Karnataka March 2015

Source: Global Investors Meet 2012, Department of IT, BT and S&T, Karnataka, ASSOCHAM Report, Planning Commission Databook 2013-14, DIPP, CMIE

Visvesvaraya Trade Promotion Centre, ITIR, BIA: Bengaluru International Airport, **In Indian rupee terms, ***At 2013-14 rates

6th largest state in terms

of GDP size in 2013-14

The state contributed 5.6 per cent to the GSDP of India in 2013-14.

Average GSDP growth rate between 2004-05 and 2013-14 was about 14.9** per cent.

The per capita GSDP increased to US$ 1,585.5, expanding at a CAGR of 13.7** per cent

between 2004-05 and 2013-14.

IT hub of India

Karnataka is the IT hub of India and home to the fourth largest technology cluster in the

world.

The state contributed US$ 29.5 billion to Indias electronics and software exports in 201314.

Karnataka has 47 IT/ITeS SEZs, three software technology parks and dedicated IT

investment regions.

Vibrant industrial base

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. An ITIR, spread across 10,000 acres, is

being developed near BIA.

One of the preferred

investment destinations

A conducive business environment has helped the state rank fifth in terms of attracting

private sector investments in India, as of December 2012.

Total outstanding investments amounted to US$ 171.0*** billion in 2013-14, while

cumulative FDI inflows from April 2000 to November 2014 stood at US$ 14.2 billion, the

fourth highest in India.

Source: Indian Minerals Yearbook 2014, Global Investors Meet 2012,

Economic Survey of Karnataka 2013-14, Visvesvarya Industrial Trade Centre, Bounteous Karnataka

* Till March 2013

Vast natural resource

pool

Karnataka is the sole producer of felsites and the leading producer of iron ore, chromite,

and dunite and contributes 99.5 per cent to India's total gold production.

Karnataka hosts 78.0 per cent of vanadium ore, 74.0 per cent of iron ore (magnetite), 42.0

per cent of tungsten ore and 38.0 per cent of asbestos reserves in India.

Strong knowledge

infrastructure

Karnataka has 43 universities, 4,676 pre-university colleges, 210* engineering colleges

and 297* polytechnics, 46 medical colleges and 38 dental colleges.

The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies

outsource their IT services to firms in Bengaluru.

Contributes 7 per cent

to the agricultural

production of India

Karnataka accounts for 69.3 per cent of the coffee production in India; coffee exports from

Karnataka stood at US$ 596.9 million in 2013-14.

The state is the 5th largest producer of fruits in the country and the fourth largest producer

of spices.

Karnataka is also the third largest producer of plantation crops in the country.

Number 4 in terms of

tourist arrivals in India

Karnataka boasts of a diverse flora and fauna and a 320 km natural coast line, which

makes it a nature tourist's paradise.

The state has World Heritage Sites at Hampi and Pattadakal.

Source: Karnataka Udyog Mitra, Planning Commission Databook 201314, D&B Cluster State Overview, CMIE, Karnataka Vision 2020, Department of Industrial Policy and Promotion, Visvesvaraya Trade Promotion Centre,

*In Indian Rupee terms, **At 2013-14 rates, includes electronics and computer software

Growing demand High economic growth

GSDP expanded at a CAGR of 14.9* per cent between 2004-05 and 2013-14.

Buoyant services (IT, tourism) and industries driving economic growth.

Sector specific SEZs and SIRs facilitating growth.

Rich talent pool

Karnataka is termed as the Knowledge Capital of India.

The state has successfully attracted skilled labour, especially, in the knowledge sector. Karnataka is among the states that produce a large number of doctors, engineers and medical technicians in the country.

Policy support

Wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 201419.

Investor-friendly sector-specific policies to promote industries such as IT, biotechnology, tourism and manufacturing.

Simplified procedures for investment.

Infrastructure

Well-developed social, physical and industrial infrastructure.

Good road, rail, water and air connectivity and substantial port infrastructure.

Well-developed telecom infrastructure.

Excellent healthcare facilities.

2013-14

IT exports:

US$ 29.5

billion**

2020

target

IT exports:

US$ 73.7

billion

Advantage

Karnataka

Healthcare/

Social

amenities

Education/

Skill

development

Infrastructure

Women

empowerment

Governance

Poor and

backward

classes

Tourism

Improve access and

availability of quality

healthcare for all.

Build infrastructure to boost

productive potential of the

economy.

Various metro rail and mono

rail projects are in progress.

Develop the state as a vibrant

knowledge society.

Focus on job oriented growth

through skill development of the

workforce.

Enhance opportunities and

empower women across

economic, social and

political spheres.

Better governance through

wider participation and deep

democratic decentralisation.

Encourage transparency and

accountability.

Increase rural incomes

through greater viability of

agriculture and allied activities.

Bridge the gap between

socially backward and

vulnerable groups and rest

of the people.

Preserve and promote

Karnatakas rich heritage. Karnataka Tourism Vision

Group (KTVG) was set up in

October 2013 to advise on

promoting tourism in state.

Industry

Build and sustain Bangalores leadership in science,

technology and knowledge

based industries.

Achieve a sustainable and

orderly process of

industrialisation and

urbanisation.

Source: State Planning Department

Vision

2020

Karnataka is located in the southern region of India. The

state is surrounded by the Arabian Sea in the west, Goa in

the northwest, Maharashtra in the north, Andhra Pradesh in

the east, Tamil Nadu in the southeast, and Kerala in the

southwest.

Languages spoken are Kannada, Tulu, Kodava, Hindi and

English.

Some of the prominent cities in the state are Ankola,

Bengaluru, Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur,

Chitradurga, Dandeli, Hubli-Dharwad, Mangalore, Mysore

and Shimoga.

Karnataka has a tropical climate with three major seasons:

warm and dry from February to May, monsoon from June to

October and winter from November to January.

Source: Economic Survey of Karnataka 2013-14, Census 2011

Parameters Karnataka

Capital Bengaluru

Geographical area (sq km) 192,000

Administrative districts (No) 30

Population density (persons per sq km) 319

Total population (million) 61.1

Sex ratio (females per 1,000 males) 973

Literacy rate (%) 75.4

Male literacy rate 82.5

Female literacy rate 68.1

Source: Maps of India

Parameter Karnataka All states Source

Economy 2012-13 2013-14

GSDP as a percentage of all states GSDP 5.6 100.0 Planning Commission Databook, 201314,

current prices

GSDP CAGR (%)* 14.9 11.54 Planning Commission Databook, November

2014, current prices

Per capita GSDP (US$) 1,585.5 1,833.24 Planning Commission Databook, December

2014, current prices

Physical Infrastructure

Installed power capacity (MW) 14,269.8 258,701.45 Central Electricity Authority, as of January 2015

Wireless subscribers (No) 56,514,721 930,200,000 Telecom Regulatory Authority of India, as of

September 2014

Broadband subscribers (No) 3,389,610** 75,730,000 Telecom Regulatory Authority of India, as of

September 2014

National Highway length (km) 6,294.3 96,260 National Highway Authority of India

Major and minor ports (No) 1+10 13+187 Indian Ports Association

Airports (No) 5*** 133 Airports Authority of India

*In Indian rupee terms for the period 2004-05 to 2013-14, **As of March 2014 indiastat.com, ***Includes only operational airports

Parameter Karnataka All states Source

Social Indicators

Literacy rate (%) 75.4 74.0 Planning Commission Databook, June 2014

Birth rate (per 1,000 population) 18.3 21.4 SRS Bulletin (www.censusindia.gov.in),

September 2014

Investment

FDI equity inflows (US$ billion) 14.66 238.6 Department of Industrial Policy & Promotion,

April 2000 to December 2014

Outstanding investments (US$ billion) 171.0 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No)* 134 1,339 www.pppindiadatabase.com

SEZs (No) 39 352 Notified SEZs as of 5th December 2014,

www.sezindia.nic.in

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

*As of January 2011

At current prices, the Gross State Domestic Product

(GSDP) of Karnataka was about US$ 96.7 billion in 2013-

14.

The average GSDP growth rate between 2004-05 and

2013-14 was about 14.9* per cent.

Growth has been mainly driven by secondary and tertiary

sectors.

Source: Planning Commission Databook, October 2014

*In Indian Rupee terms

GSDP of Karnataka at current prices (US$ billion)

37.2 44.4

50.3

67.2 67.3 71.2

90.0 94.6 95.6 96.7

200

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CAGR:

14.9%*

The Net State Domestic Product (NSDP) of Karnataka was

about US$ 85.7 billion in 2013-14.

The average NSDP growth rate between 2004-05 and

2013-14 was 14.8* per cent.



NSDP of Karnataka at current prices (US$ billion)

33.2 39.6

45.2

60.3 60.4 63.4

80.7 84.5 85.1 85.7

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CAGR:

14.8%*

The states per capita GSDP in 2013-14 was US$ 1,585.5.

The per capita GSDP increased at a Compound Annual

Growth Rate (CAGR) of 13.7* per cent between 2004-05

and 2013-14.



GSDP per capita of Karnataka at current

prices (US$)

673

793 889

1,173 1,161 1,216

1,522 1,582 1,583 1,585

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CAGR:

13.7%*

The states per capita NSDP in 2013-14 was US$ 1,405.3.

The per capita NSDP increased at a CAGR of 13.6* per

cent between 2004-05 and 2013-14.



NSDP per capita of Karnataka at current

prices (US$)

600

708 797

1,053 1,042

1,083

1,365 1,414 1,410 1,405

200

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00

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CAGR:

13.6%*

19.9 14.8

29.1 23.8

51.0 61.4

2004-05 2013-14

Primary Sector Secondary Sector Tertiary Sector

In 2013-14, the tertiary sector contributed 61.4 per cent to

the states GSDP at current prices, followed by the secondary sector (23.8 per cent) and primary sector (14.8

per cent).

At a CAGR of 17.3* per cent, the tertiary sector has been

the fastest growing among the three sectors from 2004-05

to 2013-14. The growth has been driven by trade, hotels,

real estate, finance, insurance, transport, communications

and other services.

The secondary sector grew at a CAGR of 12.4* per cent

between 2004-05 and 2013-14. This was driven by

manufacturing, construction and electricity, gas & water

supply.

The primary sector grew at a CAGR of 11.2* per cent

between 2004-05 and 2013-14.

Source: CMIE

*Growth rate in INR terms

GSDP composition by sector

CAGR

11.2*%

17.3*%

12.4*%

Source: Economic Survey of Karnataka 2013-14,

Department of Horticulture, Karnataka Agriculture Budget 2013-14

*In bales of 170 kgs each, ^First advance estimates of Agriculture Department,

^^Provisional data for 2011-12 (000 nuts)

Crop

Annual production

estimate^ in

2013-14 (000 tonnes)

Sugarcane 40,375

Maize 4,573

Rice 3,823

Banana 2,656

Coconut^^ 4,408.3

Sorghum (jowar) 1,391

Cotton* 1,299

Groundnut 564

Wheat 240

Total pulses 1,418

Total major oilseeds 1,168

Sugarcane was the major crop of the state with production

estimates of about 40.4 million tonnes in 2013-14.

The states food grain production is estimated to be 13.1 million tonnes in 2013-14.

Major oilseeds production is estimated to be 1.2 million

tonnes in 2013-14.

Production of cereals and pulses in the state is estimated to

be 11.6 million tonnes and 1.4 million tonnes, respectively,

in 2013-14.

In 2013-14, total production of major fruits in the state is

estimated at 6.9 million tonnes.

Total fruits production in the state is estimated at 6.9 million

tonnes in 2013-14.

Source: Economic Survey of Karnataka 201314, Visvesvarya Industrial Trade Centre, Government of Karnataka,

*Growth rate in INR terms,

STPI: Software Technology Parks of India

During 2013-14, total exports from the state aggregated

US$ 48.2 billion, which is approximately 12.4 per cent of

Indias total exports.

Karnatakas exports increased at a CAGR of 15.4* per cent during 2007-08 to 2013-14.

From a sector specific perspective, exports of electronics &

computer software, engineering products; readymade

garments and basic chemicals, pharmaceuticals &

cosmetics increased significantly in 2013-14 compared with

the previous year.

Electronic and software exports from the state reached US$

29.5 billion in 2013-14.

Karnataka exported US$ 5,964.4 million worth of petroleum

and chemical products during 2013-14.

Break up of exports by sector (2013-14)

Engineering

products

6.2%

Miscellaneous

and others

8.3%

Electronics &

computer

software

61.3%

Petroleum

and

chemical

products

12.4%

Gems and

jewellery

8.3%

Handloom & textiles

3.5%

The state has a stable political environment. Successive

state governments have realized the importance of

industries in the state and have provided conducive

business environment to attract domestic as well as foreign

entities.

In 2013-14, outstanding investments in the state totalled

US$ 171.0 billion, representing nearly 7.1 per cent of the

total outstanding investments in India.

Of the total outstanding investments, the manufacturing

sector attracted the most (36.3 per cent), followed by the

services sector (27.1 per cent).

Karnataka is ranked fifth in terms of attracting private sector

investments in India.

According to the Department of Industrial Policy &

Promotion (DIPP), the cumulative FDI inflows from April

2000 to November 2014 amounted to US$ 14.2 billion, the

fourth highest in India.

FDI inflows from April-December 2014 stood at US$ 1.985

billion.

Source: Composition of outstanding investments across states,

ASSOCHAM, Department of Industrial Policy and Promotion, CMIE

Break up of outstanding investments by sector

(2013-14)

36.3%

27.1%

16.2%

16.2%

3.7%

0.6%

Manufacturing

Services

Real Estate

Electricity

Irrigation

Mining

Karnataka attracted investments worth US$ 150.2* billion

during the Global Investors Meet, 2012.

Source: Global Investors Meet, 2012, *At 2012-13 rates

Investment proposals signed at Global Investors Meet

2012

Sector Amount (US$ billion)*

Energy 52.15

Automobile 1.95

Iron and steel 22.56

Cement and other minerals 10.34

Education and R&D 1.73

Agro, food and horticulture 3.32

Biotech and pharma 0.38

Textiles and apparels 0.99

Tourism 8.30

Housing and urban development 6.87

Industrial infrastructure 9.18

IT & electronics 14.98

Chemicals and petrochemicals 8.87

Engineering 3.29

Aerospace and defence 2.66

Others 2.74

Total budget size for 2014-15 is US$ 23,001.3 million,

around 13.5 per cent higher than previous budget size in

INR terms.

Karnatakas government has a planned expenditure of US$ 10,933.3 million for the year 2014-15

A fiscal deficit of US$ 3,340.2 million, 2.9 per cent of GSDP

is projected for 2014-15

Tax revenue is estimated to be approximately US$ 11,645.0

million witnessing an increase of 13.6 per cent over the

estimates for 2013-14.

Capital expenditure for 2014-15 is estimated to be US$

3,415.0 million, 12.0 per cent higher allocation than 2013-

14.

Budget highlights:

Tax proposals:

Preparing for the introduction of Goods and Service

Tax (GST) in the state.

Exemption from VAT on paddy, rice, wheat, pulses

and products of rice and wheat to continue for one

more year.

Excise duty on beer increased from 122 per cent to

135 per cent.

Source: Government of Karnataka, Budget 2014-15

*Revised estimates

**Assumed exchange rate of 1 US$= 60.00 INR for 2014-15

Annual Budget

(Estimates in US$ million)

2013-14* 2014-15**

Revenue

receipts 15,638.7 18,506.4

Total

expenditure 19,278.7 23,001.3

Revenue A/C

surplus NA 46.9

Capital receipts 3,011.3 4,201.7

Capital

expenditure 3,049.1 3,415.0

Fiscal deficit 2,894.7 3,340.2

Primary education:

Reconstitution of expert committees to set up text books

promoting moral and social values

Set up 178 Government High Schools in needy places

under the Rashtriya Maadhyamika Shiksha Abhiyaan

US$ 2,904.2 million has been allocated for Primary and

Secondary Education Department during 2014-15

Agriculture:

Provide support to farmers through low interest

agricultural loans, subsidised seeds, fertilisers, nutrients,

agricultural improvements, soil conservation, market

improvements, minimum support price, crop insurance

and other related programmes.

Launch of Krishibhagya scheme for farmers whose livelihood is dependent on rains. This scheme aims to

provide facilities including conservation, storage and

efficient use of rain water, adoption of profitable cropping

systems, cultivation of high income earning horticultural

crops, and promotion of animal husbandry activities,

among others. Source: Government of Karnataka, Budget 2014-15 *Revised estimates

*Assumed exchange rate of 1 US$= 60.00 INR for 2014-15

Sector Annual allocation

(US$ million)

Education department 3,550.8

Energy 1,948.8

Water resources 1,891.5

Urban development 1,665.8

Social welfare 1,079.2

Health and family welfare 1,003.8

Agriculture and horticulture 899.5

Major sector-wise allocation as per budget 2014-15

The state is well connected to its five neighbouring states

and other parts of India through 15 national highways that

run through the state.

The Karnataka Road Development Corporation Ltd

(KRDCL) has been created as a state-owned enterprise for

the development of road infrastructure facilities in the state.

The Karnataka State Road Transport Corporation (KSRTC),

established in August 1961, provides state road transport

services.

Karnataka plans to construct 100,000 km of roads by 2020;

this entails an investment of US$ 26.0 billion.

In 2013, the central government approved US$ 97.6 million

of two/four laning of Kollegal section national highway

project bordering Kerala.

IRB Infrastructure will develop a road from Kundapur in

coastal region to the states border with Goa in a project costing US$ 437.8 million.


Ministry of Road Transport & Highways, Global Investors Meet 2012,

Department of Tourism, Karnataka,

The National Highways Authority of India,

Public Works Department and RDPR Department

Road type Road length (km)

National Highways 6,294.3

State Highways 20,770

Major district roads 49,959

Municipal roads 8,366

Other roads 148,412

Source: Maps of India

Source: Economic Survey of Karnataka 2011-12, Infrastructure Development Department, Karnataka

*At 2011-12 prices

Karnataka railway network

Type of railway Length (km)

South Central Railways 268

South Western Railways 2,697

Southern Railways 37

Konkan Railways 248

Total 3,250

Karnataka is well-connected to other parts of the country

through the railways. The state has a railway network of

3,250 km.

Karnataka Rail Infrastructure Development Corporation (K-

RIDE) has been set up with the objective of developing and

implementing rail infrastructure projects in Karnataka with

private sector participation wherever feasible.

K-RIDE has a chief executive officer deputed from the

Railways Department and principal secretary, Infrastructure

Development Department, as its chairman.

Bengaluru Metro Rail, also known as Namma Metro (our

metro), is a mass-transit rail system for the city of

Bengaluru. Bengaluru Metro Rail Corporation Limited

(BMRCL), a joint venture of Government of India and

Government of Karnataka, is a special purpose vehicle

(SPV) entrusted with the responsibility of implementation of

Bengaluru Metro Rail Project. Namma Metro started in

October 2011 and Phase II was launched in March 2014.

Eleven railway projects are under implementation in the

state for which the states contribution would be US$ 897.5 million.

Key proposed new projects

Project Length

Cost

(US$

million)*

Hassan-Bengaluru (New line) 166 197

Tumkur-Rayadurga (New line) 102 202

Munirabad-Mehboobnagar (New line) 170 177

Bagalkot-Kudachi (New line) 142 170

Tumkur-Davangere (New line) 200 190

Bidar-Gulbarga (New line) 107 77

Hubli-Ankola (New line) 167 483

Bengaluru-Satyamangala (New line) 162 375

Source: Global Investors Meet, 2012

*Association of Private Airport Operators

The state has five domestic airports. These are located in

Bengaluru, Mangalore, Hubli, Mysore and Belgaum.

International flights operate from the airports at Bengaluru

and Mangalore.

Bengaluru International Airport; the countrys first greenfield international airport, has been developed at Devanahalli in

Bengaluru as a passenger and cargo department hub. This

was developed under the PPP model and started

operations in May 2008.

The passenger traffic in Bengaluru International Airport in

2013-14 stood at 12.86* million passengers (domestic

passengers: 10.23 million and international passengers:

2.63 million).

For 2013-14, the airport reported an average of 325 air

traffic movements per day.

Minor airports at Shimoga, Gulbarga, Bijapur and Hassan

are being developed on PPP mode through private

promoters.

The existing airport at Hubli is being upgraded to

international standards.

Ports

Major ports New Mangalore Port

Minor ports

Karwar

Belekeri

Tadri

Honnavar

Bhatkal

Kundapur

Hangarkatta

Malpe

Padubidri

Old Mangalore

Source: Global Investors Meet, 2012

Karwar

Port

New

Mangalore

Port

There are 11 ports in Karnataka, of which New Mangalore is

a major port. New Mangalore Port is the ninth major port in

India with the deepest inner harbour on the west coast.

Major cargo have been handled by Karwar, Belikeri, Malpe

and old Mangalore ports in 2010-11. Among them, the

cargo handled by Belikeri port was significantly more than

the other ports.

A new port is being planned at Honnavar at a cost of US$

99.5 million under PPP model.

9,347 10,386

11,546

13,394 13,759 13,978 14,270

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5*

As of November 2014, the state had an installed power

generation capacity of 14,269.8 MW. The state contributed

7,479.4 MW of this capacity, and the private sector

contributed 5,120.0 MW, whereas the central governments share was 1,670.4 MW.

The installed capacity has increased from 9,346.7 MW in

2009 to 13,977.8 MW in 2013-14.

Of the total installed power generation capacity, 6,430.0

MW was contributed by thermal power. Capacity of 254.9

MW and 3,985.1 MW was contributed by nuclear and

renewable power, respectively, while hydropower

contributed 3,599.8 MW.

The government has taken steps to undertake several new

small, medium and large scale power projects.

Karnataka Renewable Energy Development Limited

(KREDL) was established in 1996 to promote the

development of renewable energy sources in the state.

NTPC is developing a 4,000 MW supercritical thermal

power plant at Kudgi village in Bijapur district with an

investment of US$ 2.9 billion. Work has commenced on the

plant and is expected to be commissioned in 2015-16.

Source: Central Electricity Authority

*As of November 2014

Installed power capacity (MW)

CAGR:

7.3%

The installed capacity will increase by 10,200 MW over the

next three years, as numerous projects are currently under

implementation.

State-owned power generation in Karnataka is managed by:

Karnataka Power Corporation Limited (KPCL).

Power transmission is overseen by:

Karnataka Power Transmission Corporation Limited

(KPTCL).

Karnataka has five electricity supply companies:

Bengaluru Electricity Supply Company Limited

(BESCOM).

Mangalore Electricity Supply Company Limited

(MESCOM).

Hubli Electricity Supply Company Limited

(HESCOM).

Gulbarga Electricity Supply Company Limited

(GESCOM).

Chamundeshwari Electricity Supply Corporation

Limited (CESCOM).

Major power projects to be completed in the next

three years

Project Capacity

Yaramaras Thermal Power Station 2x800 MW

Yadlapura Thermal Power Station 2x800 MW

Godhana Thermal Power Station 2x800 MW

Bidadi (Gas based) 1x700 MW

3rd

Unit of Bellary Thermal Power

Station 1x700 MW

NTPC Project at Kudagi 4000 MW

Total 10,200 MW

Source: Central Electricity Authority, Karnataka Budget 2013-14

Telecom infrastructure (November 2014)

Wireless subscribers 56,514,721

Wire-line subscribers 2,262,584

Broadband subscribers 4,878,430*

Post offices 9,739^

Telephone exchanges 2,802**

Teledensity (in per cent) 92.5**

Source: Telecom Regulatory Authority of India,

Department of Telecommunications, Annual Report 2012-13,

Ministry of Communications and Information Technology,

Economic Survey of Karnataka 201314, India Post, * As of March 2014 indiastat.com, ^As of July 2014, ** As of May 2014

Leading telecom companies operate in the state in the

sectors of telecommunication network, basic telephony

services (both wire line and wireless) and networking

services for telecommunication equipment.

According to Telecom Regulatory Authority of India (TRAI),

there were 56.5 million wireless connections and 2.3 million

wire-line subscribers in Karnataka, as of November 2014.

The entire state is networked through Optic-Fibre Cables

(OFCs) of the state-owned company, Bharat Sanchar

Nigam Limited (BSNL), as well as private companies such

as Bharti, Reliance, VSNL and TATA Tele Services.

Last mile access is provided by BSNL as well as Tata Tele

Services in various parts of the state. Bharti and Reliance

Communications provide the last-mile access directly to the

customers in all major cities of Karnataka.

Major telecom operators in Karnataka

Bharti Airtel

IDEA Cellular

Vodafone Essar

Bharat Sanchar Nigam Limited (BSNL)

Aircel Ltd

Reliance Communications

Tata Teleservices

Water supply Sewerage system

KUWSDB has implemented

surface-based drinking

water supply schemes in

187 urban areas to provide

assured safe drinking water.

KUWSDB is implementing

26 schemes for shifting the

source of water from ground

water to assured surface

water. These schemes are

to be completed by 2013.

Cauvery Water Supply

Scheme (CWSS) Stage IV,

Phases IIV are being implemented to supply 810

MLD of water to about

600,000 connections.

The Bengaluru

Water Supply and

Sewerage Board

(BWSSB) is

responsible for

providing water

supply, sewerage

system and

sewage disposal

in the Bengaluru

Metropolitan area.

Forty-two urban

areas have been

provided with

Underground

Drainage (UGD)

facilities in the

state.

Under the Jawaharlal Nehru National Urban Renewal

Mission (JNNURM), Bengaluru and Mysore have been

sanctioned 47 projects worth US$ 615.1* million during

200613.

Some of the key areas of development are roads and

flyovers, water supply, storm-water drainage, sewerage and

urban transport.

A total of 26 projects related to roads, flyovers, water supply

and urban transport located in Bengaluru have been

completed between April 2006 and November 2013, with a

value of US$ 136.6 million.

The Karnataka Urban Water Supply and Drainage Board

(KUWSDB) is responsible for providing water supply and

sewerage facilities in 213 urban areas of the state, except

the areas serviced by the Bruhath Bengaluru Mahanagar

Palike (provides services in Bengaluru city and surrounding

areas).

A total of 71 projects have been sanctioned at an approved

cost of US$ 316.6 million under UIDSSMT programme of

JNNURM as of March 2014. Source: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in MLD: Million Litres Per Day

*As of November 2013, at 201213 rates, UIDSSMT: Urban Infrastructure Development Scheme for Small & Medium Towns

Contract authority Project name Investment

(US$ million)

PPP

type Stage

Airports

Ministry of Civil Aviation Bangalore International Airport 320.2 BOOT In operation

Ports

Department of Ports & Inland Water

Transport (DPIWT), Karnataka 2nd stage development of modern deep sea port at

Karwar 130.7 BOOST Bidding

DPIWT, Karnataka Honnavar Port Development, Uttar Kannada 182.5 BOOST Bidding

DPIWT, Karnataka Development of Malpe Port in Udupi District 224.0 BOOST Bidding

Roads

Bengaluru Development Authority Construction of Ring Road Around Bengaluru City 497.7 BOT-Toll EOI

Karnataka Road Development

Corporation (KRDCL)

Development of road from State Highway-17 to

State Highway-19 234.4 BOT-Toll Bidding

Karnataka Road Development

Corporation (KRDCL)

Development of road Sira-Madugiri-Gowribidanur-

Chikkaballapura-Shidalgatta-Chithamani-

Srinivasapur-Mulbagal SH-58 and other

connecting roads

243.0 BOT-Toll Bidding

Source: www.pppindiadatabase.com

BOOT: Build-Own-Operate-Transfer, BOOST: Build-Own-Operate-Share-Transfer, BOT: Build-Operate-Transfer, EOI: Expression of Interest

Contract authority Project name Investment

(US$ million)

PPP

type Stage

Tourism

Department of Tourism, Karnataka Development of international convention centre

at Devanahalli 174.2

BOT-

Annuity Construction

Urban development

Karnataka Urban Infrastructure

Development and Finance

Corporation 24x7 urban water supply 292.0 -

In

implementation

Karnataka Land Army Corporation

Limited (KLAC) Establishment of KLAC office 182.5 DBFOT Bidding

Animal Husbandry and Veterinary

Science

Commercial development of animal husbandry

and veterinary science land 41.5 DBFOT EOI

Bengaluru Mahanagara Palike,

Karnataka Transfer station in Bengaluru 14.9 - EOI

Source: www.pppindiadatabase.com

BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer, EOI: Expression of Interest

Source: www.sezindia.nic.in, Department of Industries and Commerce, Karnataka


Name/Developer Location Primary industry

M/s. Ozone SEZ Developers Pvt Ltd Chikkaballapura Pharmaceuticals

SEZ with valid in-principle approval

The state has 22 operational, 40 notified SEZs, one valid in-

principle approval and 61 formal approval SEZs, as of July

2013.

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.

The Karnataka State Industrial & Infrastructure

Development Corporation has promoted more than 135

start-up ventures in the state through equity participation

and has provided debt to core industries such as steel,

cement, mining and textiles, as well as new sectors such as

IT, aerospace and telecom.

Exports from SEZs in Karnataka increased at a CAGR of

97.6* per cent from US$ 0.4 billion in 2007-08 to US$ 5.3

billion in 2011-12.

Exports from SEZs in Karnataka (US$ billion)

0.4

1.7 2.2

4.1

5.3

2007-08 2008-09 2009-10 2010-11 2011-12

CAGR:

97.6*%


Manyata Embassy Business Park Bengaluru IT/ITeS

WIPRO Limited Varthur Hobli, Electronic City, Bengaluru IT

Infosys Technologies SEZ Mangalore Dakshina, Kannada IT/ITeS

Vrindavan Tech Villages SEZ (Vikas Telecom Limited) Bengaluru IT/ITeS

Cessna Garden Developers Pvt Ltd Bengaluru IT/ITeS

Biocon Limited Anekal, Bengaluru Biotechnology

HCL Technologies Ltd Bengaluru IT/ITeS

KIADB (Textile) Hasan Textiles

Information Technology Park Ltd Bengaluru IT/ITeS

Primal Projects Private Limited Bengaluru IT/ITeS

Bagmane Construction Pvt Ltd Bengaluru North IT/ITeS

Synefra Eng. & Const. (Suzlon Infrastructure Limited) Udupi Hi-tech engineering products and

related services

KIADB (Food) Samudravalli, Sankalapura Food processing

Gopalan Enterprises (India) Private Limited Whitefield, Bengaluru IT/ITeS

Quest SEZ Development Private Limited Belgaum Precision engineering products

Some of the operational SEZs in Karnataka

Source: www.sezindia.nic.in

Source: www.sezindia.nic.in


M/s. Biocon Ltd Bengaluru Biotechnology

Karnataka Industrial Areas Development Board Mangalore IT/ITeS

Infosys Technologies Limited Dakshina Kannada IT/ITeS

Karnataka Industrial Areas Development Board Shimoga Engineering & related industries

Karnataka Industrial Areas Development Board Hassan Food processing and related services

Karnataka Biotechnology and Information Technology Services Bengaluru Biotechnology

Suzlon Infrastructure Ltd Near Mangalore

Port

Port-based for hi-tech engineering products

and related services

Karnataka Industrial Areas Development Board Hassan Pharmaceuticals

Mangalore SEZ Limited Dakshin Kannada Petrochemicals and petroleum

Quest Machining and Manufacturing Pvt Ltd Belgaum Auto, aerospace and industrial engineering

High Street Developers Private Limited Mandya IT/ITeS

Opto Infrastructure Limited Hassan Electronic hardware & software/ IT/ITeS

Some of the SEZs with formal approvals

Source: Economic Survey of Karnataka 2013-14, Deloitte: Annual Status of

Higher Education of States and UTs in India, University Grants Commission,

Medical Council of India, Census 2011 (final data),

*For 2013-14, **For 2012-13

The state has a literacy rate of 75.4 per cent according to

the final data of Census 2011; the male literacy rate is 82.5

per cent and the female literacy rate is 68.1 per cent.

In terms of the number of universities, Karnataka ranks fifth

among all Indian states and union territories, with 43

universities. Of these, 23 are state public universities, 11

private deemed universities, four government deemed

universities, two state private universities, one central

university, one state open university and one institute of

national importance.

The state has 4,676 pre-university colleges to impart

general education. There are more than 1 million students

in the pre-university colleges.

There are 297 polytechnics and 210 engineering colleges to

provide technical education in the state.

The state government along with National Skill

Development Corporation will implement the National

Vocational Education Qualification in 100 schools with an

aim to provide certification of vocational skills for improving

employment levels among the youth.

Literacy rates (%)

Literacy rate 75.4

Male literacy 82.5

Female literacy 68.1

Educational infrastructure (No)

Universities: 43

Pre-university colleges*: 4,676

Engineering colleges**: 210

Polytechnics**: 297

Junior technical schools**: 12

Vocational institutes: 553

Medical colleges: 46

Dental colleges: 38

Ayurvedic colleges: 56

Homeopathy colleges: 11

Unani colleges: 5

Karnataka education statistics (201213)

Number of schools

Lower primary: 25,950

Higher primary: 34,086

Secondary schools:

14,194

School dropout rate

(in per cent)

Lower primary: 2.6

Higher primary: 5.4

Pupil-teacher ratio

Average: 23.4:1

Aided schools: 43:1

Unaided schools: 30.8:1

State participation in primary education is significant as 85.2

per cent of the lower primary and 66.2 per cent of the higher

primary schools are managed by Department of Education.

Karnataka is home to several premier institutions:

Indian Statistical Institute.

Indian Institute of Science.

Indian Institute of Management.

National Law School of India University.

Institute for Social and Economic Change.

University of Agricultural Sciences, Bengaluru.

Kannada University, Hampi.

Source: Economic Survey of Karnataka 201314


Sample Registration System (SRS) Bulletin Sep, 2014

(www.censusindia.gov.in)

*Per thousand persons,

**Per thousand live births,

***As of March 2011

Three-tier health infrastructure comprising primary health

centres, health units, community health centres and sub-

centres is available in the state.

The policy of the government is to establish one primary

health centre for every 30,000 inhabitants, one dispensary

for every 15,00020,000 inhabitants and one sub-centre for every 5,000 inhabitants.

Health indicators (2013-14)

Beds per 100,000 population 99

Birth rate* 18.3

Death rate* 7.0

Infant mortality rate** 31

Life expectancy at birth (years)

Male (2012) 63.6

Female (2012) 67.1

Health infrastructure (as of December 2013)

District hospitals: 20

Other hospitals: 12

Teaching hospitals: 29

Community health centres: 206

Taluk/general hospitals: 146

Beds in community health centres: 20,400

Primary health centres: 2,355

Sub-centres: 8,871

Dispensaries: 659***

There are several sports complexes in Bengaluru, Mysore, Mangalore and other cities. Cricket, hockey and football are the

major sports, although other games are also popular.

The main sports arenas are the M. Chinnaswamy Stadium and the Sree Kanteerava Stadium in Bengaluru, Chamundi Vihar

Stadium in Mysore and the Mangala Stadium in Mangalore.

The Bengaluru Golf Course and the Karnataka Golf Association are well-known golf courses in the state.

Karnataka is also home to numerous convention centres used for exhibitions, both indoor and outdoor, such as Palace

Grounds and the Bengaluru International Exhibition Centre.

Under the Rural Tourism Project, Anegundi, Kokkare Bellur, Attivari Bird Sanctuary, Gokarna and Kodagu have been

developed. Schemes are being prepared to develop rural tourism at other places also to showcase the rural life, art and

culture and heritage.

Ranga Shankara and Karnataka Chitrakala Parishath form the cultural nexus of Bengaluru and are the performing spaces

for dance, music and theatre artists.

An international mega convention centre, with a seating capacity of 6,000, is being planned near the Bengaluru International

Airport.

The natural resources, policy incentives and infrastructure

in the state favour investments in the IT/ITeS,

biotechnology, engineering, electronics, automotive,

textiles, agri- and food-processing sectors.

Karnatakas favourable policies have encouraged industries to set up their R&D centres in the state.

Bengaluru has about 401* R&D centres, the most in India.

Karnataka is making significant investments in industrial

infrastructure, such as setting up industrial clusters and

SEZs and PPP projects to provide an impetus to further

industrial development.

In November 2013, the Karnataka State High-Level

Clearance Committee (SHLCC) cleared 10 projects with an

investment of over US$ 1.7 billion. The projects are

expected to create 14,105 jobs in 10 districts. In August

2013, SHLCC cleared 19 projects with an investment of

over US$ 2.5 billion. The projects are expected to create

69,746 jobs in 13 districts.

Key industries in Karnataka

IT and ITeS Biotechnology Engineering Electronics and telecom Automotive Textiles and apparel Agro and food processing (floriculture) Aerospace Animation Electronic hardware Tourism Renewable energy

*Source: Zinnov Management Consulting Pvt Ltd

Karnataka has emerged as an Information Technology (IT)

hub of India.

Bengaluru is the fourth largest technological cluster in the

world after Silicon Valley, Boston and London.

About 50.0 per cent of the world's SEI CMM Level 5

certified companies are located in Bengaluru.

The state is Indias largest software exporter, with electronics and computer software exports totalling US$

29.5 billion in 2013-14.

Karnataka has 47 IT/ITeS SEZs and dedicated IT

investment regions.

There are 2,160 IT companies in the state.

The state houses 550,000 IT Professionals or 1/3rd of the

total IT professionals in the country.

At least 400 Fortune 500 companies have outsourcing

operations in Karnataka.

In September 2013, US-based eBay Inc launched a new

global development centre in India, which is spread across

150,000 sq ft.

Some of the key players

Wipro Technologies

Infosys

Genpact

Accenture

Electronics and software exports from Karnataka

(US$ billion)

Source: Software Technology Parks of India, Global Investors Meet 2012,

KIADB, Department of IT, Government of Karnataka, Karnataka ICT

Group 2020 Report, Visvesvarya Industrial Trade Centre,


12.5 17.3 17.8

19.1

23.1

28.2 28.7 29.5

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

CAGR:

17.0*%

Wipro Ltd

Infosys Technologies Ltd

Genpact

Accenture

Wipro Ltd was established in 1945 and posted revenues of US$ 7.3 billion in 2013-14. The company

has presence in areas such as IT services, product engineering, technology infrastructure services,

BPO and other consulting solutions. The company provides services such as application

development, deployment and maintenance, business intelligence and customer relationship

management.

Based in Bengaluru, the company has 72 plus global delivery centres and 50 plus industry-specific

centres of excellence in more than 54 countries. In September 2009, the company launched its centre

of excellence at its Electronic City campus to work with other leading IT firms for developing

innovative IT solutions.

Infosys Technologies Ltd was set up in 1981 and posted revenues of US$ 8.3 billion in 2013-14. The

company operates in areas such as IT consulting, modular global sourcing, process re-engineering

and BPO services.

Infosys has 73 offices and 94 development centres in the US, India, China, Australia, Japan, the UK,

Germany, France and many other countries and has marketing and technological alliances with

companies such as IBM, HP, Microsoft and Oracle. The company has operations at multiple locations

in Bengaluru, Mangalore and Mysore.

Genpact was set up in 1997 in India. Formerly known as GE Capital International Services, the

companys net revenues in 2013-14 stood at US$ 2.1 billion. The company provides a wide range of business process, technology and knowledge services

including finance and accounting, collections and customer relations, insurance, procurement and

supply chain, analytics, software and IT infrastructure. Genpact employs around 60,200 employees.

The company has one office in Bengaluru in Karnataka.

Accenture is a global management consulting, technology services and outsourcing company with

approximately 275,000 people serving clients in more than 120 countries.

The company has one consulting office and seven delivery centres in Bengaluru.

Source: Economic Survey of Karnataka 2013-14, Global Investors Meet

2012, Indian Biotechnology Industry Outlook 2012, Analyz Research,

Association of Biotechnology Led Enterprises (ABLE),

Visvesvarya Industrial Trade Centre

Karnataka has played a key role in Indias emergence as a significant player in the global biotechnology industry.

Karnataka is home to nearly 60.0 per cent of the countrys biotech units.

One-ninety five of the total 340 biotech companies in India

are located in Karnataka. The state has more than 6,800

scientists involved in biotech research.

Premier life sciences institutions such as Indian Institute of

Science, National Centre for Biological Science and

Jawaharlal Nehru Centre for Advanced Scientific Research

are present in the state.

Sector-focused SEZs have been set up in Mysore,

Mangalore, Hubli-Dharwar, Belgaum, Shimoga, Gulbarga,

Kolar & Mandya.

Twelve biotechnology finishing schools are scheduled for

development under the Millennium Biotech Policy.

An 86-acre biotechnology park, Bengaluru Helix, comprising

the 52-acre Alexandria Knowledge Park in Bengaluru is

currently under development.


Biocon

AstraZeneca India

Jubilant Life Sciences Ltd

GlaxoSmithKline Pharmaceuticals Ltd

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 Indias biotechnology sector.

Indias biotechnology industry is expected to reach US$ 100 billion by 2025, with Bangalore forming a significant part of

it.

Biocon

AstraZeneca India

Jubilant Life

Sciences Ltd

GlaxoSmithKline

Pharmaceuticals Ltd

Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of

Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. The company is among the leaders

in biopharmaceuticals and bioservices. Biocon has its corporate headquarter in Bengaluru.

The companys revenue was about US$ 487 million in 2013-14.

AstraZeneca India was established in 1979. The company is involved in the areas of

manufacturing/marketing of bulk drug chemicals, liquid formulations, tablets and capsules,

injectibles and ointments for various disease segments such as cardiovascular, respiratory and

maternal healthcare.

The companys manufacturing plant is located at Yelhanka and R&D centre is located in Bengaluru.

Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated

pharmaceuticals and life sciences company. The company is the largest Custom Research and

Manufacturing Services (CRAMS) company and provides leading drug discovery &

development solutions outside India.

Jubilant has a manufacturing facility in Nanjangud, with around 625 employees.

GlaxoSmithKline Pharmaceuticals Ltd was established in 1924 and is one of the oldest

pharmaceutical companies in India.

The companys revenue was about US$ 438.5 million in 2013 (year ending December 2013).

GSK India product portfolio includes prescription medicines and vaccines. The company has a

clinical development centre in Bengaluru.

Source: VITC-NCTI Trade Info,

Visvesvarya Trade Promotion Centre

The engineering industry in Karnataka has positive

prospects, given its performance.

In 2013-14, the export of engineering products stood at US$

3.0 billion.

Exports include machine tools, industrial machinery, cutting

tools, castings, automotive components, electrodes, welding

equipment, construction and earthmoving equipment, and

helicopter spares.

Numerous engineering exporters are based in Bengaluru,

Hubli, Mysore, Belgaum, Mangalore, and Shimoga.

A 300-acre SEZ has been created in Belgaum to develop a

precision engineering and manufacturing supply chain

ecosystem, which would be a great driver for manufacturing

industries.

Bharat Earth Movers Limited, Hindustan Machine Tools

Limited and Bharat Heavy Electricals Limited are among the

leading companies in this sector in the state.


Bharat Earth Movers Limited (BEML)

Hindustan Machine Tools Limited (HMT)

Bharat Heavy Electricals Limited (BHEL)

Saint-Gobain India

BEML Limited

HMT Ltd

BHEL

Saint-Gobain India

BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML

manufactures a wide range of earth moving and other heavy industrial equipment for the mining

and civil engineering industries.

BEML has a registered office in Bengaluru and units in Kolar Gold Fields, Mysore and

Bengaluru. The company achieved revenues of US$ 481.7 million in 2013-14.

HMT was established in 1953. The company manufactures various types of machine tools

including watches, tractors, printing machinery, metal forming presses, die casting & plastic

processing machinery, CNC systems & bearings.

HMT has a manufacturing plant in Bengaluru.

Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in

India in the energy-related/infrastructure sector. The company has 16 manufacturing divisions,

two repair units, four regional offices, eight service centres, eight overseas offices and 15

regional centres.

BHEL has an electronics division at Bengaluru. The company generated revenues of US$ 6.6

billion in 2013-14.

Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing

companies in India for various products ranging from glass to engineering products.

The company has a manufacturing plant in Bengaluru.

Source: Department of Industries and Commerce

Karnataka is a leading state of the country in electronics

and telecommunication.

The state has high-end research and development

organisations such as Indian Institute of Science, Cosmic

Industrial Laboratories Ltd, Indian Space Research

Organisation (ISRO), CSIR Centre for Mathematical

Modelling and Computer Simulation (CMMACS), National

Aerospace Laboratories, Centre for Soft Matter Research

and John F. Welch Technology Centre.

Karnataka has excellent telecom infrastructure with 140 of

170 towns connected by Optic Fibre Cables (OFC) network.

Bengaluru district is the major hub of the electronics and

telecommunications industries. The other districts of

Hassan, Tumkur, Mysore, Mangalore and Shimoga are the

new destinations for promotion of electronics and hardware

industries.

The state houses global giants such as Sanyo, AT&T,

Siemens, GE, Motorola, Sony and Alcatel as well as

national heavyweights such as BPL Limited and Indian

Telephone Industries Limited.


Bharat Electronics Ltd

Nokia

Siemens

Philips Electronics India Ltd

Bharat Electronics Ltd

Nokia

Siemens

Philips Electronics

India Ltd

Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit,

multi-technology company. Products manufactured by BEL are mainly categorised as

systems/turnkey solutions, defence and non-defence products.

The company has a manufacturing unit in Bengaluru. It achieved revenues of US$ 1.1 billion in

2013-14.

Nokia is among the world leaders in mobile technology. The company started its India

operations in 1995. India holds the distinction of being the second largest market for the

company globally.

The company has an R&D facility and a design studio in Bengaluru.

Siemens set up operations in India in 1957. The Siemens Group in India is a unique player in

the field of electrical and electronics engineering. The Group employs approximately 10,933

people and has 23 manufacturing facilities in India. Siemens has several offices in Bengaluru.

The company generated revenues of US$ 1.8 billion in 2013-14 (year ending September).

Philips has been operating in India for more than 75 years. The company is a leader in

consumer electronics, healthcare and lighting systems. Philips employs more than 4,500 people

in India.

The company has an R&D facility Philips Innovation Campus in Bengaluru.

Source: Global Investors Meet 2012

*At 2011-12 rates

Karnataka has a vibrant auto industry with investments of

around US$ 713.0 million and annual revenues of US$

604.0 million.

The state is the fourth largest state in India in terms of

automotive production. The main locations for automobile

industries are Bengaluru, Ramanagara, Kolar, Shimoga,

Dharwad and Belgaum.

General Motors Technical Centre, located in Bengaluru, is

actively involved in research, design, analysis and

development of vehicles and powertrains for foreign

destinations as well as the domestic market.

Toyota, Volvo, Tata Marcopolo and TVS Motors have set up

vehicle manufacturing units in Karnataka, which has led to

the growth of ancillary units involved in manufacturing tyres,

bearings and other auto spare parts.

The state has three auto clusters, one industrial valve

cluster and one auto component cluster. Two manufacturing

hubs are coming up in Narsapur and Vemagal Industrial

Areas in Kolar District.

The government is in the process of announcing a

Dedicated Automobile Policy.


Toyota Kirloskar

Volvo India

TVS Motor Company

Delphi Automotive Systems Pvt Ltd

The sector attracted US$ 2.0 billion* of investments during

the Global Investors Meet 2012.

In September 2013, Bosch (German auto component

manufacturer) announced an investment of US$ 240 million

over the next seven years in Bangalore for expanding its

manufacturing and R&D capacities.

Hero Motor Corp will set up a production unit near Dharwad

at a cost of US$ 240.5 million and plans to manufacture 1.8

million two-wheelers per annum from the unit.

As per the final draft of Karnataka Industrial Policy 2014-19,

the state would study the feasibility of setting up major Auto

Parks at Dharwad, Kolar and Bidadi in Ramanagara district;

and smaller Auto Parks in Belgaum, Shimoga, Mysore and

Gulbarga.

Toyota Kirloskar

Volvo India

TVS Motor Company

Delphi Automotive

Systems Pvt Ltd

Toyota Kirloskar is a joint venture between Kirloskar group and Toyota Motor Corporation.

The company has manufacturing facilities at Bidadi.

Volvo India has a state-of-the-art bus manufacturing unit near Bengaluru. Globally, the Volvo

Group has about 115,000 employees, production facilities in 19 countries, and sales activities in

more than 190 countries.

The company has increased its capacity to around 1,500-1,700 buses per annum in 2013-14

from 1,100 buses per annum earlier.

Volvo India plans to invest US$ 161.6 billion to set up a truck and bus manufacturing facility in

Malur, Kolar.

TVS Motor Company is one of the largest two-wheeler manufacturers in India. The company is

the flagship company of the TVS Group. TVS Motor has four manufacturing plants across India

including Mysore. The company achieved a turnover of US$ 1.4 billion in 2013-14.

Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. The company is

a leading global supplier of electronics and technologies for automotive, commercial vehicles

and other market segments.

Delphi India has a technical centre in Bengaluru, which is the largest technical centre outside

the US.

Karnataka is one of the leading producers of cotton, silk and

wool, which are the key raw materials required for textile

manufacturing units. The state produces 65.0 per cent of

Indias silk.

Karnataka is a major apparel sourcing destination for the

global market. The state accounts for 20.0 per cent of the

national garment production.

The state hosts over one million power looms.

There are approximately 0.38 million manufacturing units

engaged in the textiles and garments sector at the

organised and unorganised level.

Karnataka has 105 skill development centres and 240

private training centres funded by the Department of

Handloom.

In October 2013, the cabinet of Karnataka approved the

New Textile Policy 2013-18.

The Textile Policy offers various incentives for investments

in the textile sector; these include credit linked capital

subsidy, entry tax reimbursement and power subsidy. Source: VITC-NCTI Trade Info, Global Investors Meet 2012


Gokaldas Exports Limited

Karnataka Silk Industries Corporation (KSIC)

Himatsingka Seide

Shahi Exports Private Limited

The sector has potential for growth. Karnataka has an

apparel park at Dodaballapur near Bengaluru and other

mega textile parks in the other parts of the state.

The state plans to develop a 230-acre textile SEZ in

Hassan; dedicated apparel zones in Bengaluru Rural,

Tumkur, Kolar, Mandya, Belgaum, Bidar, and Dharwad; and

a Silk City in Bengaluru.

Bengaluru houses reputed international companies such as

Nike (India head office), Tommy Hilfiger (operated by Arvind

Murjani brands in Bangalore, India) and GAP (operates

through a liaison office, GAP International Sourcing India

Pvt Ltd).

Gokaldas Exports Ltd

KSIC

Himatsingka Seide

Shahi Exports Pvt Ltd

Gokaldas is one of the largest garment exporters in the country. The company commenced

operations in 1979. In 2013-14, the company generated revenue of US$ 190.3 million.

Headquartered in Bengaluru, the company has 30 factories across India. Gokaldas employs

around 28,000 people and has a manufacturing capacity of 2.5 million garments per month.

Karnataka Silk Industries Corporation (KSIC) is a Government of Karnataka enterprise and is a

leading manufacturer of silk.

The company has two modern factories in T. Narasipura & Mysore, which are engaged in

manufacturing silk goods from raw silk yarn to silk fabrics.

Himatsingka Seide, incorporated in 1985, is a Bengaluru-based company dealing in natural silk

fabric.

The companys focus area is textile designing and manufacturing. Himatsingka Seide has a spinning division as well as a weaving division. The companys brand Atmosphere is Indias first luxury home textile brand, with an exclusive collection of more than 2,500 products and an

installed capacity of 25 million meters per annum.

Shahi Exports is among the top home furnishing exporters in the country. The company began

operations in 1974 in Delhi and started manufacturing in Bengaluru in 1988. Shahi Exports has

manufacturing facilities in Delhi, Bengaluru, Salem and Tirupur

Karnataka, with a good agricultural base including various

food crops, offers immense scope for the development of

food processing industries.

Karnataka is the largest producer of coffee and cocoa in the

country.

The state accounts for around 69.3 per cent of the countrys total coffee production. In 2013-14, coffee production in the

state was estimated to be at around 211,100 metric tonnes.

The state is one of the leading producer of flowers, spices,

fruits and vegetables.

Government of Karnataka had approved the establishment

of food parks in six districts: Bengaluru rural, Tumkur,

Shimoga, Davangere, Bijapur and Belgaum. These parks

are in advanced stages of implementation.

A spice park is proposed to be developed at Byadagi in

Haveri district.

Most of the civil infrastructure work has been completed in

Malur, Hiriyur, Bagalkot and Jewargi food parks, which had

been approved by Ministry of Food Processing Industries,

Government of India. Source: Economic Survey of Karnataka 2013-14, Visvesvarya Industrial Trade Centre, Global Investors Meet 2012


Hindustan Unilever Limited

Nestle India

Britannia Industries Limited

United Breweries Group

Coffee exports from Karnataka (US$ million)

325 342 300

479

659 651

597

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

CAGR:

18.4%

Hindustan Unilever Ltd

Nestle India

Britannia Industries Ltd

United Breweries Ltd

Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods (FMCG)

company, with leadership in home & personal care products and foods & beverages. The

company recorded revenues of US$ 4.7 billion during 2013-14. HUL employs more than 16,000

people nationwide.

The company has a manufacturing plant and an R&D centre at Bengaluru.

Nestle has been in India for almost a century, with seven production facilities across the

country, including one at Nanjangud, Karnataka. The company produces chocolates and

confectionaries, prepared dishes and cooking aids, beverages and milk products and nutritional

supplements. The company recorded revenues of US$ 1.6 billion in 2014 (year ending

December).

Britannia is a leading food processing company in India. The company manufactures food

products such as biscuits, cheese and bread. Based in Bengaluru, the company had a revenue

base of US$ 1.2 billion in 2013-14.

United Breweries Limited (UBL) is a flagship company of the UB Group. The company is also

referred to as the beer division of the UB Group and is based in Bengaluru. UBL recorded a net

turnover of US$ 701.7 million in 2013-14.

The company has around 2,489 employees and manufactures products primarily under the

Kingfisher, London Pilsner and UB Premium Ice brands.

Source: Global Investors Meet 2012, MRO India, NRI

Forum Karnataka, Karnataka Aerospace Policy 2012

Ministry of Civil Aviation, India

*At 2011-12 rates

Karnataka produces more than a quarter of Indias aircrafts and spacecrafts.

Around 984 acres of land is earmarked for an exclusive

industrial area and sector-specific SEZ for aerospace

industries near Bengaluru International Airport.

Indias first aerospace SEZ of 300 acres is operational at Belgaum.

Karnataka Aerospace Policy has identified an investment

potential of US$ 12.5* billion in this sector during 201323 and plans to develop aerospace clusters in different regions

of the state.

Companies such as Air India, Boeing and Jupiter

Aerospace have selected Karnataka for the development of

MRO facilities.

The state government plans to develop an aerospace park

spread over 1,000 acres near the Bengaluru International

Airport (BIAL) with an investment of US$ 1.7 billion, with the

intention of attracting global and domestic players in the

Indian aerospace industry.


Boeing

Hindustan Aeronautics Limited

Airbus Engineering Centre

BEML Ltd

Boeing

HAL

Airbus

BEML Ltd

In India, Boeing is represented through its wholly owned subsidiary, Boeing International

Corporation India Private Limited (BICIPL).

Boeing established its first R&D centre in India the Boeing Research & Technology Centre in Bengaluru in 2009. The centre develops high-end technology solutions, particularly in the

areas of aero structures and avionics.

Hindustan Aeronautics Limited (HAL) is ranked 40th in Flight International's list of the Worlds Top 100 aerospace companies in 2008.

HAL has 19 production units and nine research and development centres in seven locations

across India; of which, eight production units and four R&D centres are located in Bengaluru.

Airbus industrial cooperation with India began in 1988 when an agreement was reached with Hindustan Aeronautics Limited (HAL) to manufacture passenger doors for the A320 aircraft.

Specialising in high-tech aeronautical engineering, the Airbus Engineering Centre works hand-

in-hand with other Airbus engineering offices around the world, as well as with the Indian

aviation industry.

Bharat Earth Movers Limited (BEML), a Miniratna-Category-1, plays a pivotal role and serves Indias core sectors such as defence, rail, power, mining and infrastructure.

BEML is involved in the manufacturing of aircraft components/assemblies and MRO activities

related to aerospace applications.

Source: Global Investors Meet 2012, KUM Karnataka, Airbus, BEML Ltd

In 2012, the state had more than 25,000* students in the

AVGC-related field. The state has 20 institutes imparting

AVGC-related training to more than 10,000 students.

Major suppliers to the industry such as HP, AMD, NVIDIA

and Microsoft are located in Bengaluru.

There has been a considerable increase in AVGC business

outsourcing to Bengaluru.

A great deal of content for global blockbuster animation

movies such as Life of Pi, Harry Potter, Kung Fu Panda,

Prometheus and Pirates of the Caribbean was developed in

Karnataka.

There is a plan to set up AVGC parks similar to the SEZ

model. A plan has been formulated to set up a venture

capital fund and a centre of excellence to provide common

resources for IP creation.

An adequate extent of land is to be earmarked for the

AVGC sector in the proposed Integrated Information

Technology Investment Region (ITIR) near Bengaluru

International Airport.

Source: PwC Report estimates, Karnataka AVGC Policy

*Forecasted, AVGC: Animation, Visual effects, Gaming and Comics


Technicolor

TATA Elxsi

Zynga

DreamWorks

Technicolor

Tata ELXSI

Zynga Inc

DreamWorks

Technicolor is a worldwide technology leader in the media and entertainment sector with

revenues of approximately 3.5 billion in FY2013 (January to December).

Technicolor India offers world-class design and production services in animation and visual

effects for motion pictures and television broadcast productions.

Technicolor has been operating in India since 2007 and employs about 1,238 people.

Tata Elxsi is a listed company and is headquartered in Bengaluru.

The company is a global design company and offers key services including embedded product

design, industrial design, animation & visual effects and systems integration.

The company recorded revenues of US$ 128.5 million in 2013-14.

Zynga Inc is the world's leading provider of social gaming services with more than 240 million

monthly active users playing its games, which include CityVille, Zynga Poker and Scramble with

Friends.

Zynga's Bengaluru centre, started in 2010, has rapidly expanded to become the company's

second largest operation in the world after its San Francisco centre.

DreamWorks Animation creates high-quality entertainment, including CG animated feature

films, television specials and series and live entertainment properties.

DreamWorks Animation has been named one of the 100 Best Companies to Work For by FORTUNE Magazine for four consecutive years.

The company has theatrically released a total of 25 animated feature films, including the

franchise properties of Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.

Source: Technicolor, TATA Elxsi, Zynga, DreamWorks

Eighty of the 120 companies engaged in chip designing in

India are located in Karnataka.

The state has the advantage of having low-cost

skilled/technical manpower compared with other states.

Bengaluru is a global hub for R&D activity in the software

industry, which will greatly aid the electronic hardware

industry.

The ESDM (Electronic System Design & Manufacturing)

Policy is expected to provide for development of three

ESDM innovation centres that will provide complete

infrastructure with the requisite design tools.

ESDM Policy also plans to set up seven high-class ESDM

Manufacturing Clusters (EMC) to provide infrastructure

support including electronic manufacturing services and

component manufacturing by 2020.

In October 2013, the Karnataka government announced to

have a separate single-window agency to approve all

projects, and IT and electronic hardware projects

established in tier II and III cities.

Source: Department of Electronics and Information Technology, GoI,

Department of IT, BT and S&T, Karnataka,

ESDM Policy 2013, Karnataka


Intel

AMD

Qualcomm Inc

Nvidia

As per the policy, by 2020, ESDM sector is expected to

generate turnover of US$ 400 billion, including exports to

the tune of US$ 80 billion, with an investment of US$ 100

billion.

In February 2014, the central government gave its in-

principle approval for setting up the first ESDM cluster

development in Electronics City, Bangalore.

Intel

AMD

Qualcomm Inc

NVIDIA

Intel, headquartered in Santa Clara, is the worlds largest and highest valued semiconductor chip maker based on revenue.

The Intel India Development Centre is a critical engineering design and development centre for

key Intel products across CPUs, graphics, platforms and software with strong IT expertise and

factory automation.

Intel Technologies India plans to invest US$ 120 million for its R&D centre in India.

AMD India plays a significant role in the design of microprocessors, AMDs family of Accelerated Processing Units (APU), SoCs, graphics and media solutions.

AMD has two design centres in India located in Hyderabad and Bengaluru.

Qualcomm Incorporated is an America-based global semiconductor company that designs,

manufactures and markets digital wireless telecommunications products and services.

Qualcomm India Private Limited established its India operations in 1996 and has R&D centres

in Bengaluru and Hyderabad.

Nvidia manufactures Graphics Processing Units (GPUs) as well as System-on-a-Chip units

(SOCs) for the mobile computing market.

Nvidia established its design centre in Bengaluru in 2005. The centre includes a state-of-the-art

facility and data centre that facilitates top-to-bottom designing of advanced graphics and digital

media processors for a wide range of platforms.

Source: Intel, AMD, Qualcomm Inc, Nvidia

Karnataka boasts of a diverse flora and fauna and a 320-km

natural coast line, which makes it a nature tourist's

paradise. The state is ranked fourth in terms of the number

of tourist arrivals in India.

The Palace on Wheels of South India the Golden Chariot Train tour has been rated by Vanity Fair, UK, as among the top seven train journeys in the world.

Karnataka has World Heritage Sites at Hampi and

Pattadakal. Good infrastructure in the form of better road

and rail connectivity as well as improving hospitality is also

aiding tourism.

The state attracted 98.0 million domestic tourists and 0.6

million international tourists in 2013. Tourist arrivals have

increased at a CAGR of 18.6 per cent during 20052013.

The sector contributes 15 per cent to GSDP of Karnataka;

plans are afoot to expand to 25 per cent by 2020.

The central government approved US$ 7.5 million for phase

one of the project Coastal Karnataka Tourism Circuit for developing coastal tourism in the state. The overall cost of

the project is expected to be US$ 82.9 million covering 140

beaches.

Source: Global Investors Meet 2012, Department of Tourism, Karnataka,

Ministry of Tourism, Government of India, Business Standard

Number of tourist arrivals in Karnataka (million)

25.2 36.7 38.4 37.5 33.0

38.5

84.7

94.7 98.6

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

CAGR:

18.6%

Major attractions

Medical tourism

Karnataka is Indias most preferred destination for advanced medical care, and is referred to as the medical tourism hub of India.

The state has the highest number of approved health systems, multi-specialty health

centres and alternative health therapies in India.

Eco tourism

Karnataka represents wide variations in topography high mountains, hills and long coastal stretches.

The state has five national parks, 26 wild life sanctuaries, pelicanries, heronries and

elephant camps.

Adventure tourism

Karnatakas geography provide a vast spectrum of diverse attractions, making it a heaven for adventure sports and outdoor activities.

Major attractions include white water rafting on the Kali river and aero sports at the Nandi

hills.

Source: Visvesvarya Industrial Trade Centre, Global Investors Meet 2012

Renewable energy contributes nearly 25.0 per cent of the states installed power capacity.

Karnataka is endowed with high renewable energy potential such as wind, hydro, solar, tidal and geothermal energy

resources.

The renewable energy potential for the state is estimated at 29.6 GW, primarily from wind, solar, small hydro, co-generation

and biomass sectors.

The government has allotted projects of 18,664.6 MW, amounting to nearly 63.0 per cent of the total potential.

Through the Renewable Energy Policy, the state plans to set up renewable energy economic zones by procuring 10.0 per

cent of the land of SEZs and dedicating it for renewable energy.

The policy also mandates to keep aside 10.0 per cent of barren government land for renewable energy.

No Renewable energy

source

Renewable energy potential

(MW)

Capacity allotted

(MW)

Capacity commissioned

(MW)

1 Wind 13,983 12,890.4 2,595.8

2 Small hydro 3,000 2,919.4 768.7

3 Biomass 1,000 370.0 113.0

4 Co-generation 1,500 1,677.4 1,144.6

5 Municipal solid waste 135 25.5 0

6 Solar grid 10,000 782.0 74.0

Grand total 29,618 18,664.6 4,696.1

Source: KREDL, Central Electricity Authority, Karnataka Renewable Energy Policy

http://kredlinfo.in/reprogressreport.aspx

Karnataka has the largest wind energy potential of 13,983

MW in India.

Currently, new projects with a capacity of more than 7,000

MW are at different stages of implementation and projects

of 2595.8 MW of capacity have been commissioned; this

provides a huge opportunity to harness the untapped

potential of the market.

Wind velocity in the state ranges from 0.85 m/s to 8.27 m/s.

Potential areas for wind power plants in the state include

Chitradurga, Gadag, Chikmaglur, Bellary, Davangere,

Koppal, Bijapur, Bagalkot and Belgaum.

Karnataka is counted among the top five destinations for

wind energy in India.

Karnataka wind energy density map Wind energy

Source: Centre for Wind Energy, Chennai,

KREDL: http://kredlinfo.in/reprogressreport.aspx

0 100

100 200

200 250

250 300

300 400

400 500

Wind power

density W/Sq m

The state has a solar energy potential of 10,000 MW.

Karnataka Solar Policy 2014-2021 plans to add solar

generation of minimum 2,000 MW by 2021.

Of the total allocated capacity of 782 MW, capacity of up to

74 MW has already been commissioned.

Many districts, especially coastal areas, receive solar

radiation in the range of 5.1-6.4 kWh/m2 during summer,

which is best suited for solar PV projects.

The central governments policy mandates that solar energy consumption should increase to 3.0 per cent of the total

consumption by 2022, up from the present requirement of

0.25 per cent.

Karnataka is the only state to have supported solar projects

under the REC (Renewable Energy Certificate) mechanism.

In January 2015, SunEdison signed an MOU with

Karnataka government to develop 5 GW of renewable

energy projects in the state in the next five years.

Karnataka solar resource map Solar energy

Source: Karnataka Solar Policy 2014-21, Global Investors Meet 2012, SolarGIS

Agency Description Contact information

Department of

Industries and

Commerce

(DIC)

Anchor department for development/establishment of industries in Karnataka.

Responsible for formulating and implementing industrial policies in the state.

No 49, South Block, Khanija Bhavan Race Course Road Bengaluru - 560 001

Phone: 91-80 2238 9901-08 Fax: 91-80-2238 9909

E-mail: [email protected] Website: www.karnatakaindustry.gov.in

Karnataka Udyog

Mitra

(KUM)

Single contact point for investors in the state

Considers/forwards proposals to concerned agencies and communicates status to investors.

Monitors implementation of approved projects.

Single point of contact for information on various aspects including land availability, statutory approvals and coordination.

No 49, South Block, Khanija Bhavan East Entrance, Race Course Road

Bengaluru - 560 001 Phone: 91-80-2228 2392/5659,

Fax: 91-80-2226 6063 E-mail: [email protected]

Website: www.kumbangalore.com

Agency Description

District Level Single Window

Clearance Committee (DLSWCC)

Functions under the chairmanship of respective Deputy Commissioners for industrial projects for investments less than US$ 0.65 million.

State Level Single Window

Clearance Committee (SLSWCC)

Functions under the chairmanship of Minister for Large and Medium Industries for investments that range between US$ 0.6510.9 million.

State High Level Clearance

Committee (SHLCC)

Functions under the chairmanship of the Chief Minister for projects involving investment of more than US$ 10.9 million.

District Industries Centres Nodal agencies for approval of projects at the district level.

Primary focus is to promote small scale, village and cottage industries.

Other departments Various sector specific departments such as Department of Tourism, Department

of Information Technology and Biotechnology, Department of Food Processing, Department of Textiles and Department of Mines and Geology.

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

Registration Department of Industries and Commerce Department, Karnataka

Udyog Mitra (Single Window Agency)

Allotment of land/shed Karnataka Industrial Areas Development Board

Permission for land use District Authorities

No objection certificate under Water and Air Act Karnataka State Pollution Control Board

Approval for construction activity and building plan Development Authority/Urban Local Body

No objection certificate Fire Department and Directorate of Factories and Boilers

Provisional trade tax registrations Central and State Excise Departments

Registration under Central Sales Tax Act Central and State Excise Departments

List of approvals and clearances required Departments to be consulted

Before commencement of production

No objection certificate under Water and Air Act State Pollution Control Board

No objection certificate Fire Department and Directorate of Factories and Boiler

Permanent Trade Tax registration Central and State Excise Departments

Registration under Central Sales Tax Act, 1956 Central and State Excise Departments

After commencement of production/activity

Registration Department of Industries and Commerce and respective sector

departments such as IT/BT/Tourism etc.

Karnataka Udyog Mitra

(Department of Industries and Commerce)

District Industries

Centre

(Tiny industries < US$

0.65 million)

State Level Single Window Agency

(Large/mid-size industries US$ 0.65 10.9 mi

Documents

Karnataka March 2015