Go Back

About Karnataka: Information on Tourism Industry, Exports, Economy & Geography

October, 2017

Karnataka is located in the southern region 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.

At current prices, the gross state domestic product (GSDP) of Karnataka was about US$ 156.23 billion in 2015-16. The average GSDP growth rate between 2004-05 and 2015-16 was about 13.93 per cent. The per capita GSDP increased at a compound annual growth rate (CAGR) of 12.91 per cent between 2004-05 and 2015-16 to US$ 2,557. 

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 20.24 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech and heavy engineering industries. The state has sector-specific SEZs for key industries such as IT, biotechnology, engineering, food processing and aerospace.

Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world. As of September 2015, total exports from the state aggregated to US$ 19.63 billion. Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT investment regions. As of January 2016, Karnataka had a total installed power generation capacity of 17,333.92 megawatt (MW).

Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which makes it a nature tourist's paradise. Tourist arrivals in the state increased from 25.2 million in 2005-06 to 120.5 million in 2015-16.

Karnataka offers a wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2014-19. Through the ESDM Policy 2013, the government of Karnataka has planned to facilitate, promote and develop the ESDM sector in Karnataka and make the state a preferred destination for investment in this sector. Karnataka has released its Startup Policy 2016 with the objective of stimulating growth of 20,000 technology startups, creating 6,000 product startups and mobilizing Rs 2,000 crore (US$ 293 million) worth of funds.

Key Sectors:

  • Karnataka has emerged as an information technology (IT) hub of India. The state is India’s largest software exporter, with electronics and computer software exports totalling to US$ 10.38 billion during 2015-16.
  • More than 60 per cent of the biotechnology companies in India have a base in Bangalore and the state drives 50 per cent of the total revenues in India’s biotechnology sector.
  • The ITE&C (Information Technology, Electronics & Communication) department of the state has established a new IoT policy within the state with a view to attain a substantial market share in India’s IoT market by 2020.
  • During 2015-16 (up to December 2015), the state produced 38.68 million metres of handloom textiles, as compared to 41.29 million metres in 2014-15.
  • Karnataka is the first state which announced the aerospace policy in the country. Karnataka Aerospace Policy has identified an investment potential of US$ 12.5 billion in this sector during 2013–23 and plans to develop aerospace clusters in different regions of the state


  • Capital: Bengaluru
  • Geographical Area (sq km): 192,000
  • State Language: Kannada, Tulu, Kodava, Hindi and English
  • Literacy Rate: 75.6 per cent
  • Key Industries: IT and ITeS, biotechnology, engineering, electronics and telecom, automotive, textiles and apparel, aerospace, animations, tourism and renewable energy