Tamil Nadu is located at the west coast of southern part of India and it has a population of 71.07 million with Bengaluru being the capital of the Karnataka State. It was formerly known as the State of Mysore and was renamed to Karnataka in the year 1973. It is the sixth largest state of India by area and eighth largest by population. Kannada is the most widely spoken language in Karnataka.
The expected GDP of the State for 2023-24 is around USD 322 billion and is expected to grow by 17.7 % for the financial year 2023-24 .
The State comprises of service sectors, agricultural areas and manufacturing zones. Bengaluru being the Capital has the most number of IT companies and is considered to be the Silicon Valley of India with a total IT services exports worth USD 53 billion. Some of the most prominent IT companies are Google, SAP, Adobe, Infosys, Wipro, TCS, Oracle. Apart from Bengaluru, Mysore is known for its cultural heritage, Mangalore is rich in iron ore and petrochemical, Hubli Dharwad is famous for food products, Belgaum is famous for its powerloom industry and Bellary is known for its mining industry.
Apart from being home to one of the largest IT sectors that is responsible for roughly 40 percent of India’s total IT exports, Karnataka is divided into various industrial zones hosting number of manufacturing units in these industrial zones. Some of the most important industrial zones are Bengaluru – Kolar – Tumakuru Industrial region, Belagavi – Dharwar region, Dakshina Kannada and Udupi region, Ballari – Raichur – Koppal Industrial region and the Mysuru – Mandya Industrial region. The Karnataka Industrial Area Development Board (KIADB) is responsible promotion, management and providing infrastructure facilities for setting up Industries in Karnataka.
With the recent development, the State has been attracting a large number of foreign direct investment more specifically in the IT sector. The present Inflow of FDI is about USD 2.8 billion for the first half of financial year 2022-23. “Bengaluru, renowned as India’s start-up capital and home to 40 per cent of India’s unicorns, is facing the impact of these challenges,”
Karnataka is the first state that introduced the Karnataka Industries Act in 2002, whereby which Government has made doing business easier and smarter by ensuring 98.64 percent compliance to provisions of Business Reforms Action Plan. By introduction of a e-Udyami, the Single Window Portal of Karnataka, the approvals/ clearances; including renewals, can be sought from various line departments. In addition, all industry related services have been bought under the purview of a single regulation for time-bound rendition of services.
Karnataka apart from the IT sector is also an important hub for manufacturing of automobile and auto components. It is the 4th largest automobile producing State in the country, contributing 8.5 % to the national output in the sector. The Pharmaceutical industry is also very prominent, wherein Karnataka exports 40 per cent of its pharma produce. Due to the presence of exclusive Pharma Special Economic Zone in Hassan, Pharma Industrial Areas and Research and Development Centres provide required impetus for further growth of the Pharma sector in the State. Karnataka is also considered as a fountain head of of global research and development with over 400 multi-national companies having their global research and development Centres in Bengaluru including GE, GM, Intel, Texas Instruments, Motorola, SAP, Oracle, IBM etc.
It Is Important to mention that the Infrastructure development has undergone massive transformation Karnataka is well connected with 6,572 km of national highways, 19,578 km of State highways and 3,250 km of railways. Currently, Karnataka stands 4th among States that are leading logistic hubs in the country and the policy aims to bring it to the first position.
Some of the most renowned international companies apart from the IT sector present in Karnataka are Mangalore Refinery and Petrochemical Limited, United Spirits Limited, Titan Company, Volvo Group, Britannia Industries, Bosch Limited, 3M India, to name a few.
Karnataka has a large number of operational special economic zones (SEZs) in India being 51 SEZ out of which 31 are operational SEZ as of date. Most of the SEZ cater to IT enabled services and manufacturing of Electronic hardware and software, Biotech Pharma and Pharmaceuticals.
You may looks for more information on industrial areas on https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1578141
Karnataka has one major port – New Mangaluru Port Trust (NMPT) and 10 other minor ports along its 300 km coastline. There are 2 Inland Container Depots (ICD) facilities (at Bengaluru and Belagavi) and 7 Container Freight Station (CFS) facilities in the State. The ports in Karnataka have reported to handle 5.78 million tonnes.
With its growth rate, Karnataka is definitely an emerging economy in India and ready to welcome foreign investors.
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