Karnataka has emerged as a key state with knowledge-based industry such as IT, biotechnology and engineering. The state also leads in IT and ITeS exports, which was US$ 16.3 billion for 2008-09. It is the science capital of India with more than 100 research and development (R&D) centres, and a preferred destination for multinational corporations with more than 150 such companies.
Karnataka is targeting 9 per cent annual economic growth during the Eleventh Five-Year Plan period (2007-12). Much of this growth is expected to come from the secondary sector, which is anticipated to grow from its current rate of 6-7 per cent to 10 per cent.
At current prices, the Gross State Domestic Product (GSDP) of Karnataka was about US$ 59.1 billion in 2008-09. The average GSDP growth rate between 1999-2000 and 2008-09 was about 11.8 per cent.
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. Karnataka is making significant investments in industrial infrastructure, such as setting up industrial clusters and Special Economic Zones (SEZ) and PPP projects to provide an impetus to further industrial development.
The state offers a wide range of fiscal and policy incentives for businesses under the New Industrial Policy, 2009-14. Additionally, the state has well drafted sector-specific policies for biotechnology, IT, business process outsourcing (BPO) and textiles.State Presentation (November 2010)
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