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

Latest update: April, 2018

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Per capita Income

 

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

Last Updated: April, 2018

KARNATAKA State Report | April, 2018

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$ 175.8 billion in 2016-17. The GSDP of the state grew at a CAGR of 13.33% between 2011-12 and 2016-17. The per capita GSDP increased at a compound annual growth rate (CAGR) of 12.11 per cent between 2011-12 and 2016-17 to US$ 2,708.9.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 27.095 billion during the period April 2000 to September 2017, 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, and engineering, food processing and aerospace.

Karnataka is the IT hub of India and home to the fourth largest technology cluster in the world. In 2016-17, total exports from the state aggregated to US$ 82.06 billion. Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT investment regions. As of January 2018, Karnataka had a total installed power generation capacity of 22,289.96 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 to 130.3 million in 2016.

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. 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 investments worth US$ 4.82 billion and create 55,000 jobs.

Key Sectors:

  • As of December 2017, the state had one operational SEZ (KIADB SEZ Hassan - Textiles) for the textile sector at Hasan, Karnataka.
  • As of January 2018, renewable energy was recorded at 8,431.34 MW out of the total installed capacity of 22,289.96 MW. Therefore, it contributed a total of 37.83% into the state’s total installed power capacity.
  • Up to January 2018, the installed capacity for wind energy in public and private sector, both, was recorded to be 3,840.36 MW.
  • In June 2017, Siemens Industry Software India Pvt. Ltd. has signed a MoU with the state government Tool Room & Training Center & Design Tech Systems Ltd. to establish four Centers of Excellence in Karnataka. The estimated cost of the project is US$ 302.22 million, out of which, US$ 32.62 million will be contributed by the state government & Siemen’s share will be US$ 271.08 million
  • Karnataka has emerged as an information technology (IT) hub of India. The state is India’s largest software exporter, with IT & electronic products exports totalling to US$ 37.25 billion by the end of December 2016.
  • The state exported engineering products worth US$ 2.26 billion in 2016-17 (up to September 2016).
  • During 2016-17 (up to September 2016), the state produced 32.50 million meters metres of handloom textiles, as compared to 38.68 million metres in 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.
  • 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

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