About Karnataka


  • Karnataka is a land of opportunities and one of India's most progressive States. The State possesses a vibrant and productive industrial eco-system. Owing to its inherent advantages like rich natural resources, salubrious climate, strong resource base of highly educated and skilled people, disciplined and hardworking labour force and so on, the State has achieved a pre-eminent position on the industrial and business map of India.  Karnataka has been a pioneering State in having witnessed the dawn of modern industries in India.

Socio-Economic Scenario

  • Karnataka is the 8th largest State in India with 30 districts encompassing an area of 1.92 lakh sq.km. The population of Karnataka has grown from 52.7 million in 2001 to 61.01 million in 2011 registering a decadal growth of 16%. 
  • The State GDP stands at Rs. 7.80 lakh crore during 2015-16 and is expected to grow at 6% during 2016-17.  Karnataka received a cumulative FDI of US$ 20,276million since April 2000- March 2016 accounting for 7% share of All India total. The value of total exports of the State was US$ 79,429 million during 2015-16, which contribute to 18.5% of India's exports. The IT exports during the year 2015-16 was to the tune of US$ 60,225 million, which was highest in the country.

Industrial Scenario

  • Karnataka is home for about 1,200 large and medium manufacturing industries generating employment for about 4.6 lakh persons. In addition, there are nearly 5.41 lakh registered MSMEs providing employment to 32.63 lakh.

Basic Infrastructure

  • Karnataka has a robust physical infrastructure required to create a conducive environment for industrial development. State has one major port namely New Mangalore Port Trust in addition to 12 minor ports. Karnataka has a total six airports which also includes two International Airports at Bengaluru and Mangaluru. 
  • The State has a total road length of 2.4 lakh kms,  including 6,572 kms. of National Highway and 19,720 kms of State Highways. The railway density in the State is 15.80 kms. per 1,000 sq. kms.

Industrial Infrastructure

  • Karnataka Industrial Areas Development Board (KIADB), a dedicated Agency to create industrial infrastructure has developed 157 industrial areas across the State covering an extent of about 29,000 acres of land to house about 18,000 units. In addition, KIADB has acquired about 55,000 acres of land in favour of 442 units under Single Unit Complex scheme. KSSIDC, another agency of the State Government has constructed and allotted 6,227 sheds and 8,447 industrial plots to 13,423 units.  The Corporation has developed 178 industrial areas spread over 3,044 acres of land.
  • Karnataka has an installed power generation capacity of about 16,000 MW and the third largest generator of energy through renewable energy sources in India. Karnataka has plans to meet 24x7 power for all by 2020.  The sector prides in best online customer service practices in India.

Knowledge Support

  • Karnataka has a strong knowledge.  Top national institutes like IISc., IIMB, NIMHANS, IIT-B, IIT, INLF are present in the State in addition to 44 Universities, 206 Engineering Colleges, 47 Medical Colleges and 38 Dental Colleges.

Thrust on Infrastructure

  • The State recognizes infrastructure as the backbone for development of industries and initiated several measures to create good connectivity along the length and breadth of the State.  It is targeted to expedite Chennai-Bengaluru-Chitradurga Industrial Corridor (CBCIC) covering about 560 kms. and Bengaluru Mumbai Economic Corridor (BMEC) with about 980 kms. to provide the much required connectivity for industry and business.   It is planned to develop three green field industrial nodes in the corridor influence area of BMEC.
  • The State is in process of establishing a National Manufacturing and Investment Zone (NMIZ) in about 13,600 acres near Tumakuru to provide added fillip for promotion of manufacturing sector.  A brown field industrial area of about 500 acres is being developed as part of NMIZ.  Ministry of Economics and Trade & Industries (METI), Japan, has shown interest to develop Japan Industrial Township at Tumakuru. In addition, an Integrated Machine Tool Park is also being developed adjacent to Japan Industrial Township. Similar NIMZs are also proposed at Chittapur Taluk of Kalaburagi District, Bhalki of Bidar District and Mulabagalu of Kolar District. 

Industrial Policy for Inclusive Growth

  • Karnataka has in place Industrial Policy 2014-19 to guide the development of industries in Karnataka. This policy is envisioned with building a prosperous Karnataka through inclusive, sustainable and balanced industrial development.
  • This Industrial Policy aims to maintain an Industrial growth rate of 12% per annum and has set a mission to attract investment in excess of Rs. 5 lakh crore while providing additional employment to more than 15 lakh persons.

Investment Generation

  • In line with  the progressive policy initiatives taken by the Government, the State could attract 362 projects during 2013-14 and 2014-15, with aggregated investments of about Rs.96,000 crore.  These investments are expected to generate employment opportunities for about 2.27 lakh persons. 
  • In order to showcase the strengths of the State and opportunities available here, State had organized Invest Karnataka 2016, a Global Investors Meet during February 2016.  As part of this mega Event, 1,080 projects with aggregate investment of Rs.1.78 lakh crore and employment potential of about 5 lakh persons have been approved by Single Window Agencies and State High Level Clearance Committee.
  • In addition to these approvals, a commitment of Rs. 1.28 lakh crore has been made during the Event by several investors. Once these investment intentions are materialized, 1.70 lakh  job opportunities would be created in the State.

State’s Pride

  • Karnataka has several firsts into its credit, be it  State Specific Industrial Policy, Sector Specific Policies, Industry Facilitation Act and many such initiatives. In the recent past, State bagged some more accolades. Following are the important ones:
  • Karnataka received investment intensions of Rs. 67,757 crores in the first six months of 2016 and topping the All India list with regard to investment intensions. The Karnataka's share jumped from 10.18 percent in 2015 to 38.34 percent in the first half of 2016.
  • As per latest report of ASSOCHAM, Karnataka has been rated as No.1 with regard to investment in IT sector. It was reported that an amount of Rs. 53,396 crore was invested in IT during 2015-16 accounting for 23 percent of total investment in India.
  • As per the Global Start-up Ecosystem Ranking Report 2015, Bengaluru, the capital of Karnataka, has achieved the second highest growth rate for exit volume and VC investment among the top 20 cities.
  • In 2015, Bengaluru has emerged as the fifth most preferred destination for Global MNCs that are looking to set up innovation centres and tap technology talent according to a report by Technology Consulting and Services Firm, Capgemini. According to the report, Bengaluru has now displaced Tokyo from the fifth spot on the list and only the Silicon Valley, London, Paris and Singapore, are currently ranked ahead of Bengaluru.

Investor Facilitation

  • Government of Karnataka has taken all the necessary steps for Ease of doing business. Single window clearance mechanism envisaged under Karnataka Facilitation Act 2002 has been strengthened through online portal.  The online portal e-Udyami enables investors to apply for project approvals and monitor them through e-biz Karnataka in real time from anywhere in the world. We have fast-tracked clearances of projects by adding 11 line departments on the portal to ensure complete transparency.
  • To give added impetus and speed for promoting industrial investments in Karnataka, a non-profit company ‘Invest Karnataka Forum’ is formed under the chairmanship of Honâble Minister for Large and Medium Industries and Infrastructure Development. This new company will be industry driven and managed by professionals. The State is once again the first to have exclusive company of this nature to promote investments.

Thrust on Promising Sectors

The State has set clear-cut strategies for the development of select sectors, which the State has strategic advantages.  The State has a host of policies for promotion specific sectors like Aerospace, Agri Business and Food Processing, Textile, Pharmaceutical, Tourism, IT & ITES, Solar, ESDM, Startups, Retail Trade, etc. 

  • Tourism

Karnataka has the largest number of tourist destinations in India. These 319 destinations encompass a rich variety to include Heritage, Wildlife, Spirituality, Adventure, Waterfall, Rivers and Cities entertaining nearly 100 million tourists across the past 5 years. The State has recorded a growth of 50% in traffic these 5 years.

The tourism sector owes much to the 2 international and 3 domestic airports that offer excellent connectivity. The State is well-connected by Air, Bus and Rail network. Plans to augment tourism related infrastructure and other unique and trending recreational opportunities like cruise tourism, cable cars across the scenic hills of Chamundi, Kemmangundi, Madhugiri and Nandi Hills along with theme parks and adventure sports facilities are on the anvil. An exclusive Karnataka Tourism Policy-2015-20 is in place to guide the further development of this flourishing sector.

Karnataka endeavours to be the BEST place to do business in India. State always welcomes Investors to Invent, Innovate and Invest in Karnataka.

Karnataka is one of the fastest growing State in India, propelling the country's growth to greater heights Sri. Siddaramaiah, Honâble Chief Minister of Karnataka.

œInnovate, Invent and Invest in Karnataka.  Your future will be made in Karnataka Sri. R V Deshpande, Honâble Minister for Large and Medium Industries and Infrastructure Development of Karnataka