Karnataka is a leader in India’s technology sector, both in terms of investments and exports. The state is also the largest software exporter in India.
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.
At current prices, Karnataka’s revised gross state domestic product (GSDP) is estimated to be ~Rs. 22.4 trillion (US$ 271.39 billion) in 2022-23. The state’s GSDP increased at a CAGR of 11.51% between 2015-16 and 2022-23.
Total exports from the state stood at US$ 15.52 billion in FY23, and US$ 25.87 billion in FY22.
In overall exports, sectors such as petroleum products, iron & steel and organic chemicals were the key contributors. According to an EXIM Bank report, by 2024-25, Karnataka’s merchandise exports can reach US$ 35.3 billion, and software and services exports can reach US$ 150 billion.
Karnataka has 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 a diverse flora and fauna and a 320 km natural coastline, which makes it a nature tourist's paradise.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the state’s cumulative FDI inflow stood at US$ 36.83 billion between October 2019-June 2022, the second-highest in the country after Maharashtra, and accounted for 23.17% of India’s cumulative FDI inflows.
Karnataka offers a Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy 2020-25, with simplified procedures for investment. Through the ESDM Policy 2017-22, the Government of Karnataka plans to facilitate, promote and develop the ESDM sector in Karnataka and make the state a preferred destination for investment in this sector. 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 land).
As of May 2023, the state had an installed power generation capacity of 31,743.52 MW. Of this, central utilities contributed 4,047.46 MW, private utilities (18,850.58 MW), and state utilities (8,845.49 MW).
As per the State Budget 2022-23, Rs. 12,226 crore (US$ 1.57 billion) has been allocated for the energy sector. Out of this, Rs. 9,419 crore (US$ 1.21 billion) has been allocated to provide subsidies to the Karnataka Power Transmission Corporation Limited.
Dr. Harsh Vardhan, Union Minister for Health and Family Welfare inaugurated six new ‘Outreach Service Centres for Communication Disorders' across the country by All India Institute of Speech and Hearing (AIISH), Mysuru.