Karnataka State Report November 2017

For updated information, please visit www.ibef.org November 2017
KARNATAKA
THE SILICON VALLEY OF INDIA

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

For updated information, please visit www.ibef.orgKARNATAKA3
EXECUTIVE SUMMARY … (1/2)
Source: DIPP, Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2015-16 Department of Industrial Policy & Promotion
 At current prices, the gross state domestic product (GSDP) of Karnataka was about US$ 175.8 billion in 2016-17.
 The per capita GSDP increased to US$ 2,708.9, growing at a CAGR of 12.11% between 2011-12 & 2016-17.
Strong growth in GSDP
 Karnataka is the IT hub of India & home to the 4th largest technology cluster in the world. Karnataka has 19
operational IT/ITeS SEZs, 5 software technology parks & dedicated IT investment regions.
 Exports of IT & electronic products from the state reached US$ 37.25 billion by the end of December 2016.
Exports of IT & electronic products accounted for around 38% share in India's IT & electronic products exports &
52.89% share in Karnataka’s overall exports by the end of December 2015.
IT hub of India
 Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech & heavy engineering
industries. The state has sector-specific SEZs for key industries such as IT, biotechnology, engineering, food
processing and aerospace.
Vibrant industrial base
 The cumulative FDI inflows in the state from April 2000 to June 2017 were recorded at US$ 24.63 billion, the
4th highest in India after Maharashtra, Delhi & Chennai & accounted for a share of 7.2% in India’s cumulative
FDI inflows.
One of the preferred
investment destinations

EXECUTIVE SUMMARY … (2/2)
Source: Indian Minerals Yearbook 2014, Economic Survey of Karnataka 2015-16 Karnataka State Budget 2016-17
 During 2016-17, up to September, the total exports of the state were recorded at US$ 82.06 billion. During 2016-
17, exports contributed about 47% in the state’s economy. Sectors such as biotechnology, computer software and
electronics are major contributors in the overall exports from the state.
Strong growth in export
 Karnataka has 44 universities, 4,519 pre-university colleges, 206 engineering colleges & 293 polytechnics, 47
medical colleges & 38 dental colleges.
 The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies outsource their IT
services to firms in Bengaluru.
Strong knowledge
infrastructure
 Sugarcane is the major crop of the state with production of about 36.31 million tonnes in 2015-16. The state’s total
food grain production is estimated to be 9.64 million tonnes in 2015-16. Karnataka is also the third largest
producer of plantation crops in the country.
Significant agriculture
base
 Karnataka boasts of a diverse flora & fauna & a 320 km natural coast line, which makes it a nature tourist's
paradise. Tourist arrivals in the state increased from 25.2 million in 2005-06 to 133 million in 2016-17. The
state has world heritage sites at Hampi & Pattadakal. The sector contributes 14.8% to GSDP of Karnataka;
plans are afoot to expand to 26% by 2020.
Strong growth in tourism
sector

ADVANTAGE: KARNATAKA
High economic growth
 GSDP expanded at a CAGR of 13.33% between 2011-
12 and 2016-17.
 Buoyant services (IT, tourism) and industries driving
economic growth.
 Sector specific SEZs and SIRs facilitating growth.
Rich talent pool
 Karnataka is termed as the Knowledge Capital of India.
 The state has successfully attracted skilled labour,
especially, in the knowledge sector. Karnataka is
among the states that produce a large number of
doctors, engineers and medical technicians in the
country.
Policy support
 Wide range of fiscal and policy incentives for
businesses under the Karnataka Industrial Policy,
2014-19.
 Investor-friendly sector-specific policies to promote
industries such as IT, biotechnology, tourism and
manufacturing.
 Simplified procedures for investment.
 In January 2017, Karnataka department of Commerce
and Industries introduced an NRI policy to attract
investments from non-resident Kannadigas.
Infrastructure
 Well-developed social, physical and industrial
infrastructure.
 Good road, rail, water and air connectivity and
substantial port infrastructure.
 Well-developed telecom infrastructure.
 Excellent healthcare facilities.
October
2017
Capacity
allocated for
solar energy-
7,184.95
MW
2022
target
Solar energy
share in total
energy
consumption
is expected
to reach 3%
Advantage
Karnataka
Source: Karnataka Udyog Mitra, D&B Cluster State Overview, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade Promotion Centre.

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

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

KARNATAKA IN FIGURES … (1/2)
Parameter Karnataka All states Source
Economy 2016-17 2016-17
GSDP as a percentage of all states’ GSDP 8.30 100.0
Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
GSDP growth rate (%) 11.4 11.52
Per capita GSDP (US$) 2,708.9 1,611
Physical Infrastructure
Installed power capacity (MW) 21,632.09 331,117.58 Central Electricity Authority, as of October 2017
Wireless subscribers (No) 70,194,726 1,186,790,005
Telecom Regulatory Authority of India - as of July
2017
Internet subscribers (No) 27,960,000 431,210,000
Telecom Regulatory Authority of India - as of June
2017
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 … (2/2)
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
Parameter Karnataka All states Source
Social Indicators
Literacy rate (%) 75.6 73.0 Census, 2011
Birth rate (per 1,000 population) 18.1 21.6 Karnataka Economic Survey 2016-17
Investment
FDI equity inflows (US$ billion) 24.63 342.52
Department of Industrial Policy & Promotion, April
2000 to June 2017
Industrial Infrastructure
PPP projects completed & operational (No) 129 1,246
Department of Economic Affairs, Ministry of Finance,
Government of India, July 2016
Operational SEZs (No) 26 224
Department of Commerce, Ministry of Commerce &
Industry, September 2017

ECONOMIC SNAPSHOT – GSDP
GSDP of Karnataka at current prices (US$ billion)
94.1
107.9
126.8
141.7
157.8
175.8
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 13.33%
 At current prices, the gross state domestic product (GSDP*) of
Karnataka stood at about US$ 175.8 billion in 2016-17.
 The GSDP of the state grew at a CAGR of 13.33% between 2011-12
and 2016-17.
 Growth has been mainly driven by secondary and tertiary sectors.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2015-16

ECONOMIC SNAPSHOT – NSDP
NSDP of Karnataka at current prices (US$ billion)
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office NSDP# -Karnataka Socio Economic Survey 2015-16
86.1
98.7
115.9
128.0
142.4
158.6
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 12.99%
 The net state domestic product (NSDP#) of Karnataka was recorded
at about US$ 158.6 billion in 2016-17.
 The NSDP of the state grew at a CAGR of 12.99% between 2011-12
and 2016-17.

ECONOMIC SNAPSHOT – PER CAPITA GSDP
GSDP per capita of Karnataka at current prices (US$)
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office Per Capita GSDP^ - calculated using GSDP million US$/Population in million
1529.9
1736.7
2017.6
2230.4
2458.5
2708.9
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR 12.11%
 The state’s per capita GSDP^ was US$ 2,708.9 in 2016-17.
 The per capita GSDP increased at a CAGR of 12.11% between
2011-12 and 2016-17.

ECONOMIC SNAPSHOT – PER CAPITA NSDP
NSDP per capita of Karnataka at current prices (US$)
1401.0
1588.1
1844.4
2015.0
2218.1
2444.2
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
CAGR: 11.77%
 The state’s per capita NSDP& in 2016-17 was US$ 2,444.2.
 The per capita NSDP increased at a CAGR of 11.77% between
2011-12 and 2016-17.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office per capita NSDP& -calculated using NSDP million US$/Population in million

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSVA
 In 2016-17, the tertiary sectorµ contributed 65.75% to the state’s
GSVA at current prices, followed by the secondary sector (22.39%)
and the primary sector (11.86%).
 At a CAGR of 16.24%, the tertiary sector has been the fastest
growing among the three sectors from 2011-12 to 2016-17. The
growth has been driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services.
 The secondary sectorµ grew at a CAGR of 7.46% between 2011-12
and 2016-17. This was driven by manufacturing, construction and
electricity, gas & water supply.
 The primary sectorµ grew at a CAGR of 8.47% between 2011-12 and
2016-17.
Visakhapatnam port traffic (million tonnes)GSVA composition by sector
14.50%
11.86%
28.67%
22.39%
56.84% 65.75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011-12 2016-17
9.61%
16.31%
11.50%
CAGR
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, Aranca Research Sector-wise %share of GSDPµ -Karnataka Socio Economic Survey 2015-16

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
 Sugarcane is a major crop of the state with production estimates of
about 36.13 million tonnes in 2016-17. The state’s total food grain
production is estimated to be 9.15 million tonnes during 2016-17.
 During 2016-17, major oilseeds production in the state was 0.718
million tonnes. Production of cereals and pulses in the state is
estimated to be 7.75 million tonnes & 1.401 million tonnes,
respectively, in 2016-17.
 In 2016-17, total production of major fruits in the state was 6.91
million tonnes.
Production of major crops in Karnataka (lakh tonnes)
Crop 2015-16 2016-17
Cereals 85.92 77.53
Pulses 10.52 14.01
Total food grains 96.44 91.54
Oilseeds 7.09 7.18
Sugarcane 363.14 361.25
Tobacco 0.49 0.82
Source: Department of Agriculture & Corporation, Government of Karnataka

ECONOMIC SNAPSHOT – EXPORTS…(1/3)
 During 2016-17, exports from the state contributed about 47% to the
state’s economy, with biotechnology, computer software and
electronics being the major exports.
 In 2016-17, total exports from the state aggregated to US$ 82.06
billion. Karnataka’s exports increased at a CAGR of 21.35% during
2010-11 to 2016-17.
 Electronics and software exports from the state reached US$ 62.67
billion in FY17.
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka
Karnataka exports by commodity (US$ million)
Commodity 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1)
Electronics & computer software 28,186.16 28,723.99 29,528.87 32,186.46 31,015.11 31,428
Readymade garments 1,691.88 1,412.26 1,476.44 1,629.23 2,239.27 1,065.3
Petroleum & petroleum products 4,865.57 6,244.71 5,871.27 6,782.02 1,852.32 441.4
Engineering goods 1,716.81 2,314.12 2,982.42 3,476.78 3,177.54 2,268.60
Iron ores & minerals (incl granites) 235.61 319.46 122.59 124.25 124.79 72.64
Exports from Karnataka (in US$ billion)
25.69
33.97
40.10
45.08
48.93
79.76
82.06
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
CAGR: 21.35%
Note: 1Up to September 2016

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka
Commodity 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17(1)
Silk products 148.62 139.83 120.42 107.83 91.90 74.19 25.77
Coffee products 478.74 659.26 650.71 596.88 824.98 480.54 270.69
Basic chemicals,
pharmaceuticals and cosmetics
634.15 1,054.85 1,331.80 1,376.91 978.10 1,680.65 830.34
Agriculture & processed food
products
146.87 158.53 211.56 215.66 229.43 803.54 328.15
Gems and jewellery 4,361.46 4,929.98 4,508.01 4,010.45 3,649.30 5,119.41 2,567.23
Cashew and cashew kernels 128.67 183.25 155.96 199.07 249.67 111.60 53.39
Handicrafts 64.23 55.47 68.86 85.60 90.91 194.48 81.49
Leather products 44.28 66.49 83.23 74.65 90.08 55.10 30.42
Chemicals and allied products 74.09 99.73 90.41 93.23 158.43 74.50 40.82
Marine products 115.74 125.70 116.37 177.01 217.82 118.58 63.79
Plastic goods 123.41 125.49 145.09 116.12 62.38 121.53 66.28
Spices 98.64 145.44 166.45 190.78 186.79 50.13 31.20
Wool & woollen products 19.95 26.80 27.62 29.20 31.69 0.93 1.09
Miscellaneous 227.53 1,001.04 881.79 923.19 958.36 3214.48 632.81
Karnataka exports by commodity (US$ million)
Note: 1Up to September 2016

Industrial Policy 2014-19 Karnataka Tourism Policy 2009
Karnataka State Mineral Policy 2008 Karnataka Semi Conductor Policy 2010
Grape Processing & Wine Policy 2007 Karnataka Solar Policy 2011
Karnataka Renewable Energy Policy 2009 Karnataka Integrated Agribusiness Development policy 2011
Karnataka SEZ Policy 2009 Karnataka Animation Visual Effects & Comic Policy 2012
Karnataka Pharmaceutical Policy 2013 Karnataka New Infrastructure Policy 2013
Source: Economic Survey of Karnataka 2015-16
Incentives & concessions for export in Karnataka
 Exemption from entry tax
 Refund of certification charges
 Refund of cost incurred for export consultancy / market Intelligence studies
 Brand promotion and quality assurance
 Support for the establishment of CFS and other export infrastructure
 Compensation of export Credit.
 Support for development of exports in gherkins, rose onions and floriculture.
 Market development assistance for trade promotion and overseas trade delegations.
Policies for export promotion

ECONOMIC SNAPSHOT – FDI INFLOWS &
INVESTMENTS
269
217
169
110
89
106
285
163
21.43 14.54 7.33 1.54 3.34 4.84
23.93 22.96
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016 2017
Number of Investment Intentions Proposed Investments (US$ Billion)
Source: Department of Industrial Policy & Promotion Directorate of Economics and Statistics, Government of Karnataka
Investment intentions in terms of IEMs filed, LOIs/DILs issued in Karnataka
 The state has a stable political environment. Successive state
governments have recognised the importance of industries in the
state and have provided a conducive business environment to attract
domestic as well as foreign entities. Karnataka is ranked 5th in terms
of attracting private sector investments in India. According to the
Department of Industrial Policy & Promotion (DIPP), the cumulative
FDI inflows from April 2000 to June 2017 were recorded at US$
24.63 billion, the 4th highest in India after Maharashtra, Delhi &
Chennai & accounted for a share of 7.2% 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.
FDI equity inflows, 2008-09 to 2017-18 (US$ billion)
2.02
1.09 1.12
1.53
1.02
1.89
3.44
4.12
2.13 2.26
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-181
Note: 1During April to June 2017, 2During January to July 2017
2

ANNUAL BUDGET 2017-18 … (1/3)
 Total consolidated budget size for 2017-18 was US$ 28.96 billion.
 Budget highlights:
• 150 Electric Buses will be introduced in Bengaluru City and 50 Electric Buses in Mysuru.
• Karnataka State Road Safety Authority will be constituted, to reduce road accidents and to improve road safety.
• Krishi Bhagya to be implemented for the first time in Horticulture Department – US$ 31.04 million.
• Upgradation of 302 primary veterinary centers to veterinary dispensaries. .
• Setting up of 25 new Government Polytechnics at a cost of US$ 0.62 million each in rural areas.
• Development of 4,386 km of roads under “Namma Grama Namma Raste”- phase 4 – US$ 273.95 million.
• Works amounting to US$ 447.95 million to be implemented under Nagarothana (Municipality) phase-3 project in small and medium towns.
Source: Government of Karnataka, Budget 2016-17

Primary & Secondary education :
 The state government has taken various initiatives such as, “Nali
Kali”, “not for profit organization”, etc., for enhancement of quality
education across all government schools in the state.
 A comprehensive e-content programme, “IT@Schools in Karnataka”
will be launched by high school teachers for delivering digital literacy
to government high school students.
 Reassurance of yoga education in government schools.
Higher education:
 For accentuating knowledge as well as fiscal necessities in the state,
Karnataka Education Policy will be deployed.
 For presenting the state’s educational and cultural legacy, the state
government has decided to develop Karnataka Heritage Centre at a
cost of US$ 0.30 million in Karnataka Folklore University.
 The state government has allocated US$ 1.52 million for allowing the
government colleges to obtain UGC grant by getting the NAAC
recognition.
Sector
Annual
allocation
(US$ million)
2015-16
Annual
allocation
(US$ million)
2016-17
Annual
allocation
(US$ million)
2017-18
Primary &
secondary
education
2,475.40 2,653.98 2,835.13
Higher education 595.17 710.51 683.10
Energy 2,125.08 1,929.72 1,594.36
Water resources 2,149.30 2,211.57 2,472.4
Urban
development
1,891.9 2,269.01 2,131.39
Social welfare 756.4 834.70 987.62
Health and family
welfare
1,007.7 768.71 794.38
Agriculture 644.16 663.61 788.49
Horticulture 126.07 115.03 169.34
Sericulture 30.85 56.06 66.59
Fisheries 49.27 46.13 52.3
Forest,
environment
and Ecology
291.47 245.79 268.83
Major sector-wise allocations as per budget 2015-16, 2016-17
and 2017-18

Agriculture:
 “Krishi Bhagya” scheme will be extended to Costal and Malnad areas(excluding command areas) covering all the taluks at a cost of US$ 93.13
million in the year 2017-18.
 Drip and sprinkler irrigation units will be distributed at 90% subsidy for up to 2 hectares and 50% subsidy for up to 5 hectares covering an area of
1.8 lakh hectares.
 It is proposed to set up 250 more centres at hoblis under the “Krishi Yanthradhare Programme” at a cost of US$ 18,94 million.
Energy:
 40 new sub stations will be established to strengthen the transmission network.
 It is proposed to add 3,975 MW capacity during the year 2017-18 including 1,600 MW from Yaramaras project, 1,000 MW from Solar Energy Park
of Pavagada and 1,375 MW from renewable energy sources.
 As per state budget 2017-18, US$ 1.59 billion has been allocated for the Energy Department.
 5 villages in each MLA constituency will be converted into Model Electricity Villages by taking steps for the efficient usage of electricity.
Water Resources:
 Construction of field irrigation canals for 35,000 hectares of area, construction of field drains for 28,000 hectare area and development of saline
and alkaline lands of 12,500 hectare area.
 As per state budget 2017-18, US$ 2.47 billion has been allocated for the Water Resource Department.

PHYSICAL INFRASTRUCTURE – ROADS
Source: Ministry of Road Transport & Highways, Government of Karnataka, State Budget, 2016-17
 The state is well-connected to its five neighbouring states and other
parts of India through 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 the last four years (2013-17), a total of 8,288 km roads were
constructed under “Namma Grama Namma Rasthe” scheme by the
state government.
 In May 2017, the state government revealed its plans for widening
and redeveloping four roads on the city outskirts to bring down traffic
congestion. The Karnataka Road Development Corporation Ltd. has
estimated the cost for improving 155Km of roads at US$216.42
million.
 Up to September 2017, under NABARD loan assistance scheme, an
amount of Rs 182.32 crore (US$ 28.36 million) has been sanctioned
in RIDF-XXIII.
 Public Works Department (PWD) of the state is using hi-tech
vehicles to help in improvement of roads. The vehicles will be used
to check the status of 20,000 km of core roads in the state according
to the department.
Source: Maps of India
Road infrastructure in Karnataka (km)
Road type 2016-17
National highways 6.502.29
State highways 27,163
Major district roads 55,515
Municipal roads 8,366
Other roads 155,545

PHYSICAL INFRASTRUCTURE – RAILWAYS
 Karnataka is well connected to other parts of the country through the
railways. The state has a railway network of 3,250 km.
 Karnataka Rail Infrastructure Development Corporation (K-RIDE)
has been set up with the objective of developing and implementing
rail infrastructure projects in Karnataka with private sector
participation wherever feasible. K-RIDE has a chief executive officer
deputed from the Railways Department and principal secretary,
Infrastructure Development Department, as its chairman.
 As of September 2017, 42.3 km of Karnataka’s metro network is
operational.
 Further, the state government granted contracts for two reaches of
phase II, which are slated for completion by 2020.
 In State Budget 2017-18, the government released a grant of US$
244 million for Rail Over Bridge and Rail Under Bridge works under
progress.
Source: Economic Survey of Karnataka, 2015-16, State Budget 2016-17
Type of railway BG (km)
MG
(km)
NG
(km)
Total
(km)
South Central
Railways
268 0 0 268
South Western
Railways
2,516 97 84 2,697
Southern Railways 37 0 0 37
Konkan Railways 248 0 0 248
Total 3,069 97 84 3,250
Railway project Status
Ramanagara-Mysuru doubling track Commissioned for transport
Bidar-Kalaburagi new railway line Completed
Bengaluru-Hasana railway line Commissioned
Bagalakote-Kuduchi railway line
Approved by Government of
Karnataka; amount released for
land acquisition
Ginigera-Rayachuru railway line
Gadaga-Wadi railway line
TumakuruRayadurga railway line
Karnataka railway network
Status of major railway projects in Karnataka (2016-17)

PHYSICAL INFRASTRUCTURE – AIRPORTS
 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. The construction work is expected to be
completed by September 2019.
 Further, work on development of Kalaburagi airport by PWD is
expected to be concluded by December 2017.
 In March the government gave ‘in principle’ approval for construction
of an airport at Shimoga.
 Upgradation works were undertaked for Belagavi airport in 2015.
The upgraded Belagavi airport was inaugurated in September 2017.
Modernisation of the airport was done at a cost of US$ 18.67 million
and it now has capacity to handle over 300 passengers.
 The state has five domestic airports. These are located in
Bengaluru, Mangalore, Hubli, Mysore and Belgaum. International
flights operate from the airports at Bengaluru (Kempegowda
International Airport) and Mangalore (Mangalore International
Airport).
 Bengaluru International Airport; the country’s first greenfield
international airport, has been developed at Devanahalli in
Bengaluru as a passenger and cargo department hub. This was
developed under PPP and started operations in May 2008.
Karnataka airport statistics (2016-17)
Airport
Passenger
traffic (No.)
Aircraft
movement (No.)
Freight
(tonnes)
Bengaluru 22,881,392 177,271 319,344
Mangalore 1,734,810 15,405 1,242
Karnataka airport statistics (2017)1
Bengaluru 12,393,549 91,329 173,010
Mangalore 1,062,491 9,359 1,404
Source: AAI, Global Investors Meet, Budget 2016-17
Note: 1From April to September 2017

PHYSICAL INFRASTRUCTURE – PORTS… (1/2)
Source: Indian Port Association
 There are 13 ports in Karnataka, of which New Mangalore is a major
port. New Mangalore Port is the ninth major port in India with the
deepest inner harbour on the west coast.
 The work on development of the second stage of Karwar port has
been initiated under the concept of D-BOOST in PPP mode.
However, the bid document issue is under consideration by the state
government.
 As per budget 2017-18, in order to promote Import/Export activities in
Karwar Port, a detailed project report will be prepared to construct an
additional dock measuring 1508 meter for stationing 5 ships of 14
metres depth.
Karwar Port
New Mangalore Port
Cargo handled by New Mangalore port (in ‘000 tonnes)
31,350
32,941
37,036
39,365
36,566
35,590
39,940
19,549
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Ports
Major ports  New Mangalore Port
Minor ports
 Karwar
 Belekeri
 Tadri
 Honavar
 Bhatkal
 Kundapur
 Hangarkatta
 Malpe
 Padubidri
 Old Mangalore
1
Note: 1From April to September2017

PHYSICAL INFRASTRUCTURE – PORTS… (2/2)
Cargo handled by various minor ports in Karnataka (‘000 MT)
Minor Port 2011-12 2012-13 2013-14 2014-15 2015-16(1)
2016-17 (up to
Dec 2016)
Old Mangalore 87.83 165.93 120.26 115.89 66.16 48.52
Karwar 497.20 441.19 377.10 525.07 481.40 426.24
Malpe, Belekeri, Hangarkatta &
Kundapur
6.81 4.74 3.00 2.31 1.22 1.32
Total 591.84 611.86 500.36 643.27 548.71 476.08
 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.
Source: Karnataka Economic Survey 2015-16;Note: 2015-16(1) : Till December 2015

PHYSICAL INFRASTRUCTURE – POWER
 As per the budget 2017-18, the state government has allocated US$
1.37 billion for enhancement of the power sector in the state.
 The establishment work of a gas-based power plant in Yelahanka is
estimated to be initiated during 2016-17 by the state government.
Further, KPCL is expected to create a 200 MW solar power plant
during 2016-17.
 As of October 2017, the state had an installed power generation
capacity of 21,632.09 MW. Out of this, central utilities contributed
3,127.20 MW, private utilities contributed 9,601.84 MW and 8,903.05
MW was under state utilities.
 Of the total installed power generation capacity, 9,560.82 MW was
contributed by thermal power. Capacities of 698.00 MW and
7,773.47 MW were contributed by nuclear & renewable power,
respectively, while hydropower contributed 3,599.80 MW.
 As per the Budget 2017-18, the state plans to add 3,975 MW of
power in 2017-18, out of which renewable energy accounts for 2,375
MW.
 Karnataka Renewable Energy Development Limited (KREDL) was
established in 1996 to promote the development of renewable energy
sources in the state.
 In July 2017, commercial production started from an 800 MW unit at
Kudgi plant of NTPC in Karnataka.
 As of October 2017, the installed capacity for solar power in the state
reached 1,492.88 MW.
Installed Power Capacity (GW)
8.5 8.7
11.4 12.1
13.9 14.0
15.1
17.3
21.3 21.6
0.0
5.0
10.0
15.0
20.0
25.0
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Note: 1As of September 2017
Source: Central Electricity Authority
1

PHYSICAL INFRASTRUCTURE – TELECOM
 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 70.19 million wireless subscribers and 2.27 million wire-line
subscribers in Karnataka, as of July 2017.
 The entire state is networked through optical fibre cables (OFCs) of
the state-owned company, Bharat Sanchar Nigam Limited (BSNL),
as well as private companies such as Bharti, Reliance, VSNL and
TATA Tele Services.
 Last mile access is provided by BSNL as well as Tata Tele Services
in various parts of the state. Bharti and Reliance Communications
provide the last-mile access directly to the customers in all major
cities of Karnataka.
 By the end of July 2017, 32,032,831 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).
Telecom Infrastructure (As of July 2017)
Wireless subscribers 70,194,726
Wire-line subscribers 2,273,737
Internet subscribers
(1)
27,960,000
Post offices
(2)
9,663
Teledensity (in %) 114.79
Performance status of NOFN Project (As of September 2017)
No. of GPs in Phase-I 6,092
Pipe laid (km)
(3)
11,784
Cable laid (km) 12,613
GPs for which cable laid 6,037
No of GPs lit 4,835
Source: Telecom Regulatory Authority of India,Economic Survey of Karnataka
Note: (1) As of June 2017, (2) As of April 2016, (3)As of July 2017

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE… (1/2)
 Karnataka is among the top ten most urbanised states in India. The
state is projected to reach an urban population proportion of 50% by
2026. Some of the key areas of development are roads and flyovers,
water supply, storm-water drainage, sewerage and urban transport.
 The Karnataka Urban Water Supply and Drainage Board (KUWSDB)
is responsible for providing water supply & sewerage facilities in 218
urban areas of the state, except the areas serviced by the Bruhath
Bengaluru Mahanagar Palike (provides services in Bengaluru city &
surrounding areas).
 Karnataka has ten city corporations, 57 city municipal councils, 113
town municipal councils, 90 town panchayats & 4 notified area
committees.
 As per budget 2017-18, an amount of US$ 2.13 billion has been
proposed for urban development.
 For the development of Nagarothana phase-3 project for 10 City
Corporations, an amount of US$ 45.52 million was 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.
Source: JNNURM, Ministry of Urban Development
Water supply Sewerage system
 KUWSDB has implemented
surface-based drinking water supply
schemes in 187 urban areas to
provide assured safe drinking water.
 KUWSDB is implementing 26
schemes for shifting the source of
water from ground water to assured
surface water. They are to be
completed by 2013.
 Cauvery Water Supply Scheme
(CWSS) Stage IV, Phases I–IV are
being implemented to supply 810
MLD of water to about 600,000
connections.
 The Bengaluru Water
Supply and Sewerage
Board (BWSSB) is
responsible for providing
water supply, sewerage
system & sewage
disposal in the
Bengaluru Metropolitan
area.
 42 urban areas have
been provided with
Underground Drainage
(UGD) facilities in the
state.
 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 finished 42.3-km network of Metro
Rail under phase-1 of the Metro Rail project and two lines have been
made operational.

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE … (2/2)
Development projects under Directorate of Municipal Administration:
 Construction of 22,133 houses (DUs) at a cost of US$ 85.37 million under Rajeev Awas Yojana will be completed by the authority during 2017-18.
 Infrastructure works for drinking water supply scheme for citizens for small and medium towns will be started during 2017-18 at a cost US$ 447.95
million.
 Under “Housing for all”, construction of 60,000 houses at a cost of US$ 405.42 million will be implemented through urban local bodies and Rajeev
Gandhi Rural Housing Corporation during 2017-18.
 During 2017-18, it is targeted to construct 0.33 million personal toilets, 9,104 capacity community toilets, 4,522 capacity public toilets under Solid
Waste Management Scheme.
 As per Budget 2017-18, master plans will be prepared for all of the 274 urban local bodies of the state.
 To mitigate the scarcity of drinking water in Mangaluru, a desalination plant will be established with public-private-participation (PPP).
Source: : Budget 2016-17

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (1/2)
Under construction PPP projects - Karnataka
Source: Department of Economic Affairs, Government of India
Project name Sector Status Total cost (US$ million)
Road Upgradation (Karnataka) Project Transport Under construction 108.66
Setting up of mechanized iron ore handling facilities at deep
draft multi-purpose berth of NMPT
Transport Under construction 45.97
Six laning of Belgaum - Dharwad Section Road Transport Under construction 79.63
Sports City cum International Convention Centre cum Star
Hotel cum Shopping Complex cum Residential Complex
Social and commercial
infrastructure
Under construction 149.3
Airport (Hassan) Project Transport Under construction 497.68
Waste to Energy Project Mandur Water sanitation Under construction 9.95
Bus Terminal-cum-Commercial complex at Puttur Transport Under construction 1.21
Water Supply Scheme (Mysore) Water sanitation Under construction 32.27
Construction and Maintenance of Public Toilets in Bengaluru
infrastructure
Water Supply Scheme (Nanjangud) Water sanitation Under construction 4.74

DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE
PARTNERSHIP (PPP) PROJECTS … (2/2)
Project name Sector Status Total cost (US$ million)
Development of integrated solid Waste Treatment (100
TPD) and Landfill Facilities at Belgaum
Water sanitation Under construction 0.85
Development of International Convention Centre at
Devanahalli
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
Source: Department of Economic Affairs, Government of India
PPP Projects – Karnataka

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

CLUSTERS … (2/4)
Name/Developer Location Primary industry
Biocon Special Economic Zone Anekal Taluk, Banglore, Karnataka Biotechnology
Shyamaraju and Company (India)
Pvt. Ltd.
Kundalahalli Village, Karnataka IT/ITES enabled services
Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS
Wipro Limited (Electronic City)
Varthur Hubli, Electronic City,
Banglore, Karnataka
IT
Wipro Limited (Sarjapur)
Varthur Hobli, Sarjapur Road,
Karnataka
IT
Vrindavan Tech Villages SEZ Devarabeesanahalli Village, Karnataka IT/ITeS
RMZ Ecoworld Infrastructure Pvt.
Ltd.
Devarabeesanahalli, Karnataka IT/ITeS
Cessna Business Park Pvt. Ltd.
Varthur
Hobli, District Banglore, Karnataka
IT/ITeS
Tanglin Development Ltd. Pattengere/Mylasandra Villages, Karnataka IT/ITeS
Infosys Technologies Limited Hebbal Industrial area, District Mysore, Karnataka IT/ITES
Source: Department of Industries and Commerce, Karnataka
Some of the operational SEZs in Karnataka

CLUSTERS … (3/4)
Information Technology Park
Limited
Sadaramangala and Pattandur Agrahara
Village, District Bangalore, Karnataka
IT/ITeS
Karnataka Industrial Area Development Board
(KIADB)
Village Perumenahally, Karnataka Textile
Infosys Technologies Limited
Hebbal Industrial area, District Mysore,
Karnataka
IT/ITeS
HCL Technologies Ltd. Bangalore Karnataka IT/ITeS
Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS
Karnataka Industrial Area Development Board
(KIADB)
District Hassan, Karnataka Pharmaceuticals
Aspen Infrastructures Limited (formerly Synefra
Engineering construction Ltd. (Suzlon
Infrastrucutre Ltd.)
Udupi Taluk, Karnataka
Hi-tech engineering, products and related
services
Karle Infra Pvt. Ltd. Bangalore Karnataka IT/ITeS
Mangalore Special Economic Zone Bangalore Karnataka Multi product
Bagmane Construction Pvt. Ltd K R Puram, Bangalore North, Karnataka IT/ITES
Bagmane Construction Pvt. Ltd K R Puram, Bangalore North, Karnataka IT/ITES

CLUSTERS … (4/4)
Quest special Economic Zone Belgaum district, Karnataka
Precision engineering
Products
Gopalan Enterprises (India) Private Limited. Bengaluru, Karnataka IT/ITES
Karnataka State Electronics Development
Corporation Limited (KEONICS)
District Shimoga, Karnataka Electronics Hardware and Software/ ITES
Larsen & Toubro Limited District Mysore,Karnataka IT/ITeS
Karnataka Industrial Areas Development Board Bengaluru, Karnataka Aerospace and industry
Milestone Buildcon Private Limited
Village Chokkanahalli, Taluka Yelahanka Hobli
Bangalore North, Karnataka
IT/ITES
Milestone Buildcon Private Limited
Village Chokkanahalli, Taluka Yelahanka Hobli
Bangalore North, Karnataka
IT/ITES

SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
 The state has a literacy rate of 75.6%, the male literacy rate is 82.8%
and the female literacy rate is 68.1%.
 In terms of the number of universities, Karnataka ranks fifth among
all Indian states and union territories, with 44 universities. Of these,
24 are state public universities and 11 are private deemed
universities.
 The state has 4,519 pre-university colleges to impart general
education. There are more than 1 million students in the
pre-university colleges.
 There are 293 polytechnics and 206 engineering colleges to provide
technical education in the state.
 For the development of basic facilities such as – laboratory, library,
new buildings, toilets, drinking water facility in government schools
and colleges, an amount worth US$ 18.25 million would be provided.
 Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE
would be upgraded. Under this scheme, Shaikshanika Adhalath and
TESS education centers would be opened in the offices of BEOs,
DIETs, DDPIs and CTEs in the state.
Literacy rates (%)
Literacy rate 75.6
Male literacy 82.5
Female literacy 68.1
Educational infrastructure (2016-17)
Institute type Number Enrolments
Medical colleges 55 8,125
Ayurvedic colleges 66 4,170
Homoeopathic colleges 11 925
Unani colleges 4 230
Naturopathy & Yogic Sciences
(BNYS)
4 345
Dental colleges 39 2,770
Pharmacy colleges 61 4,784
Nursing colleges 248 13,840
Source: Economic Survey of Karnataka 2015-16 Census 2011

SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
 As per economic survey 2016-17, the state participation in primary
education is significant as 81.23% of the lower primary and 63.40%
of the higher primary schools are managed by Department of
Education.
 The Karnataka government is expecting investments of US$ 777.72
million in higher education sector which will raise the Gross
Enrollment Ratio (GER) to 40% in the state.
 In November 2017, foundation stone for a new government medical
college was laid in Bengaluru. The cost of the project is pegged at
US$ 31.11 million and the college is expected to be functional from
2018 itself.
 Karnataka is home to several premier institutions:
• Indian Statistical Institute.
• Indian Institute of Science.
• Indian Institute of Management.
• National Law School of India University.
• Institute for Social and Economic Change.
• University of Agricultural Sciences, Bengaluru.
• Kannada University, Hampi.
Karnataka education statistics (2016-17)
Source: Economic Survey of Karnataka 2015-16
Number of schools
Lower primary: 26,696
Higher primary: 35,498
Secondary schools: 15,773
School dropout rate (in %)
Lower primary: 1.03
Higher primary: 2.30
Pupil-teacher ratio
Average: 23.18:1
Private Aided schools: 55.48:1
Unaided schools: 31.61:1

SOCIAL INFRASTRUCTURE – HEALTH... (1/2)
 3-tier health infrastructure comprising primary health centres, health
units, community health centres & sub-centres is available in the
state.
 The policy of the Government is to establish 1 primary health centre for
every 30,000 inhabitants, 1 dispensary for every 15,000–20,000
inhabitants & 1 sub-centre for every 5,000 inhabitants.
 Under ‘Arogya Kavach (108 ) Scheme’, 17 million people have availed
ambulance services.
 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 9, 2017, the state has 12,572 active health institutions
out of total 12,997 health institutions in the state.
 Under the assistance of National Health Mission, at a cost of US$ 8.09
million, trauma centres will be established across 5 places, under the
scheme of Aapathbandhava for offering emergency treatment to
highway accident victims.
 In June 2017, the state government announced an initiative to install RO
systems in 147 taluk & 20 district hospitals across the state. The plants
will be jointly set up by the state health & rural development and
panchayat raj departments. An amount of US$ 1.49 million has been
allocated for the project.
Health indicators (2016)
Birth rate 17.6
Death rate 6.7
Infant mortality rate 24
Natural Growth Rate 10.9
Source: Economic Survey of Karnataka 2015-16,Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live
births, 3As of 9th November 2017
Life expectancy at birth (years)
Male (2015) 63.6
Female (2015) 67.1
No of institutions Total Facilities (November 2017) 3
Subcenters 9,469
Community health centres 317
Primary health centres 2,629
Sub district hospital 539
District hospital 43
Total institutions 12,997

SOCIAL INFRASTRUCTURE – HEALTH ... (2/2)
 Various other programmes to be included under the National Health Mission during 2017-18 include:
• Establishment of dialysis centres in 114 taluks of the state.
• Establishment of Intensive Care Units having 3 bedded capacity with ventilator facility in all taluk hospitals to provide treatment in cases having
respiratory problem, serious illness and accidents
• Commencement of DNB post graduate course in government colleges.
• Establishment of Ayush Treatment Centres in all taluk hospitals to provide integrated, comprehensive health service.
 As per Budget 2017-18, RO+UV drinking water facility will be provided in all district hospitals, taluk hospitals and community health centres.
 Under National Free Diagnosis Programme, free diagnosis facility will be provided in all Government hospitals.
 Blood Transfusion Units will be established in 10 district hospitals of Bagalkot, Vijayapura, Chamarajnagar, Chickmagaluru, Chitradurga, Haveri,
Kodagu, Kolar, Tumkuru and Uttara Kannada at a cost of US$ 0.93 million.
 Integrated Ayush Hospitals having 50 beds will be established in Chitradurga and Chickmagaluru District hospitals at a total cost of US$ 0.93
million.
Source: Economic Survey of Karnataka 2015-16,Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2014 , 1Per thousand persons,2Per thousand live
births

CULTURAL INFRASTRUCTURE
 There are several sports complexes in Bengaluru, Mysore, Mangalore & other cities. Cricket, hockey & football are the major sports, although
other games are also popular. The main sports arenas are the M. Chinnaswamy Stadium & the Sree Kanteerava Stadium in Bengaluru,
Chamundi Vihar Stadium in Mysore & the Mangala Stadium in Mangalore. The Bengaluru Golf Course & the Karnataka Golf Association are
well-known golf courses in the state.
 Karnataka is also home to numerous convention centres used for exhibitions, both indoor & outdoor, such as Palace Grounds & the Bengaluru
International Exhibition Centre.
 Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna & Kodagu have been developed. Schemes are
being prepared to develop rural tourism at other places also to showcase the rural life, art & culture and heritage.
 Ranga Shankara & Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru & are the performing spaces for dance, music & theatre
artists. An international mega convention centre, with a seating capacity of 6,000, is being planned near the Bengaluru International Airport.
 To conserve and popularize the Bayalata artform, a separate Bayalata Academy will be established in North Karnataka.
 The monuments of Srirangapatna & Hoysalas along with the monuments and forts of Deccan Sultanate have been registered in the provisional list
of World Heritage sites during 2015-16.
 As per the budget 2017-18, US$ 3.104 million will be provided to organize World Kannada Conference to commemorate 60 years of unification of
Karnataka State.
 Also, complete literary works of Sri M.M. Kalaburgi will be published through Fa.Gu. Halakatti Research Centre of Vijayapura.
 Indian tennis star Rohan Bopanna was honoured by the state government on winning the maiden Grand Slam title of his 14 year career at the
French Open in June 2017, becoming the 4th Indian to win a Grand Slam title.
 In 2017-18, US$ 65.8 million has been allocated to Kannada and culture department.

SMART CITIES
 Seven cities of Karnataka have been selected under the Smart Cities
Mission to be developed as smart cities.
 27 cities from Karnataka were selected under the central
government’s Atal Mission for Rejuvenation and Urban
Transformation Scheme (AMRUT). In 2017-18, an amount of US$
29.63 million was released by the central government for
implementation of the mission.
 For the Smart City Mission project, the government is set to release
US$ 176.71 million, during 2017-18.
Population, area & literacy rate of identified smart cities in
Karnataka
Cities Population Area (sq km) Literacy rate
Mangaluru 774,785 184.45 94.03%
Belgaum 488,292 94 78%
Shimoga 322,505 70.1 88.02%
Hubli-Dharwad 943,788 200 86.79%
Tumakuru 2,678,980 10,597 75.14%
Davangere 434,971 72 84.90%
Bengaluru 8,499,399 709 89.56%
Source: : Census 2011 & TechSci Research
Mangaluru
Devengere
Hubali-Dharwad
Badami
Belagavi
Shivamoga Tumakuru
Bengaluru

KEY INDUSTRIES
 The natural resources, policy incentives and infrastructure in the state
favour investments in the IT/ITeS, biotechnology, engineering,
electronics, automotive, textiles, agri- & food-processing sectors.
 Karnataka’s favourable policies have encouraged industries to set up
their R&D centres in the state. Bengaluru has about 401 R&D centres,
the most in India.
 Karnataka is making significant investments in industrial infrastructure,
such as setting up industrial clusters & SEZs & PPP projects to
provide an impetus to further industrial development.
 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.
 In June 2017, Siemens Industry Software India Pvt. Ltd. has signed an
MoU with the state government Tool Room & Training Center &
Design Tech Systems Ltd. to establish four Centers of Excellence in
Karnataka. The estimated cost of the project is US$ 302.22 million, out
of which, US$ 32.62 million will be contributed by the state
government & Siemen’s share will be US$ 271.08 million.
Key industries in Karnataka
 IT and ITeS  Agro and food processing
(floriculture)
 Biotechnology  Aerospace
 Engineering  Animation
 Electronics and telecom  Electronic hardware
 Automotive  Tourism
Source: Directorate of Industries and Commerce, Economic Survey of Karnataka, 2015-16
Total number of micro, small and medium enterprises in
Karnataka
Year MSME units Employment
Employment per
unit
2012-13 24,206 155,551 6.43
2013-14 25,966 167,347 6.44
2014-15 28,742 175,469 6.10
2015-16 25,656 221,706 8.64
2016-17 (up
to Dec 2016)
28,784 372,348 12.93

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(1/2)
 Karnataka has emerged as an information technology (IT) hub of
India. Bengaluru is the fourth largest technological cluster in the
world after Silicon Valley, Boston and London.
 About 50% of the world's SEI CMM Level 5 certified companies are
located in Bengaluru.
 The state is India’s largest software exporter, with electronics and
computer software exports totalling to US$ 31.43 billion during 2016-
17 (up to September 2016).
 Karnataka has 47 IT/ITeS SEZs and dedicated IT investment
regions. There are 3,500 IT companies in the state. The state houses
550,000 IT professionals or 1/3rd of the total IT professionals in the
country.
 At least 400 Fortune 500 companies have outsourcing operations in
Karnataka. As of September 2015, the total enrolments of people in
the sector was recorded to be 0.446 million.
 The state government has formulated a new Karnataka Startup
Policy for assessing the progress of startup companies during 2015-
16.
 As per the state budget 2016-17, the state government will set up a
technology incubation centre during 2016-17 in Doddaballapura town
for the endorsement of startups related to technology in association
with Texas University.
 During 2016-17, the state government aims to establish 10 new
incubators in the state’s graduate and professional institutes, under
the network of New Age Incubation.
23.1
28.2 28.7 29.5
32.2 31.0 31.4
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17⁽¹⁾
Some of the key players
 Wipro Technologies
 Infosys
 Genpact
 Accenture
Source: : Visvesvaraya Trade Promotion Centre; ’Note: 2015-16(1) : till September 2015
Electronics and software exports from Karnataka (US$ billion)
CAGR: 8.66%
 National Bureau of Soil and Land Use Planning at the Indian Council
of Agriculture Research, Bengaluru conducted GPS-enabled soil
sampling and nutrient analysis in Karnataka, Tamil Nadu and Kerala
in April 2017. The analysis was done to help coffee growers in
checking soil properties and nutrient status via Kshemam app

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(2/2)
 Wipro Ltd was established in 1945 and recorded revenues of US$ 8.5 billion during 2016-17. The company has
presence in areas such as IT services, product engineering, technology infrastructure services, BPO and other
consulting solutions. The company provides services such as application development, deployment and maintenance,
business intelligence and customer relationship management.
 Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific centres of
excellence in more than 54 countries. In September 2009, the company launched its centre of excellence at its
Electronic City campus to work with other leading IT firms for developing innovative IT solutions.
 Infosys Technologies Ltd was set up in 1981 and posted revenues of US$ 10.21 billion in 2016-17. The company
operates in areas such as IT consulting, modular global sourcing, process re-engineering and BPO services. Infosys
has 73 offices and 94 development centres in the US, India, China, Australia, Japan, the UK, Germany, France and
many other countries and has marketing and technological alliances with companies such as IBM, HP, Microsoft and
Oracle. The company has operations at multiple locations in Bengaluru, Mangalore and Mysore.
 Genpact was set up in 1997 in India. Formerly known as GE Capital International Services, the company’s net revenues
in 2016 stood at US$ 2.57 billion. The company provides a wide range of business process, technology and knowledge
services including finance and accounting, collections and customer relations, insurance, procurement and supply chain,
analytics, software and IT infrastructure. Genpact employs around 60,200 employees. The company has one office in
Bengaluru in Karnataka.
 Accenture is a global management consulting, technology services and outsourcing company with approximately
275,000 people serving clients in more than 120 countries. In 2015-16, Accenture generated revenues of US$ 8.97
billion. The company has one consulting office and seven delivery centres in Bengaluru.
Wipro Ltd
Infosys
Technologies Ltd
Accenture
Genpact

KEY INDUSTRIES – BIOTECHNOLOGY … (1/2)
 Karnataka has played a key role in India’s emergence as a
significant player in the global biotechnology industry. Karnataka is
home to nearly 60.0% of the country’s biotech units.
 The state consists of over 300 Biotech companies and has more
than 6,800 scientists involved in biotech research.
 Premier life sciences institutions such as Indian Institute of Science,
National Centre for Biological Science and Jawaharlal Nehru Centre
for Advanced Scientific Research are present in the state.
 Sector-focused SEZs have been set up in Mysore, Mangalore, Hubli-
Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya.
 Twelve biotechnology finishing schools are scheduled for
development under the Millennium Biotech Policy.
 An 86-acre biotechnology park, Bengaluru Helix, comprising the 52-
acre Alexandria Knowledge Park operates in the capital city.
 More than 60% of the biotechnology companies in India have a base
in Bangalore and the state drives 50% of the total revenues in India’s
biotechnology sector.
 India’s biotechnology industry is expected to reach US$ 100 billion
by 2025, with Bangalore forming a significant part of it.
 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.
Source: : Economic Survey of Karnataka 2015-16
 Biocon
 AstraZeneca India
 Jubilant Life Sciences Ltd
 GlaxoSmithKline Pharmaceuticals Ltd

KEY INDUSTRIES – BIOTECHNOLOGY … (2/2)
 Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of Ireland and an
Indian entrepreneur, Kiran Mazumdar-Shaw. The company is among the leaders in biopharmaceuticals and
bioservices. Biocon has its corporate headquarter in Bengaluru. In 2016-17, the company recorded revenues of
about US$ 633.11 million.
 AstraZeneca India was established in 1979. The company is involved in the areas of manufacturing/marketing of
bulk drug chemicals, liquid formulations, tablets and capsules, injectibles and ointments for various disease
segments such as cardiovascular, respiratory and maternal healthcare.
 The company’s manufacturing plant is located at Yelhanka and R&D centre is located in Bengaluru.
 Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated pharmaceuticals and life sciences
company. The company is the largest Custom Research and Manufacturing Services (CRAMS) company and
provides leading drug discovery & development solutions outside India.
 The company’s revenue was about US$ 932.21 million during FY 2017. Jubilant has a manufacturing facility in
Nanjangud, with around 625 employees.
 GlaxoSmithKline Pharmaceuticals Ltd was established in 1924 and is one of the oldest pharmaceutical companies
in India.
 During 2016-17, the company recorded a revenue of US$ 457.57 million.
 GSK India product portfolio includes prescription medicines and vaccines. The company has a clinical
development centre in Bengaluru.
Biocon
AstraZeneca India
GlaxoSmithKline
Pharmaceuticals Ltd
Jubilant Life Sciences
Ltd

KEY INDUSTRIES – ENGINEERING … (1/2)
 The engineering industry in Karnataka has positive prospects, given
its performance.
 Exports of engineering products have increased from US$ 1,605
million in 2010-11 to US$ 3,130.25 million in 2015-16, The
engineering segment is the fastest growing sector of the state, which
grew at a CAGR of 14.22% between 2010-11 and 2015-16. The
state is exporting engineering products to Germany, China, South
Korea, Brazil, USA, Malaysia, Thailand, South Africa and Singapore.
A majority of the exporters in state are based in Bengaluru, Hubli,
Mysore, Belgaum, Mangalore, and Shimoga.
 The state exported engineering products worth US$ 2.26 billion in
2016-17 (up to September 2016).
 Exports include machine tools, industrial machinery, cutting tools,
castings, automotive components, electrodes, welding equipment,
construction and earthmoving equipment, and helicopter spares.
 A 300-acre SEZ has been created in Belgaum to develop a precision
engineering and manufacturing supply chain ecosystem, which
would be a great driver for manufacturing industries. Bharat Earth
Movers Limited, Hindustan Machine Tools Limited and Bharat Heavy
Electricals Limited are among the leading companies in this sector in
the state.
1.61 1.72
2.31
3.09
3.42
3.13
2.26
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17*
 Bharat Earth Movers Limited (BEML)
 Hindustan Machine Tools Limited (HMT)
 Bharat Heavy Electricals Limited (BHEL)
 Saint-Gobain India
Source: : Visvesvaraya Trade Promotion Centre, Government of Karnataka
Engineering products exports (US$ billion)
CAGR: 14.22%
Note: 2016-17* up to September 2016

KEY INDUSTRIES – ENGINEERING … (2/2)
 BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML manufactures a wide range
of earth moving and other heavy industrial equipment for the mining and civil engineering industries.
 BEML has a registered office in Bengaluru and units in Kolar Gold Fields, Mysore and Bengaluru. During 2016-17,
the company recorded revenues of US$ 448.8 million.
 HMT was established in 1953. The company manufactures various types of machine tools including watches,
tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems &
bearings.
 During the third quarter of 2015-16, the company earned revenues of US$ 1.67 million. HMT has a manufacturing
plant in Bengaluru.
 Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in India in the
energy-related/infrastructure sector. The company has 16 manufacturing divisions, two repair units, four regional
offices, eight service centres, eight overseas offices and 15 regional centres.
 BHEL has an electronics division at Bengaluru. The company recorded revenues of US$ 4.69 billion in 2016-17.
 Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing companies in India
for various products ranging from glass to engineering products.
 In the second quarter of 2015, the company recorded revenues of US$ 6.51 million. The company has a
manufacturing plant in Bengaluru.
BEML Limited
HMT Ltd
Saint-Gobain India
BHEL

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

KEY INDUSTRIES – TELECOMMUNICATIONS AND
ELECTRONICS … (2/2)
 Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit, multi-technology
company. Products manufactured by BEL are mainly categorised as systems/turnkey solutions, defence and non-
defence products.
 The company has a manufacturing unit in Bengaluru and achieved revenues of US$ 1.19 billion during 206-17.
 Nokia is among the world leaders in mobile technology. The company started its India operations in 1995. India
holds the distinction of being the second largest market for the company globally.
 The company has an R&D facility and a design studio in Bengaluru.
 Siemens set up operations in India in 1957. The Siemens Group in India is a unique player in the field of electrical
and electronics engineering. The Group employs approximately 10,933 people and has 23 manufacturing facilities
in India. Siemens has several offices in Bengaluru. During the second quarter ending March 2016, the company
recorded revenues of US$ 425.25 million
 Philips has been operating in India for more than 75 years. The company is a leader in consumer electronics,
healthcare and lighting systems. Philips employs more than 4,500 people in India.
 The company has an R&D facility – Philips Innovation Campus – in Bengaluru.
Bharat Electronics Ltd
Nokia
Philips Electronics
India Ltd
Siemens

KEY INDUSTRIES – AUTOMOTIVE … (1/2)
 Karnataka has a vibrant auto industry with investments of around
US$ 713 million and annual revenues of US$ 604 million.
 The state is the fourth largest state in India in terms of automotive
production. The main locations for automobile industries are
Bengaluru, Ramanagara, Kolar, Shimoga, Dharwad & Belgaum.
 General Motors Technical Centre, located in Bengaluru, is actively
involved in research, design, analysis and development of vehicles
and power trains for foreign destinations as well as the domestic
market.
 The state has 3 auto clusters, one industrial valve cluster and one
auto component cluster. 2 manufacturing hubs are coming up in
Narsapur & Vemagal Industrial Areas in Kolar District.
 The Government is in the process of announcing a Dedicated
Automobile Policy.
 Automotive industry of Karnataka grew at a CAGR of 15% during
2009 to 2014. The state is considered to be the 4th largest in
manufacturing and developing automobiles in the country. On the
back of this, the state contributes 8.5% to the overall automobile
sector of the country.
 In February 2017, Taiwan based - JHY Group, opened a factory in
Malur taluk, near Bengaluru.
 In 2016-17 (up to December 2016), total transport and non-transport
vehicles recorded in Karnataka were 17.44 million, out of which,
transport vehicles were 1.62 million whereas non-transport vehicles
were 15.79 million.
 As per the final draft of Karnataka Industrial Policy 2014-19, the state
will study the feasibility of setting up major auto parks at Dharwad,
Kolar and Bidadi in Ramanagara district; and smaller auto parks in
Belgaum, Shimoga, Mysore and Gulbarga.
 In September 2017, the Government of Karnataka passed the
‘Karnataka Electric Vehicle and Energy Storage Policy 2017’. Electric
vehicles manufacturing in Karnataka is expected to attract
investments worth US$ 4.82 billion and create 55,000 jobs.
Source: : Economic Survey of Karnataka 2015-16
 Toyota Kirloskar
 Volvo India
 TVS Motor Company
 Delphi Automotive Systems Pvt Ltd

KEY INDUSTRIES – AUTOMOTIVE … (2/2)
 Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.
 The company has manufacturing facilities at Bidadi.
 Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the Volvo Group has about
115,000 employees, production facilities in 19 countries & sales activities in more than 190 countries.
 The company has increased its capacity to around 1,500-1,700 buses per annum in 2013-14 from 1,100 buses per
annum earlier.
 Volvo India plans to invest US$ 115.6 billion to set up a truck & bus manufacturing facility in Malur, Kolar.
 TVS Motor Company is one of the largest 2-wheeler manufacturers in India. The company is the flagship company
of the TVS Group. TVS Motor has 4 manufacturing plants across India including Mysore.
 The company achieved a turnover of US$ 2.13 billion during 2016-17.
 Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. The company is a leading global
supplier of electronics & technologies for automotive, commercial vehicles and other market segments.
 Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside the US.
Toyota Kirloskar
Volvo India
Delphi Automotive
Systems Pvt Ltd
TVS Motor Company

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

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

Handloom weavers and looms in Karnataka
Description Rural Urban Total
Total weaver households 33,854 3,826 37,680
Weaver population 121,688 12,650 134,338
Weaving workforce 69,686 7,163 76,849
Looms 35,662 4,826 40,486
Production and employment in handloom and power-loom industries in Karnataka
Description Units 2013-14 2012-13 2014-15 2015-16 2016-17
Handloom production Million metres 46.09 47.63 43.58 25.79 32.50
Handloom employment Lakh 0.82 1.12 0.85 0.71 0.90
Power loom production Million metres 328.99 353.59 304.02 290.35 -
Power loom employment Lakh 2.56 2.60 2.96 4.42 -
Power loom weavers and power looms in Karnataka
No. of weaver households No. of weavers No. of looms
30,988 127,535 88,566
Spun yarn production (‘000 kg)
2013-14 37,750
2014-15 34,269
2015-16 (up to September 2015) 15,580
Source: Ministry of Textiles

 Gokaldas is one of the largest garment exporters in the country. The company commenced operations in 1979.
During the 2016-17, the company generated revenues of US$ 144.42 million.
 Headquartered in Bengaluru, the company has 30 factories across India. Gokaldas employs around 28,000 people
and has a manufacturing capacity of 2.45 million garments per month as of 2014-15.
 Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise and is a leading
manufacturer of silk.
 The company has two modern factories in T. Narasipura & Mysore, which are engaged in manufacturing silk
goods from raw silk yarn to silk fabrics.
 Himatsingka Seide, incorporated in 1985, is a Bengaluru-based company dealing in natural silk fabric. In 2016-17,
the company generated revenue of US$ 331.91 million.
 The company’s focus area is textile designing and manufacturing. Himatsingka Seide has a spinning division as
well as a weaving division. The company’s brand atmosphere is India’s first luxury home textile brand, with an
exclusive collection of more than 2,500 products and an installed capacity of 25 million metres per annum.
 Shahi Exports is among the top home furnishing exporters in the country. The company began operations in 1974
in Delhi and started manufacturing in Bengaluru in 1988. Shahi Exports has manufacturing facilities in Delhi,
Bengaluru, Salem and Tirupur
Gokaldas Exports Ltd
KSIC
Shahi Exports Pvt Ltd
Himatsingka Seide

KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (1/3)
 Karnataka, with a good agricultural base including various food crops, offers immense scope for the development of food processing industries.
Karnataka is the largest producer of coffee & cocoa in the country.
 The state accounts for around 71.3% of the country’s total coffee production. Coffee production in the state stood at 233,230 MT in 2014-15,
251,520 MT in 2015-16 and 226,300 MT in 2016-17.
 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.
 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 allocated 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.
Source: Coffee Board, Government of India
Karnataka’s coffee production
Location
Elevation
(m MSL)
Rainfall
(mm)
Main coffee types
Total area under
coffee (hectares)
Average
production (MT)
Main intercrops
Bababudangiris 1,000-1,500 1,750-2,200 Arabica 15,000 10,500
Pepper, cardamom,
arecanut
Chikmagalur 700-1,200 1,000-4,500 Arabica, Robusta
Arabica - 37,000
Robusta - 23,000
Arabica - 29,000
Robusta - 30,000
Pepper, cardamom,
arecanut, orange,
vanilla
Coorg 750-1,100 1,000-2,500 Arabica, Robusta
Arabica - 26,000
Robusta - 56,000
Arabica - 24,000
Robusta - 69,000
Pepper, cardamom,
orange, banana,
arecanut
Manjarabad 900-1,100 1,000-2,500 Arabica, Robusta
Arabica - 31,700
Robusta - 9,400
Arabica - 21,000
Robusta - 9,500
Pepper, cardamom,
orange, arecanut,
banana

325 342 300
479
659 651 620
813
473
271
0
100
200
300
400
500
600
700
800
900
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17*
KEY INDUSTRIES – AGRO AND FOOD
PROCESSING … (2/3)
 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% between 2010-11 & 2015-16. The export value has
increased from US$ 146.9 million in 2010-11 to US$ 412.92 million in
2015-16. Agricultural exports from the state were US$ 204.72 million
in 2016-17. Some of the key players
 Hindustan Unilever Limited
 Nestle India
 Britannia Industries Limited
 United Breweries Group
Source: : Economic Survey of Karnataka 2015-16, Coffee Board
Final estimate of coffee production (2016-17) in MT
District Arabica Robusta Total
Chikmagalur 36,150 34,860 71,010
Kodagu 17,035 102,825 119,860
Hassan 17,325 13,550 30,875
Sub total 70,510 151,235 221,745
Coffee exports from Karnataka (US$ million)
CAGR: 13.99%
Source: 2016-17* - up to September 2016

KEY INDUSTRIES – AGRO AND FOOD PROCESSING …
(3/3)
 Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods (FMCG) company, with
leadership in home & personal care products and foods & beverages. The company recorded revenues of US$
4.2 billion during 2015-16. HUL employs more than 16,000 people nationwide. During 2016-17, the company
recorded revenues of US$ 5.6 billion.
 The company has a manufacturing plant and an R&D centre at Bengaluru.
 Nestle has been in India for almost a century, with seven production facilities across the country, including one at
Nanjangud, Karnataka. The company produces chocolates and confectionaries, prepared dishes and cooking
aids, beverages and milk products and nutritional supplements. During 2016, the company recorded revenues of
US$ 1.43 billion.
 Britannia is a leading food processing company in India. The company manufactures food products such as
biscuits, cheese and bread. Based in Bengaluru, the company recorded revenues of US$ 1.47 billion in 2016-17.
 United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also referred to as the
beer division of the UB Group and is based in Bengaluru. UBL recorded a net turnover of US$ 778.41 million in
2014-15. In the second quarter of 2015, the company recorded revenues of US$ 187.89 million.
 The company has around 2,489 employees and manufactures products primarily under the Kingfisher, London
Pilsner and UB Premium Ice brands.
Hindustan Unilever Ltd
Nestle India
United Breweries Ltd
Britannia
Industries Ltd

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

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

KEY INDUSTRIES – ANIMATION … (1/2)
 Major suppliers to the industry such as HP, AMD, NVIDIA and
Microsoft are located in Bengaluru.
 There has been a considerable increase in AVGC business
outsourcing to Bengaluru.
 A great deal of content for global blockbuster animation movies such
as Life of Pi, Harry Potter, Kung Fu Panda, Prometheus and Pirates
of the Caribbean was developed in Karnataka.
 The state government is in process of establishing digital art training
centres across willing colleges, in collaboration with Association of
Bangalore Animation Industries (ABAI) for imparting new skills to
people under the program designed by the experts of ABAI.
 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.
 As per economic survey 2016-17, four projects are being
implemented under Karnataka Animation Visual Gaming & Comic
Policy (KAVGC).
 As per State Budget 2017-18, an AVGC venture fund of US$ 3.1
million is being set up to provide venture capital to companies in the
AVGC sector.
 In July 2017, the government approved the Karnataka Animation,
Visual Effects and Comics Policy (AVGC) 2017-22. The policy is
expected to generate 15,000 jobs and propel Karnataka as a global
leader in AVGC. Also, setting up of a Centre of Excellence for
Animation in Bengaluru was announced by the Government.
Source: PwC Report estimates, Karnataka AVGC Policy
 Boeing
 Hindustan Aeronautics Limited
 Airbus Engineering Centre
 BEML Ltd

KEY INDUSTRIES – ANIMATION … (2/2)
 Technicolor is a worldwide technology leader in the media and entertainment sector.
 Technicolor India offers world-class design and production services in animation and visual effects for motion
pictures and television broadcast productions.
 Technicolor has been operating in India since 2007 and employs about 1,238 people.
 Tata Elxsi is a listed company and is headquartered in Bengaluru.
 The company is a global design company and offers key services including embedded product design, industrial
design, animation & visual effects and systems integration.
 The company recorded revenues of US$ 191.37 million in FY17.
 Zynga Inc is the world's leading provider of social gaming services with more than 240 million monthly active users
playing its games, which include CityVille, Zynga Poker and Scramble with Friends.
 Zynga's Bengaluru centre, started in 2010, has rapidly expanded to become the company's second largest
operation in the world after its San Francisco centre.
 DreamWorks Animation creates high-quality entertainment, including CG animated feature films, television
specials and series and live entertainment properties.
 DreamWorks Animation has been named one of the “100 Best Companies to Work For” by FORTUNE® Magazine
for four consecutive years.
 The company has theatrically released a total of 25 animated feature films, including the franchise properties of
Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.
Boeing
Tata ELXSI
DreamWorks
Zynga Inc
Source: : Technicolor, TATA Elxsi, Zynga, DreamWorks

KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)
 Karnataka is among the top chip designing hubs in the country.
Around 70% of chip designers in India are found in Bengaluru city.
 The state has the advantage of having low-cost skilled/technical
manpower compared with other states.
 Bengaluru is a global hub for R&D activity in the software industry,
which will greatly aid the electronic hardware industry.
 The ESDM (Electronic System Design & Manufacturing) Policy is
expected to provide for development of three ESDM innovation
centres that will provide complete infrastructure with the requisite
design tools.
 ESDM Policy also plans to set up seven high-class ESDM
Manufacturing Clusters (EMCs) to provide infrastructure support
including electronic manufacturing services and component
manufacturing by 2020.
 As per the policy, by 2020, ESDM sector is expected to generate
turnover of US$ 400 billion, including exports to the tune of US$ 80
billion, with an investment of US$ 100 billion.
 As per 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.
 In budget 2017-18, the state government proposed to establish VLSI
Incubator and Brown Field ESDM Cluster in Hubballi in collaboration
with Entrepreneurs to create new conceptual innovative
environment system and vibrant technology in 2/3rd phase cities.
 In August 2017, the state government picked 27 ESDM startups for
its ELEVATE 100 programme under which selected 100 startups will
receive a combined US$ 62.5 million in funding.
Source: : Department of Electronics and Information Technology, GoI, Department of IT, BT and S&T, Karnataka,ESDM Policy 2013, Karnataka
 Intel
 AMD
 Qualcomm Inc
 Nvidia

KEY INDUSTRIES – ELECTRONIC HARDWARE … (2/2)
 Intel, headquartered in Santa Clara, is the world’s largest and highest valued semiconductor chip maker based on
revenue.
 The Intel India Development Centre is a critical engineering design and development centre for key Intel products
across CPUs, graphics, platforms and software with strong IT expertise and factory automation.
 AMD India plays a significant role in the design of microprocessors, AMD’s family of Accelerated Processing Units
(APU), SoCs, graphics and media solutions.
 AMD has two design centres in India located in Hyderabad and Bengaluru.
 Qualcomm Incorporated is an America-based global semiconductor company that designs, manufactures and
markets digital wireless telecommunications products and services.
 Qualcomm India Private Limited established its India operations in 1996 and has R&D centres in Bengaluru and
Hyderabad.
 Nvidia manufactures Graphics Processing Units (GPUs) as well as System-on-a-Chip units (SOCs) for the mobile
computing market.
 Nvidia established its design centre in Bengaluru in 2005. The centre includes a state-of-the-art facility and data
centre that facilitates top-to-bottom designing of advanced graphics and digital media processors for a wide range
of platforms.
Intel
AMD
DreamWorks
Qualcomm Inc
Source: : Company websites

KEY INDUSTRIES – TOURISM ... (1/2)
 As per Budget 2017-18, the state government has decided to
develop 16 tourist centres into world class tourist destinations.
 Further, integrated development of heritage tourist infrastructure will
be undertaken. As per the budget 2017-18, an amount of US$ 88.78
million has been allocated to the tourism department.
 Karnataka boasts of a diverse flora and fauna and a 320-km natural
coast line, which makes it a nature tourist's paradise. The state is
ranked fourth in terms of the number of tourist arrivals in India.
 The Palace on Wheels of South India – the Golden Chariot Train tour
– has been rated by Vanity Fair, UK, as among the top seven train
journeys in the world. Karnataka has World Heritage Sites at Hampi
and Pattadakal. Good infrastructure in the form of better road and rail
connectivity as well as improving hospitality is also aiding tourism.
 The state attracted 129.8 million domestic tourists and 0.46 million
international tourists in 2016. During 2005–2016, tourist arrivals in the
state increased at a CAGR of 16.11%.
 The sector contributes 14.8% to the GSDP of Karnataka; plans are
afoot to expand to 26% by 2020.
 In budget 2016-17, the state government announced the launch of
new policy on tourism for the period 2015-2020 for strengthening and
boosting private investments across the tourism sector.
 In April 2017, the state government has decided to convert the
backwaters of four dams - Kabini, Gorur, Bhadra and Hidkal - into
adventure tourism hubs. This decision was taken to tap into the scenic
beauty of these reservoirs as well as promote adventure sports and
entertainment facilities.
Source: : Socio Economic Survey 2014-15, Government of Karnataka
Tourist Visits to Karnataka (million)
25.2
36.7
38.4
37.5
33.0
38.5
84.1
94.7
98.6
118.8
120.5
130.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

Karnataka State Report November 2017

Karnataka State Report November 2017

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Karnataka State Report November 2017

Similar to Karnataka State Report November 2017 (20)

More from India Brand Equity Foundation

More from India Brand Equity Foundation (20)

Recently uploaded

Recently uploaded (20)

Karnataka State Report November 2017