Karnataka State South India Economic Snapshot August 2013

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3. 6th largest state in terms
of GDP size in 2011-12
•
•
•
The state contributed 5.6 per cent to the GSDP of India in 2012-13*.
Average GSDP growth rate between 2004-05 and 2012-13 was about 15.5** per cent.
The per capita GSDP increased to US$ 1,608.4, growing at a CAGR of 14.2** per cent
between 2004-05 and 2012-13.
•
IT hub of India
Karnataka is the IT hub of India and home to the fourth largest technology cluster in the
world.
• It accounted for 41.6 per cent (US$ 28.3 billion) of India’s electronics and software exports
in 2011-12.
• It has 47 IT/ITeS SEZs, 3 software technology parks and dedicated IT investment regions.
•
Vibrant industrial base
Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech and heavy
engineering industries.
• It has sector-specific SEZs for key industries such as IT, biotechnology, engineering, food
processing and aerospace. An ITIR spread across 10,000 acres is being developed near
BIA.
•
One of the preferred
investment destinations
A conducive business environment has helped the state rank fifth in terms of attracting
private sector investments in India, as of December 2012.
• Total outstanding investments amounted to US$ 813.8*** billion in 2012-13, while
cumulative FDI inflows from April 2000 to March 2013 stood at US$ 10.8 billion, the fourth
highest in India.
Sources: Global Investors Meet 2012, Department of IT, BT and S&T, Karnataka, ASSOCHAM report, Planning Commission Databook 2012-13, DIPP, CMIE
ITIR: Information technology Investment Region, BIA: Bengaluru International Airport, * GSDP 2012-13 till Feb 2013, **In Indian rupee terms, ***At 2012-13 rates

4. •
Vast natural resource
pool
Karnataka is the sole producer of felsites and the leading producer of iron ore, chromite,
and dunite and contributes 99.0 per cent to India's total gold production.
• Karnataka hosts 78.0 per cent of vanadium ore, 74.0 per cent of iron ore (magnetite), 42.0
per cent of tungsten ore and 38.0 per cent of asbestos reserves in India.
•
Strong knowledge
infrastructure
Karnataka has 40 universities, 3,640 pre-university colleges, 187 engineering colleges
and 289 polytechnics, 43 medical colleges, 41 dental colleges and 1,162 industrial training
institutes.
• It also houses 366 R&D centres; around 400 of the Fortune Global 500 companies
outsource their IT services to firms in Bengaluru.
•
Contributes 7% to the
agricultural production
of India
Number 4 in terms of
tourist arrivals in India
Karnataka accounts for 70.0 per cent of the coffee production in India; coffee exports from
Karnataka stood at US$ 584.3 million in 2011-12.
• It is the 5th largest producer of fruits in the country and the fourth largest producer of
spices.
• Karnataka is also the third largest producer of plantation crops in the country.
•
Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which
makes it a nature tourist's paradise.
• It has World Heritage Sites at Hampi and Pattadakal.
Sources: Indian Minerals Yearbook 2011, Global Investors Meet 2012,
Economic Survey of Karnataka 2011-12, Visvesvarya Industrial Trade Centre, Bounteous Karnataka

5. High economic growth
Growing demand
2011-12
GSDP expanded at a CAGR of 15.5**
per cent between 2004-05 and 201213***.
•
Karnataka is termed as the
‘Knowledge Capital of India’.
The state has successfully attracted
skilled labour, especially, in the
knowledge sector. It is among the
states that produce a large number of
doctors, engineers and medical
technicians in the country.
Buoyant services (IT, tourism) and
industries driving economic growth.
•
•
•
•
IT exports:
US$ 28.3
billion****
Rich talent pool
Sector specific SEZs and SIRs
facilitating growth.
2020
target
IT exports:
US$ 73.7
billion
Advantage:
Karnataka
Infrastructure
•
Well developed social, physical and
industrial infrastructure.
•
Good road, rail, water and air
connectivity and substantial port
infrastructure.
•
Policy support
•
•
•
•
Well developed telecom infrastructure.
•
•
The engineering sector is delicensed;
Wide range of fiscal and policy
100 per cent businesses under the
incentives forFDI is allowed in the
sector
Karnataka Industrial Policy, 2009-14.
Due to policy support, there was
Investor friendly sector specific policies
cumulative FDI of USD14.0 billion into
to promote industries like IT,
the sector over April 2000 – February
biotechnology, textiles and tourism.
2012, making up 8.6 per cent of total
FDI into the country in that period
Simplified procedures for investment.
Excellent healthcare facilities.
Sources: Karnataka Udyog Mitra, Planning Commission Databook 2012-13, D&B Cluster State Overview, CMIE, Karnataka Vision 2020,
Department of Industrial Policy and Promotion
*Target at 2012-13 rates, **In Indian rupee terms, ***GSDP 2012-13 till Feb 2013, ****At 2011-12 rates, includes electronics and computer software

6. Some of the prominent cities in the state are Ankola,
Bengaluru, Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur,
Chitradurga, Dandeli, Hubli-Dharwad, Mangalore, Mysore
and Shimoga.
Karnataka has a tropical climate with three major seasons:
warm and dry from February to May, monsoon from June to
October and winter from November to January.
Parameters
Capital
Source: Maps of India
Karnataka
Bengaluru
Languages spoken are Kannada, Tulu, Kodava, Hindi and
English.
191,791
Administrative districts (No)
Karnataka is located in the southern region of India. It 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.
Geographical area (sq km)
30
Population density (persons per sq km)*
319
Total population (million)*
61
Male population (million)*
31
Female population (million)*
30
Sex ratio (females per 1,000 males)*
968
Literacy rate (%)*
75.6
Sources: Economic Survey of Karnataka 2011-12, *Provisional data – Census 2011

7. Parameter
Karnataka
All-States
Source
GSDP as a percentage of all states’ GSDP*
5.57
100
Planning Commission Databook, 2012-13,
current prices
Average GSDP growth rate (%)**
15.5
15.6
Planning Commission Databook, 2012-13,
2004-05 to 2012-13, current prices
1608.4
1414.2
Planning Commission Databook, 2012-13,
current prices
13,759.3
225,133.1
Central Electricity Authority, as of May 2013
Wireless subscribers (No)
52,914,789
867,803,583
Telecom Regulatory Authority of India, as of
March 2013
Broadband subscribers (No)
1,344,354***
15,050,000
Telecom Regulatory Authority of India, as of
March 2013
National Highway length (km)
4,642
79,116
Ministry of Road Transport & Highways, as of
March 2013
Major and minor ports (No)
1+10
13+187
Indian Ports Association
5
133
Airports Authority of India
Economy
Per capita GSDP (US$)
Physical Infrastructure
Installed power capacity (MW)
Airports (No)
GSDP 2012-13, Till February 2013, **In Indian rupee terms, ***As of December 2011

8. Parameter
Karnataka
All-States
Source
Literacy rate (%)
75.6
74.0
Provisional data – Census 2011
Birth rate (per 1,000 population)
18.8
21.8
SRS Bulletin (www.censusindia.gov.in), 2012
10.8
193.3
Department of Industrial Policy & Promotion,
April 2000 to March 2013
813.8*
10,499.2*
CMIE (2012-13)
PPP projects (No)
108
881
www.pppindiadatabase.com
SEZs (No)
40
385
Notified as of March 2013, www.sezindia.nic.in
Social Indicators
Investment
FDI equity inflows (US$ billion)
Outstanding investments (US$ billion)
Industrial Infrastructure
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
*At 2012-13 rates

9. 97.1
67.3
2010-2011
2006-2007
44.2
2005-2006
37.1
2004-2005
Growth has been mainly driven by secondary and tertiary
sectors.
96.6
2012-2013*
50.2
71.2
89.2
2011-2012
67.6
2009-2010
CAGR:
15.5%**
The average GSDP growth rate between 2004-05 and
2012-13 was about 15.5** per cent.
2008-2009
GSDP of Karnataka at current prices (US$ billion)
2007-2008
At current prices, the gross state domestic product (GSDP)
of Karnataka was about US$ 97.1* billion in 2012-13.
Sources: Planning Commission Databook 2012-13
*Till February 2013
**In Indian rupee terms

10. 60.4
86.1
86.8
63.5
2009-2010
45.0
2010-2011
39.5
2006-2007
2004-2005
33.1
60.7
2008-2009
79.3
2007-2008
The average NSDP growth rate between 2004-05 and
2012-13 was 15.5** per cent.
2012-2013*
CAGR:
15.5%**
2011-2012
NSDP of Karnataka at current prices (US$ billion)
2005-2006
The net state domestic product (NSDP) of Karnataka was
about US$ 86.8 billion in 2012-13.
Sources: Planning Commission Databook 2012-13
*Till February 2013,
**In Indian rupee terms

11. The state’s per capita GSDP in 2012-13 was US$ 1,608.4*.
GSDP per capita of Karnataka at current
prices (US$)
1,608
986
1,427
1,061
2009-2010
1,265
CAGR:
14.2%**
2008-2009
The per capita GSDP increased at a compound annual
growth rate (CAGR) of 14.2** per cent between 2004-05
and 2012-13.
739
2005-2006
2006-2007
870
644
2012-2013*
2011-2012
2010-2011
2007-2008
2004-2005
555
Sources: Planning Commission Databook 2012-13
*Till February 2013
**In Indian rupee terms

12. The state’s per capita NSDP in 2012-13 was US$ 1,437.0*.
NSDP per capita of Karnataka at current
prices (US$)
The per capita NSDP increased at a CAGR of 14.3** per
cent between 2004-05 and 2012-13.
1,440
CAGR:
14.3%**
1,437
1,340
1,047
1,084
2012-2013*
2011-2012
2010-2011
2009-2010
2008-2009
795
2007-2008
705
2006-2007
2004-2005
598
2005-2006
1,054
Sources: Planning Commission Databook 2012-13
*Till February 2013,
**In Indian rupee terms

13. In 2012-13, the tertiary sector contributed 58.8 per cent to
the state’s GSDP at current prices, followed by the
secondary sector (25.9 per cent) and primary sector (15.3
per cent).
GSDP composition by sector
CAGR
19.9%
At a CAGR of 17.5* per cent, the tertiary sector has been
the fastest growing among the three sectors from 2004-05
to 2012-13. The growth has been driven by trade, hotels,
real estate, finance, insurance, transport, communications
and other services.
12.6*%
29.1%
13.3*%
25.9%
58.8%
51.0%
The secondary sector grew at a CAGR of 13.3* per cent
between 2004-05 and 2012-13. It was driven by
manufacturing, construction and electricity, gas & water
supply.
The primary sector grew at a CAGR of 12.6* per cent
between 2004-05 and 2012-13.
15.3%
17.5*%
2004-05
Primary sector
Secondary sector
2012-13
Tertiary sector
Source: CMIE
*Growth rate in INR terms

14. Sugarcane was the major crop of the state with production
of about 38.0 million tonnes in 2011-12.
Crop
Annual production
estimate^ in
2012-13 (‘000 tonnes)
Major oilseeds production is estimated to be 1.1 million
tonnes in 2012-13.
Production of cereals and pulses in the state is estimated to
be 10.6 million tonnes and 1.4 million tonnes, respectively,
in 2012-13.
In 2012-13, total vegetable production in the state is
estimated at 8.0 million tonnes.
Sugarcane
32,260
Maize
3,320
Rice
4,070
Onion
2,510
Banana
The state’s food grain production is estimated to be 12.0
million tonnes in 2012-13.
2,190
Coconut^^
Sorghum (jowar)
Cotton*
Groundnut
1,716.3
1,363
860
555.9
Potato
510
Coffee
295**
Wheat
Total fruits production in the state is estimated at 6.7 million
tonnes in 2012-13.
345
Total pulses
1,362.5
Total major oilseeds
1,096.1
Sources: Economic Survey of Karnataka 2011-12, Coffee Board of India, Indian Horticulture Database
2011, National Horticulture Board, Karnataka Agriculture Budget 2013-14, Coconut Development
Board, *’000 bales of 170 kgs each, **Estimates for 2012-13, ^Forecast by CMIE, ^^Million nuts

15. During 2011-12, total exports from the state aggregated
US$ 45.7 billion which is approximately 12.3 per cent of
India’s total exports.
Karnataka’s exports grew at a CAGR of 15.3* per cent
during 2006-07 to 2011-12.
From a sector-specific perspective, exports of agriculturebased products, computer software & biotechnology,
readymade garments, petroleum & petroleum products,
engineering products, coffee products, basic chemicals,
pharmaceuticals & cosmetics, gems & jewellery, marine
products and spices increased significantly in 2011-12 as
compared to the previous year.
Break up of exports by sector
(2011-12)
Miscellaneous
and others
8%
Handloom & textiles
4%
Engineering
products
4%
Gem and
jewellery
11%
Petroleum
and
chemical
products
11%
Electronics &
computer
software
62%
Electronic and software exports from the state totalled US$
28.3 billion in 2011-12.
Onions 17%
Karnataka exported US$ 4,985.0 million worth of petroleum
and chemical products during 2011-12.
Sources: Visvesvarya Industrial Trade Centre, Government of Karnataka
*Growth rate in INR terms
STPI: Software Technology Parks of India

16. The state has a stable political environment. Successive
state governments have realised the importance of
industries in the state and have provided conducive
business environment to attract domestic as well as foreign
entities.
In 2012-13, outstanding investments in the state totalled
US$ 813.8* billion, representing nearly 8.0 per cent of total
outstanding investments in India.
Break up of outstanding investments by sector
(2012-13)
5.2%
1.4%
Manufacturing
Services
13.0%
42.5%
14.6%
Of the total outstanding investments, the manufacturing
sector attracted the most (42.5 per cent), followed by the
services sector (23.4 per cent).
Real Estate
Electricity
Irrigation
23.4%
Mining
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 2013 amounted to US$ 10.8 billion, the
fourth highest in India.
FDI inflows from April 2012 to March 2013 stood at US$
1,023 million.
Sources: Composition of outstanding investments across states,
ASSOCHAM, Department of Industrial Policy and Promotion,
Global Investors Meet 2012, CMIE
*At 2012-13 rates
**At 2011-12 rates

17. Karnataka attracted investments worth US$ 150.2* billion
during the Global Investors Meet, 2012.
Investment proposals signed at Global Investors Meet
2012
Sector
Amount (US$ billion)*
Energy
52.15
Automobile
1.95
Iron and steel
22.56
Cement and other minerals
10.34
Education and R&D
1.73
Agro, food and horticulture
3.32
Biotech and pharma
0.38
Textiles and apparels
0.99
Tourism
8.30
Housing and urban development
6.87
Industrial infrastructure
9.18
IT & electronics
14.98
Chemicals and petrochemicals
8.87
Engineering
3.29
Aerospace and defence
2.66
Others
2.74
Source: Global Investors Meet, 2012, *At 2012-13 rates

18. Under Karnataka State Highways Improvement Project
(KSHP-I), 2,414 km of state highways and major district
roads were taken up for development. Of this, a length of
2,384 km has been developed.
The Karnataka State Road Transport Corporation (KSRTC),
established in August 1961, provides state road transport
services.
Karnataka plans to construct 100,000 km of roads by 2020;
this entails an investment of US$ 26.0 billion.
Source: Maps of India
Road type
The state is well connected to its five neighbouring states
and other parts of India via 15 national highways that run
through the state.
The Karnataka Road Development Corporation Ltd
(KRDCL) has been created as a state-owned enterprise for
the development of road infrastructure facilities in the state.
Road length in km,
(March 2012)
National highways
4,642**
State highways
20,774
Major district roads
49,906
Municipal roads
8,366*
Other roads
148,412*
Sources: Economic Survey of Karnataka 2011-12,
Ministry of Road Transport & Highways, Global Investors Meet 2012,
Department of Tourism, Karnataka, Karnataka PWD, *As of December 2010, **As of March 2013

19. Karnataka is well-connected to other parts of the country
Growing demand
via the railways. The state has a railway network of 3,250
km.
Karnataka railway network
Type of railway
Length (km)
South Central Railways
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.
268
South Western Railways
2,697
Southern Railways
37
Konkan Railways
248
Total
K-RIDE has a Chief Executive Officer deputed from the
Railways
Department
and
Principal
Secretary,
Infrastructure Development Department as its Chairman.
3,250
Key proposed new projects
Length
Cost (US$
million)*
Hassan-Bengaluru (New Line)
166
197
Tumkur-Rayadurga (New Line)
102
202
Munirabad-Mehboobnagar (New Line)
170
177
Bagalkot-Kudachi (New Line)
142
170
Tumkur-Davangere (New Line)
200
190
Bidar-Gulbarga (New Line)
107
77
Hubli-Ankola (New Line)
167
483
Bengaluru-Satyamangala (New Line)
Bengaluru Metro Rail, also known as Namma Metro (our
metro), is a mass-transit rail system for the city of
Bengaluru. Bengaluru Metro Rail Corporation Limited
(BMRCL), a joint venture of Government of India and
Government of Karnataka, is a special purpose vehicle
(SPV) entrusted with the responsibility of implementation
of Bengaluru Metro Rail Project. Namma Metro started in
October 2011 and Phase II is currently under
implementation.
162
375
Project
Sources: Economic Survey of Karnataka 2011-12, Infrastructure Development Department, Karnataka, *At 2011-12 prices

20. The state has five domestic airports. These are located in
Growing demand
Bengaluru, Mangalore, Hubli, Mysore and Belgaum.
International flights operate from the airports at Bengaluru
and Mangalore.
Bengaluru International Airport; the country’s first
greenfield international airport, has been developed at
Devanahalli in Bengaluru as a passenger and cargo
department hub. It was developed under the PPP model
and started operations in May 2008.
The Bengaluru International Airport handles 12 million
passengers annually.
Minor airports at Shimoga, Gulbarga, Bijapur and Hassan
are being developed on PPP mode through private
promoters.
The existing airport at Hubli is being upgraded to
international standards.
Source: Global Investors Meet, 2012

21. There are 11 ports in Karnataka, of which new Mangalore is
a major port.
New Mangalore Port is the 9th major port in India with the
deepest inner harbour on the west coast.
Major cargo have been handled by Karwar, Belikeri, Malpe
and old Mangalore ports in 2010-11. Among them, the
cargo handled by Belikeri port was significantly higher as
compared to other ports.
Karwar
Port
Ports
•
New Mangalore Port
•
Major ports
Karwar
Belekeri
Tadri
Honnavar
Bhatkal
Kundapur
Hangarkatta
Malpe
Padubidri
Old Mangalore
•
•
•
New
Mangalore
Port
•
Minor ports
•
•
•
•
•
Source: Global Investors Meet, 2012

22. As of May 2013, the state had an installed power generation
capacity of 13,759.3 MW. The state contributed 7,349.1 MW
of this capacity, the private sector contributed 4,776.9 MW,
whereas the central government’s share was 1,633.3 MW.
The installed capacity has increased from 9,346.7 MW in
2009 to 13,759.3 MW in 2013.
Installed power capacity (MW)
CAGR:
9.2%
13,393.5
13,759.3
11,546.1
9,346.7
10,386.3
Of the total installed power generation capacity, 6,392.8
MW was contributed by thermal power. 254.9 MW and
3,386.0 MW was contributed by nuclear and renewable
power, respectively, while hydropower contributed 3,599.8
MW.
2008-09
2009-10
2010-11
2011-12
2012-13*
The government has taken steps to undertake several new
small, medium and large scale power projects.
Karnataka Renewable Energy Development Limited
(KREDL) was established in 1996 to promote the
development of renewable energy sources in the state.
Source: Central Electricity Authority
*As of May 2013

23. The installed capacity will increase by 10,200 MW over the
next three years, as a number of projects are currently
under implementation.
Major power projects to be completed in the next
three years
Power transmission is overseen by:
Karnataka Power Transmission Corporation Limited
(KPTCL)
Project
Capacity
Yaramaras Thermal Power Station
2x800 MW
Yadlapura Thermal Power Station
State-owned power generation in Karnataka is managed by:
Karnataka Power Corporation Limited (KPCL)
2x800 MW
Godhana Thermal Power Station
2x800 MW
Bidadi(Gas based)
1x700 MW
rd
Karnataka has five electricity supply companies:
Bengaluru Electricity Supply Company Limited
(BESCOM)
Mangalore Electricity Supply Company Limited
(MESCOM)
Hubli Electricity Supply Company Limited
(HESCOM)
Gulbarga Electricity Supply Company Limited
(GESCOM)
Chamundeshwari Electricity Supply Corporation
Limited (CESCOM)
3 Unit of Bellary Thermal Power
Station
1x700 MW
NTPC Project at Kudagi
4000 MW
Total
10,200 MW
Sources: Central Electricity Authority, Karnataka Budget 2013-14

24. 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 52.914 million wireless connections and 2.4
million wire-line subscribers in Karnataka, as of March
2013.
Telecom infrastructure (March 2013)
Wireless subscribers
52,914,789
Wire-line subscribers
2,443,394
Broadband subscribers
1,344,354*
Post offices
9,760^
Telephone exchanges
2,799*
Teledensity (in per cent)
The entire state is networked via optic-fibre cables (OFCs)
of the state-owned company, Bharat Sanchar Nigam
Limited (BSNL), as well as private companies like 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.
91.3
Major telecom operators in Karnataka
Bharti Airtel
IDEA Cellular
Vodafone Essar
Bharat Sanchar Nigam Limited (BSNL)
Aircel Ltd
Reliance Communications
Tata Teleservices
Sources: Telecom Regulatory Authority of India,
Department of Telecommunications, Annual Report 2012-13,
Ministry of Communications and Information Technology,
Economic Survey of Karnataka 2011-12, India Post
*As of December 2011, ^As of January 2013

25. Under the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM), Bengaluru and Mysore have been
sanctioned 47 projects worth US$ 676.7* million during
2006-13.
Water supply
•
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. These schemes are
to be completed by 2013.
Some of the key areas of development are roads and
flyovers, water supply, storm-water drainage, sewerage and
urban transport.
A total of 22 projects related to roads, flyovers, water supply
and urban transport located in Bengaluru have been
completed between April 2006 and May 2012, with a value
of US$ 136.6 million.
The Karnataka Urban Water Supply and Drainage Board
(KUWSDB) is responsible for providing water supply and
sewerage facilities in 213 urban areas of the state, except
the areas serviced by the Bruhath Bengaluru Mahanagar
Palike (which provides services in Bengaluru city and
surrounding areas).
•
Cauvery Water Supply
Scheme (CWSS) Stage IV,
Phases I to IV are being
implemented to supply 810
MLD of water to about
600,000 connections.
Sewerage system
•
The Bengaluru
Water Supply and
Sewerage Board
(BWSSB) is
responsible for
providing water
supply, sewerage
system and
sewage disposal
in the Bengaluru
Metropolitan area.
•
42 urban areas
have been
provided with
underground
drainage (UGD)
facilities in the
state.
Sources: JNNURM, Ministry of Urban Development,
www.urbanindia.nic.in
MLD: Million litres per day
*As of May 2013, at 2012-13 rates

26. Project name
Investment
(US$ million)
PPP
type
Stage
Bangalore International Airport
419.6
BOOT
In operation
Department of Ports & Inland Water 2nd stage development of modern deep sea port at
Transport (DPIWT), Karnataka
Karwar
166.2
BOOST
Bidding
DPIWT, Karnataka
Honnavar Port Development, Uttar Kannada
239.1
BOOST
Bidding
DPIWT, Karnataka
Development of Malpe Port in Udupi District
284.8
BOOST
Bidding
Construction of Ring Road Around Bengaluru City
652.2
BOT-Toll
EOI
Karnataka Road Development
Corporation (KRDCL)
Development of road from State Highway-17 to
State Highway-19
307.2
BOT-Toll
Bidding
Karnataka Road Development
Corporation (KRDCL)
Development of road Sira-Madugiri-GowribidanurChikkaballapura-Shidalgatta-ChithamaniSrinivasapur-Mulbagal SH-58 and other
connecting roads
309.1
BOT-Toll
Bidding
Contract authority
Airports
Ministry of Civil Aviation
Ports
Roads
Bengaluru Development Authority
Source: www.pppindiadatabase.com
BOOT: Build-Own-Operate-Transfer, BOOST: Build-Own-Operate-Share-Transfer, BOT: Build-Operate-Transfer, EOI: Expression of Interest

27. Contract authority
Project name
Investment
(US$
million)
PPP
type
Stage
Development of international convention centre at
Devanahalli
221.5
BOTAnnuity
Construction
Tourism
Department of Tourism, Karnataka
Urban development
24x7 urban water supply
367.1
-
In
implementation
Karnataka Land Army Corporation
Limited (KLAC)
Establishment of KLAC office
239.1
DBFOT
Bidding
Animal Husbandry and Veterinary
Science
Commercial development of animal husbandry and
veterinary science land
55.3
DBFOT
EOI
Transfer station in Bengaluru
18.9
-
EOI
Karnataka Urban Infrastructure
Development and Finance
Corporation
Bengaluru Mahanagara Palike,
Karnataka
Source: www.pppindiadatabase.com
BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer, EOI: Expression of Interest

28. The state has 21 operational, one valid in-principle approval
and 61 formal approval SEZs, as of March 2013.
Exports from SEZs in Karnataka (US$ billion)
5.3
The Karnataka Industrial Areas Development Board has
developed 141 industrial areas spread all over the state.
CAGR:
97.6*%
The Karnataka State Industrial & Infrastructure
Development Corporation has promoted over 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.
4.1
2.2
1.7
2011-12
2010-11
2009-10
Exports from SEZs in Karnataka grew at a CAGR of 97.6*
per cent from US$ 0.4 billion in 2007-08 to US$ 5.3 billion in
2011-12.
2008-09
2007-08
0.4
SEZ with valid in-principle approval
Name/Developer
M/s. Ozone SEZ Developers Pvt Ltd
Location
Chikkaballapura
Primary industry
Pharmaceuticals
Sources: www.sezindia.nic.in, Department of Industries and Commerce, Karnataka
*Growth rate in INR terms

29. Some of the operational SEZs in Karnataka
Name/developer
Manyata Embassy Business Park
Location
Primary Industry
Bengaluru
IT/ITeS
Varthur Hobli, Electronic City, Bengaluru
IT
Dakshina, Kannada
IT/ITeS
Vrindavan Tech Villages SEZ (Vikas Telecom Limited)
Bengaluru
IT/ITeS
Cessna Garden Developers Pvt Ltd
Bengaluru
IT/ITeS
Anekal, Bengaluru
Biotechnology
Bengaluru
IT/ITeS
Hasan
Textiles
Information Technology Park Ltd
Bengaluru
IT/ITeS
Primal Projects Private Limited
Bengaluru
IT/ITeS
Bagmane Construction Pvt Ltd
Bengaluru North
IT/ITeS
Udupi
Hi-tech engineering products and
related services
Samudravalli, Sankalapura
Food processing
Whitefield, Bengaluru
IT/ITeS
Belgaum
Precision engineering products
WIPRO Limited
Infosys Technologies SEZ Mangalore
Biocon Limited
HCL Technologies Ltd
KIADB (Textile)
Synefra Eng. & Const. (Suzlon Infrastructure Limited)
KIADB (Food)
Gopalan Enterprises (India) Private Limited
Quest SEZ Development Private Limited
Source: www.sezindia.nic.in

30. Some of the SEZs with formal approvals
Name/developer
Location
Primary Industry
M/s. Biocon Ltd
Bengaluru
Biotechnology
Karnataka Industrial Areas Development Board
Mangalore
IT/ITeS
Dakshina Kannada
IT/ITeS
Karnataka Industrial Areas Development Board
Shimoga
Engineering & related industries
Karnataka Industrial Areas Development Board
Hassan
Food processing and related services
Bengaluru
Biotechnology
Near Mangalore
Port
Port-based for hi-tech engineering products
and related services
Hassan
Pharmaceuticals
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
Infosys Technologies Limited
Karnataka Biotechnology and Information Technology Services
Suzlon Infrastructure Ltd
Karnataka Industrial Areas Development Board
Mangalore SEZ Limited
Source: www.sezindia.nic.in

31. The state has a literacy rate of 75.6 per cent according to
the provisional data of Census 2011; the male literacy rate
is 82.8 per cent and the female literacy rate is 68.1 per cent.
Literacy rates (%)
Literacy rate
Male literacy
There are 289 polytechnics and 187 engineering colleges to
provide technical education in the state.
82.8
Female literacy
The state has 3,640 pre-university colleges, 1,362 ‘other
colleges’ and 40 universities to impart general education.
There are about 0.968 million students in the pre-university
colleges.
75.6
68.1
Educational infrastructure (No)
•
•
•
•
•
•
•
•
•
•
•
Universities: 40
Pre-university colleges: 3,640
Other colleges: 1,362
Engineering colleges: 187
Polytechnics: 289
Vocational institutes: 553
Medical colleges: 43
Dental colleges: 41
Ayurvedic colleges: 75
Homeopathy colleges: 12
Unani colleges: 4
Sources: Economic Survey of Karnataka 2011-12,
University Grants Commission, Medical Council of India, Census 2011 (provisional data)

32. State participation in primary education is significant as 75.8
per cent of the primary schools are managed by Department
of Education.
Karnataka is home to several premier institutions:
Indian Statistical Institute
Indian Institute of Science
Indian Institute of Management
Karnataka education statistics (2011-12)
Number of schools
Lower primary: 25,951
Higher primary: 33,604
High schools: 13,862
School dropout rate
(In per cent)
Lower primary: 1.2
Higher primary: 4.4
Pupil-teacher ratio
Lower primary: 14:1
Higher primary: 23:1
National Law School of India University
Source: Economic Survey of Karnataka 2011-12
Institute for Social and Economic Change
University of Agricultural Sciences, Bengaluru
Kannada University, Hampi

33. Three-tier health infrastructure comprising primary health
centres, health units, community health centres and subcentres is available in the state.
The policy of the government is to establish one primary
health centre for every 30,000 inhabitants, one dispensary
for every 15,000-20,000 inhabitants, and one sub-centre for
every 5,000 inhabitants.
Health indicators (2011)
Beds per 100,000 population (2010-11)
112
Birth rate*
18.8
Death rate*
7.1
Infant mortality rate**
35
Life expectancy at birth (years)
Male (2002-06)
Health infrastructure (as of December 2011)
•
•
•
•
•
•
•
District hospitals: 17
Other hospitals: 10
Community health centres: 326
Primary health centres: 2,310
Sub-centres: 8,871
Dispensaries: 659***
Beds in hospitals: 61,848
63.6
Female (2002-06)
67.1
Sources: Economic Survey of Karnataka 2011-12, Sample
Registration System (SRS) Bulletin 2012 (www.censusindia.gov.in)
*Per thousand persons
**Per thousand live births
***As of March 2011

34. There are several sports complexes in Bengaluru, Mysore, Mangalore and other cities. Cricket, hockey and football are the
major sports although, other games are also popular.
The main sports arenas are the M. Chinnaswamy Stadium and the Sree Kanteerava Stadium in Bengaluru, Chamundi Vihar
Stadium in Mysore and the Mangala Stadium in Mangalore.
The Bengaluru Golf Course and the Karnataka Golf Association are well known golf courses in the state.
Karnataka is also home to a number of convention centres, which are used for exhibitions, both indoor and outdoor, such as
Palace Grounds and the Bengaluru International Exhibition Centre.
Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna and Kodagu have been
developed. Schemes are being prepared to develop rural tourism at other places also to showcase the rural life, art and
culture and heritage.
Ranga Shankara and Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru and are the performing spaces for
dance, music and theatre artists.
An international mega convention centre, with a seating capacity of 6,000, is being planned near the Bengaluru International
Airport.

35. The natural resources, policy incentives and infrastructure
in the state favour investments in the IT/ITeS,
biotechnology, engineering, electronics, automotive,
textiles, agri- and food-processing sectors.
Key industries in Karnataka
•
•
•
Karnataka’s favourable policies have encouraged industries
to set up their R&D centres in the state.
•
•
•
The state has about 366 R&D centres, the most in India.
•
•
About 50 per cent of MNC R&D centres in India are based
in Bengaluru.
•
•
•
Karnataka is making significant investments in industrial
infrastructure, such as setting up industrial clusters and
special economic zones (SEZs) and public-private
partnership (PPP) projects to provide an impetus to further
industrial development.
•
IT and ITeS
Biotechnology
Engineering
Electronics and telecom
Automotive
Textiles and apparel
Agro and food processing (floriculture)
Aerospace
Animation
Electronic hardware
Tourism
Renewable energy

36. Electronics and software exports from Karnataka
28.3
CAGR:
19.2*%
17.3
17.9
2009-10
23.1
19.1
2007-08
Bengaluru is the 4th largest technological cluster in the world
after Silicon Valley, Boston and London.
2008-09
Karnataka has emerged as an information technology (IT)
hub of India.
12.5
Karnataka has 47 IT/ITeS SEZs
investment regions.
2011-12
2006-07
The state is India’s largest software exporter, with
electronics and computer software exports totalling US$
28.3 billion in 2011-12.
2010-11
About 50.0 per cent of the world's SEI CMM Level 5 certified
companies are located in Bengaluru.
and dedicated IT
Some of the key players
There are 2,160 IT companies in the state.
The state houses 5,50,000 IT Professionals, or 1/3rd of the
total IT professionals in the country.
At least 400 Fortune 500 companies have outsourcing
operations in Karnataka.
•
•
•
•
Wipro Technologies
Infosys
Genpact
Accenture
Sources: Software Technology Parks of India, Global Investors Meet
2012, KIADB, Department of IT, Govt of Karnataka, Karnataka ICT Group
2020 Report, Visvesvarya Industrial Trade Centre
*Growth rate in INR terms

37. •
Wipro Ltd
•
•
Infosys Technologies Ltd
•
•
Genpact
•
Accenture
•
•
Wipro Ltd was established in 1945; and posted revenues of US$ 7.0 billion in 2012-13. It is present in
areas of 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 (CRM).
Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry specific
‘centres of excellence’ in over 54 countries. In September 2009, the company launched its Centre of
Excellence on its Electronic City campus; to work with other leading IT firms to develop innovative IT
solutions.
Infosys Technologies Ltd was set up in 1981, and posted revenues of US$ 7.4 billion in 2012-13. The
company is present in areas of IT consulting, modular global sourcing, process re-engineering and
BPO services.
The company has 68 offices and 70 development centres in US, India, China, Australia, Japan, UK,
Germany, France, and many other countries; and has marketing and technological alliances with
IBM, HP, Microsoft, Oracle, etc. It has operations at multiple locations at Bengaluru, Mangalore and
Mysore in Karnataka.
Genpact was set up in 1997 in India; formerly known as GE Capital International Services, the
company’s net revenues in 2011 stood at US$ 1.6 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. The company employs around 55,400
employees. The company has one office in Bengaluru in Karnataka.
Accenture is a global management consulting, technology services and outsourcing company, with
more than 249,000 people serving clients in more than 120 countries.
The company has one consulting office and seven delivery centres in Bengaluru.

38. 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.
Some of the key players
•
•
195 out of the total 340 biotech companies in India are
located in Karnataka.
Karnataka has over 6,800 scientists involved in biotech
research.
Premier life sciences institutions such as Indian Institute of
Science, National Centre for Biological Science, Jawaharlal
Nehru Centre for Advanced Scientific Research, etc., are
present in the state.
Karnataka has sector-focused SEZs in Mysore, Mangalore,
Hubli-Dharwar, Belgaum, Shimoga, Gulbarga, Kolar &
Mandya.
12 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, is due to come up
in Bengaluru.
•
•
Biocon
AstraZeneca India
Jubilant Life Sciences Ltd
GlaxoSmithKline Pharmaceuticals Ltd
Sources: Global Investors Meet 2012, Indian Biotechnology Industry Outlook
2012, Analyz Research, Visvesvarya Industrial Trade Centre

39. Biocon
•
Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of
Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. It is among the leaders in biopharmaceuticals and bio-services. It has its corporate headquarter at Bengaluru.
• The company’s revenue was about US$ 447 million in 2012-13.
•
AstraZeneca India
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,
maternal healthcare, etc..
• The company’s manufacturing plant is located at Yelhanka and R&D centre is located in
Bengaluru.
Jubilant Life
Sciences Ltd
•
GlaxoSmithKline
Pharmaceuticals Ltd
•
Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated
pharmaceuticals and life sciences company. It is the largest custom research and
manufacturing services (CRAMS) company and provides leading drug discovery & development
solutions outside India.
• The company has a manufacturing facility in Nanjangud, with around 625 employees.
GlaxoSmithKline Pharmaceuticals Ltd was established in 1924; it is one of the oldest
pharmaceutical companies in India.
• The company’s revenue was about US$ 482.7 million in 2012-13.
• GSK India product portfolio includes prescription medicines and vaccines. The company has a
clinical development centre in Bengaluru.

40. The engineering industry in Karnataka
prospects, given its performance.
has
positive
Some of the key players
•
In 2011-12, the export of engineering products stood at US$
1.7 billion.
•
•
•
Exports include machine tools, industrial machinery, cutting
tools, castings, automotive components, electrodes, welding
equipment, construction and earthmoving equipment, and
helicopter spares.
A number of engineering exporters are based in Bengaluru,
Hubli, Mysore, Belgaum, Mangalore, and Shimoga.
A 300-acre SEZ has been created in Belgaum to develop a
precision engineering and manufacturing supply chain
ecosystem, which would be a great driver for manufacturing
industries.
Bharat Earth Movers Limited, Hindustan Machine Tools
Limited and Bharat Heavy Electricals Limited are among the
leading companies in this sector in the state
Bharat Earth Movers Limited (BEML)
Hindustan Machine Tools Limited (HMT)
Bharat Heavy Electricals Limited (BHEL)
Saint-Gobain India
Source: VITC-NCTI Trade Info

41. BEML Limited
•
HMT Ltd
•
BHEL
•
Saint-Gobain India
BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML
manufactures a wide range of earth moving and other heavy industrial equipment for the mining
and civil engineering industries.
• BEML has its registered office at Bengaluru and units at Kolar Gold Fields, Mysore and
Bengaluru.
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.
• The company 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. It has 15 manufacturing divisions, two repair
units, four regional offices, eight service centres, eight overseas offices and 15 regional centres.
• BHEL has its electronics division at Bengaluru.
•
Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing
companies in India for a variety of products ranging from glass to engineering products.
• The company has a manufacturing plant in Bengaluru.

42. Karnataka is a leading state of the country in electronics and
telecommunication with over 300 of the world’s leading
companies.
Some of the key players
•
•
The state has high end research and development
organisations like 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.
It has excellent telecom infrastructure with 140 out of 170
towns connected by Optic Fibre Cables (OFC) network.
Bengaluru district is the major hub of electronics and
telecommunications industries. The other districts of
Hassan, Tumkur, Mysore, Mangalore and Shimoga are the
new destinations for promotion of electronics and hardware
industries.
The state houses global giants such as Sanyo, AT&T,
Siemens, GE, Motorola, Sony, and Alcatel as well as
national heavyweights such as BPL Limited and Indian
Telephone Industries Limited.
•
•
Bharat Electronics Ltd
Nokia
Siemens
Philips Electronics India Ltd
Source: Department of Industries and Commerce

43. Bharat Electronics Ltd
•
Nokia
•
Siemens
•
Philips Electronics
India Ltd
•
Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit,
multi-technology company. Products manufactured by BEL are mainly categorized as
systems/turnkey solutions, defence and non-defence products.
• The company has a manufacturing unit at Bengaluru, Karnataka.
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.
• It 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, employs over 18,000 people and has
21 manufacturing facilities in India. It has several offices in Bengaluru.
Philips is present in India for over 75 years. It is a leader in consumer electronics,
healthcare and lighting systems; the company employs over 4,500 people in India.
• The company has an R&D facility – Philips Innovation Campus – at Bengaluru.

44. Karnataka has a vibrant auto industry with investments of
around US$ 713.0 million and annual revenues of US$
604.0 million.
It is the fourth largest state in India in terms of automotive
production.
The government is in the process of announcing a
Dedicated Automobile Policy.
The sector attracted US$ 2.0 billion* of investments during
the Global Investors Meet 2012.
The main locations for automobile industries are Bengaluru,
Ramanagara, Kolar, Shimoga, Dharwad and Belgaum.
Some of the key players
•
General Motors Technical Centre, located in Bengaluru, is
actively involved in research, design, analysis and
development of vehicles and powertrains for foreign
destinations as well as the domestic market.
Toyota, Volvo, Tata Marcopolo and TVS Motors have set up
vehicle manufacturing units in Karnataka, which has led to
the growth of ancillary units involved in manufacturing tyres,
bearings and other auto spare parts.
The state has 3 auto clusters, 1 industrial valve cluster and
one auto component cluster.
Two manufacturing hubs are coming up in Narsapur and
Vemagal Industrial Areas in Kolar District.
•
•
•
Toyota Kirloskar
Volvo India
TVS Motor Company
Delphi Automotive Systems Pvt Ltd
Source: Global Investors Meet 2012
*At 2011-12 rates

45. Toyota Kirloskar
•
Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.
• The company has manufacturing facilities at Bidadi.
Volvo India
TVS Motor Company
Delphi Automotive
Systems Pvt Ltd
•
Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the
Volvo Group has about 100,000 employees, production facilities in 20 countries, and sales
activities in over 190 countries.
• In 2009, the Bengaluru bus plant delivered over 600 buses, a 50.0 per cent increase over
2008.
•
•
TVS Motor Company is one of the largest two-wheeler manufacturers in India. It is the
flagship company of the TVS Group. The company has four manufacturing plants across
India, including Mysore in Karnataka.
Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. It is a leading
global supplier of electronics and technologies for automotive, commercial vehicles and
other market segments.
• The company has a technical centre at Bengaluru, which is the largest technical centre
outside the US.

46. Karnataka is one of the leading producers of cotton, silk and
wool, which are the key raw materials required for textile
manufacturing units. The state produces 65.0 per cent of
India’s silk.
The state plans to develop a 230-acre textile SEZ in
Hassan, dedicated apparel zones in Bengaluru Rural,
Tumkur, Kolar, Mandya, Belgaum, Bidar, and Dharwad, and
a Silk City in Bengaluru.
Karnataka is a major apparel sourcing destination for the
global market. The state accounts for 20.0 per cent of the
national garment production.
Bengaluru houses reputed international companies such as
Nike, Tommy Hilfiger, GAP, Donna Karan, Walmart, Jones,
and Liz.
The state hosts over one million power looms.
There are approximately 0.38 million manufacturing units
engaged in the textiles and garments sector at the organised
and unorganised level.
Some of the key players
•
•
•
•
Gokaldas Exports Limited
Karnataka Silk Industries Corporation (KSIC)
Himatsingka Seide
Shahi Exports Private Limited
It has 105 skill development centres and 240 private training
centres funded by the Department of Handloom.
Source: VITC-NCTI Trade Info, Global Investors Meet 2012
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 sector has potential for future growth. Karnataka has an
apparel park at Dodaballapur near Bengaluru and other
mega textile parks in the other parts of the state.

47. Gokaldas Exports Ltd
KSIC
Himatsingka Seide
Shahi Exports Pvt Ltd
•
Gokaldas is one of the largest garment exporters in the country. It commenced operations in
1979.
• Headquartered in Bengaluru, the company has 29 factories across Karnataka. The
company employs around 32,000 people. It has a manufacturing capacity of 2.5 million
garments per month.
•
Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise. It is
a leading manufacturer of silk.
• The company has two modern factories located in T. Narasipura & Mysore, engaged in
manufacturing silk goods right from raw silk yarn to silk fabrics.
•
Himatsingka Seide was incorporated in 1985. It is a Bengaluru-based company and deals in
natural silk fabric.
• The company’s focus area is textile designing and manufacturing. It 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 over 2,500 products.
•
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. It has
manufacturing facilities in Delhi, Bengaluru, Salem and Tirupur

48. Most of the civil infrastructure work has been established in
Malur, Hiriyur, Bagalkot and Jewargi food parks, which had
been approved by Ministry of Food Processing Industries,
Government of India.
Karnataka is the largest producer of coffee and cocoa in the
country.
Coffee exports from Karnataka (US$ million)
Government of Karnataka had approved the establishment
of food parks in six districts; Bengaluru rural, Tumkur,
Shimoga, Davangere, Bijapur and Belgaum. These parks
are in advanced stages of implementation.
262
2011-12
2007-08
The state is one of the leading producer of flowers, spices,
fruits and vegetables.
402
291
2010-11
241
2009-10
The state accounts for around 70.0 per cent of the country’s
total coffee production. In 2011-12, the coffee production in
the state was estimated to be at around 221,000 metric
tonnes.
Some of the key players
•
A spice park is proposed to be developed at Byadagi in
Haveri district.
584
CAGR:
24.8%
2008-09
Karnataka, with a good agricultural base including a variety
of food crops, offers immense scope for the development of
food processing industries.
•
•
•
Hindustan Unilever Limited
Nestle India
Britannia Industries Limited
United Breweries Group
Sources: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

49. Hindustan Unilever Ltd
•
Nestle India
•
Nestle has been in India for almost a century, with seven production facilities across the
country, including one at Nanjangud, Karnataka. It produces chocolates and
confectionaries, prepared dishes and cooking aids, beverages and milk products and
nutrition supplements.
Britannia Industries Ltd
•
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 had a
revenue base of US$ 1.1 billion in 2012-13.
United Breweries Ltd
•
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods (FMCG)
company, with leadership in home & personal care products and foods & beverages. It
recorded revenues of US$ 4.9 billion during 2012-13. The company employs over 16,000
people nationwide.
• The company has a manufacturing plant and an R&D centre at Bengaluru.
United Breweries Limited is a flagship company of the UB Group. The company is also
referred to as the beer division of the UB Group and it is based in Bengaluru. It has
recorded a net turnover of US$ 659.0 million in 2012-13.
• The company has around 2,489 employees. It manufactures products, primarily, under the
brands Kingfisher, London Pilsner and UB Premium Ice.

50. Karnataka produces more than a quarter of India’s aircraft
and spacecraft.
Some of the key players
•
Around 984 acres of land is earmarked for an exclusive
industrial area and sector-specific SEZ for aerospace
industries near Bengaluru International Airport.
India’s first aerospace SEZ of 300 acres is operational at
Belgaum.
Karnataka Aerospace Policy has identified an investment
potential of US$ 12.5* billion in this sector during 2013-2023
and plans to develop aerospace clusters in different regions
of the state.
Companies like Air India, Boeing and Jupiter Aerospace
have selected Karnataka for the development of MRO
facilities.
•
•
•
Boeing
Hindustan Aeronautics Limited
Airbus Engineering Centre
BEML Ltd
Sources: Global Investors Meet 2012, MRO India, NRI
Forum Karnataka, Karnataka Aerospace Policy 2012
Ministry of Civil Aviation, India
*At 2011-12 rates

51. Boeing
•
HAL
•
Airbus
BEML Ltd
In India, Boeing is represented through its wholly owned subsidiary, Boeing International
Corporation India Private Limited (BICIPL).
• Boeing established its first R&D centre in India – the Boeing Research & Technology Centre
– in Bengaluru, Karnataka 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 9 research and development centres in 7 locations across
India; of which, 8 production units and 4 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 like defence, rail, power, mining and infrastructure.
• BEML is involved in the manufacturing of aircraft components/assemblies and MRO
activities related to aerospace applications.
•
Sources: Global Investors Meet 2012, KUM Karnataka, Airbus, BEML Ltd

52. The state has 20 institutes that are imparting AVGC related
training to more than 10,000 students.
Some of the key players
•
Major suppliers to the industry like HP, AMD, NVIDIA and
Microsoft are located in Bengaluru.
•
•
•
Technicolor
TATA Elxsi
Zynga
DreamWorks
There has been a considerable increase in AVGC business
outsourcing to Bengaluru.
A lot of content for global blockbuster animation movies like
Life of Pi, Harry Potter, Kung fu Panda, Prometheus, Pirates
of the Caribbean, among others, was developed in
Karnataka.
There is a plan to set up AVGC parks, similar to the SEZ
model.
A plan has been formulated to set up a venture capital fund
and a centre of excellence to provide common resources for
IP creation.
An adequate extent of land is to be earmarked for the AVGC
sector in the proposed Integrated Information Technology
Investment Region (ITIR) near Bengaluru International
Airport.
Sources: PwC report estimates, Karnataka AVGC Policy
*Forecasted
AVGC: Animation, Visual effects, Gaming and Comics

53. Technicolor
Tata ELXSI
Zynga Inc
•
Technicolor is a worldwide technology leader in the media and entertainment sector with
revenues of approximately € 3.5 billion in FY 2012 (January to December).
• 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 more than 950 people.
•
Tata Elxsi is a listed company, and it is headquartered in Bengaluru.
• It is a global design company and offers key services including embedded product design,
industrial design, animation & visual effects and systems integration.
•
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, among others.
• 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
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.
Sources: Technicolor, TATA Elxsi, Zynga, DreamWorks

54. 80 out of the 120 companies engaged in chip designing in
India are located in Karnataka.
Some of the key players
•
The state has the advantage of having relatively low cost
skilled/technical manpower as compared to 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 Policy is expected to provide for development of
three ESDM innovation centers that will provide complete
infrastructure with the requisite design tools.
ESDM Policy also plans to set up 7 high class ESDM
manufacturing clusters (EMC) to provide infrastructure
support including electronic manufacturing services and
component manufacturing by 2020.
Intel
AMD
Qualcomm Inc
Nvidia
Sources: Department of Electronics and Information Technology, GoI,
Department of IT, BT and S&T, Karnataka; ESDM Policy, Karnataka

55. Intel
AMD
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 centers in India, located in Hyderabad and Bengaluru.
•
Qualcomm Inc
•
NVIDIA
•
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-ofthe-art facility and data centre that facilitate top-to-bottom designing of advanced graphics
and digital media processors for a wide range of platforms.
Sources: Intel, AMD, Qualcomm Inc, Nvidia

56. Karnataka boasts of a diverse flora and fauna and a 320 km
natural coast line, which makes it a nature tourist's paradise.
Number of tourist arrivals in Karnataka (million)
84.68
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 amongst
the top seven train journeys in the world.
CAGR:
22.4%
36.7
38.36
37.53
2006
2007
2008
33
38.53
25.24
Karnataka has World Heritage Sites at Hampi and
Pattadakal.
2005
Good infrastructure in the form of better road and rail
connectivity as well as improving hospitality is also aiding
tourism.
The state attracted 84.1 million domestic tourists and 0.57
million international tourists in 2011. Tourist arrivals have
increased at a CAGR of 22.4 per cent during 2005-2011.
Contributes 15.0 per cent to GSDP of Karnataka; plans are
afoot to expand it to 25.0 per cent by 2020.
2009
2010
2011
Sources: Global Investors Meet 2012, Department of Tourism, Karnataka

57. Major attractions
Karnataka is India’s most preferred destination for advanced medical care, and is referred
to as the medical tourism hub of India.
• It has the highest number of approved health systems, multi-specialty health centres and
alternative health therapies in India.
•
Medical tourism
The state represents wide variations in topography – high mountains, hills and long
coastal stretches.
• It has 5 national parks, 26 wild life sanctuaries, pelicanries, heronries and elephant camps.
•
Eco tourism
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.
•
Adventure tourism
Sources: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

58. Renewable energy contributes nearly 25.0 per cent of the state’s installed power capacity.
Karnataka is endowed with high renewable energy potential like wind, hydro, solar, tidal, geothermal energy resources etc.
The renewable energy potential for the state is estimated at 28 GW, primarily from wind, small hydro, co-generation and
biomass sectors.
The government has allotted projects of 16,380 MW, amounting to nearly 68.6 per cent of the total potential.
Renewable Energy Policy plans to set up renewable energy economic zones by procuring 10.0 per cent of the land of SEZs
and dedicating it for renewable energy.
It also mandates to keep aside 10.0 per cent of barren government land for renewable energy.

59. Capacity
Capacity
Renewable
Capacity
Pending commissioned
Capacity due for
commissioned
energy potential allocated applications during current
commissioning
cumulative
(MW)
(MW)
(MW)
financial year
(MW)
(MW)
(MW)
No
Renewable
energy source
1
Wind
13,236
11,460.5
3,014.2
115.5
2,216.71
7,298.70
2
Hydro
3,000
2,851.5
201.4
0
701.41
1,830.49
3
Biomass
1,000
362.4
62.08
0
90.94
265.5
4
Waste to energy
135
15.5
40.89
0
0
15.5
5
Cogeneration
1,500
1,591.2
147
0
1,111.11
451.29
6
Solar grid
5,000
99
1,501.0
10.0
24
65
Grand total
23,871
16,380.1
4,966.6
125.5
4,144.2
9,926.5
Sources: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy

60. Wind energy
Karnataka wind energy density map
Karnataka has the largest wind energy potential of 13,236
MW in India.
The state has just 2,197 MW of installed wind capacity; this
provides a huge opportunity to harness the untapped
potential of the market.
Wind velocity in the state ranges from 0.85m/s to 8.27 m/s.
Potential areas for wind power plants in the state include
Chitradurga, Gadag, Chikmaglur, Bellary, Davangere,
Koppal, Bijapur, Bagalkot, Belgaum etc.
Wind power
density W/Sq m
0 – 100
100 – 200
200 – 250
250 – 300
300 – 400
400 – 500
Source: Centre for Wind Energy, Chennai
Sources: KREDL, Global Investors Meet 2012

61. Solar energy
Karnataka solar resource map
Solar Policy 2011-16 envisages to add 40 MW of capacity
each year.
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.
126 MW solar capacity is to be added in 2013-14.
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 requirement of
0.25 per cent.
Karnataka is the only state to have supported solar projects
under the REC (Renewable Energy Certificate) mechanism.
Source: http://solargis.info/doc/71
Sources: Karnataka Solar Policy 2011, Global Investors Meet 2012

62. Agency
Description
Contact information
•
•
Responsible for formulating
industrial policies in the state.
It is the single contact point for investors in the state.
•
Karnataka Udyog
Mitra (KUM)
Anchor department for development/establishment of
industries in Karnataka.
•
Department of
Industries and
Commerce (DIC)
Considers/forwards proposals to concerned agencies
and communicates status to investors.
•
Monitors implementation of approved projects.
•
Single point contact for information on various
aspects including land availability, statutory
approvals and coordination.
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
and
implementing
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: www.kumbangalore.com

63. 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.
•
Nodal agencies for approval of projects at district level.
•
The primary focus of the agency is to promote small scale, village and cottage
industries.
•
There are various sector-specific departments such as Department of Tourism,
Department of Information Technology and Biotechnology, Department of Food
Processing, Department of Textiles, Department of Mines and Geology.
District Industries Centres
Other departments

64. 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
District Authorities
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
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

65. 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.

66. Stage 1 Clearance of the project/industry
State Level Single Window Agency
(Large/mid-size industries US$ 0.65 –
10.9 million)
Stage 2 Clearance
High Level Clearance Committee
(Mega industries > US$ 10.9 million
KIADB
(Land acquisition)
Karnataka Udyog Mitra
(Department of Industries and Commerce)
Other sector-specific
departments
KSPCB
(Pollution Board)
KPTCL
(Electricity)
Inspectorate of
Factories and
Boilers
Commercial Tax
District Industries
Centre
(Tiny industries < US$
0.65 million)
Investor
Land conversion
BWSSB/KUWSDB
(Water supply)
Source: Karnataka Udyog Mitra, Karnataka Industrial Areas Development Board and Department of Industries & Commerce

67. Cost parameter
Cost estimate
Industrial land (per sq ft)
US$ 4.5 to US$ 120
Power cost (per kWh)
Industrial: US 8.3 cents to 11.5 cents
Commercial: US 11.8 cents to US 15.0 cents
Labour (minimum wage per day)
US$ 2.8 to US$ 3.6
Water (per kilolitre)
Bengaluru Metropolitan Area:
Non-domestic: US 75 cents to US 125 cents
Industries: US$ 1.25
Sources: Industry sources, Ministry of Labour and Employment, Government of India,
Bengaluru Water Supply and Sewerage Board, Karnataka Electricity Regulatory Commission

68. ESDM Policy 2013
Objective
•
To facilitate, promote and develop the ESDM sector in Karnataka and make Karnataka a
preferred destination for investment in this sector.
Read more
Aerospace Policy 2012
Objectives
•
•
To position Karnataka as a vibrant aerospace hub of Asia and a globally recognised 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.
Read more
AVGC Policy 2012
Objective
•
Encourage and support appropriate manpower development, infrastructure development and
business development in the AVGC sector.
Read more

69. Information and Communication Technology Policy 2011
Objectives
•
•
•
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).
Read more
Integrated Agribusiness Development Policy 2011
Objective
•
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-ofthe-art infrastructure facilities, thereby generating higher returns for farming communities.
Read more
Karnataka Renewable Energy Policy 2009-14
Objectives
•
•
Development, propagation and promotion of renewable energy resources and technologies.
Creation of a suitable environment for private sector participation in renewable energy power
generation.
Read more

70. Karnataka Industrial Policy 2009-14
Objective
•
To build a prosperous Karnataka through development of human and natural resources in a
systematic, scientific and sustainable manner.
Read more
Karnataka Tourism Policy 2009-14
Objective
•
To make tourism Karnataka’s principal and largest economic activity as an employer, revenuegenerator and engine of growth, by being among the top two tourism destinations in India by
2016-17.
Read more
State Policy for Special Economic Zones 2009
Objective
•
To facilitate and expedite establishment of SEZs, at the same time safeguarding the environment
and the interests of land owners.
Read more

71. Millennium Biotech Policy II 2009
Objective
•
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.
Read more
Karnataka Mineral Policy 2008
Objectives
•
•
•
To optimise the state’s geological potential by scientific and detailed prospecting. State-of-the-art
techniques will be encouraged by combining the resources of the private and public sectors.
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. Priority will be given to the applicants
who propose establishment of industries for value addition within the vicinity of the mineral
bearing areas.
Read more

72. Suvarna Vastra Neethi 2008-13 (Textile Policy)
Objectives
•
•
To achieve balanced, higher and sustainable growth in the entire textile value chain.
To facilitate emerging units in critical areas such as production technology, market research, and
development in order to exploit global and domestic trade opportunities.
Read more
Infrastructure Policy 2007
Objective
•
To provide a fair and transparent policy framework to facilitate the process of economic growth
and encourage public-private partnerships (PPP) in infrastructure.
Read more

73. Exchange rates
Year
INR equivalent of one
US$
2004-05
44.95
2005-06
44.28
2006-07
45.28
2007-08
40.24
2008-09
45.91
2009-10
47.41
2010-11
45.57
2011-12
47.94
2012-13
54.31
Average for the year

74. India Brand Equity Foundation (“IBEF”) engaged Aranca to prepare this presentation and the same has been prepared
by Aranca in consultation with IBEF.
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This presentation is for information purposes only. While due care has been taken during the compilation of this
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