Karnataka State Report April 2017

11APRIL 2017 For updated information, please visit www.ibef.org
KARNATAKA THE SILICON VALLEY OF INDIA
APRIL 2017 (As of 20 April 2017)

22APRIL 2017
❖ Executive Summary………………….…. 3
❖ Advantage State………………………... 5
❖ Karnataka Vision 2020………………….6
❖ Karnataka – An Introduction……………7
❖ Karnataka Budget 2016-17……..….…20
❖ Infrastructure Status………………..….23
❖ Business Opportunities…………....….44
❖ Doing Business in Karnataka………...79
❖ State Acts & Policies.......................... 80
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APRIL 2017

EXECUTIVE SUMMARY … (1/2)
Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2015-16
Department of Industrial Policy & Promotion
Strong growth in GSDP
• At current prices, the gross state domestic product (GSDP) of Karnataka was about US$
156.23 billion in 2015-16.
• The per capita GSDP increased to US$ 2,557, growing at a CAGR of 12.91% between
2004-05 and 2015-16.
IT hub of India
• Karnataka is the IT hub of India and home to the fourth largest technology cluster in the
world. Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT
investment regions.
• Exports of IT and electronic products from the state reached US$ 10.38 billion by the end
of December 2015. Exports of IT and electronic products accounted for around 38% share
in India's IT and electronic products exports and 52.89% share in Karnataka’s overall
exports by the end of December 2015.
Vibrant industrial base
• Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech and heavy
engineering industries. The state has sector-specific SEZs for key industries such as IT,
biotechnology, engineering, food processing and aerospace.
One of the preferred
investment destinations
• The cumulative FDI inflows in the state from April 2000 to March 2016 were recorded at
US$ 20.24 billion, the fourth highest in India after Maharashtra, Delhi and Chennai, and
accounted for a share of 7% in India’s cumulative FDI inflows.

Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2015-16
Karnataka State Budget 2016-17
Strong growth in export
• As of September 2015, the total exports of the state were recorded at US$ 19.63 billion.
During 2015-16, exports contributed about 40 per cent in the state’s economy. Sectors
such as biotechnology, computer software and electronics are major contributors in the
overall exports from the state.
Strong knowledge
infrastructure
• Karnataka has 44 universities, 4,519 pre-university colleges, 206 engineering colleges
and 293 polytechnics, 47 medical colleges and 38 dental colleges.
• The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies
outsource their IT services to firms in Bengaluru.
Significant agriculture
base
• Sugarcane is the major crop of the state with production estimates of about 40.5 million
tonnes in 2015-16. The state’s total food grain production is estimated to be 11 million
tonnes in 2015-16. Karnataka is also the third largest producer of plantation crops in the
country.
Strong growth in
tourism sector
• Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which
makes it a nature tourist's paradise. Tourist arrivals in the state increased from 25.2 million
in 2005-06 to 120.5 million in 2015-16. The state has world heritage sites at Hampi and
Pattadakal. The sector contributes 14.8% to GSDP of Karnataka; plans are afoot to
expand to 26% by 2020.
EXECUTIVE SUMMARY … (2/2)

Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade
Promotion Centre,
Growing demandHigh economic growth
• GSDP expanded at a CAGR of
13.59% between 2005-06 and
2015-16.
• Buoyant services (IT, tourism) and
industries driving economic growth.
• Sector specific SEZs and SIRs
facilitating growth.
Rich talent pool
• Karnataka is termed as the
Knowledge Capital of India.
• The state has successfully
attracted skilled labour, especially,
in the knowledge sector.
Karnataka is among the states
that produce a large number of
doctors, engineers and medical
technicians in the country.
Policy support
• Wide range of fiscal and policy
incentives for businesses under the
Karnataka Industrial Policy, 2014-19.
• Investor-friendly sector-specific
policies to promote industries such
as IT, biotechnology, tourism and
manufacturing.
• Simplified procedures for investment.
• In January 2017, Karnataka
department of Commerce and
Industries introduced an NRI policy
to attract investments from non-
resident Kannadigas.
Infrastructure
• Well-developed social, physical
and industrial infrastructure.
• Good road, rail, water and air
connectivity and substantial port
infrastructure.
• Well-developed telecom
infrastructure.
• Excellent healthcare facilities.
June 2016
Capacity
allocated for
Solar energy-
2,320.50 MW
2022
target
Solar energy
share in total
energy
consumption
is expected to
reach 3%
ADVANTAGE: KARNATAKA
Advantage
Karnataka

KARNATAKA VISION 2020
Healthcare/
Social
amenities
Education/
Skill
development
Infrastructure
Women
empowerment
Governance
Poor and
backward
classes
Tourism
• Improve access and
availability of quality
healthcare for all.
• Build infrastructure to boost
productive potential of the
economy.
• Various metro rail and mono
rail projects are in progress.
• Develop the state as a vibrant
knowledge society.
• Focus on job oriented growth
through skill development of the
workforce.
• Enhance opportunities and
empower women across
economic, social and
political spheres.
• Better governance through
wider participation and deep
democratic decentralisation.
• Encourage transparency and
accountability.
• Increase rural incomes
through greater viability of
agriculture and allied activities.
• Bridge the gap between
socially backward and
vulnerable groups and rest
of the people.
• Preserve and promote
Karnataka’s rich heritage.
• Karnataka Tourism Vision
Group (KTVG) was set up in
October 2013 to advise on
promoting tourism in state.
Industry
• Build and sustain Bangalore’s
leadership in science,
technology and knowledge
based industries.
• Achieve a sustainable and
orderly process of
industrialisation and
urbanisation.
Source: State Planning Department
Vision
2020

KARNATAKA FACT FILE
Karnataka is located in the southern region of India. The
state is surrounded by the Arabian Sea in the west, Goa in
the northwest, Maharashtra in the north, Andhra Pradesh in
the east, Tamil Nadu in the southeast, and Kerala in the
southwest.
Languages spoken are Kannada, Tulu, Kodava, Hindi and
English.
Some of the prominent cities in the state are Ankola,
Bengaluru, Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur,
Chitradurga, Dandeli, Hubli-Dharwad, Mangalore, Mysore
and Shimoga.
Karnataka has a tropical climate with three major seasons:
warm and dry from February to May, monsoon from June to
October and winter from November to January.
Source: Economic Survey of Karnataka 2015-16, Census 2011
Office of Registrar General, India.
Parameters Karnataka
Capital Bengaluru
Geographical area (sq km) 192,000
Administrative districts (No) 30
Population density (persons per sq km) 319
Total population (million) 61.1
Sex ratio (females per 1,000 males) 973
Literacy rate (%) 75.6
Male literacy rate 82.5
Female literacy rate 68.1
Source: Maps of India

88APRIL 2017
Parameter Karnataka All states Source
Economy 2015-16 2015-16
GSDP as a percentage of all states’ GSDP 7.66 100.0
Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
GSDP growth rate (%) 13.05 8.71
Per capita GSDP (US$) 2,532 1,546
Physical Infrastructure
Installed power capacity (MW) 17,333.92 305,554.25 Central Electricity Authority, as of August 2016
Wireless subscribers (No) 64,447,332 1,078,422,215
Telecom Regulatory Authority of India - as of
October 2016
Internet subscribers (No) 23,960,000 367,480,000
Ministry of Communications & Information
Technology - as of September 2016
National Highway length (km) 6,502.29 100,087.08
NHAI & Karnataka Roads and Building
Department, 2015-16
Major and minor ports (No) 1+10 13+187 India Ports Association
Airports (No) 5 125 Airports Authority of India
KARNATAKA IN FIGURES … (1/2)

99APRIL 2017
Parameter Karnataka All states Source
Social Indicators
Literacy rate (%) 75.6 73.0 Census, 2011
Birth rate (per 1,000 population) 18.5 21.6 SRS Bulletin
Investment
FDI equity inflows (US$ billion) 21.93 324.47
Department of Industrial Policy & Promotion,
April 2000 to December 2016
Industrial Infrastructure
PPP projects completed & operational (No) 129 1,246
Department of Economic Affairs, Ministry of
Finance, Government of India, July 2016
Operational SEZs (No) 25 186
Department of Commerce, Ministry of
Commerce & Industry, July 2016
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
KARNATAKA IN FIGURES … (2/2)

1010APRIL 2017
At current prices, the gross state domestic product (GSDP*)
of Karnataka stood at about US$ 158.89 billion in 2015-16.
The GSDP of the state grew at a CAGR of 13.59% between
2005-06 and 2015-16.
Growth has been mainly driven by secondary and tertiary
sectors.
Source: Directorate of Economics & Statistics of Karnataka, Central
Statistics Office
GSDP* -Karnataka Socio Economic Survey 2015-16
GSDP of Karnataka at current prices (US$ billion)
ECONOMIC SNAPSHOT – GSDP
CAGR:
13.59%
44.4 50.3
67.2 67.3 71.2
90.0 94.6 96.2 102.0
115.9
158.8
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

1111APRIL 2017
The net state domestic product (NSDP#) of
Karnataka was recorded at about US$ 145.6 billion
in 2015-16.
The NSDP of the state grew at a CAGR of 13.91%
between 2005-06 and 2015-16.
NSDP of Karnataka at current prices (US$ billion)
ECONOMIC SNAPSHOT – NSDP
Source: Directorate of Economics & Statistics of Karnataka, Central
Statistics Office
NSDP# -Karnataka Socio Economic Survey 2015-16
CAGR:
13.91%
39.6 45.2
60.3 60.4 63.4
80.7 84.5 85.1 85.7
103.2
145.6
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

1212APRIL 2017
The state’s per capita GSDP^ was US$ 2,532 in 2015-16.
The per capita GSDP increased at a CAGR of 12.31%
between 2005-06 and 2015-16.
GSDP per capita of Karnataka at current prices (US$)
ECONOMIC SNAPSHOT – PER CAPITA GSDP
Source: Directorate of Economics & Statistics of Karnataka,
Per Capita GSDP^ - calculated using GSDP million
US$/Population in million
CAGR:
12.31%
793 889
1,173 1,161 1,216
1,522 1,582 1,594 1,672
1,900
2532
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

1313APRIL 2017
The state’s per capita NSDP& in 2014-15 was
US$ 2,321.
The per capita NSDP increased at a CAGR of
11.40% between 2005-06 and 2015-16.
NSDP per capita of Karnataka at current prices (US$)
ECONOMIC SNAPSHOT – PER CAPITA NSDP
per capita NSDP& -calculated using NSDP million
US$/Population in million
CAGR:
11.40%
708 798
1053 1043 1083
1364 1414 1409 1405
1692
2321
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
In 2015-16, the tertiary sectorµ contributed 64.05% to the
state’s GSDP at current prices, followed by the secondary
sector (22.97%) and the primary sector (12.98%).
At a CAGR of 16.31%, the tertiary sector has been the
fastest growing among the three sectors from 2004-05 to
2015-16. The growth has been driven by trade, hotels, real
estate, finance, insurance, transport, communications and
other services.
The secondary sectorµ grew at a CAGR of 11.5% between
2004-05 and 2015-16. This was driven by manufacturing,
construction and electricity, gas & water supply.
The primary sectorµ grew at a CAGR of 9.61% between
2004-05 and 2015-16.
GSDP composition by sector
19.86%
12.98%
29.12%
22.97%
51.02%
64.05%
2004-05 2015-16
Primary Sector Secondary Sector Tertiary Sector
Central Statistics Office, TechSci Research
Sector-wise %share of GSDPµ -Karnataka Socio Economic
Survey 2015-16
CAGR
9.61%
16.31%
11.50%

1515APRIL 2017
Source: Department of Agriculture & Corporation, Government of Karnataka
Production of major crops in Karnataka (lakh
tonnes)
Crop 2015-16
Cereals 97.5
Pulses 12.5
Total food grains 110
Oilseeds 9.6
Sugarcane 405
Tobacco 0.82
Vegetables 84.78
Plantation 40.69
Spices 3.43
Horticulture crops 202.19
Sugarcane is a major crop of the state with production estimates of
about 40.50 million tonnes in 2015-16. The state’s total food grain
production is estimated to be 11 million tonnes during 2015-16.
During 2015-16, major oilseeds production in the state is estimated
to be 0.96 million tonnes. Production of cereals and pulses in the
state is estimated to be 0.97 million tonnes & 0.12 million tonnes,
respectively, in 2015-16.
In 2015-16, total production of major fruits in the state was 6.78
million tonnes.
ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
Area under major crops in Karnataka (lakh hectares)
Crop 2014-15 2015-16
Cereals 49.45 45.58
Pulses 24.32 29.92
Total food grains 73.77 75.5
Oilseeds 15.01 13.54
Sugarcane 4.4 6.34
Tobacco 1.05 0.99
Source: Department of Agriculture & Corporation, Government of Karnataka

1616APRIL 2017
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka;
Note: 2015-16(1) : Till September 2015
ECONOMIC SNAPSHOT – EXPORTS…(1/3)
During 2015-16, exports from the state contributed about
40% to the state’s economy, with biotechnology,
computer software and electronics being the major
exports.
As of September 2015, total exports from the state
aggregated to US$ 19.63 billion. Karnataka’s exports
increased at a CAGR of 9.4 per cent during 2010-11 to
2014-15.
By the end of September 2015, electronics and software
exports from the state reached US$ 10.38 billion, which
constituted 53 per cent share of the state’s total exports.
Exports from Karnataka (in US$ billion)
36.28
45.47 47.57 48.18 52.02
19.63
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16⁽¹⁾
Karnataka exports by commodity (US$ million)
Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(1)
Electronics & computer software 23,093.16 28,186.16 28,723.99 29,528.87 32,186.46 10,384.96
Readymade garments 1,505.04 1,691.88 1,412.26 1,476.44 1,629.23 877.94
Petroleum & petroleum products 3,200.79 4,865.57 6,244.71 5,871.27 6,782.02 1,010.23
Engineering goods 1,605.44 1,716.81 2,314.12 2,982.42 3,476.78 2,634.43
Iron ores & minerals (incl granites) 212.19 235.61 319.46 122.59 124.25 1,062.93

1717APRIL 2017
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka;
Karnataka exports by commodity (US$ million)
Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(1)
Silk products 148.62 139.83 120.42 107.83 91.90 32.53
Coffee 478.74 659.26 650.71 596.88 824.98 256.18
Basic chemicals, pharmaceuticals
and cosmetics
634.15 1,054.85 1,331.80 1,376.91 978.10 520.92
Agriculture & processed food
products
146.87 158.53 211.56 215.66 229.43 412.92
Gems and jewellery 4,361.46 4,929.98 4,508.01 4,010.45 3,649.30 2,182.85
Cashew and cashew kernels 128.67 183.25 155.96 199.07 249.67 43.69
Handicrafts 64.23 55.47 68.86 85.60 90.91 13.74
Leather products 44.28 66.49 83.23 74.65 90.08 21.38
Chemicals and allied products 74.09 99.73 90.41 93.23 158.43 109.22
Marine products 115.74 125.70 116.37 177.01 217.82 22.91
Plastic goods 123.41 125.49 145.09 116.12 62.38 8.55
Spices 98.64 145.44 166.45 190.78 186.79 20.31
Wool & woollen products 19.95 26.80 27.62 29.20 31.69 0.61
Miscellaneous 227.53 1,001.04 881.79 923.19 958.36 19.24

1818APRIL 2017
Source: Economic Survey of Karnataka 2015-16
Incentives & concessions for export in Karnataka
Exemption from entry tax
Refund of certification charges
Refund of cost incurred for export consultancy / market Intelligence studies
Brand promotion and quality assurance
Support for the establishment of CFS and other export infrastructure
Compensation of export Credit.
Support for development of exports in gherkins, rose onions and floriculture.
Market development assistance for trade promotion and overseas trade delegations.
Policies for export promotion
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

1919APRIL 2017
The state has a stable political environment.
Successive state governments have recognised
the importance of industries in the state and have
provided a conducive business environment to
attract domestic as well as foreign entities.
Karnataka is ranked fifth in terms of attracting
private sector investments in India. According to
the Department of Industrial Policy & Promotion
(DIPP), the cumulative FDI inflows from April
2000 to March 2016 were recorded at US$ 20.24
billion, the fourth highest in India after
Maharashtra, Delhi and Chennai, and accounted
for a share of 7% in India’s cumulative FDI
inflows.
With a private equity & venture capital investment
of USD2.51 billion from 280 deals, Karnataka
stood at the 2nd position, among all other states.
Source: Department of Industrial Policy & Promotion
Directorate of Economics and Statistics, Government of Karnataka
ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS
FDI equity inflows, 2008-09 to 2015-16 (US$ billion)
2
1 1.12
1.53
1.02
1.89
3.44
4.12
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Investment intentions in terms of IEMs filed, LOIs/DILs issued in Karnataka
269
217
169
110
89 106 123
21.43 14.54 7.33 1.54 3.34 4.84 7.43
2010 2011 2012 2013 2014 2015 2016¹
Number of Investment Intentions Proposed Investments (US$ Billion)

2020APRIL 2017
Total consolidated budget size for 2016-17 was US$ 24.96 billion.
Budget highlights:
Under the Matsyashraya scheme, houseless fishermen will be provided with 3,000 houses.
Work on improvement of Malaprabha Canal will be implemented at a projected cost of US$ 146.95 million during 2016-
17.
Within 2016, all school & college students will be enrolled under Aadhaar system to enhance services related to
education in the state.
At an amount of US$ 0.76 million, 5 engineering colleges in the state will be employed with courses of IT, telecom,
tourism, healthcare, retail, cyber security, etc. with Indo-German collaboration.
The new scheme - “Indira Suraksha” scheme will be executed in the state for families of farmers who have committed
suicide with the integrated healthcare services.
The employment of smart card for the ticketing purposes will be initiated in the state along with the installation of Vehicle
Transport System across the fleet of NWKRTC, NEKRTC and KSRTC.
Under the Chief Minister’s special package, US$ 15.27 million, US$ 76.38 million, US$ 122.21 million and US$ 38.19
million have been allocated for the lake enhancement, solid waste management, storm water drain manufacturing &
improvement of 110 villages as well as city & town municipalities under Bruhat Bengaluru Mahanagara Palike (BBMP),
respectively, in the state.
ANNUAL BUDGET 2016-17…(1/3)
Source: Government of Karnataka, Budget 2016-17

2121APRIL 2017
Primary & Secondary education :
The state government has taken various initiatives such
as, “Nali Kali”, “not for profit organization”, etc., for
enhancement of quality education across all government
schools in the state.
A comprehensive e-content programme, “IT@Schools in
Karnataka” will be launched by high school teachers for
delivering digital literacy to government high school
students.
Reassurance of yoga education in government schools.
Source: Government of Karnataka, Budget 2015-16
Sector
Annual allocation
(US$ million)
2015-16
Annual allocation
(US$ million)
2016-17
Primary & secondary
education
2,475.40 2,653.98
Higher education 595.17 710.51
Energy 2,125.08 1,929.72
Water resources 2,149.30 2,211.57
Urban development 1,891.9 2,269.01
Social welfare 756.4 834.70
Health and family
welfare
1,007.7 768.71
Agriculture 644.16 663.61
Horticulture 126.07 115.03
Sericulture 30.85 56.06
Fisheries 49.27 46.13
Forest, environment and
Ecology
291.47 245.79
Major sector-wise allocations as per budget 2015-
16 & 2016-17
Higher education:
For accentuating knowledge as well as fiscal necessities
in the state, Karnataka Education Policy will be deployed.
For presenting the state’s educational and cultural legacy,
the state government has decided to develop Karnataka
Heritage Centre at a cost of US$ 0.30 million in
Karnataka Folklore University.
The state government has allocated US$ 1.52 million for
allowing the government colleges to obtain UGC grant by
getting the NAAC recognition.

2222APRIL 2017
Agriculture:
Recognition of special agricultural zones will be initiated in the state for focusing over the welfare of farmers and their operative
agricultural techniques.
Under the programme “Suvarna Krishi Grama”, 100 villages across 4 district of 4 revenue divisions are proposed to be developed
as model agricultural villages.
For delivering 90% funding for sprinkler units and drip irrigation, the state government decided to include around one lakh farmers
under various schemes such as R.K.V.Y, “Chief Ministers Sookshma Neeravari Yojane” and Krishi Bhagya, for which an amount
of US$ 45.82 million would be allocated during 2016-17.
Energy:
The creation of infrastructure for 50,000 pump sets will be initiated during 2016-17.
The state government is engaged in the creation of 2,000 MW of solar parks in the district of Tumkur, which is estimated to yield
600 MW by the end of 2017.
As per state budget 2016-17, US$ 1.92 billion has been allocated for the Energy Department.
CleanMax Solar, a Mumbai based firm is planning to invest US$ 183.31 million for building a 200 MW solar farm project in the
state.
Water Resources:
The work on enhancement of Malaprabha Canal is proposed to be initiated in the state for which the state government has
allocated US$ 146.95 million.
As per state budget 2016-17, US$ 2.21 billion has been allocated for the Water Resource Department.

The state is well connected to its five neighbouring
states and other parts of India through 15 national
highways that run through the state. The Karnataka
State Road Transport Corporation (KSRTC),
established in August 1961, provides state road
transport services.
During 2015-16, a total of 1,455.56 km and 759.76 km
roads were constructed under “Namma Grama Namma
Rasthe” scheme and PMGSY, respectively by the state
government.
As per state budget 2016-17, the state government
allocated US$ 551.32 million for the improvement of
rural roads in the state during 2016-17.
During 2015-16, NABARD loan assistance scheme took the
manufacturing of achkout roads under its supervision. Moreover,
construction work of 167 roads, at an estimated cost of US$ 21.34 million
was fulfilled during 2015-16, while 91 roads are being constructed from
RIDF-XVII to RIDF-XX, at an estimated cost of US$ 13.03 million .
With an outlay of US$ 455.69 million, the state government completed the
development of major district roads of length 5,573 km during 2015-16.
However, the construction of state highways of length 7,875 km along with
87 bridges was also completed during the same period.
Other development works include – improvement of municipality roads,
development of Central Business District roads, development of roads
under the Chief Minister’s Nagarothana scheme, manufacturing of Jattur
bridge across Kagina river as well as Kudalasangama Adavihala bridge,
etc. in the state.
Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2016-17
Road infrastructure in Karnataka (km)
Road type 2015-16
National highways 6.502.29
State highways 27,163
Major district roads 55,515
Municipal roads 8,366
Other roads 155,545
PHYSICAL INFRASTRUCTURE – ROADS
Source: Maps of India

2424APRIL 2017
Source: Economic Survey of Karnataka, 2015-16, State Budget 2016-17
Karnataka railway network
Type of railway BG (km)
MG
(km)
NG
(km)
Total (km)
South Central
Railways
268 0 0 268
South Western
Railways
2,516 97 84 2,697
Southern Railways 37 0 0 37
Konkan Railways 248 0 0 248
Total 3,069 97 84 3,250
Karnataka is well connected to other parts of the country
through the railways. The state has a railway network of
3,250 km.
Karnataka Rail Infrastructure Development Corporation (K-
RIDE) has been set up with the objective of developing and
implementing rail infrastructure projects in Karnataka with
private sector participation wherever feasible. K-RIDE has
a chief executive officer deputed from the Railways
Department and principal secretary, Infrastructure
Development Department, as its chairman.
During 2015-16, Karnataka’s metro network of about 27 km
was made operational. In addition, by November 2015, the
6.50 km section between the terminal of Magadi and
Mysuru road was initiated. However, development work for
phase-I is expected to be completed by mid-2016.
Further, the state government granted contracts for two
reaches of phase II, which are slated for completion by
2020.
During 2015-16, an amount of US$ 67.36 million was
released by the Government of Karnataka for development
of various railway projects in the state.
PHYSICAL INFRASTRUCTURE – RAILWAYS
Status of major railway projects in Karnataka (2015-16)
Railway project Status
Ramanagara-Mysuru doubling track Commissioned for transport
Bidar-Kalaburagi new railway line Completed
Bengaluru-Hasana railway line On stage of completion
Bagalakote-Kuduchi railway line
Approved by Government of
Karnataka; amount released for
land acquisition
Ginigera-Rayachuru railway line
Gadaga-Wadi railway line
TumakuruRayadurga railway line

2525APRIL 2017
Source: AAI, Global Investors Meet, Budget 2016-17
The Belagavi airport of the state has been provided with 370
acres of land during 2015-16. Work on the airport and runway
extension is also expected to be accomplished by 2016-17.
The state has five domestic airports. These are located in
Bengaluru, Mangalore, Hubli, Mysore and Belgaum.
International flights operate from the airports at Bengaluru
(Kempegowda International Airport) and Mangalore (Mangalore
International Airport).
Bengaluru International Airport; the country’s first greenfield
international airport, has been developed at Devanahalli in
Bengaluru as a passenger and cargo department hub. This was
developed under PPP and started operations in May 2008.
PHYSICAL INFRASTRUCTURE – AIRPORTS
Karnataka airport statistics (2015-16)
Airport
Passenger
traffic (No.)
Aircraft movement
(No.)
Freight (tonnes)
Bengaluru 18,971,149 153,063 291,950
Mangalore 1,674,251 13,805 936
Karnataka airport statistics (2014-15)
Bengaluru 15,401,392 133,488 279,475
Mangalore 1,307,083 11,501 684
During 2015-16, work on planning and preparation of
terminal 2 and second parallel runway of
Kempegowda International Airport was initiated. This
construction will enable the airport to handle around
35 million passengers per year.
Further, work on development of Kalaburagi airport
by PWD is expected to be concluded during 2016-17.
Moreover, on the basis of PPP, the work on
development of Shivamogga airport will also be
executed during 2016-17.

PHYSICAL INFRASTRUCTURE – PORTS… (1/2)
Ports
Major ports • New Mangalore Port
Minor ports
• Karwar
• Belekeri
• Tadri
• Honnavar
• Bhatkal
• Kundapur
• Hangarkatta
• Malpe
• Padubidri
• Old Mangalore
Source: Indian Port Association, Note: 1Up to December 2015
Karwar Port
New Mangalore Port
There are 13 ports in Karnataka, of which New Mangalore is a major
port. New Mangalore Port is the ninth major port in India with the
deepest inner harbour on the west coast.
The work on development of the second stage of Karwar port has
been initiated under the concept of D-BOOST in PPP mode.
However, the bid document issue is under consideration by the state
government.
As per budget 2016-17, the state government proposed allocation of
US$ 19.09 million for manufacturing of breakwaters on Karwar port’s
northern side.
Cargo handled by New Mangalore port (in ‘000 tonnes)
31,350 32,941
37,036 39,365 36,566
25,290
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016¹

PHYSICAL INFRASTRUCTURE – PORTS… (2/2)
Source: Karnataka Economic Survey 2015-16;
Note: 2015-16(1) : Till December 2015
Cargo handled by various minor ports in Karnataka (‘000 MT)
Airport 2011-12 2012-13 2013-14 2014-15 2015-16(1)
Old Mangalore 87.83 165.93 120.26 115.89 66.16
Karwar 497.20 441.19 377.10 525.07 481.40
Malpe, Belekeri, Hangarkatta
& Kundapur
6.81 4.74 3.00 2.31 1.22
Total 591.84 611.86 500.36 643.27 548.71
During 2015-16, the state government initiated the work on development of Pavinakurve port, under PPP mode, in the district of Uttar
Kannada. However, 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. The state government has also assigned 8,000 sq km of port land at the minor port of Old Mangalore during
2015-16.

2828APRIL 2017
As of August 2017, the state had an installed power generation capacity of
17,333.92 MW. Out of this, central utilities contributed 2,104.32 MW, private
utilities contributed 7,126.55 MW and 8,103.05 MW was under state utilities.
Of the total installed power generation capacity, 8,142.88 MW was
contributed by thermal power. Capacities of 475.86 MW and 5,115.38 MW
were contributed by nuclear & renewable power, respectively, while
hydropower contributed 3,599.80 MW.
The state government has taken steps to undertake several new small,
medium and large scale power projects. As per the state budget 2016-17,
the total electricity production capacity added during 2015-16 was recorded
to be 1,333.85 MW. However, the state government is planning to add
electricity production capacity of about 2,655.40 MW during 2016-17.
Karnataka Renewable Energy Development Limited (KREDL) was
established in 1996 to promote the development of renewable energy
sources in the state.
As per budget 2016-17, the state government has initiated the setting up of
a 2,000 MW solar park in Tumkur district which is estimated to produce 600
MW by the end of March 2017. Planning of construction of another 1,200
MW solar plant is being done by the state government during 2016-17.
By March 2017, Government of Karnataka has planned to add 400 MW of
solar power, in addition to the existing capacity of 524 MW of solar power
being produced & consumed in the state.
As of February 2017, to solve the water crisis in Bengaluru, the state
government has planned to draw water from the dead storage of
Krishnaraja Sagar reservoir, at an estimated cost of US$ 5.94 million.
Installed power capacity (GW)
PHYSICAL INFRASTRUCTURE – POWER
As per the budget 2016-17, the state government
has allocated US$ 1.9 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
1Upto August 2016
8.52 8.69
11.37 12.06
13.93 14.03 15.14
17.32 17.33
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17(1)

2929APRIL 2017
Telecom infrastructure (As of October 2016)
Wireless subscribers 64,447,332
Wire-line subscribers 2,231,773
Internet subscribers 23,960,000
(1)
Post offices 9,667
(2)
Teledensity (in %) 106.29
Source: Telecom Regulatory Authority of India,
Economic Survey of Karnataka, (1) As of September 2016; (2) As of September
2015
GP-Gram Panchayat
Leading telecom companies operate in the state in the sectors of
telecommunication network, basic telephony services (both wire
line and wireless) and networking services for telecommunication
equipment.
According to Telecom Regulatory Authority of India (TRAI), there
were 64.44 million wireless subscribers and 2.23 million wire-line
subscribers in Karnataka, as of October 2016.
The entire state is networked through optical fibre cables (OFCs)
of the state-owned company, Bharat Sanchar Nigam Limited
(BSNL), as well as private companies such as Bharti, Reliance,
VSNL and TATA Tele Services.
Last mile access is provided by BSNL as well as Tata Tele
Services in various parts of the state. Bharti and Reliance
Communications provide the last-mile access directly to the
customers in all major cities of Karnataka.
By the end of October 2016, 27,079,640 subscribers had
submitted requests for mobile number portability in Karnataka.
Out of the total allocated amount of US $91.65 million in Bharat
Net project, BSNL invested US $61.10 million to increase the
speed of gram panchayat connectivity in Karnataka, through high-
speed broadband and FTTH (fibre-to-the-home).
By March 2017, the state plans to provide Wi-Fi connectivity to all
villages. The project will be jointly implemented by BSNL and
Karnataka State Electronics Development Corporation
(KEONICS).
PHYSICAL INFRASTRUCTURE – TELECOM
Performance status of NOFN Project
(As of April 2016)
No. of GPs in Phase-I 5,599
Pipe Laid (kms.) 10,195
Cabe Laid (kms.) 10,269
GPs for which cable laid 5,004
No. of GPs Lit 2,865

3030APRIL 2017
Water supply Sewerage system
• KUWSDB has implemented
surface-based drinking water
supply schemes in 187 urban
areas to provide assured safe
drinking water.
• KUWSDB is implementing 26
schemes for shifting the source of
water from ground water to
assured surface water. They are
to be completed by 2013.
• Cauvery Water Supply Scheme
(CWSS) Stage IV, Phases I–IV
are being implemented to supply
810 MLD of water to about
600,000 connections.
• The Bengaluru Water
Supply and Sewerage
Board (BWSSB) is
responsible for
providing water
supply, sewerage
system & sewage
disposal in the
Bengaluru
Metropolitan area.
• 42 urban areas have
been provided with
Underground
Drainage (UGD)
facilities in the state.
Karnataka is among the top ten most urbanised states in
India. The state is projected to reach an urban population
proportion of 50% by 2026. Some of the key areas of
development are roads and flyovers, water supply, storm-
water drainage, sewerage and urban transport.
The Karnataka Urban Water Supply and Drainage Board
(KUWSDB) is responsible for providing water supply &
sewerage facilities in 218 urban areas of the state, except the
areas serviced by the Bruhath Bengaluru Mahanagar Palike
(provides services in Bengaluru city & surrounding areas).
Karnataka has ten city corporations, 56 city municipal
councils, 92 town municipal councils, 55 town panchayats & 5
notified area committees.
As per budget 2016-17, an amount of US$ 2,269.01 million
has been proposed for urban development. As per budget
2016-17, under Rajeev Awas Yojana’s 20 schemes for 10
cities, the construction of 22,000 houses is under progress in
the state.
For the development of Nagarothana phase-3 project for 10
City Corporations, an amount of US$ 45.52 million has been
granted by the state government during 2015-16.
As of March 2017, Nabard is planning to help the state with
technologies at a low cost, for conservation and efficient use
of water in the drought-affected districts, with the help of
modern technologies such as water management practices,
micro irrigation (more crop per drop) & adopting improved
packages of agronomic practices.
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE… (1/2)
Source: JNNURM, Ministry of Urban Development
During 2015-16, a private operator has been assigned by
the state government at Hubli-Dharwad for providing 24X7
water supply under Karnataka Urban Water Supply
Modernisation Programme (K.U.W.S.M.P).
Moreover, the state government has finished the 27-km
network of Metro rail and the phase-1 project is expected
to be completed by mid-2016.

3131APRIL 2017
Development projects under Directorate of Municipal Administration:
Solid waste management proposals amounting to US$ 88.45 million were approved by the state government during 2015-16.
The government aims to employ scientific solid waste management schemes across various municipalities during 2016-17, for
which an amount of US$ 11.45 million has been allocated.
The state government aims at completing the work of enhancement of road network of 870 km during 2016-17.
Under Chief Minister’s Small and Medium Towns Development stage-2, grants have been fully released to every municipality in
the state. The state government is aiming to begin the programmes’ stage-3 during 2016-17 at a cost of US$ 319.73 million.
During 2015-16, the grants under JNNURM and UIDSSMT have been minimised for the central government approved projects
and the state government has decided to offer US$ 148.59 million to fill the gap.
The state government has allocated US$ 7.63 million for basic infrastructure development of Haveri, Chikkaballapura and
Chamarajanagar towns of Karnataka during 2015-16.
In February 2017, the state government released an amount of US$ 1.93 million for developing the Kolikere lake, which was
heavily damaged by human activities. The development work includes construction of a bund, checking inflow of sewage into
the lake and dredging.
DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (2/2)
Source: Budget 2016-17

3232APRIL 2017
Source: Department of Economic Affairs, Government of India
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
draft multi-purpose berth of NMPT
Transport Under construction 45.97
Six laning of Belgaum - Dharwad Section Road Transport Under construction 79.63
Sports City cum International Convention Centre cum Star
Hotel cum Shopping Complex cum Residential Complex
Social and commercial
infrastructure
Under construction 149.3
Airport (Hassan) Project Transport Under construction 497.68
Waste to Energy Project Mandur Water sanitation Under construction 9.95
Bus Terminal-cum-Commercial complex at Puttur Transport Under construction 1.21
Water Supply Scheme (Mysore) Water sanitation Under construction 32.27
Construction and Maintenance of Public Toilets in Bengaluru
infrastructure
Water Supply Scheme (Nanjangud)
Water sanitation

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (2/2)
Source: Department of Economic Affairs, Government of India
PPP Projects – Karnataka
Project name Sector Status
Total cost
(US$ million)
Development of integrated solid Waste Treatment (100 TPD)
and Landfill Facilities at Belgaum
Water sanitation Under construction 0.85
Development of International Convention Centre at Devanahalli
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
infrastructure
New Puttanna Theatre and Parking
infrastructure
Road Upgradation (Goa/Karnataka Border-Kundapur) Project Transport Under construction 437.79
Road Upgradation (Hoskote-Dobespet) Project Transport Under construction 191.27

DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL CLUSTERS … (1/4)
The state has 25 operational, 40 notified SEZs,
one valid in-principle approval and 61 formal
approval SEZs as of July 2016. The Karnataka
Industrial Areas Development Board has
developed 141 industrial areas spread across the
state. The state plans to develop and upgrade
eight clusters around Bengaluru with an
investment of US$ 348.4 million in coming years.
The Karnataka State Industrial & Infrastructure
Development Corporation has promoted more
than 135 start-up ventures in the state through
equity participation and has provided debt to core
industries such as steel, cement, mining and
textiles, as well as new sectors such as IT,
aerospace and telecom.
An IT Park project in Gulbarga has been taken up
by Karnataka State Electronics Development
Corporation Limited in 3 phases, during 2015-16,
with a built up area of 150 thousand sq ft at an
amount of US$ 3.65 million.
Source: Department of Commerce, Ministry of Commerce & Industry
Sector-wise Operational SEZs In Karnataka (as on July 2016)
IT/ITeS
68%
Biotechnology
4%
Hi-tech
engineering
products and
related services
4%
Electronics
hardware and
software/ITeS
4%
Aerospace and
industry
4%
Pharmaceuticals
4%
Textile
4%
Multi product
4%
Precision
engineering
product
4%

Name/Developer Location Primary industry
Biocon Special Economic Zone Anekal Taluk, Banglore, Karnataka Biotechnology
Synefra Special Economic Zone Udupi Taluk, Karnataka
Hi-tech engineering products and
related services
Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS
Wipro Limited (Electronic City)
Varthur Hubli, Electronic City,
Banglore, Karnataka
IT
Wipro Limited (Sarjapur)
Varthur Hobli, Sarjapur Road,
Karnataka
IT
Infosys Ltd. SEZ (Mangalore)
Bantwal Taluk, Dakshina,
Kannada distt. , Karnataka
IT/ITeS
Infosys Ltd SEZ (Mysore)
Hebbal Industrial Area, Distt.
Mysore, Karnataka
IT/ITeS
Vrindavan Techvillage Sez (formerly
M.S. Vikas Telecom Ltd)
Bangalore, Karnataka IT/ITeS
Rmz Ecoworld Infrastructure Pvt. Ltd.
[Formerly Adarsh Prime Projects Pvt.
Ltd
Devarabeesana halli, Bhoganahalli
and Doddakanahalli, Karnataka
IT/ITeS
Kiadb Aerospace SEZ Karnataka Aerospace and industry
Keonics Shimoga
Village Machenahalli and Nidige, District
Shimoga, Karnataka
Electronics hardware
and software/ITeS
Some of the operational SEZs in Karnataka
Source: Department of Industries and Commerce, Karnataka

Divyasree Technopark Kundalahalli Village, Krishnarajapuram, Karnataka IT/ITeS
International Technology Park Ltd (ITPL) Bangalore Karnataka IT/ITeS
Cessna SEZ Bangalore Karnataka IT/ITeS
Global Village [formerly Tanglin SEZ] Pattengere/Mylasandra Villages, Karnataka IT/ITeS
HCL Technologies Ltd. Bangalore Karnataka IT/ITeS
Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS
Bagmane SEZ Bangalore Karnataka IT/ITeS
Gopalan Enterprises Pvt. Ltd (Global Axis-hoodi) Bangalore Karnataka IT/ITeS
Karle Projects Bangalore Karnataka IT/ITeS
Mangalore Special Economic Zone Bangalore Karnataka Multi product
Quest special Economic Zone Belgaum district, Karnataka
Precision engineering
Products
Kiadb Pharmaceutic Al Special Economic Zone Karnataka Pharma
Kiadb SEZ Hassan – Textiles Hasan, Karnataka Textile
Kiadb food Processing Special Economic Zone Samudravalli, Sankalapura Food processing
Larsen and Toubro SEZ
KIADB Industrial Area, Taluka Hebbel, Hootagally,
District, Mysore, Karnataka
IT/ITES
Some of the operational SEZs in Karnataka

3737APRIL 2017
M/s. Biocon Ltd Bengaluru Biotechnology
Karnataka Industrial Areas Development Board Mangalore IT/ITeS
Infosys Technologies Limited Dakshina Kannada IT/ITeS
Karnataka Industrial Areas Development Board Shimoga Engineering & related industries
Karnataka Industrial Areas Development Board Hassan Food processing and related services
Karnataka Biotechnology and Information Technology Services Bengaluru Biotechnology
Suzlon Infrastructure Ltd
Near Mangalore
Port
Port-based for hi-tech engineering products
and related services
Karnataka Industrial Areas Development Board Hassan Pharmaceuticals
Mangalore SEZ Limited Dakshin Kannada Petrochemicals and petroleum
Quest Machining and Manufacturing Pvt Ltd Belgaum Auto, aerospace and industrial engineering
High Street Developers Private Limited Mandya IT/ITeS
Opto Infrastructure Limited Hassan Electronic hardware & software/IT/ITeS
Some of the SEZs with formal approvals

3838APRIL 2017
Census 2011
SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
The state has a literacy rate of 75.6 per cent, the male literacy
rate is 82.8 per cent and the female literacy rate is 68.1 per cent.
In terms of the number of universities, Karnataka ranks fifth
among all Indian states and union territories, with 44 universities.
Of these, 24 are state public universities and 11 are private
deemed universities.
The state has 4,519 pre-university colleges to impart general
education. There are more than 1 million students in the pre-
university colleges.
There are 293 polytechnics and 206 engineering colleges to
provide technical education in the state.
For the development of basic facilities such as – laboratory,
library, new buildings, toilets, drinking water facility in government
schools and colleges, an amount worth US$ 18.25 million would
be provided.
Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE
would be upgraded. Under this scheme, Shaikshanika Adhalath
and TESS education centers would be opened in the offices of
BEOs, DIETs, DDPIs and CTEs in the state.
Literacy rates (%)
Literacy rate 75.6
Male literacy 82.5
Female literacy 68.1
Educational infrastructure (No) 2015-16
Institute type Number Enrolments
Medical colleges 50 6,245
Ayurvedic colleges 56 2,843
Homoeopathic
colleges
11 856
Unani colleges 5 201
Naturopathy &
Yogic Sciences
(BNYS)
4 172
Dental colleges 38 2,700
Pharmacy colleges 61 4,784
Nursing colleges 287 12,725

3939APRIL 2017
Karnataka education statistics (2015-16)
Number of schools
Lower primary: 26,118
Higher primary: 34,795
Secondary schools:
15,140
School dropout rate
(in %)
Lower primary: 2.37
Higher primary: 2.54
Pupil-teacher ratio
Average: 23.33:1
Aided schools: 42.05:1
Unaided schools: 30.33:1
As per economic survey 2015-16, the state participation in
primary education is significant as 82.91 per cent of the
lower primary and 64.51 per cent of the higher primary
schools are managed by Department of Education.
In 2015, key MoUs were signed by the government to
attract US$ 272.3 million worth of investments for higher
education and announced to set up a new IIT in Karnataka.
In December 2016, Karnataka State Education Policy was
enacted to phase out single-discipline universities and
Kannada University, teaching subjects such as political
science, folklore, etc. With the implementation of the policy,
such institutes would adopt broader-based education policy
in the next few years.
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.
SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

4040APRIL 2017
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,
Three-tier health infrastructure comprising primary health centres,
health units, community health centres and sub-centres is available
in the state.
The policy of the Government is to establish one primary health
centre for every 30,000 inhabitants, one dispensary for every
15,000–20,000 inhabitants and one sub-centre for every 5,000
inhabitants.
A total of 108 ambulance services have been availed by around
60,693 people in the state during 2015-16. Moreover, the state
government also provided 30 bike ambulance services in urban
areas.
As per budget 2016-17, implementation of “Indira Suraksha” scheme
would be initiated in the state during 2016-17, to offer integrated
healthcare services to the families of those farmers who have
committed suicide.
As of November 2015, the state has 12,481 active health institutions
out of total 12,750 health institutions in the state.
Under the assistance of National Health Mission, at a cost of US$
8.09 million, trauma centres will be established across 5 places,
under the scheme of Aapathbandhava for offering emergency
treatment to highway accident victims.
SOCIAL INFRASTRUCTURE – HEALTH... (1/2)
Health indicators (2015)
Beds per 100,000 population 99
Birth rate
1
18.3
Death rate
1
7.0
Infant mortality rate
2
31
Life expectancy at birth (years)
Male (2015) 63.6
Female (2015) 67.1
No of institutions
Total Facilities
(As of November, 2015)
Subcenters 9,416
Community health
centres
317
Primary health centres 2,437
Sub district hospital 539
District hospital 41
Total institutions 12,750

4141APRIL 2017
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,
Various other programmes to be included under the National Health Mission during 2016-17 include:
Establishment of oral cancer detection programme across the state’s districts at an allocated amount of US$ 0.25 million.
Establishment of a 25 bed special dialysis unit in Bengaluru’s K.C General Hospital at an estimated cost of US$ 0.68
million.
Extension of mobile health service units to villages with no transport and hospital facility.
Under the “Free Laboratory Scheme”, establishment of free diagnostic centres in government hospitals for treating the ill
patients.
SOCIAL INFRASTRUCTURE – HEALTH ... (2/2)
The state government is planning to construct District Ayush Integrated Hospitals having a capacity of 50 beds in Davangere and
Chikkaballapura and 10 beds in Chincholi, T. Narsipur and Dandeli, at an estimated cost of US$ 0.91 million,.
The state government is also planning to establish district hospitals with an investment of US$ 9.16 million in the state.

CULTURAL INFRASTRUCTURE
There are several sports complexes in Bengaluru, Mysore, Mangalore and other cities. Cricket, hockey and football are the major
sports, although other games are also popular. The main sports arenas are the M. Chinnaswamy Stadium and the Sree Kanteerava
Stadium in Bengaluru, Chamundi Vihar Stadium in Mysore and the Mangala Stadium in Mangalore. The Bengaluru Golf Course
and 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 and outdoor, such as Palace Grounds
and the Bengaluru International Exhibition Centre.
Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna and Kodagu have been developed.
Schemes are being prepared to develop rural tourism at other places also to showcase the rural life, art and culture and heritage.
Ranga Shankara and Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru and are the performing spaces for
dance, music and theatre artists. An international mega convention centre, with a seating capacity of 6,000, is being planned near
the Bengaluru International Airport.
During 2015-16, the state government finished the construction of swimming pools across Hanagal, Mudubidire and Harihara and is
planning to complete swimming pool construction at Sagar during 2016-17. The government has also decided to develop
playgrounds equipped with volleyball, kho-kho, throwball and kabaddi courts across selected villages in association with
Panchayath Raj and Rural Development departments.
Further, the monuments of Srirangapatna and Hoysalas along with the monuments and forts of Deccan Sultanate have been
registered in the provisional list of World Heritage sites during 2015-16. Moreover, as per the budget 2016-17, the International
Museum of Konkani Culture would be established in Mangaluru during 2016-17, at an estimated cost of US$ 0.38 million. Similarly,
with US$ 0.15 million, the state government is aiming to set up the museums at Bagalkot and Bidar.
A grant worth US$ 0.30 million will be extended to Karnataka Janapada Parishat and an amount of US$ 3.81 million will be given to
Gadinadu Abhivrudhi Pradhikara by the state government during 2016-17.

SMART CITIES
Source: Census 2011 & TechSci Research
Mangaluru
Devengere
Hubali-Dharwad
Badami
Belagavi
Shivamoga
Tumakuru
Population, area & literacy rate of identified smart cities in Karnataka
Cities Population Area (sq km) Literacy rate
Mangaluru 774,785 184.45 94.03%
Belagavi 488,292 94 78%
Shivamogga 322,505 70.1 88.02%
Hubli-Dharwad 943,788 200 86.79%
Tumakuru 2,678,980 10,597 75.14%
Davanegere 434,971 72 84.90%
As of March 2016, announcements have been
made to setup six cities of Karnataka as smart
cities. As per the budget 2016-17, Davanagere
and Belgaum have been selected under the
initial stage of Smart City Abhiyan.
During 2015-16, 27 cities were selected under
the central government’s Atal Mission for
Rejuvenation and Urban Transformation
Scheme (AMRUT). The state government has
proposed various schemes under AMRUT as
per the budget 2016-17.
For the Smart City Mission project, the
government is set to release US$ 176.71
million, during 2017-18.

4444APRIL 2017
The natural resources, policy incentives and
infrastructure in the state favour investments in the
IT/ITeS, biotechnology, engineering, electronics,
automotive, textiles, agri- and food-processing sectors.
Karnataka’s favourable policies have encouraged
industries to set up their R&D centres in the state.
Bengaluru has about 401 R&D centres, the most in
India.
Karnataka is making significant investments in industrial
infrastructure, such as setting up industrial clusters and
SEZs and PPP projects to provide an impetus to further
industrial development.
During 2015-16, government land of 11,994 acres was
passed to the Karnataka Industrial Areas Development
Board. The formation of Invest Karnataka 2016 in the
state is expected to offer US$ 26.73 million for the
enhancement of infrastructure facilities among existing
areas of industrialisation. Further, it is also projected to
set up a new cashew technology centre in the district of
Uttar Kannada of the state.
KEY INDUSTRIES
Source: Directorate of Industries and Commerce,
Economic Survey of Karnataka, 2015-16
Key industries in Karnataka
• IT and ITeS
• Agro and food processing
(floriculture)
• Biotechnology • Aerospace
• Engineering • Animation
• Electronics and telecom • Electronic hardware
• Automotive • Tourism
• Textiles and apparel • Renewable energy
Total number of micro, small and medium enterprises in
Karnataka
Year MSME units Employment
Employment
per unit
2012-13 24,206 155,551 6.43
2013-14 25,966 167,347 6.44
2014-15 28,742 175,469 6.10
2015-16 (up to
December 2015)
19,208 146,225 7.61

4545APRIL 2017
Karnataka has emerged as an information technology (IT) hub of
India. Bengaluru is the fourth largest technological cluster in the world
after Silicon Valley, Boston and London.
About 50 per cent of the world's SEI CMM Level 5 certified
companies are located in Bengaluru.
The state is India’s largest software exporter, with electronics and
computer software exports totalling to US$ 10.38 billion during 2015-
16(1). The state accounted for about 38 per cent share in India’s
electronic and software exports during 2015-16(1).
Karnataka has 47 IT/ITeS SEZs and dedicated IT investment regions.
There are 3,500 IT companies in the state. The state houses 550,000
IT professionals or 1/3rd of the total IT professionals in the country.
At least 400 Fortune 500 companies have outsourcing operations in
Karnataka. As of September 2015, the total enrolments of people in
the sector was recorded to be 0.446 million.
The state government has formulated a new Karnataka Startup Policy
for assessing the progress of startup companies during 2015-16.
As per the state budget 2016-17, the state government will set up a
technology incubation centre during 2016-17 in Doddaballapura town
for the endorsement of startups related to technology in association
with Texas University.
During 2016-17, the state government aims to establish 10 new
incubators in the state’s graduate and professional institutes, under
the network of New Age Incubation.
National Bureau of Soil and Land Use Planning at the Indian Council
of Agriculture Research, Bengaluru conducted GPS-enabled soil
sampling and nutrient analysis in Karnataka, Tamil Nadu and Kerala
in April 2017. The analysis was done to help coffee growers in
checking soil properties and nutrient status via Kshemam app
KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (1/2)
Some of the key players
• Wipro Technologies
• Infosys
• Genpact
• Accenture
Electronics and software exports from Karnataka
(US$ billion)
Source: Visvesvaraya Trade Promotion Centre; ’Note: 2015-16(1) : till September 2015
23.09 28.19 28.72 29.53 32.19
10.38
2010-11
2011-12
2012-13
2013-14
2014-15
2015-
16⁽¹⁾
CAGR:
8.66 %
The state has earmarked US$ 11.20 million for the creation
of the biggest eco-system for start-ups. The incubation
centre will be set up in association with Karnataka State
Electronics Development Corporation (KEONICS) and will
have all necessary infrastructure for start-ups.
According to India Hiring Intent Survey 2017, there will be 5-
10% increase in hiring by BPO/KPO and ITeS companies in
the state in the coming years.

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES … (2/2)
Wipro Ltd
Infosys Technologies Ltd
Genpact
Accenture
• Wipro Ltd was established in 1945 and recorded revenues of US$ 7.82 billion during 2015-16. The
company has presence in areas such as IT services, product engineering, technology infrastructure
services, BPO and other consulting solutions. The company provides services such as application
development, deployment and maintenance, business intelligence and customer relationship
management.
• Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific
centres of excellence in more than 54 countries. In September 2009, the company launched its centre
of excellence at its Electronic City campus to work with other leading IT firms for developing
innovative IT solutions.
• Infosys Technologies Ltd was set up in 1981 and posted revenues of US$ 9.53 billion in 2015-16. The
company operates in areas such as IT consulting, modular global sourcing, process re-engineering
and BPO services. Infosys has 73 offices and 94 development centres in the US, India, China,
Australia, Japan, the UK, Germany, France and many other countries and has marketing and
technological alliances with companies such as IBM, HP, Microsoft and Oracle. The company has
operations at multiple locations in Bengaluru, Mangalore and Mysore.
• Genpact was set up in 1997 in India. Formerly known as GE Capital International Services, the
company’s net revenues in 2014-15 stood at US$ 2.27 billion. The company provides a wide range of
business process, technology and knowledge services including finance and accounting, collections
and customer relations, insurance, procurement and supply chain, analytics, software and IT
infrastructure. Genpact employs around 60,200 employees. The company has one office in Bengaluru
in Karnataka.
• Accenture is a global management consulting, technology services and outsourcing company with
approximately 275,000 people serving clients in more than 120 countries. In 2015-16, Accenture
generated revenues of US$ 8.97 billion. The company has one consulting office and seven delivery
centres in Bengaluru.

KEY INDUSTRIES – BIOTECHNOLOGY … (1/2)
Karnataka has played a key role in India’s emergence as a
significant player in the global biotechnology industry. Karnataka
is home to nearly 60.0 per cent of the country’s biotech units.
The state consists of over 300 Biotech companies and has more
than 6,800 scientists involved in biotech research.
Premier life sciences institutions such as Indian Institute of
Science, National Centre for Biological Science and Jawaharlal
Nehru Centre for Advanced Scientific Research are present in the
state.
Sector-focused SEZs have been set up in Mysore, Mangalore,
Hubli-Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya.
Twelve biotechnology finishing schools are scheduled for
development under the Millennium Biotech Policy.
An 86-acre biotechnology park, Bengaluru Helix, comprising the
52-acre Alexandria Knowledge Park in Bengaluru is currently
under development.
More than 60 per cent of the biotechnology companies in India
have a base in Bangalore and the state drives 50 per cent of the
total revenues in India’s biotechnology sector.
• Biocon
• AstraZeneca India
• Jubilant Life Sciences Ltd
• GlaxoSmithKline Pharmaceuticals Ltd
India’s biotechnology industry is expected to reach US$
100 billion by 2025, with Bangalore forming a significant
part of it.
As per state budget 2016-17, the state government
established Bengaluru Bio-innovation Centre with an
investment of US$ 8.55 million for enabling MSMEs to
access high-end laboratory and instrumentation facilities.
Sub-regional science centres at Vijayapura, Tumakuru,
Davangere, Udupi, Chikkodi, Chittapur and Chikmagalur
would be established in 2015-16 with an investment of
US$ 0.66 million.
The state government announced its plans to introduce
100% reservation for Kannadigas in all private sector
industries, including biotechnology firms.

KEY INDUSTRIES – BIOTECHNOLOGY … (2/2)
Biocon
AstraZeneca India
Jubilant Life
Sciences Ltd
GlaxoSmithKline
Pharmaceuticals Ltd
• 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
2015-16, the company recorded revenues of about US$ 545.37 million.
• AstraZeneca India was established in 1979. The company is involved in the areas of
manufacturing/marketing of bulk drug chemicals, liquid formulations, tablets and capsules,
injectibles and ointments for various disease segments such as cardiovascular, respiratory and
maternal healthcare.
• In 2014, the company’s manufacturing plant is located at Yelhanka and R&D centre is located in
Bengaluru.
• Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated
pharmaceuticals and life sciences company. The company is the largest Custom Research and
Manufacturing Services (CRAMS) company and provides leading drug discovery &
development solutions outside India.
• The company’s revenue was about US$ 229.30 million during the last quarter of FY 2016.
Jubilant has a manufacturing facility in Nanjangud, with around 625 employees.
• GlaxoSmithKline Pharmaceuticals Ltd was established in 1924 and is one of the oldest
pharmaceutical companies in India.
• At the end of third quarter of 2015-16, the company recorded a revenue of US$ 112.37 million.
• GSK India product portfolio includes prescription medicines and vaccines. The company has a
clinical development centre in Bengaluru.

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka,
1upto September 2015
KEY INDUSTRIES – ENGINEERING … (1/2)
The engineering industry in Karnataka has positive prospects,
given its performance.
Exports of engineering products have increased from US$
1,605 million in 2010-11 to US$ 2,634.43 million in 2015-16,
The engineering segment is the fastest growing sector of the
state, which grew at a CAGR of 21% between 2010-11 and
2015-16. The state is exporting engineering products to
Germany, China, South Korea, Brazil, USA, Malaysia,
Thailand, South Africa and Singapore. A majority of the
exporters in state are based in Bengaluru, Hubli, Mysore,
Belgaum, Mangalore, and Shimoga.
Exports include machine tools, industrial machinery, cutting
tools, castings, automotive components, electrodes, welding
equipment, construction and earthmoving equipment, and
helicopter spares.
A 300-acre SEZ has been created in Belgaum to develop a
precision engineering and manufacturing supply chain
ecosystem, which would be a great driver for manufacturing
industries. Bharat Earth Movers Limited, Hindustan Machine
Tools Limited and Bharat Heavy Electricals Limited are among
the leading companies in this sector in the state.
• Bharat Earth Movers Limited (BEML)
• Hindustan Machine Tools Limited (HMT)
• Bharat Heavy Electricals Limited (BHEL)
• Saint-Gobain India
Engineering products exports (US$ billion)
1.61 1.72
2.31
2.98
3.48
2.63
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16⁽¹⁾
CAGR:
10.31%

KEY INDUSTRIES – ENGINEERING … (2/2)
BEML Limited
HMT Ltd
BHEL
Saint-Gobain India
• 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 the third quarter of 2015-16, the company recorded revenues of US$ 116.64
million.
• HMT was established in 1953. The company manufactures various types of machine tools
including watches, tractors, printing machinery, metal forming presses, die casting & plastic
processing machinery, CNC systems & bearings.
• During the third quarter of 2015-16, the company earned revenues of US$ 1.67 million. HMT
has a manufacturing plant in Bengaluru.
• Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in
India in the energy-related/infrastructure sector. The company has 16 manufacturing divisions,
two repair units, four regional offices, eight service centres, eight overseas offices and 15
regional centres.
• BHEL has an electronics division at Bengaluru. The company recorded revenues of US$ 813.57
million during the third quarter of 2015-16.
• 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.

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

KEY INDUSTRIES – TELECOMMUNICATIONS AND ELECTRONICS … (2/2)
Bharat Electronics Ltd
Nokia
Siemens
Philips Electronics
India Ltd
• 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$ 231.78
million during the third quarter ending December 2015.
• Nokia is among the world leaders in mobile technology. The company started its India
operations in 1995. India holds the distinction of being the second largest market for the
company globally.
• The company has an R&D facility and a design studio in Bengaluru.
• Siemens set up operations in India in 1957. The Siemens Group in India is a unique player in
the field of electrical and electronics engineering. The Group employs approximately 10,933
people and has 23 manufacturing facilities in India. Siemens has several offices in Bengaluru.
During the second quarter ending March 2016, the company recorded revenues of US$ 425.25
million
• Philips has been operating in India for more than 75 years. The company is a leader in
consumer electronics, healthcare and lighting systems. Philips employs more than 4,500 people
in India.
• The company has an R&D facility – Philips Innovation Campus – in Bengaluru.

KEY INDUSTRIES – AUTOMOTIVE … (1/2)
Karnataka has a vibrant auto industry with investments of
around US$ 713 million and annual revenues of US$ 604
million.
The state is the fourth largest state in India in terms of
automotive production. The main locations for automobile
industries are Bengaluru, Ramanagara, Kolar, Shimoga,
Dharwad & Belgaum.
General Motors Technical Centre, located in Bengaluru, is
actively involved in research, design, analysis and development
of vehicles and power trains for foreign destinations as well as
the domestic market.
The state has 3 auto clusters, one industrial valve cluster and
one auto component cluster. 2 manufacturing hubs are coming
up in Narsapur & Vemagal Industrial Areas in Kolar District.
The Government is in the process of announcing a Dedicated
Automobile Policy.
Automotive industry of Karnataka grew at a CAGR of 15 per
cent during 2009 to 2014. The state is considered to be the 4th
largest in manufacturing and developing automobiles in the
country. On the back of this, the state contributes 8.5% to the
overall automobile sector of the country.
In February 2017, Taiwan based - JHY Group, opened a factory
in Malur taluk, near Bengaluru.
• Toyota Kirloskar
• Volvo India
• TVS Motor Company
• Delphi Automotive Systems Pvt Ltd
In 2015-16 (up to December 2015), total transport and non-
transport vehicles recorded in Karnataka were 15.86
thousand, out of which, transport vehicles were 1.49
thousand whereas non-transport vehicles were 14.37
thousand.
As per the final draft of Karnataka Industrial Policy 2014-19,
the state will study the feasibility of setting up major auto
parks at Dharwad, Kolar and Bidadi in Ramanagara district;
and smaller auto parks in Belgaum, Shimoga, Mysore and
Gulbarga.

KEY INDUSTRIES – AUTOMOTIVE … (2/2)
Toyota Kirloskar
Volvo India
TVS Motor Company
Delphi Automotive
Systems Pvt Ltd
• Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.
• The company has manufacturing facilities at Bidadi.
• Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the Volvo
Group has about 115,000 employees, production facilities in 19 countries & sales activities in
more than 190 countries.
• The company has increased its capacity to around 1,500-1,700 buses per annum in 2013-14
from 1,100 buses per annum earlier.
• Volvo India plans to invest US$ 115.6 billion to set up a truck & bus manufacturing facility in
Malur, Kolar.
• TVS Motor Company is one of the largest 2-wheeler manufacturers in India. The company is the
flagship company of the TVS Group. TVS Motor has 4 manufacturing plants across India
including Mysore.
• The company achieved a turnover of US$ 1.75 billion during 2015-16.
• Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. The company is
a leading global supplier of electronics & technologies for automotive, commercial vehicles and
other market segments.
• Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside
the US.

5555APRIL 2017
Karnataka is one of the leading producers of cotton, silk and wool,
which are the key raw materials required for textile manufacturing
units. The production of cotton during 2015-16 was recorded to be
14.04 lakh bales. The state produces 33.59% of India’s silk. Raw
silk and cocoon production in the state was recorded at 7.38
thousand MT and 53 thousand MT, respectively during April-
December 2015.
Karnataka is a major apparel sourcing destination for the global
market. The state accounts for 20 per cent of the national garment
production. During 2015-16, the state contributed around 65%,
12% and 6% of silk, wool and cotton production, respectively to the
country. Moreover, the state recorded 144 skill development
centres and 168 private training centres during 2015-16. There are
approximately 0.38 million manufacturing units engaged in the
textiles and garments sector at the organised and unorganised
level. Under the New Textile Policy 2013-18, the state government
is planning to invest US$ 1,650 million in the textile sector. The
Textile Policy offers various incentives for investments in the textile
sector; these include credit-linked capital subsidy, entry tax
reimbursement and power subsidy.
The Textile Policy offers various incentives for investments in the
textile sector; these include credit linked capital subsidy, entry tax
reimbursement and power subsidy.
KEY INDUSTRIES – TEXTILES AND APPAREL … (1/4)
Source: Karnataka Economic Survey 2015-16, Directorate of
Industries and Commerce
• Gokaldas Exports Limited
• Karnataka Silk Industries Corporation (KSIC)
• Himatsingka Seide
• Shahi Exports Private Limited
As of July 2016, the state had one operational SEZ
(KIADB SEZ Hassan - Textiles) for the textile sector at
Hasan, Karnataka.
During 2015-16 (up to December 2015), the state
produced 38.68 million metres of handloom textiles, as
compared to 41.29 million metres in 2014-15. Moreover,
78 new industrial units were also registered in the state
from April to December 2015.
Karnataka has an apparel park at Dodaballapur near
Bengaluru and other mega textile parks in the other parts
of the state.
During 2015-16, the District Sector State Plan Funds of
US$ 496.48 thousand were allocated to handlooms &
textiles sector of the state, as compared to US$ 443.01
thousand in 2014-15.

Source: Economic Survey of Karnataka, 2015-16,
Department of Industries, Handloom, Government of Karnataka
0.270
0.411
0.254
0.014
2012-13 2013-14 2014-15 2015-16
Financial assistance to handloom weavers (in US$ million)

Production and employment in handloom and power-loom industries in Karnataka
Description Units 2013-14 2012-13 2014-15
2015-16 (up to December
2015)
Handloom production Million metres 46.09 47.63 43.58 38.68
Handloom employment Lakh 0.82 1.12 0.85 1.06
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
Source: Ministry of Textiles
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
Power-loom weavers and looms in Karnataka
No. of weaver
households
No. of weavers No. of looms
30,988 127,535 88,566
Spun yarn production (‘000 kg)
2013-14 37,750
2014-15 34,269
2015-16 (up to September 2015) 15,580

Gokaldas Exports Ltd
KSIC
Himatsingka Seide
Shahi Exports Pvt Ltd
• Gokaldas is one of the largest garment exporters in the country. The company commenced
operations in 1979. During the third quarter of 2015-16, the company generated revenues of
US$ 37.33 million.
• Headquartered in Bengaluru, the company has 30 factories across India. Gokaldas employs
around 28,000 people and has a manufacturing capacity of 2.45 million garments per month as
of 2014-15.
• Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise and is a
leading manufacturer of silk.
• The company has two modern factories in T. Narasipura & Mysore, which are engaged in
manufacturing silk goods from raw silk yarn to silk fabrics.
• Himatsingka Seide, incorporated in 1985, is a Bengaluru-based company dealing in natural silk
fabric. In 2015-16, the company generated revenue of US$ 288.24 million.
• The company’s focus area is textile designing and manufacturing. Himatsingka Seide has a
spinning division as well as a weaving division. The company’s brand atmosphere is India’s first
luxury home textile brand, with an exclusive collection of more than 2,500 products and an
installed capacity of 25 million metres per annum.
• Shahi Exports is among the top home furnishing exporters in the country. The company began
operations in 1974 in Delhi and started manufacturing in Bengaluru in 1988. Shahi Exports has
manufacturing facilities in Delhi, Bengaluru, Salem and Tirupur

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 accounts for around 71.3% of the country’s total coffee production. Coffee production of the state increased from
233,230 MT in 2014-15 to 253,340 MT in 2015-16.
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.
As per budget 2016-17, the state government decided to provide incentives for endorsement of agro-processing units in the state
for which the government will be allocating a total amount of US$ 3.81 million.
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
Location Elevation
(m MSL)
Rainfall
(mm)
Main coffee
types
Total area under
coffee (hectares)
Average production
(MT)
Main intercrops
Bababudangiris 1,000-1,500 1,750-2,200 Arabica 15,000 10,500
Pepper, cardamom,
arecanut
Chikmagalur 700-1,200 1,000-4,500
Arabica,
Robusta
Arabica - 37,000
Robusta - 23,000
Arabica - 29,000
Robusta - 30,000
Pepper, cardamom,
arecanut, orange, vanilla
Coorg 750-1,100 1,000-2,500
Arabica,
Robusta
Arabica - 26,000
Robusta - 56,000
Arabica - 24,000
Robusta - 69,000
Pepper, cardamom, orange,
banana, arecanut
Manjarabad 900-1,100 1,000-2,500
Arabica,
Robusta
Arabica - 31,700
Robusta - 9,400
Arabica - 21,000
Robusta - 9,500
Pepper, cardamom, orange,
arecanut, banana
Source: Coffee Board, Government of India

As per budget 2016-17, the state government has also decided to provide
‘agri start-ups’ with an amount of US$ 1.52 million setting up the new
industries by deploying advanced techniques.
The state is one of the leading producer of flowers, spices, fruits and
vegetables. Government of Karnataka had approved the establishment of
food parks in 6 districts: Bengaluru rural, Tumkur, Shimoga, Davangere,
Bijapur & Belgaum. These parks are in advanced stages of
implementation. Most of the civil infrastructure work has been completed
in Malur, Hiriyur, Bagalkot & Jewargi food parks, which had been
approved by Ministry of Food Processing Industries, Government of India.
The export of agriculture and processed food in the state grew at a CAGR
of 22.96 per cent between 2010-11 & 2015-16. The export value has
increased from US$ 146.9 million in 2010-11 to US$ 412.92 million in
2015-16.
Source: Economic Survey of Karnataka 2015-16, Coffee Board
Coffee exports from Karnataka (US$ million)
325 342 300
479
659 651 597
825
256
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16⁽¹⁾
• Hindustan Unilever Limited
• Nestle India
• Britannia Industries Limited
• United Breweries Group
CAGR:
14.23 %
District
Final estimate of coffee production (2015-16)
in MT
Arabica Robusta Total
Chikmagalur 42,425 41,385 83,810
Kodagu 21,085 116,620 137,705
Hassan 18,950 12,875 31,825
Sub total 82,460 170,880 253,340

Hindustan Unilever Ltd
Nestle India
Britannia Industries Ltd
United Breweries Ltd
• 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. In the second quarter of 2015, the company recorded revenues of US$ 1.3
billion.
• The company has a manufacturing plant and an R&D centre at Bengaluru.
• Nestle has been in India for almost a century, with seven production facilities across the
country, including one at Nanjangud, Karnataka. The company produces chocolates and
confectionaries, prepared dishes and cooking aids, beverages and milk products and nutritional
supplements. During the first quarter of 2016, ending in March 2016, the company recorded
revenues of US$ 351.74 million.
• Britannia is a leading food processing company in India. The company manufactures food
products such as biscuits, cheese and bread. Based in Bengaluru, the company recorded
revenues of US$ 1.32 billion in 2015-16.
• United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also
referred to as the beer division of the UB Group and is based in Bengaluru. UBL recorded a net
turnover of US$ 778.41 million in 2014-15. In the second quarter of 2015, the company
recorded revenues of US$ 187.89 million.
• The company has around 2,489 employees and manufactures products primarily under the
Kingfisher, London Pilsner and UB Premium Ice brands.

KEY INDUSTRIES – AEROSPACE … (1/2)
Source: Global Investors Meet 2012, MRO India, NRI
Forum Karnataka, Karnataka Aerospace Policy 2012
Karnataka is known as the pioneer in the Indian aerospace
industry after the establishment of Hindustan Aeronautics Limited
(HAL) in Bangalore in 1940. Karnataka produces more than a
quarter of India’s aircrafts and spacecrafts.
Around 984 acres of land is earmarked for an exclusive industrial
area and sector-specific SEZ for aerospace industries near
Bengaluru International Airport. On February 2015, the
aerospace park started its operations.
India’s first aerospace SEZ of 300 acres is operational at
Belgaum.
Karnataka is the first state which announced the aerospace
policy in the country. Karnataka Aerospace Policy has identified
an investment potential of US$ 12.5 billion in this sector during
2013–23 and plans to develop aerospace clusters in different
regions of the state.
Companies such as Air India, Boeing and Jupiter Aerospace
have selected Karnataka for the development of MRO facilities.
The state government plans to develop an aerospace park
spread over 1,000 acres near the Bengaluru International Airport
(BIAL) with an investment of US$ 1.7 billion, with the intention of
attracting global and domestic players in the Indian aerospace
industry. The park is expected to be operational by 2017.
• Boeing
• Hindustan Aeronautics Limited
• Airbus Engineering Centre
• BEML Ltd
In February 2015, Rolls Royce company sought 12 acres of
land in Devanahalli Aerospace Park to ramp up their
manufacturing capabilities in the aerospace sector in addition
to the 6 acres already allotted in partnership with HAL.
The state is exporting aerospace products to US, UK,
Germany, Russia Mauritius, Malaysia, Nepal, Oman and
Ecuador. In order to boost aerospace industry in the state, the
Government of Karnataka has proposed to reduce the VAT
imposed on articles made from nickel, titanium, etc. under the
heading of HSN 7505, 7506 and 8108, from 14.5% to 5.5%
during 2016-17.
Aerospace Technology Centre (ATC) in Bengaluru would be
established under the PPP model.

KEY INDUSTRIES – AEROSPACE … (2/2)
Boeing
HAL
Airbus
BEML Ltd
• In India, Boeing is represented through its wholly owned subsidiary, Boeing International
Corporation India Private Limited (BICIPL).
• Boeing established its first R&D centre in India – the Boeing Research & Technology Centre –
in Bengaluru in 2009. The centre develops high-end technology solutions, particularly in the
areas of aero structures and avionics.
• Hindustan Aeronautics Limited (HAL) is ranked 40th in Flight International's list of the World’s
Top 100 aerospace companies in 2008.
• HAL has 19 production units and nine research and development centres in seven locations
across India; of which, eight production units and four R&D centres are located in Bengaluru.
• Airbus’ industrial cooperation with India began in 1988 when an agreement was reached with
Hindustan Aeronautics Limited (HAL) to manufacture passenger doors for the A320 aircraft.
• Specialising in high-tech aeronautical engineering, the Airbus Engineering Centre works hand-
in-hand with other Airbus engineering offices around the world, as well as with the Indian
aviation industry.
• Bharat Earth Movers Limited (BEML), a ‘Miniratna-Category-1’, plays a pivotal role and serves
India’s core sectors such as defence, rail, power, mining and infrastructure.
• BEML is involved in the manufacturing of aircraft components/assemblies and MRO activities
related to aerospace applications.
Source: Global Investors Meet 2012, KUM Karnataka, Airbus, BEML Ltd

6464APRIL 2017
Major suppliers to the industry such as HP, AMD, NVIDIA
and Microsoft are located in Bengaluru.
There has been a considerable increase in AVGC business
outsourcing to Bengaluru.
A great deal of content for global blockbuster animation
movies such as Life of Pi, Harry Potter, Kung Fu Panda,
Prometheus and Pirates of the Caribbean was developed in
Karnataka.
The state government is in process of establishing digital art
training centres across willing colleges, in collaboration with
Association of Bangalore Animation Industries (ABAI) for
imparting new skills to people under the program designed
by the experts of ABAI.
In 2015, the Government of Karnataka invested about US$
0.41 million for boosting the animation sector and to make
Karnataka a hub for the AVGC sector in the country.
KEY INDUSTRIES – ANIMATION … (1/2)
Source: PwC Report estimates, Karnataka AVGC Policy
• Technicolor
• TATA Elxsi
• Zynga
• DreamWorks
As per Economic Survey 2015-16, AVGC finishing
schools would be developed in the state for improving
the skill quotient of the students and enabling them to
get industry-ready.

KEY INDUSTRIES – ANIMATION … (2/2)
Technicolor
Tata ELXSI
Zynga Inc
DreamWorks
• Technicolor is a worldwide technology leader in the media and entertainment sector.
• Technicolor India offers world-class design and production services in animation and visual
effects for motion pictures and television broadcast productions.
• Technicolor has been operating in India since 2007 and employs about 1,238 people.
• Tata Elxsi is a listed company and is headquartered in Bengaluru.
• The company is a global design company and offers key services including embedded product
design, industrial design, animation & visual effects and systems integration.
• The company recorded revenues of US$ 164.25 million in 2015-16.
• Zynga Inc is the world's leading provider of social gaming services with more than 240 million
monthly active users playing its games, which include CityVille, Zynga Poker and Scramble with
Friends.
• Zynga's Bengaluru centre, started in 2010, has rapidly expanded to become the company's
second largest operation in the world after its San Francisco centre.
• DreamWorks Animation creates high-quality entertainment, including CG animated feature
films, television specials and series and live entertainment properties.
• DreamWorks Animation has been named one of the “100 Best Companies to Work For” by
FORTUNE® Magazine for four consecutive years.
• The company has theatrically released a total of 25 animated feature films, including the
franchise properties of Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.
Source: Technicolor, TATA Elxsi, Zynga, DreamWorks

KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)
Karnataka is among the top chip designing hubs in the
country. Around 70 per cent of chip designers in India are
found in Bengaluru city.
The state has the advantage of having low-cost
skilled/technical manpower compared with other states.
Bengaluru is a global hub for R&D activity in the software
industry, which will greatly aid the electronic hardware
industry.
The ESDM (Electronic System Design & Manufacturing)
Policy is expected to provide for development of three
ESDM innovation centres that will provide complete
infrastructure with the requisite design tools.
ESDM Policy also plans to set up seven high-class ESDM
Manufacturing Clusters (EMCs) to provide infrastructure
support including electronic manufacturing services and
component manufacturing by 2020.
As per the policy, by 2020, ESDM sector is expected to
generate turnover of US$ 400 billion, including exports to
the tune of US$ 80 billion, with an investment of US$ 100
billion.
Source: Department of Electronics and Information Technology, GoI,
Department of IT, BT and S&T, Karnataka,
ESDM Policy 2013, Karnataka
• Intel
• AMD
• Qualcomm Inc
• Nvidia
As per budget 2016-17, the state government has proposed
to establish four incubators based on technology, in phases,
across the areas of electronics systems designing &
manufacturing, IoT, Robotics, 3D printing, etc.
During 2016-17, the state government has also planned to
work in partnership with the industry as well as academic
institutions in order to establish excellence centres and
finishing schools across the sectors of electronics, IT, etc. in
Karnataka.

Karnataka State Report April 2017

Karnataka State Report April 2017

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Karnataka State Report April 2017