Karnataka State Report July 2017

For updated information, please visit www.ibef.org July 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. 2016-17
 At current prices, the gross state domestic product (GSDP) of Karnataka was about US$ 156.23 billion in
2015-16.
 The per capita GSDP increased to US$ 2,557, growing at a CAGR of 12.91 per cent between 2004-05 &
2015-16.
Strong growth in GSDP
 Karnataka is the IT hub of India & home to the 4th largest technology cluster in the world. Karnataka has 47
IT/ITeS SEZs, 3 software technology parks & dedicated IT investment regions.
 Exports of IT & electronic products from the state reached US$ 31 billion by the end of September 2016. Exports
of IT & electronic products accounted for around 38 per cent share in India's IT & electronic products exports &
52.89 per cent 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 March 2016 were recorded at US$ 20.24 billion,
the 4th highest in India after Maharashtra, Delhi & Chennai & accounted for a share of 7 per cent 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, 2016-17, Karnataka State Budget 2016-17
 As of September 2016, the total exports of the state were recorded at US$ 40.30 billion. During 2015-16,
exports contributed about 40 per cent in the state’s economy. Sectors such as biotechnology, computer
software and electronics are major contributors in the overall exports from the state.
Strong 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 estimates of about 40.5 million tonnes in 2015-16.
The state’s total food grain production is estimated to be 11 million tonnes in 2015-16. Karnataka is also the
third largest producer of plantation crops in the country.
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 120.5 million in 2015-16. The
state has world heritage sites at Hampi & Pattadakal. The sector contributes 14.8 per cent to GSDP of
Karnataka; plans are afoot to expand to 26 per cent by 2020.
Strong growth in tourism
sector

ADVANTAGE: KARNATAKA
High economic growth
 GSDP expanded at a CAGR of 13.59% between 2005-
06 and 2015-16.
 Buoyant services (IT, tourism) and industries driving
economic growth.
 Sector specific SEZs and SIRs facilitating growth.
Rich talent pool
 Karnataka is termed as the Knowledge Capital of India.
 The state has successfully attracted skilled labour,
especially, in the knowledge sector. Karnataka is
among the states that produce a large number of
doctors, engineers and medical technicians in the
country.
Policy support
 Wide range of fiscal and policy incentives for
businesses under the Karnataka Industrial Policy,
2014-19.
 Investor-friendly sector-specific policies to promote
industries such as IT, biotechnology, tourism and
manufacturing.
 Simplified procedures for investment.
 In January 2017, Karnataka department of Commerce
and Industries introduced an NRI policy to attract
investments from non-resident Kannadigas.
Infrastructure
 Well-developed social, physical and industrial
infrastructure.
 Good road, rail, water and air connectivity and
substantial port infrastructure.
 Well-developed telecom infrastructure.
 Excellent healthcare facilities.
June 2016
Capacity
allocated for
Solar
energy-
2,320.50
MW
2022
target
Solar energy
share in total
energy
consumption
is expected
to reach 3%
Advantage
Karnataka
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 2015-16 2015-16
GSDP as a percentage of all states’ GSDP 7.66 100.0
Directorate of Economics & Statistics of Karnataka,
Central Statistics Office
GSDP growth rate (%) 13.05 8.71
Per capita GSDP (US$) 2,532 1,546
Physical Infrastructure
Installed power capacity (MW) 21,316.59 326,848.53 Central Electricity Authority, as of March 2017
Wireless subscribers (No) 69,160,699 1,164,200,000
Telecom Regulatory Authority of India - as of
February 2017
Internet subscribers (No) 25,480,000 391,500,000
Ministry of Communications & Information
Technology - as of December 2016
National Highway length (km) 6,502.29 100,087.08
NHAI & Karnataka Roads and Building Department,
2015-16
Major and minor ports (No) 1 + 10 13+187 India Ports Association
Airports (No) 5 125 Airports Authority of India

KARNATAKA IN FIGURES … (2/2)
Note: 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) 22.37 332.11
Department of Industrial Policy & Promotion, April
2000 to March 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) 25 186
Department of Commerce, Ministry of Commerce &
Industry, July 2016

ECONOMIC SNAPSHOT – GSDP
GSDP of Karnataka at current prices (US$ billion)
44.4
50.3
67.2
67.3
71.2
90.0
94.6
96.2
102.0
115.9
158.8
0
20
40
60
80
100
120
140
160
180
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
CAGR 13.59%
 At current prices, the gross state domestic product (GSDP) of
Karnataka stood at about US$ 158.89 billion in 2015-16.
 The GSDP of the state grew at a CAGR of 13.59 per cent between
2005-06 and 2015-16.
 Growth has been mainly driven by secondary and tertiary sectors.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, 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 , Karnataka Socio Economic Survey 2015-16
39.6
45.2
60.3
60.4
63.4
80.7
84.5
85.1
85.7
103.2
145.6
0
20
40
60
80
100
120
140
160
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
CAGR 13.91%
 The net state domestic product (NSDP) of Karnataka was recorded
at about US$ 145.6 billion in 2015-16.
 The NSDP of the state grew at a CAGR of 13.91 per cent between
2005-06 and 2015-16.

ECONOMIC SNAPSHOT – PER CAPITA GSDP
GSDP per capita of Karnataka at current prices (US$)
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office
793
889
1173
1161
1216
1522
1582
1594
1672
1900
2532
0
500
1000
1500
2000
2500
3000
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
CAGR 12.31%
 The state’s per capita GSDP^ was US$ 2,532 in 2015-16.
 The per capita GSDP increased at a CAGR of 12.31 per cent
between 2005-06 and 2015-16.
Note: Per Capita GSDP^ - calculated using GSDP million US$/Population in million

ECONOMIC SNAPSHOT – PER CAPITA NSDP
NSDP per capita of Karnataka at current prices (US$)
708
798
1053
1043
1083
1364
1414
1409
1405
1692
2321
0
500
1000
1500
2000
2500
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
CAGR: 11.40%
 The state’s per capita NSDP& in 2014-15 was US$ 2,321.
 The per capita NSDP increased at a CAGR of 11.40 per cent
between 2005-06 and 2015-16.
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office
Note: Per capita NSDP& -calculated using NSDP million US$/Population in million

ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSDP
 In 2015-16, the tertiary sector contributed 64.05 per cent to the
state’s GSDP at current prices, followed by the secondary sector
(22.97%) and the primary sector (12.98%).
 At a CAGR of 16.31 per cent, the tertiary sector has been the fastest
growing among the three sectors from 2004-05 to 2015-16. The
growth has been driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services.
 The secondary sector grew at a CAGR of 11.5 per cent between
2004-05 and 2015-16. This was driven by manufacturing,
construction and electricity, gas & water supply.
 The primary sector grew at a CAGR of 9.61 per cent between 2004-
05 and 2015-16.
Visakhapatnam port traffic (million tonnes)GSDP composition by sector
19.86%
12.98%
29.12%
22.97%
51.02% 64.05%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004-05 2015-16
Primary Sector Secondary Sector Tertiary Sector
9.61%
16.31%
11.50%
CAGR
Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office, Karnataka Socio Economic Survey 2015-16

ECONOMIC SNAPSHOT – AGRICULTURAL
PRODUCTION
 Sugarcane is a major crop of the state with production estimates of
about 40.50 million tonnes in 2015-16. The state’s total food grain
production is estimated to be 11 million tonnes during 2015-16.
 During 2015-16, major oilseeds production in the state is estimated
to be 0.96 million tonnes. Production of cereals and pulses in the
state is estimated to be 0.97 million tonnes & 0.12 million tonnes,
respectively, in 2015-16.
 In 2015-16, total production of major fruits in the state was 6.78
million tonnes.
 In 2016-17, fruit production in the state was 7.43 million tonnes as
per the 2nd advance estimates.
Production of major crops in Karnataka (lakh tonnes)
Crop 2014-15 2015-16
Cereals 49.45 45.58
Pulses 24.32 29.92
Total food grains 73.77 75.5
Oilseeds 15.01 13.54
Sugarcane 4.4 6.34
Tobacco 1.05 0.99
Source: Department of Agriculture & Corporation, Government of Karnataka

ECONOMIC SNAPSHOT – EXPORTS…(1/3)
 During 2015-16, exports from the state contributed about 40% to the
state’s economy, with biotechnology, computer software and
electronics being the major exports.
 As of September 2015, total exports from the state aggregated to
US$ 19.63 billion. Karnataka’s exports increased at a CAGR of 9.4
per cent during 2010-11 to 2014-15.
 By the end of September 2016, electronics and software exports
from the state reached US$ 31 billion.
Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka;Note: 2016-17(1): Till September 2016
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)
36.28
45.47
47.57 48.18
52.02 50.51
40.30
-
10.00
20.00
30.00
40.00
50.00
60.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Visvesvaraya Trade Promotion Centre, Government of Karnataka; Note: 2016-17(1) : Till September 2016
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)

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
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 March 2017 were recorded at US$
22.37 billion, the 4th highest in India after Maharashtra, Delhi &
Chennai & accounted for a share of 7 per cent in India’s cumulative
FDI inflows.
 With a private equity & venture capital investment of US$ 2.51 billion
from 280 deals, Karnataka stood at the 2nd position, among all other
states.
FDI equity inflows, 2008-09 to 2016-17 (US$ billion)
2.02
1.09 1.12
1.53
1.02
1.89
3.44
4.12
2.13
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
269
217
169
110
89 106
283
21.43 14.54 7.33 1.54 3.34 4.84
23.92
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016
Number of Investment Intentions Proposed Investments (US$ Billion)

ANNUAL BUDGET 2016-17…(1/3)
 Total consolidated budget size for 2016-17 was US$ 24.96 billion.
 Budget highlights:
• Under the Matsyashraya scheme, houseless fishermen will be provided with 3,000 houses.
• Work on improvement of Malaprabha Canal will be implemented at a projected cost of US$ 146.95 million during 2016-17.
• Within 2016, all school & college students will be enrolled under Aadhaar system to enhance services related to education in the state.
• At an amount of US$ 0.76 million, 5 engineering colleges in the state will be employed with courses of IT, telecom, tourism, healthcare, retail,
cyber security, etc. with Indo-German collaboration.
• The new scheme - “Indira Suraksha” scheme will be executed in the state for families of farmers who have committed suicide with the
integrated healthcare services.
• The employment of smart card for the ticketing purposes will be initiated in the state along with the installation of Vehicle Transport System
across the fleet of NWKRTC, NEKRTC and KSRTC.
• Under the Chief Minister’s special package, US$ 15.27 million, US$ 76.38 million, US$ 122.21 million and US$ 38.19 million have been
allocated for the lake enhancement, solid waste management, storm water drain manufacturing & improvement of 110 villages as well as city
& town municipalities under Bruhat Bengaluru Mahanagara Palike (BBMP), respectively, in the state.
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
Primary & secondary
education
2,475.40 2,653.98
Higher education 595.17 710.51
Energy 2,125.08 1,929.72
Water resources 2,149.30 2,211.57
Urban development 1,891.9 2,269.01
Social welfare 756.4 834.70
Health and family
welfare
1,007.7 768.71
Agriculture 644.16 663.61
Horticulture 126.07 115.03
Sericulture 30.85 56.06
Fisheries 49.27 46.13
Forest, environment
and Ecology
291.47 245.79
Major sector-wise allocations as per budget 2015-16 & 2016-17

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

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 2015-16, a total of 1,455.56 km and 759.76 km roads were
constructed under “Namma Grama Namma Rasthe” scheme and
PMGSY, respectively by the state government.
 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$216.42
million.
 During 2015-16, NABARD loan assistance scheme took the
manufacturing of achkout roads under its supervision. Moreover,
construction work of 167 roads, at an estimated cost of US$ 21.34
million was fulfilled during 2015-16, while 91 roads are being
constructed from RIDF-XVII to RIDF-XX, at an estimated cost of
US$ 13.03 million.
 With an outlay of US$ 455.69 million, the state government
completed the development of major district roads of length 5,573
km during 2015-16. However, the construction of state highways of
length 7,875 km along with 87 bridges was also completed during
the same period.
 Other development works include – improvement of municipality
roads, development of Central Business District roads, development
of roads under the Chief Minister’s Nagarothana scheme,
manufacturing of Jattur bridge across Kagina river as well as
Kudalasangama Adavihala bridge, etc. in the state.
Source: 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.
 During 2015-16, Karnataka’s metro network of about 27 km was
made operational. In addition, by November 2015, the 6.50 km
section between the terminal of Magadi and Mysuru road was
initiated.
 Further, the state government granted contracts for two reaches of
phase II, which are slated for completion by 2020.
 During 2015-16, an amount of US$ 67.36 million was released by
the Government of Karnataka for development of various railway
projects in the state.
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 On stage of completion
Bagalakote-Kuduchi railway line
Approved by Government of
Karnataka; amount released for
land acquisition
Ginigera-Rayachuru railway line
Gadaga-Wadi railway line
TumakuruRayadurga railway line
Karnataka railway network
Status of major railway projects in Karnataka (2015-16)

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.
 Further, work on development of Kalaburagi airport by PWD is
expected to be concluded by December 2017. Moreover, on the
basis of PPP, the work on development of Shivamogga airport will
also be executed during 2016-17.
 The Belagavi airport of the state has been provided with 370 acres
of land during 2015-16. Work on the airport and runway extension is
also expected to be accomplished by 2016-17.
 The state has five domestic airports. These are located in
Bengaluru, Mangalore, Hubli, Mysore and Belgaum. International
flights operate from the airports at Bengaluru (Kempegowda
International Airport) and Mangalore (Mangalore International
Airport).
 Bengaluru International Airport; the country’s first greenfield
international airport, has been developed at Devanahalli in
Bengaluru as a passenger and cargo department hub. This was
developed under PPP and started operations in May 2008.
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 (2015-16)
Bengaluru 18,971,149 153,063 291,950
Mangalore 1,674,251 13,805 936
Source: AAI, Global Investors Meet, Budget 2016-17

PHYSICAL INFRASTRUCTURE – PORTS… (1/2)
Source: Indian Port Association, State budget 2017-18
 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 1,508 metres for stationing 5 ships of 14
metres depth.
KarwarPort
NewMangalorePort
Cargo handled by New Mangalore port (in ‘000 tonnes)
31,350 32,941
37,036
39,365
36,566
25,290
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016¹
Ports
Major ports  New Mangalore Port
Minor ports
 Karwar
 Belekeri
 Tadri
 Honnavar
 Bhatkal
 Kundapur
 Hangarkatta
 Malpe
 Padubidri
 Old Mangalore
Note: 1Up to December 2015

PHYSICAL INFRASTRUCTURE – PORTS… (2/2)
Cargo handled by various minor ports in Karnataka (‘000 MT)
Airport 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
Source: 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 June 2017, the state had an installed power generation
capacity of 21,492.43 MW. Out of this, central utilities contributed
3,127.20 MW, private utilities contributed 9,462.18 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
7,633.81 MW were contributed by nuclear & renewable power,
respectively, while hydropower contributed 3,599.80 MW.
 As per the Budget 2017-18, the state 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.
 As per budget 2016-17, the state government has initiated the setting
up of a 2,000 MW solar park in Tumkur district which is estimated to
produce 600 MW by the end of March 2017. Planning of construction
of another 1,200 MW solar plant is being done by the state
government during 2016-17.
 By March 2017, Government of Karnataka has planned to add 400
MW of solar power, in addition to the existing capacity of 524 MW of
solar power being produced & consumed in the state.
 As of February 2017, to solve the water crisis in Bengaluru, the state
government has planned to draw water from the dead storage of
Krishnaraja Sagar reservoir, at an estimated cost of US$ 5.94 million.
Installed Power Capacity (GW)
8.5 8.7
11.4 12.1
13.9 14.0
15.1
17.3
21.3 21.5
0.0
5.0
10.0
15.0
20.0
25.0
2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18*
Source: Central Electricity Authority

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 69.14 million wireless subscribers and 2.24 million wire-line
subscribers in Karnataka, as of March 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 February 2017, 29,415,185 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 March 2017)
Wireless subscribers 69,140,000
Wire-line subscribers 2,240,000
Internet subscribers 26,870,000
Post offices 9,667
(2)
Teledensity (in %) 113.46
Performance status of NOFN Project (As of April 2016)
No. of GPs in Phase-I 5,599
Pipe laid (km) 10,195
Cable laid (km) 10,269
GPs for which cable laid 5,004
No of GPs lit 2,865
Source: Telecom Regulatory Authority of India,Economic Survey of Karnataka
Note: (2) As of September 2015, GP-Gram Panchayat

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, Karnataka economic survey 2016-17, State budget 2017-18
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 has finished the 27-km network of
Metro rail and the phase-1 project is expected to be completed by
mid-2016.

DEVELOPMENT PROJECTS: URBAN
INFRASTRUCTURE … (2/2)
Development projects under Directorate of Municipal Administration:
 Solid waste management proposals amounting to US$ 88.45 million were approved by the state government during 2015-16. The government
aims to employ scientific solid waste management schemes across various municipalities during 2016-17, for which an amount of US$ 11.45
million has been allocated.
 Target of constructing 329,000 personal toilets and 4,522 public toilets, as per budget 2017-18.
 Construction of 22,133 houses (DUs) at a cost of US$ 85.3 million under Rajeev Awas Yojana will be completed during this year.
 The state government aimed at completing the work of enhancement of road network of 870 km during 2016-17.
 Under Chief Minister’s Small and Medium Towns Development stage-2, grants have been fully released to every municipality in the state. The
state government is aiming to begin the programmes’ stage-3 during 2016-17 at a cost of US$ 319.73 million.
 During 2015-16, the grants under JNNURM and UIDSSMT have been minimised for the central government approved projects and the state
government has decided to offer US$ 148.59 million to fill the gap.
 The state government has allocated US$ 7.63 million for basic infrastructure development of Haveri, Chikkaballapura and Chamarajanagar towns
of Karnataka during 2015-16.
 In February 2017, the state government released an amount of US$ 1.93 million for developing the Kolikere lake, which was heavily damaged by
human activities. The development work includes construction of a bund, checking inflow of sewage into the lake and dredging.
Source: Budget 2016-17, 2017-18

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

68%
4%
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 25 operational, 40 notified SEZs, one valid in-principle
approval and 61 formal approval SEZs as of March 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.
 An IT Park project in Gulbarga has been taken up by Karnataka
State Electronics Development Corporation Limited in 3 phases,
during 2015-16, with a built up area of 150 thousand sq ft at an
amount of US$ 3.65 million.
Source: : Department of Commerce, Ministry of Commerce & Industry
Sector-wise Operational SEZs In Karnataka (as on July 2016)

CLUSTERS … (2/4)
Name/Developer Location Primary industry
Biocon Special Economic Zone Anekal Taluk, Banglore, Karnataka Biotechnology
Synefra Special Economic Zone Udupi Taluk, Karnataka
Hi-tech engineering products and related
services
Manyata Embassy Business park SEZ Bangalore, Karnataka IT/ITeS
Wipro Limited (Electronic City)
Varthur Hubli, Electronic City,
Banglore, Karnataka
IT
Wipro Limited (Sarjapur)
Varthur Hobli, Sarjapur Road,
Karnataka
IT
Infosys Ltd. SEZ (Mangalore)
Bantwal Taluk, Dakshina,
Kannada distt. , Karnataka
IT/ITeS
Infosys Ltd SEZ (Mysore)
Hebbal Industrial Area, Distt.
Mysore, Karnataka
IT/ITeS
Vrindavan Techvillage Sez (formerly
M.S. Vikas Telecom Ltd)
Bangalore, Karnataka IT/ITeS
Rmz Ecoworld Infrastructure Pvt. Ltd.
[Formerly Adarsh Prime Projects Pvt.
Ltd
Devarabeesana halli, Bhoganahalli
and Doddakanahalli, Karnataka
IT/ITeS
Kiadb Aerospace SEZ Karnataka Aerospace and industry
Keonics Shimoga
Village Machenahalli and Nidige, District
Shimoga, Karnataka
Electronics hardware
and software/ITeS
Source: Department of Industries and Commerce, Karnataka
Some of the operational SEZs in Karnataka

CLUSTERS … (3/4)
Divyasree Technopark
Kundalahalli Village, Krishnarajapuram,
Karnataka
IT/ITeS
International Technology Park Ltd (ITPL) Bangalore Karnataka IT/ITeS
Cessna SEZ Bangalore Karnataka IT/ITeS
Global Village [formerly Tanglin SEZ] Pattengere/Mylasandra Villages, Karnataka IT/ITeS
HCL Technologies Ltd. Bangalore Karnataka IT/ITeS
Pritech park Sez (Primal Projects Ltd) Bangalore Karnataka IT/ITeS
Bagmane SEZ Bangalore Karnataka IT/ITeS
Gopalan Enterprises Pvt. Ltd (Global Axis-
hoodi)
Bangalore Karnataka IT/ITeS
Karle Projects Bangalore Karnataka IT/ITeS
Mangalore Special Economic Zone Bangalore Karnataka Multi product
Quest special Economic Zone Belgaum district, Karnataka
Precision engineering
Products
Kiadb Pharmaceutic Al Special Economic Zone Karnataka Pharma
Kiadb SEZ Hassan – Textiles Hasan, Karnataka Textile
Kiadb food Processing Special Economic Zone Samudravalli, Sankalapura Food processing
Larsen and Toubro SEZ
KIADB Industrial Area, Taluka Hebbel,
Hootagally, District, Mysore, Karnataka
IT/ITES

CLUSTERS … (4/4)
M/s. Biocon Ltd Bengaluru Biotechnology
Karnataka Industrial Areas Development Board Mangalore IT/ITeS
Infosys Technologies Limited Dakshina Kannada IT/ITeS
Karnataka Industrial Areas Development Board Shimoga Engineering & related industries
Karnataka Industrial Areas Development Board Hassan Food processing and related services
Karnataka Biotechnology and Information
Technology Services
Bengaluru Biotechnology
Suzlon Infrastructure Ltd Near Mangalore Port
Port-based for hi-tech engineering products
and related services
Karnataka Industrial Areas Development Board Hassan Pharmaceuticals
Mangalore SEZ Limited Dakshin Kannada Petrochemicals and petroleum
Quest Machining and Manufacturing Pvt Ltd Belgaum Auto, aerospace and industrial engineering
High Street Developers Private Limited Mandya IT/ITeS
Opto Infrastructure Limited Hassan Electronic hardware & software/IT/ITeS

SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
 The state has a literacy rate of 75.6 per cent, the male literacy rate is
82.8 per cent and the female literacy rate is 68.1 per cent.
 In terms of the number of universities, Karnataka ranks fifth among
all Indian states and union territories, with 44 universities. Of these,
24 are state public universities and 11 are private deemed
universities.
 The state has 4,519 pre-university colleges to impart general
education. There are more than 1 million students in the
pre-university colleges.
 There are 293 polytechnics and 206 engineering colleges to provide
technical education in the state.
 For the development of basic facilities such as – laboratory, library,
new buildings, toilets, drinking water facility in government schools
and colleges, an amount worth US$ 18.25 million would be provided.
 Under Shikshakara Shikshana scheme, DSERT, DIETs and CTE
would be upgraded. Under this scheme, Shaikshanika Adhalath and
TESS education centre 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 , 2016-17, Census 2011

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

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.
 A total of 108 ambulance services have been availed by around 60,693
people in the state during 2015-16. Moreover, the state government also
provided 30 bike ambulance services in urban areas.
 As per budget 2016-17, implementation of “Indira Suraksha” scheme
would be initiated in the state during 2016-17, to offer integrated
healthcare services to the families of those farmers who have committed
suicide.
 As of November 2015, the state has 12,481 active health institutions out
of total 12,750 health institutions in the state.
 Under the assistance of National Health Mission, at a cost of US$ 8.09
million, trauma centres will be established across 5 places, under the
scheme of Aapathbandhava for offering emergency treatment to
highway accident victims.
 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)
Beds per 100,000 population 79
Birth rate 18.1
Death rate 6.8
Infant mortality rate 29
Source: Economic Survey of Karnataka 2015-16, 2016-17, Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2016
Life expectancy at birth (years)
Male (2015) 63.6
Female (2015) 67.1
No of institutions Total Facilities (2016-17)
Subcenters 8,871
Community health centres 206
Primary health centres 2,355
Sub district hospital 539
District hospital 41
Total institutions 12,750
Note: 1Per thousand persons,2Per thousand live births

SOCIAL INFRASTRUCTURE – HEALTH ... (2/2)
 Various other programmes to be included under the National Health Mission during 2016-17 include:
• Establishment of oral cancer detection programme across the state’s districts at an allocated amount of US$ 0.25 million.
• Establishment of a 25 bed special dialysis unit in Bengaluru’s K.C General Hospital at an estimated cost of US$ 0.68 million.
• Extension of mobile health service units to villages with no transport and hospital facility.
• Under the “Free Laboratory Scheme”, establishment of free diagnostic centres in government hospitals for treating the ill patients.
 The state government is planning to construct District Ayush Integrated Hospitals having a capacity of 50 beds in Davangere and Chikkaballapura
and 10 beds in Chincholi, T. Narsipur and Dandeli, at an estimated cost of US$ 0.91 million,.
 The state government is also planning to establish district hospitals with an investment of US$ 9.16 million in the state.
 As per budget 2017-18, five super speciality hospitals will be established in Davanagere, Ramanagara, Tumakuru, Vijayapura and Kolar at a cost
of US$ 3.88 million to treat patients suffering from cancer, heart diseases and other lifestyle diseases.
 Integrated Ayush Hospitals having 50 beds will be established in Chitradurga and Chickmagaluru district hospitals at a total cost of US$ 0.93
million, as per budget 2017-18.
Source: Economic Survey of Karnataka 2015-16, 2016-17, Ministry of Health & Family Welfare Sample Registration System (SRS) Bulletin Sep, 2016, State budget 2017-18

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.
 During 2015-16, the state government finished the construction of swimming pools across Hanagal, Mudubidire & Harihara & is planning to
complete swimming pool construction at Sagar during 2016-17. The government has also decided to develop playgrounds equipped with
volleyball, kho-kho, throwball & kabaddi courts across selected villages in association with Panchayath Raj & Rural Development departments.
 Further, 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. Moreover, as per the budget 2016-17, the International Museum of Konkani Culture would
be established in Mangaluru during 2016-17, at an estimated cost of US$ 0.38 million. Similarly, with US$ 0.15 million, the state government is
aiming to set up the museums at Bagalkot & Bidar.
 A grant worth US$ 0.30 million will be extended to Karnataka Janapada Parishat & an amount of US$ 3.81 million will be given to Gadinadu
Abhivrudhi Pradhikara by the state government during 2016-17.
 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.
Source: State budget 2017-18

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

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, 2016-17
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 per cent of the world's SEI CMM Level 5 certified companies are
located in Bengaluru.
 The state is India’s largest software exporter, with electronics and computer
software exports totalling to US$ 31.42 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.
 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
23.09
28.19 28.72 29.53
32.19
10.38
31.42
0
5
10
15
20
25
30
35
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16⁽¹⁾
2016-
17
Some of the key players
 Wipro Technologies
 Infosys
 Genpact
 Accenture
Source: : Visvesvaraya Trade Promotion Centre, Karnataka economic survey 2016-17; ’Note: 2015-16(1) : till September 2015
Electronics and software exports from Karnataka (US$ billion)
CAGR: 8.66%

KEY INDUSTRIES – IT AND IT-ENABLED SERVICES …
(2/2)
 Wipro Ltd was established in 1945 and recorded revenues of US$ 8.5 billion during 20116-17. 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 per cent of the country’s biotech units.
 The state consists of over 300 Biotech companies and has more
than 6,800 scientists involved in biotech research.
 Premier life sciences institutions such as Indian Institute of Science,
National Centre for Biological Science and Jawaharlal Nehru Centre
for Advanced Scientific Research are present in the state.
 Sector-focused SEZs have been set up in Mysore, Mangalore, Hubli-
Dharwar, Belgaum, Shimoga, Gulbarga, Kolar & Mandya.
 Twelve biotechnology finishing schools are scheduled for
development under the Millennium Biotech Policy.
 An 86-acre biotechnology park, Bengaluru Helix, comprising the 52-
acre Alexandria Knowledge Park in Bengaluru is currently under
development.
 More than 60 per cent of the biotechnology companies in India have
a base in Bangalore and the state drives 50 per cent of the total
revenues in India’s biotechnology sector.
 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.
 In 2014, the company’s manufacturing plant is located at Yelhanka and R&D centre is located in Bengaluru.
 Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated pharmaceuticals and life sciences
company. The company is the largest Custom Research and Manufacturing Services (CRAMS) company and
provides leading drug discovery & development solutions outside India.
 The company’s revenue was about US$ 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, Karnataka economic survey 2016-17
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 per cent
during 2009 to 2014. The state is considered to be the 4th largest in
manufacturing and developing automobiles in the country. On the
back of this, the state contributes 8.5% to the overall automobile
sector of the country.
 In February 2017, Taiwan based - JHY Group, opened a factory in
Malur taluk, near Bengaluru.
 In 2015-16 (up to December 2015), total transport and non-transport
vehicles recorded in Karnataka were 15.86 thousand, out of which,
transport vehicles were 1.49 thousand whereas non-transport
vehicles were 14.37 thousand.
 As per the final draft of Karnataka Industrial Policy 2014-19, the state
will study the feasibility of setting up major auto parks at Dharwad,
Kolar and Bidadi in Ramanagara district; and smaller auto parks in
Belgaum, Shimoga, Mysore and Gulbarga.
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 33.59% of India’s silk. Raw silk
and cocoon production in the state was recorded at 7.31 thousand
MT and 52.28 thousand MT, respectively during April-December
2016.
 Karnataka is a major apparel sourcing destination for the global
market. The state accounts for 20 per cent of the national garment
production. During 2015-16, the state contributed around 65%, 12%
and 6% of silk, wool and cotton production, respectively to the
country. Moreover, the state recorded 144 skill development centres
and 168 private training centres during 2015-16. There are
approximately 0.38 million manufacturing units engaged in the
textiles and garments sector at the organised and unorganised level.
Under the New Textile Policy 2013-18, the state government is
planning to invest US$ 1,650 million in the textile sector. The Textile
Policy offers various incentives for investments in the textile sector;
these include credit-linked capital subsidy, entry tax reimbursement
and power subsidy.
 The Textile Policy offers various incentives for investments in the
textile sector; these include credit linked capital subsidy, entry tax
reimbursement and power subsidy.
 As of July 2016, 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 metres of handloom
textiles was produced in Karnataka providing employment to 0.90
lakh persons.
 Karnataka has an apparel park at Dodaballapur near Bengaluru and
other mega textile parks in the other parts of the state.
 During 2015-16, the District Sector State Plan Funds of US$ 496.48
thousand were allocated to handlooms & textiles sector of the state,
as compared to US$ 443.01 thousand in 2014-15.
Source: : Karnataka Economic Survey 2015-16, 2016-17, Cotton Corporation, 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 (up to December 2015)
Handloom production Million metres 46.09 47.63 43.58 38.68
Handloom employment Lakh 0.82 1.12 0.85 1.06
Power loom production Million metres 328.99 353.59 304.02 290.35
Power loom employment Lakh 2.56 2.60 2.96 4.42
Power-loom weavers and looms in Karnataka
No. of weaver households No. of weavers No. of looms
30,988 127,535 88,566
Spun yarn production (‘000 kg)
2013-14 37,750
2014-15 34,269
2015-16 (up to September 2015) 15,580
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 of the state increased from 233,230 MT in 2014-15
to 253,340 MT in 2015-16. It was 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 will be allocating a total amount of US$ 3.81 million.
 With more than three-fourths of the state facing severe drought and drinking water crisis, Karnataka government released a US$ 39.41 million
input subsidy directly to bank accounts of 4.47 lakh farmers in April 2017.
Source: Coffee Board, Government of India, State budget 2017-18
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 per cent between 2010-11 & 2015-16. The export
value has increased from US$ 146.9 million in 2010-11 to US$
412.92 million in 2015-16. 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, 2016-17, Coffee Board, APEDA
Final estimate of coffee production (2015-16) in MT
District Arabica Robusta Total
Chikmagalur 42,425 41,385 83,810
Kodagu 21,085 116,620 137,705
Hassan 18,950 12,875 31,825
Sub total 82,460 170,880 253,340
Coffee exports from Karnataka (US$ million)
CAGR: 13.99%
NotSource: 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. On February 2015, the aerospace
park started its operations.
 India’s first aerospace SEZ of 300 acres is operational at Belgaum.
 Karnataka is the first state which announced the aerospace policy in
the country. Karnataka Aerospace Policy has identified an
investment potential of US$ 12.5 billion in this sector during 2013–23
and plans to develop aerospace clusters in different regions of the
state.
 Companies such as Air India, Boeing and Jupiter Aerospace have
selected Karnataka for the development of MRO facilities.
 The state government plans to develop an aerospace park spread
over 1,000 acres near the Bengaluru International Airport (BIAL) with
an investment of US$ 1.7 billion, with the intention of attracting global
and domestic players in the Indian aerospace industry. The park is
expected to be operational by 2017.
 In February 2015, Rolls Royce company sought 12 acres of land in
Devanahalli Aerospace Park to ramp up their manufacturing
capabilities in the aerospace sector in addition to the 6 acres already
allotted in partnership with HAL.
 The state is exporting aerospace products to US, UK, Germany,
Russia Mauritius, Malaysia, Nepal, Oman and Ecuador. In order to
boost aerospace industry in the state, the Government of Karnataka
has proposed to reduce the VAT imposed on articles made from
nickel, titanium, etc. under the heading of HSN 7505, 7506 and 8108,
from 14.5% to 5.5% during 2016-17.
 Aerospace Technology Centre (ATC) in Bengaluru would be
established under the PPP model.
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 Economic Survey 2015-16, AVGC finishing schools would be
developed in the state for improving the skill quotient of the students
and enabling them to get industry-ready.I
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

KEY INDUSTRIES – ELECTRONIC HARDWARE … (1/2)
 Karnataka is among the top chip designing hubs in the country.
Around 70 per cent of chip designers in India are found in Bengaluru
city.
 The state has the advantage of having low-cost skilled/technical
manpower compared with other states.
 Bengaluru is a global hub for R&D activity in the software industry,
which will greatly aid the electronic hardware industry.
 The ESDM (Electronic System Design & Manufacturing) Policy is
expected to provide for development of three ESDM innovation
centres that will provide complete infrastructure with the requisite
design tools.
 ESDM Policy also plans to set up seven high-class ESDM
Manufacturing Clusters (EMCs) to provide infrastructure support
including electronic manufacturing services and component
manufacturing by 2020.
 As per the policy, by 2020, ESDM sector is expected to generate
turnover of US$ 400 billion, including exports to the tune of US$ 80
billion, with an investment of US$ 100 billion.
 As per budget 2016-17, the state government has proposed to
establish four incubators based on technology, in phases, across the
areas of electronics systems designing & manufacturing, IoT,
Robotics, 3D printing, etc.
 During 2016-17, the state government has also planned to work in
partnership with the industry as well as academic institutions in
order to establish excellence centres and finishing schools across
the sectors of electronics, IT, etc. in Karnataka.
 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 tier two and tier three cities.
Source: Department of Electronics and Information Technology, GoI, Department of IT, BT and S&T, Karnataka,ESDM Policy 2013, Karnataka economic survey 2016-17, State budget
2017-18
 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

KEY INDUSTRIES – TOURISM ... (1/2)
 During 2016-17, the state government has decided to launch new
“Kuteera” scheme for providing the tourists with basic amenities on
the national highways. The state government has also decided to
endorse the Heli and Air taxi services across the vital tourist
destinations of the state.
 Further, tourist places, pertaining to Jains and Buddhists, are also
proposed to be developed by the state government during 2016-17.
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 132.56 million domestic tourists and 0.46 million
international tourists in 2016 (up to December 2016). During 2005–
2015, tourist arrivals in the state increased at a CAGR of 16.9 per
cent.
 The sector contributes 14.8 per cent to the GSDP of Karnataka; plans
are afoot to expand to 26 per cent 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, 2016-17, Government of Karnataka, State budget 2017-18
Number of tourist arrivals in Karnataka (million)
25.2
36.7
38.4
37.5
33.0
38.5
84.1
94.7
98.6
118.8
120.5
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

KEY INDUSTRIES – TOURISM ... (2/2)
Source: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012
 Karnataka is India’s most preferred destination for advanced medical care, and is referred to as the medical
tourism hub of India.
 The state has the highest number of approved health systems, multi-specialty health centres and alternative
health therapies in India.
 Karnataka represents wide variations in topography – high mountains, hills and long coastal stretches.
 The state has five national parks, 26 wild life sanctuaries, pelicanries, heronries and elephant camps.
 Karnataka’s geography provide a vast spectrum of diverse attractions, making it a heaven for adventure
sports and outdoor activities.
 Major attractions include white water rafting on the Kali river and aero sports at the Nandi hills.
Medical tourism
Eco tourism
Adventure tourism
Major attractions

KEY INDUSTRIES – RENEWABLE ENERGY … (1/4)
 As of June 2017, renewable energy was recorded at 7,633.81 MW out of the total installed capacity of 21,492.43 MW. Therefore, it contributed a
total of 35.5% to the state’s total installed power capacity.
 Karnataka is endowed with high renewable energy potential such as wind, hydro, solar, tidal & geothermal energy resources.
 The renewable energy potential for the state is estimated at 30.2 GW, primarily from wind, solar, small hydro, co-generation and biomass sectors.
 The government has allotted projects of 19,284.16 MW, amounting to nearly 64 per cent of the total potential.
 Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10 per cent of the land of SEZs
and dedicating it for renewable energy.
 The policy also mandates to keep aside 10.0 per cent of barren Government land for renewable energy.
 In January 2015, renewable energy developer and technology provider, SunEdison has signed an MOU with Karnataka Government to develop 5
GW of renewable energy projects within the state over the next five years. The agreement includes details of an immediate plan to implement
projects between 1,000 MW and 1,500 MW before December 31, 2016. However, the company’s bankruptcy filing in the US in April 2016 is
expected to impact the implementation of this project in the state. Moreover, due to this bankruptcy filing, Karnataka Renewable Energy
Development Ltd. has encashed the bank guarantee for the small 20 MW project which was undertaken by SunEdison, in July 2016.
 During 2015-16, 20 wind power projects were allotted to the state of Karnataka which include Solar Fields Energy Photo Voltaic India Private
Limited in Gulburga, Mituna Constructions Private Limited in Belgaum, SPI Green Energy (Amrutha Power 15 MW) in Chikkamagalur, etc.
 In March 2017, ABB India modernised & restored the 1,035 MW Sharavathi seamless integration hydropower plant in the state, which generates
25% of Karnataka Power Corporation’s output. The project is a perfect example for future ready renewable technology which enables the
Industrial Internet of Things (IIOT) & synchronises with the government’s strategy for round the clock reliable power.
Source: Economic Survey Assam 2014-15, Central Electricity Authority

Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy 1Upto April 2017
Progress in renewable energy as of June 2017
No Renewable energy source Available potential (MW) Capacity allotted (MW) Installed capacity (MW)
1 Wind 55,857 16,308.42 3,798.66
2 Small hydro 3,000 3,020.86 843.46
3 Biomass 1,000 3,91.18 134.03
4 Co-generation 2,000 1,946.85 1,386.05
5 Solar 24,700 6,538.83 1,083.06
Grand total 86,557 27,539.61 7,245.26

 During 2015-16, Karnataka had a total wind energy potential of
approximately 14 GW.
 By the end of December 2015, the installed capacity for wind energy
in public and private sector, both, was recorded to be 2,876.54 MW.
Wind energy accounted for 28.64%of the total installed capacity
recorded by the end of December 2015.
 During 2015-16 (up to December 2015), a capacity addition of
186.10 MW was done for wind power under Renewable Energy,
which was recorded to be 311.60 MW in 2014-15.
 Wind velocity in the state ranges from 0.85 m/s to 8.27 m/s.
 Potential areas for wind power plants in the state include
Chitradurga, Gadag, C`hikmaglur, Bellary, Davangere, Koppal,
Bijapur, Bagalkot and Belgaum.
 Karnataka is counted among the top five destinations for wind energy
in India.
Source: Centre for Wind Energy, Chennai
Karnataka wind energy density map
0 – 100
100 – 200
200 – 250
250 – 300
300 – 400
400 – 500
Wind power
density W/Sq m
Wind energy

Source: Karnataka Solar Policy 2014-21, News articles
Karnataka solar resource map
 The state has a solar energy potential of 10,000 MW. Karnataka
Solar Policy 2014-2021 plans to add solar generation of minimum
2,000 MW by 2021. The total capacity installed for solar energy
during 2015-16 (up to December 2015) was recorded to be 124 MW.
 Many districts, especially coastal areas, receive solar radiation in the
range of 5.1-6.4 kWh/m2 during summer, which is best suited for
solar PV projects.
 The central government’s policy mandates that solar energy
consumption should increase to 3.0 per cent of the total consumption
by 2022, up from the present consumption of 1.5 per cent.
 Karnataka is the only state to have supported solar projects under
the REC (Renewable Energy Certificate) mechanism.
 During 2015-16, 20 wind power projects were allotted to the state of
Karnataka, including Solar Fields Energy Photo Voltaic India Private
Limited in Gulburga, Mituna Constructions Private Limited in
Belgaum, SPI Green Energy (Amrutha Power 15 MW) in
Chikamagalur, etc.
Solar energy

KEY INVESTMENT PROMOTION OFFICES … (1/2)
Agency Description Contact information
Department of Industries
and Commerce
(DIC)
Anchor department for development/establishment of
industries in Karnataka.
Responsible for formulating and implementing industrial
policies in the state.
No 49, South Block, Khanija Bhavan
Race Course Road
Bengaluru - 560 001
Phone: 91-80 2238 9901-08
Fax: 91-80-2238 9909
E-mail: commissioner@karnatakaindustry.gov.in
Website: www.karnatakaindustry.gov.in
Karnataka Udyog Mitra
(KUM)
Single contact point for investors in the state
Considers/forwards proposals to concerned agencies and
communicates status to investors.
Monitors implementation of approved projects.
Single point of contact for information on various aspects
including land availability, statutory approvals and
coordination.
No 49, South Block, Khanija Bhavan
East Entrance, Race Course Road
Bengaluru - 560 001
Phone: 91-80-2228 2392/5659,
Fax: 91-80-2226 6063
E-mail: md@kumbangalore.com
Website: kum.karnatak.gov.in

KEY INVESTMENT PROMOTION OFFICES … (2/2)
Agency Description
District Level Single Window Clearance
Committee (DLSWCC)
 Functions under the chairmanship of respective Deputy Commissioners for industrial projects for
investments less than US$ 0.65 million.
State Level Single Window Clearance
Committee (SLSWCC)
 Functions under the chairmanship of Minister for Large and Medium Industries for investments
that range between US$ 0.65–10.9 million.
State High Level Clearance Committee
(SHLCC)
 Functions under the chairmanship of the Chief Minister for projects involving investment of more
than US$ 10.9 million.
District Industries Centres
 Nodal agencies for approval of projects at the district level.
 Primary focus is to promote small scale, village and cottage industries.
Other departments
 Various sector specific departments such as Department of Tourism, Department of Information
Technology and Biotechnology, Department of Food Processing, Department of Textiles and
Department of Mines and Geology.

KEY APPROVALS REQUIRED … (1/2)
List of approvals and clearances required Departments to be consulted
Prior to setting up the unit
Registration
Department of Industries and Commerce Department, Karnataka Udyog Mitra (Single Window
Agency)
Allotment of land/shed Karnataka Industrial Areas Development Board
Permission for land use State Department of Industries, Department of Town and Country Planning
Site environmental approval State Pollution Control Board and Ministry of Environment and Forests
No objection certificate under Water and Air Act Karnataka State Pollution Control Board
Approval for construction activity and building plan Development Authority/Urban Local Body
Sanction of power State Electricity Board
No objection certificate Fire Department and Directorate of Factories and Boilers
Provisional trade tax registrations Central and State Excise Departments
Registration under Central Sales Tax Act Central and State Excise Departments

KEY APPROVALS REQUIRED … (2/2)
List of approvals and clearances required Departments to be consulted
Before commencement of production
No objection certificate under Water and Air Act State Pollution Control Board
No objection certificate Fire Department and Directorate of Factories and Boiler
Permanent Trade Tax registration Central and State Excise Departments
Registration under Central Sales Tax Act, 1956 Central and State Excise Departments
After commencement of production/activity
Registration
Department of Industries and Commerce and respective sector departments such as
IT/BT/Tourism etc.

COST OF DOING BUSINESS IN KARNATAKA
Cost parameter Cost estimate
Industrial land (US$ per hectare) 129,191.51
Power cost (US cents per kWh)
Metropolitan area: 12.13
Non metro area: 8.7
Labour (US$/man year) 1,522
Occupation costs (US$/sq ft/year) 16.44
Employee cost (US$/ man year)
Software developers 6,383
Team leads 14,893
Architects 21,276.5
Project managers 31,915

ELECTRONICS SYSTEMS DESIGN AND
MANUFACTURING POLICY 2013
 Electronic Systems Design and Manufacturing (ESDM) is the fastest growing segment of the Information and Communications Technology
(ICT) sector.
 As per the National Electronics Policy – 2012 (NEP-2012), ESDM is expected to grow to USD $400 Billion by the year 2020 and will generate a
total employment of over 28 million.
 The objective of the Karnataka ESDM Policy is to facilitate, promote and develop the “ESDM” sector in the State of Karnataka and make
Karnataka a preferred destination for investment in Telecommunications, Defense, Medical, Industrial, Automotive, Consumer Products,
applications and components, parts, and accessories required for the aforesaid products and applications. The following targets are set for
Karnataka ESDM Policy:
• Emerge as the leading contributor to India's ESDM sector by accounting for at least 10% of the USD $400 billion by 2020
• Generate over 20% of the country's total ESDM exports target of USD $80 billion by 2020.
• Develop core competencies in specific ESDM verticals such as telecom, defense electronics, avionics and energy.
• Make Karnataka the country's preferred destination for investments in ESDM.
• Generate at least 240,000 new jobs, 25% of India's PhDs and 5000 patent filings in ESDM sector in Karnataka by 2020.

KARNATAKA STARTUP POLICY 2015 – 20
 A Karnataka Startup Cell has been set up to address the needs and demands of the rapidly expanding Startup Community and promote
Karnataka's Startup Ecosystem.
 Following are the highlights of the startup policy:
• Capacity Building through New Age Incubation Network
• Technology Based Incubators: Fostering links between R&D and Commercialization of Technologies.
• IDEA2PoC Fund: Taking ideas to Proof of Concept.
• Startup Fund of Funds.
• Incentives and Concessions: VAT/CST and ST, Patent and Marketing Reimbursements

STATE ACTS & POLICIES … (1/4)
Karnataka Start-up
Policy 2015-20
 To encourage the growth of 20,000 technology based start-ups in the state by 2020.
 To enable the establishment of around 25 innovative technology solutions in the state.
 To create around 0.6 million direct as well as 1.2 million indirect employment opportunities in
technology sector.
 To boost private investments across the tourism sector.
 To develop Karnataka as a dynamic, sustainable and most-favoured tourism destination by increasing domestic &
international visitations, offering high quality experience to visitors, facilitating and accelerating investments and
improving livelihood opportunities at the local level.
 To add solar generation of at least 2,000MW by 2021 in a phased manner.
 To encourage PPP model and R&D and innovation in the sector.
 To promote Roof Top Generation and Technologies.
 To transform Karnataka into an investor friendly state.
 To make Karnataka the most preferred investment destination through inclusive, sustainable and balanced growth.
Karnataka Tourism
Policy 2015-20
Solar Policy 2014-21
Karnataka Industrial
Policy 2014-19
Objectives
Read more
Read more
Read more
Read more

ESDM Policy 2013
 To facilitate, promote and develop the ESDM sector in Karnataka and make Karnataka a preferred destination for
investment in this sector.
 To position Karnataka as a vibrant aerospace hub of Asia and a globally recognized aerospace destination by
enabling the environment for holistic and sustained growth of the aerospace sector.
 Increase the contribution of the aerospace sector towards enhancing the share of industry in the state’s GSDP
from 28.0 per cent to 32.0 per cent by 2022.
 Encourage and support appropriate manpower development, infrastructure development and business
development in the AVGC sector.
 To maintain Karnataka’s leadership in outsourced IT services.
 To retain Karnataka’s position as the state with the largest skilled workforce in India for IT services, products and
R&D.
 To enable Karnataka to be the most preferred destination for MSMEs (micro, small and medium
enterprises).
Aerospace Policy 2013
AVGC Policy 2012
Information and
Communication
Technology Policy 2011
Objectives
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Integrated Agribusiness
Development Policy
2011
 To position Karnataka on a sustained growth path in the field of agricultural and allied sectors through global
technologies and innovative tools by creating enabling frameworks and state-of-the-art infrastructure facilities,
thereby generating higher returns for farming communities.
 Development, propagation and promotion of renewable energy resources and technologies.
 Creation of a suitable environment for private sector participation in renewable energy power generation.
 To facilitate and expedite establishment of SEZs, at the same time safeguarding the environment and the interests
of land owners.
 To increase the quality of human resources by supporting education and research institutions like the Institute of
Agri-Biotechnology (IABT), the Institute of Bioinformatics and Applied Biotechnology (IBAB), the Centre for Human
Genetics (CHG) and BT finishing schools; to create specific infrastructure such as focused biotech parks in the
areas of agriculture, marine biotech and animal husbandry; to provide specific fiscal incentives.
Karnataka Renewable
Energy Policy 2009-14
State Policy for Special
Economic Zones 2009
Millennium Biotech
Policy II 2009
Objectives
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Karnataka Mineral Policy
2008
 To optimise the state’s geological potential by scientific and detailed prospecting. State-of-the-art techniques will
be encouraged by combining the resources of the private and public sectors.
 To resolutely pursue the policy of preserving flora, fauna, and bio-diversity and ensure that the invaluable forest
wealth is safeguarded while granting mineral concessions. To promote transparency in granting mining
concessions. The applicants who propose establishment of industries for value addition within the vicinity of the
mineral bearing areas will be given priority.
 To provide a fair and transparent policy framework for facilitating economic growth and encouraging Public–Private
Partnerships (PPP) in infrastructure.
 The policy was introduced in January 2017, to attract investments from non-resident Kannadigas. The policy aims
at helping improve the privileges and speedy services to NRKs, through a card.
Infrastructure Policy
2007
NRI Policy 2017
Objectives
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Agency Description
Semiconductor policy 2010 Department of IT /BT and Science & Technology, Government of Karnataka
I4 (IT, ITeS, Innovation, Incentives) policy
Department of Information Technology, Biotechnology and Science & Technology, Government of
Karnataka
Karnataka Pharmaceutical policy 2012 Health and Family Welfare Department, Government of Karnataka
New textiles policy 2013-18 Department of Handlooms and Textiles, Government of Karnataka

EXCHANGE RATES
Source: Reserve Bank of India
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15 60.28
2015-16 65.46
2016-17 67.09
Q1 2017-18 64.46
Exchange Rates (Fiscal Year)

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Karnataka State Report July 2017

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Karnataka State Report July 2017