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

Last updated on May, 17 2021

Economic Snapshot
Economic Snapshot

 

Factfile

  • 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

KARNATAKA State Report | March, 2021

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 gross state domestic product (GSDP) stood at Rs. 16.65 trillion (US$ 225.99 billion) in 2020-21. The state’s GSDP increased at a CAGR of 9.76% between 2015-16 and 2020-21. The state’s per capita GSDP was Rs. 249,947 (US$ 3,392) in 2020-21. The per capita GSDP (in Rs.) increased at a CAGR of 8.95% between 2015-16 and 2020-21.

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, and engineering, food processing and aerospace.

Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world. It has 23 operational IT/ ITeS SEZs, five software technology parks and dedicated IT investment regions. Karnataka boasts of a diverse flora and fauna and a 320 km natural coastline, which makes it a nature tourist's paradise.

The state attracted Foreign Direct Investment (FDI) equity inflow worth US$ 10.66 billion between October 2019 and December 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

Merchandise exports from the state reached US$ 16.64 billion in 2019-20 and US$ 13.20 billion in 2020-21.

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’. Electric Vehicles manufacturing in Karnataka is expected to attract investment worth US$ 4.82 billion and create 55,000 jobs.

 

Key Sectors:

  • As of February 2021, the state had an installed power generation capacity of 30,056.48 MW. Of this, central utilities contributed 4,047.70 MW, private utilities (17,208.30 MW) and state utilities (8,800.49 MW).
  • On December 19, 2020, the Union Minister for Road Transport & Highways Mr. Nitin Gadkari inaugurated and laid the foundation for 33 national highway projects in Karnataka. These projects include 1,197 km long roads worth Rs. 10,904 crore (US$ 1.48 billion).
  • In December 2020, Karnataka government approved investments of Rs. 22,419 crore (US$ 3.18 billion) of three different proposals involving electric vehicle (EV) and lithium-ion battery manufacturing with the potential to create nearly 5,000 new jobs
  • As of February 2020, the state has 32 operational, 52 notified SEZs and 63 formally approved SEZs. The Karnataka Industrial Areas Development Board has developed 141 industrial areas spread across the state. The state plans to develop and upgrade eight clusters around Bengaluru with an investment of US$ 348.4 million in coming years.
  • Karnataka has emerged as an information technology (IT) hub of India. The state is India’s largest software exporter with software and service export totaling US$ 77.80 billion in 2018 19.
  • More than 60% of the biotechnology companies in India have a base in Bangalore and the state drives 50% of the total revenues in India’s biotechnology sector.
  • The Information Technology, Electronics and 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.
  • Karnataka is the first state which came out with an 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. Karnataka government has granted approval for investment of Rs. 480 crore (US$ 68.67 million) to Goodrich Aerospace Service Pvt Ltd to establish a unit in Bengaluru.

Factfile

  • 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
Karnataka Map

Karnataka