 To create around 0.6 million direct as well as 1.2 million indirect employment opportunities in
technology sector. Read more
 To boost private investments across the tourism sector.

Karnataka Tourism  To develop Karnataka as a dynamic, sustainable and most-favoured tourism destination by increasing domestic &
Policy 2015-20 international visitations, offering high quality experience to visitors, facilitating and accelerating investments and
improving livelihood opportunities at the local level.
Read more
 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.

Solar Policy 2014-21
 To promote Roof Top Generation and Technologies.
 To transform Karnataka into an investor friendly state. Read more
Karnataka Industrial
 To make Karnataka the most preferred investment destination through inclusive, sustainable and balanced growth.
Policy 2014-19
Read more

Objectives
 To facilitate, promote and develop the ESDM sector in Karnataka and make Karnataka a preferred destination for
ESDM Policy 2013
investment in this sector.
Read more
 To position Karnataka as a vibrant aerospace hub of Asia and a globally recognized aerospace destination by
Aerospace Policy 2013- enabling the environment for holistic and sustained growth of the aerospace sector.
23  Increase the contribution of the aerospace sector towards enhancing the share of industry in the state’s GSDP
from 28.0 per cent to 32.0 per cent by 2022.
Read more
 Encourage and support appropriate manpower development, infrastructure development and business
AVGC Policy 2017-22
development in the AVGC sector.
Read more
 To maintain Karnataka’s leadership in outsourced IT services.

Information and  To retain Karnataka’s position as the state with the largest skilled workforce in India for IT services, products and
Communication R&D.
Technology Policy 2011  To enable Karnataka to be the most preferred destination for MSMEs (micro, small and medium
enterprises). Read more

Objectives
Integrated Agribusiness  To position Karnataka on a sustained growth path in the field of agricultural and allied sectors through global
Development Policy technologies and innovative tools by creating enabling frameworks and state-of-the-art infrastructure facilities,
2011 thereby generating higher returns for farming communities.
Read more
Renewable Energy  Development, propagation and promotion of renewable energy resources and technologies.
Policy 2009-14  Creation of a suitable environment for private sector participation in renewable energy power generation.
Read more
State Policy for Special  To facilitate and expedite establishment of SEZs, at the same time safeguarding the environment and the interests
Economic Zones 2009 of land owners.
Read more
 To increase the quality of human resources by supporting education and research institutions like the Institute of
Millennium Biotech Agri-Biotechnology (IABT), the Institute of Bioinformatics and Applied Biotechnology (IBAB), the Centre for Human
Policy II 2009 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.
Read more

Objectives
 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.
Karnataka Mineral Policy  To resolutely pursue the policy of preserving flora, fauna, and bio-diversity and ensure that the invaluable forest
2008 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. Read more
Infrastructure Policy  To provide a fair and transparent policy framework for facilitating economic growth and encouraging Public–Private
2007 Partnerships (PPP) in infrastructure.
Read more
 The policy was introduced in January 2017, to attract investments from non-resident Kannadigas. The policy aims
NRI Policy 2017
at helping improve the privileges and speedy services to NRKs, through a card.
Read more
Karnataka State Electric

 To make Karnataka a preferred investment destination for manufacturing of electric vehicles, promote a conducive
Vehicle and Energy
manufacturing ecosystem in the industry and develop human capital required by the industry.
Storage Policy 2017
Read more

Policy Department
Semiconductor policy 2010 Department of IT /BT and Science & Technology, Government of Karnataka
Department of Information Technology, Biotechnology and Science & Technology, Government of

I4 (IT, ITeS, Innovation, Incentives) policy
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
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$ Year INR Equivalent of one US$
2004–05 44.95 2005 44.11
2005–06 44.28 2006 45.33

2006–07 45.29 2007 41.29
2007–08 40.24
2008 43.42
2008–09 45.91
2009 48.35
2009–10 47.42
2010 45.74
2010–11 45.58
2011 46.67
2011–12 47.95
2012 53.49
2012–13 54.45
2013 58.63
2013–14 60.50
2014 61.03
2014-15 61.15
2015-16 65.46 2015 64.15
2016-17 67.09 2016 67.21
2017-18 64.45 2017 65.12
Source: Reserve bank of India, Average for the year

DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with
IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
reliance placed or guidance taken from any portion of this presentation.

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LOTUS MAHAL IN HAMPI, KARNATAKA

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

Karnataka Vision 2020……………………..6

Karnataka Budget 2018-19…………..……20

Doing Business in Karnataka……………...79

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

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

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

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

March High economic growth Rich talent pool 2022

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

 Develop the state as a vibrant knowledge

 Increase rural incomes through

 Preserve and promote Karnataka’s rich

Source: State Planning Department

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

 Some of the prominent cities in the state are Ankola, Bengaluru,

 Karnataka has a tropical climate with three major seasons: warm

Geographical area (sq km) 192,000

Literacy rate (%) 75.6

Male literacy rate 82.5

Female literacy rate 68.1

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

Parameter Karnataka All states Source

Economy 2017-18 2017-18

Directorate of Economics & Statistics of Karnataka,

Telecom Regulatory Authority of India - as of January

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

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

Parameter Karnataka All states Source

Literacy rate (%) 75.6 73.0 Census, 2011

Department of Industrial Policy & Promotion, April

Department of Economic Affairs, Ministry of Finance,

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

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

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

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

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

 The primary sectorµ grew at a CAGR* of 10.45 percent between

Note: F- Forecast,*CAGR in Rs term

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

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

Karnataka exports by commodity (US$ million)

Commodity 2015-16 2016-17 2017-18*

Electronics & computer software 60,503.00 62,666.37 30,413.21

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka,* up to September 2018

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

Karnataka exports by commodity (US$ million)

Commodity 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*

Silk products 139.83 120.42 107.83 91.90 74.19 58.54 23.23

Coffee products 659.26 650.71 596.88 824.98 480.54 507.33 319.99

Handicrafts 55.47 68.86 85.60 90.91 194.48 172.18 93.93

Leather products 66.49 83.23 74.65 90.08 55.10 57.29 49.08

Marine products 125.70 116.37 177.01 217.82 118.58 162.52 79.37

Plastic goods 125.49 145.09 116.12 62.38 121.53 137.88 69.32

Spices 145.44 166.45 190.78 186.79 50.13 49.18 29.47

Miscellaneous 1,001.04 881.79 923.19 958.36 3214.48 1292.85 683.23