Karnataka is located in the south of India. It is surrounded by the Arabian Sea on the west, Goa on the northwest, Maharashtra on the north, Andhra Pradesh on the east, Tamil Nadu on the southeast, and Kerala on the southwest.
Karnataka has a vibrant automobile, agro, aerospace, textile and garment, biotech, and heavy engineering industries.
The state has sector-specific Special Economic Zone (SEZs) for key industries such as IT, biotechnology, engineering, food processing and aerospace. Karnataka is the IT hub of India & home to the fourth-largest technology cluster in the world.
Karnataka boasts of diverse flora and fauna and a 320 km natural coastline, which makes it a nature tourist's paradise.
According to an EXIM Bank report, in FY25, total exports from the state stood at Rs. 2,31,888 crore (US$ 27.15 billion) in FY25 (until February 2025). Engineering Goods were the top exported item from Karnataka, accounting for 25.3% of the total exports, followed by Electronic Goods 23.7%.
Karnataka offers a Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy 2020-25, with simplified procedures for investment. In September 2017, the government of Karnataka passed the ‘Karnataka Electric Vehicle and Energy Storage Policy 2017’. In June 2021, the Karnataka government amended the policy to offer more impetus to the electric mobility sector.
As per the amendment, a 15% subsidy was announced on capital expenditure on land value (fixed value assets up to a maximum limit of 50 acres of land).
As of February 2025, the state had an installed power generation capacity of 34,544.76 MW. Of this, central utilities contributed 4,062.22 MW, private utilities 21,263.01, and state utilities 9,219.54 MW. Of the total installed power generation capacity, 10,829.47 MW was contributed by thermal power, followed by nuclear 698.00 MW, renewable power 23,017.29 MW and hydropower 3,631.60 MW.
