Karnataka

AUGUST
2012
THE SILICON VALLEY OF INDIA

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Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Contents
 Karnataka – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Karnataka

 State Acts & Policies

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2
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Karnataka Factfile → 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.

Parameters Karnataka
Capital Bengaluru
Geographical area (sq km) 1 91 ,791
Administrative districts (No) 30
Population density (persons per sq
Source: Maps of India 31 9
km)*

→ Karnataka is located in the Southern region of India. It is Total population (million)* 61

surrounded by the Arabian Sea in the West, Goa in the Male population (million)* 31
Northwest, Maharashtra in the North, Andhra Pradesh in
East, Tamil Nadu in the Southeast, and Kerala in the Female population (million)* 30
Southwest. Sex ratio (females per 1 ,000 males)* 968
Literacy rate (%)* 75.6
→ Languages spoken are Kannada, Tulu, Kodava, Hindi and
English. Sources: Economic Survey of Karnataka 201 1 -1 2,
*Provisional Data – Census 2011

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Karnataka in Figures … (1/2)

Parameter Karnataka All-States Source

Economy
GSDP as a percentage of all states’ GSDP 5.9 1 00 CMIE, 201 0-1 1 , current prices
Average GSDP growth rate (%)* 1 5.9 1 5.9 CMIE, 2004-05 to 201 0-1 1 , current prices
Per capita GSDP (US$) 1 ,502.4 1 ,324.3 CMIE, 201 0-1 1 , current prices
Physical Infrastructure
Central Electricity Authority, as of March
Installed power capacity (MW) 1 3,393.5 1 99,627.0 201 2

Wireless subscribers (No) Telecom Regulatory Authority of India, as

54,81 9,1 31 903,727,208
of January 201 2
Ministry of Communications & Information
Broadband subscribers (No) 1 ,344,354 1 3,350,938
Technology, as of December 201 1
Ministry of Road Transport & Highways,
National Highway length (km) 4,396 71 ,772 Annual Report 201 1 -1 2
Major and minor ports (No) 1 + 10 1 2 + 1 87 Indian Ports Association
Airports (No) 7 1 33 Airport Authority of India
*Calculated in Indian Rupee Terms

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Karnataka
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2012
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Karnataka in Figures … (2/2)

Parameter Karnataka All-States Source

Social Indicators
Literacy rate (%) 75.6 74.0 Provisional Data – Census 201 1
Birth rate (per 1 ,000 population) 1 9.2 22.1 SRS Bulletin (www.censusindia.gov.in), 201 1
Investment
Department of Industrial Policy &
FDI Equity inflows (US$ billion) 9.4 1 60.0
Promotion, April 2000 to January 201 2
Outstanding Investments (US$ billion) 781 .1 1 1 ,31 8.3 CMIE (201 1 -1 2)
Industrial Infrastructure
PPP projects (No) 1 08 881 www.pppindiadatabase.com
SEZs (No) 41 386 Notified as of July 201 2, www.sezindia.nic.in

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

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Karnataka
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2012
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Advantage Karnataka … (1/2)

Hub for Knowledge-Based Industries

Karnataka has emerged as a key state with knowledge-based industry such as IT, biotechnology and engineering. The state also leads in
electronics, computer software and biotechnology exports, with US$ 23.11 billion for 2010-11. It is the science capital of India with
more than 100 Research and Development (R&D) centres, and a preferred destination for multinational corporations with more than 650
such companies.

Policy and Fiscal Incentives

The state offers a wide range of fiscal and policy incentives for businesses under the Karnataka Industrial Policy, 2009-14. Additionally,
the state has well drafted sector-specific policies for biotechnology, IT, tourism and textiles.

Facilitating Infrastructure

The state has well-developed social, physical and industrial infrastructure and virtual connectivity; has good supply and distribution of
power, seven airports and substantial port infrastructure (one major and ten minor ports).

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Karnataka
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2012
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Advantage Karnataka … (2/2)

High Economic Growth

State’s average GSDP growth rate between 2004-05 and 2011-12 was about 14.7 per cent

Stable Political Environment

The state has a stable political environment. Successive state governments have realised the importance of industries in the state and
have provided conducive business environment to attract domestic as well as foreign entities.

Rich Labour Pool

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

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Karnataka
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2012
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Economic Snapshot – GSDP

→ At current prices, the Gross State Domestic Product Karnataka’s GSDP

(GSDP) of Karnataka was about US$ 97.1 billion in
2011-12. 2011-12 97.1
2010-11 88.9
→ The average GSDP growth rate between 2004-05 and
2009-10 72.8
2011-12 was about 14.7 per cent.
2008-09 67.5
2007-08 67.2
2006-07 50.1
CAGR
2005-06 44.2 14.7%

2004-05 37.0

0 20 40 60 80 100 120
US$ billion
Source: CMIE

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Karnataka
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2012
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Economic Snapshot – NSDP

→ The Net State Domestic Product (NSDP) of Karnataka Karnataka’s NSDP

was about US$ 86.6 billion in 2011-12.
2011-12 86.6
→ The average NSDP growth rate between 2004-05 and 2010-11 79.1
2011-12 was 14.7 per cent.
2009-10 64.4
2008-09 60.6
2007-08 60.3
2006-07 45.0 CAGR
2005-06 39.5 14.7%

2004-05 33.0

0 20 40 60 80 100
US$ billion
Source: CMIE

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 Karnataka
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Economic Snapshot – Per Capita GSDP

→ The state’s per capita GSDP in 2011-12 was US$ Per Capita GSDP
1,624.4. 1,800 1,624.4
1,600 CAGR 1,502.4
→ The per capita GSDP increased at a CAGR (Compound 13.4%
1,400
Annual Growth Rate) of 13.4 per cent between 2004-05 1,173.8 1,166.8
1,243.6
1,200
and 2011-12.

US$
1,000
790.1 885.9
800 670.4

600
400
200
0

Source: CMIE

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 Karnataka
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Economic Snapshot – Per Capita NSDP

→ The state’s per capita NSDP in 2011-12 was US$ Per Capita NSDP
1,449.5. 1,600 1,449.5
1,400 CAGR 1,337.4
→ The per capita NSDP increased at a CAGR of 13.4 per 13.4% 1,100.8
1,200
cent between 2004-05 and 2011-12. 1,054.1 1,047.3
1,000
705.4 794.6

US$
800
598.0
600
400
200
0

Source: CMIE

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 Karnataka
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Economic Snapshot – Percentage Distribution

of GSDP

→ In 2011-12, the tertiary sector contributed 56.3 per cent Percentage Distribution of GSDP
to the state’s GSDP at current prices, followed by CAGR
100
secondary sector (26.5 per cent) and primary sector
90
(17.2 per cent). 80
51.0 56.3
70 17.4%
→ At a CAGR of 17.4 per cent, the tertiary sector has been 60
the fastest growing among the three sectors from 50
2004-05 to 2011-12. The growth has been driven by 40
29.1
trade, hotels, real estate, finance, insurance, transport, 30 26.5 14.2%
communications and other services. 20
10 19.9 17.2 13.4%
0
→ The secondary sector grew at a CAGR of 14.2 per cent
2004-05 2011-12
between 2004-05 and 2011-12. It was driven by
manufacturing, construction and electricity, gas & Primary Sector Secondary Sector Tertiary Sector
water supply.
Source: CMIE
→ The primary sector grew at a CAGR of 13.4 per cent
between 2004-05 and 2011-12.

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 Karnataka
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Economic Snapshot – Agricultural Production Annual Production in

Crop 201 1 -1 2 (Provisional)
(‘000 tonnes)
Sugarcane 37,991
Maize 4,1 72
→ Sugarcane was the major crop of the state with
Rice 3,892
production of about 37.99 million tonnes in 2011-12.
#
Coconut 3,056*
→ In 2011-12, the total food grain production in the state Onion^ 2,592
was about 12.42 million tonnes.
Sorghum (Jowar) 1 ,274

→ In 2011-12, the total oilseeds production was about Cotton 909**

1.0 million tonnes. Groundnut 51 0
Potato^ 400
→ In 2011-12, the production of total cereals and total
pulses in the state was 11.19 million tonnes and 1.23 Coffee 227
million tonnes, respectively.
Wheat 1 83
#
Dry Chilies 1 38
Total pulses 1 ,232
Total oilseeds 1 ,001
Sources: Economic Survey of Karnataka 201 1 -1 2, Coffee Board of India,
Indian Horticulture Database 2011 , National Horticulture Board,
* ’000 Nuts
** ’000 bales of 170 kgs each
^In 2010-1 1
#In 2009-10

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 Karnataka
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Economic Snapshot – Exports

→ During 2010-11, the total export from the state stood Break up of Exports by Sector (2010-11)
at US$ 36.32 billion which is approximately 11.7 per Electronics, Computer Software
1.3% 3.9%
cent of India’s total export. & BT
1.8%
4.2% Gem and Jewellery
→ The exports of electronics, computer software &
biotechnology, readymade garments, petroleum & 4.4% Petroleum & Petroleum Products
petroleum products, engineering products, coffee
8.8%
products, basic chemicals, pharmaceuticals & Engineering Products
cosmetics, gem & jewellery, marine products, plastic
Readymady Garments
goods and spices have increased significantly in 2010- 12.0%
11 as compared to the previous year. 63.6%
Basic Chemicals, Pharmaceuticals
& Cosmetics
→ The software exports (by registered units through STPI) Coffee Products
from the state were US$ 15.41 billion in 2010-11.
Others

→ Karnataka exported US$ 1,607.1 million worth of

engineering products during 2010-11. Source: Economic Survey of Karnataka 2011 -1 2
BT: Biotechnology

STPI: Software Technology Parks of India

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 Karnataka
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2012
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Economic Snapshot – FDI Inflows &

Investments

→ According to the Department of Industrial Policy & Break up of Outstanding Investments by Sector (2011-12)
Promotion, the cumulative FDI inflows from April 2000
to January 2012 amounted to US$ 9.4 billion. 1.6%
5.2%
Manufacturing
→ FDI inflows from April 2011 to January 2012 stood at
US$ 1.24 billion. 12.9%
Services

40.0% Real Estate

→ In 2011-12, outstanding investments in the state were
US$ 781.1 billion. 15.6%
Electricity

→ Of the total investments, the manufacturing sector

Irrigation
accounted for the maximum investment of 40 per cent 24.7%
followed by services sector with 24.7 per cent.
Mining

Source: CMIE

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Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Contents
 Karnataka – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Karnataka

 State Acts & Policies

For updated information, please visit www.ibef.org

16
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Physical Infrastructure – Roads → The state is well connected to its five neighbouring states
and other parts of India via 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.

→ Under Karnataka State Highways Improvement Project

(KSHP-I), 2,414 km of State Highways and Major District
roads were taken up for development. Of this, a length of
2,384 Km have been developed.

→ The Karnataka State Road Transport Corporation (KSRTC),

established in August 1961, provides state road transport
services.

Road Type Road Length (km)

National Highways 4,396
State Highways 20,770
Major District roads 49,959

Source: Maps of India Sources: Economic Survey of Karnataka 2011-12,

Ministry of Road Transport & Highways,
Annual Report 2011-12

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Karnataka
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Physical Infrastructure – Railways

→ Karnataka is well-connected to other parts of the country via the railways. As of 2010-11, the state had railway network
of 3,073 km.

→ Intra-state rail connectivity, especially, on the key lines for passenger and freight movements, needs to be augmented.

→ 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.

→ Bangalore Metro Rail, also known as Namma Metro (our metro), is a mass-transit rail system for the city of Bengaluru.
Bangalore 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 Bangalore Metro
Rail Project.

Source: Economic Survey of Karnataka 2011 -1 2

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Physical Infrastructure – Airports → 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 country’s first

Green Field International Aiport has been developed at
Devanahalli in Bengaluru as a passenger and cargo
department hub. It was developed under Public Private
Partnership (PPP) model and started operations in May
2008.

→ The Bengaluru International Airport handles 12 million

passengers annually.

→ 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.

International
airport
Domestic airport

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Physical Infrastructure – Ports → There are 11 ports in Karnataka, of which new

Mangalore is a major port.

→ 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 high as compared to other ports.

Ports
Major Ports • New Mangalore Port

Minor Ports • Karwar

Karwar • Belekeri
Port • Tadri
• Honnavar
• Bhatkal
• Kundapur
• Hangarkatta
• Malpe
• Padubidri
New • Old Mangalore
Mangalore
Port

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 Karnataka
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Physical Infrastructure – Power … (1/2)

→ As of March 2012, the state had a power generation Installed Power Capacity (MW)
installed capacity of 13,393.54 MW which consisted of
13,393.5
7,271.37 MW of state share, 4,526.08 MW of private 14,000
share and 1,596.09 MW of central share. 11,546.1
12,000
10,386.3
8,876.9 9,346.7
→ Of the total installed power capacity, 6,355.65 MW was 10,000
contributed by thermal power. 254.86 MW and 3,183.23 8,000
MW was contributed by nuclear and renewable 6,000
capacity, respectively. Hydro power contributed the
3,599.8 MW of capacity. 4,000
2,000
→ The Government has taken steps to undertake several 0
new small, medium and large sized power projects. 2007-08 2008-09 2009-10 2010-11 2011-12

→ Karnataka Renewable Energy Development Limited Source: Central Electricity Authority

(KREDL) was established in 1996 to promote the
development of renewable energy sources in the state.

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 Karnataka
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Physical Infrastructure – Power … (2/2)

→ 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 (BESCOM)

→ Mangalore Electricity Supply Company (MESCOM)

→ Hubli Electricity Supply Company (HESCOM)

→ Gulbarga Electric Supply Company (GESCOM)

→ Chamundeshwari Electric Supply Corporation (CESCOM)

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Physical Infrastructure – Telecom

Telecom Infrastructure (January 2012)
Wireless Subscribers 54,819,131
Wire-line Subscribers 2,703,808
→ Leading telecom companies operate in the state in the Broadband Subscribers 1,344,354*
sectors of telecommunication network, basic telephony
Post Offices 9,772^
services (both wireline and wireless) and networking
services for telecommunication equipment. Telephone Exchanges 2,799*
Tele-density (in per cent) 95.91
→ According to Telecom Regulatory Authority of India
Sources: Telecom Regulatory Authority of India,
(TRAI), there were 54.8 million wireless connections and Department of Telecommunications, Annual Report 2011-12,
2.70 million wire-line subscribers in Karnataka, as of Ministry of Communications and Information Technology,
January 2012. Economic Survey of Karnataka 2011-12,
*As of December 2011
^As of March 2011
→ The entire state is networked via Optic-Fibre Cables
(OFC) of the state-owned company, Bharat Sanchar
Some of the Major Telecom Operators in
Nigam Limited (BSNL) as well as private companies like
Karnataka
Bharti, Reliance, VSNL and TATA Tele Services.
• Bharti Airtel
→ Last Mile Access is provided by BSNL as well as TATA • IDEA Cellular
Tele Services in various parts of the state. Bharti and • Vodafone Essar
Reliance Communications provide the last-mile access, • Bharat Sanchar Nigam Limited (BSNL)
directly to the customers in all major cities of • Aircel Ltd
Karnataka. • Reliance Communications
• Tata Teleservices

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Development Projects: Urban Infrastructure

→ Under the Jawaharlal Nehru National Urban Renewal

Water Supply Sewerage System
Mission (JNNURM), 47 projects costing US$ 778.1
million have been sanctioned for Bengaluru and • KUWSDB has implemented • The Bangalore Water
Mysore. surface-based drinking water Supply and Sewerage
supply schemes in 187 urban Board (BWSSB) is
areas to provide assured safe responsible for providing
→ The projects have been sanctioned between 2006-07 drinking water. water supply, sewerage
and 2011-12. Some of the key areas of development system and sewage
are roads and flyovers, water supply, storm-water • KUWSDB is implementing 26 disposal in the Bangalore
drainage, sewerage and urban transport. Metropolitan area.
schemes for shifting the
source of water from ground
→ 22 projects related to roads, flyovers, water supply and water to assured surface • 42 urban areas have been
urban transport located in Bengaluru have been water. These schemes are to provided with
completed between April 2006 and May 2012 with be completed by 2013. underground drainage
value of US$ 133.3 million. (UGD) facilities in the
• Cauvery Water Supply state.

→ The Karnataka Urban Water Supply and Drainage Scheme (CWSS) Stage IV,
Phases I to IV are being
Board (KUWSDB) is responsible for providing water
implemented to supply 810
supply and sewerage facility in 213 urban areas of the
MLD of water to about
state except the areas serviced by the Bruhath 600,000 connections.
Banglore Mahanagar Palike (which provides services in MLD: Million Liters per Day
Bengaluru city and surrounding areas).
Source: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in

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Development Projects: Key Public Private

Partnership Projects … (1/2)
Investment
Contract Authority Project Name PPP Type Stage
(US$ million)
Airports
Ministry of Civil Aviation Bangalore International Airport 419.6 BOOT In Operation
Ports
Department of Ports &
2nd stage Development of Modern Deep Sea
Inland Water Transport 166.2 BOOST Bidding
Port at Karwar
(DPIWT), Karnataka
DPIWT, Karnataka Honnavar Port Development, Uttar Kannada 239.1 BOOST Bidding
DPIWT, Karnataka Development of Malpe Port in Udipi District 284.8 BOOST Bidding
Roads
Bengaluru Development Construction of Ring Road Around Bengaluru
652.2 BOT -Toll EOI
Authority City
Karnataka Road
Development of Road from State Highway-17 to
Development Corporation 307.2 BOT -Toll Bidding
State Highway-19
(KRDCL)
Development of Road Sira-Madugiri-
Karnataka Road
Gowribidanur-Chikkaballapura-Shidalgatta-
Development Corporation 309.1 BOT- Toll Bidding
Chithamani-Srinivasapur-Mulbagal SH-58 and
(KRDCL)
other Connecting Roads
Source: www.pppindiadatabase.com
BOOT: Build-Own-Operate-Transfer, BOOST: Build-Own-Operate-Share-Transfer, BOT: Build-Operate-Transfer, EOI: Expression of Interest

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 Karnataka
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Development Projects: Key Public Private

Partnership Projects … (2/2)

Investment
Contract Authority Project Name PPP Type Stage
(US$ million)
Tourism
Department of Tourism, Development of International Convention Centre BOT-
221.5 Construction
Karnataka at Devanahalli Annuity
Urban Development
Karnataka Land Army
Establishment of KLAC Office 239.1 DBFOT Bidding
Corporation Limited (KLAC)
Animal Husbandry and Commercial Development of Animal Husbandry
55.3 DBFOT EOI
Veterinary Science and Veterinary Science Land
Bangalore Mahanagara
Transfer Station in Bengaluru 18.9 - EOI
Palike, Karnataka

Source: www.pppindiadatabase.com
BOT: Build-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer, EOI: Expression of Interest

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Development Projects: SEZs and Industrial

Clusters … (1/3)

→ The state has 20 operational, 1 valid in-principle approvals and 62 formal approval SEZs.

→ The Karnataka Industrial Areas Development Board has developed 136 industrial areas spread all over the state.

→ The Karnataka State Industrial & Infrastructure Development Corporation has promoted over 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.

SEZ with Valid In-Principal Approvals

Name/Developer Location Primary Industry

M/s. Ozone SEZ Developers Pvt Ltd Chikkaballapura Pharmaceuticals

Source: www.sezindia.nic.in

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Development Projects: SEZs and Industrial

Clusters … (2/3)

Some of the Operational SEZs in Karnataka

Name/Developer Location Primary Industry

Manyata Embassy Business Park Bengaluru IT/ITeS
Varthur Hobli, Electronic
WIPRO Limited IT
City, Bengaluru
Infosys Technologies SEZ Mangalore Dakshina, Kannada IT/ITeS
Vrindavan Tech Villages SEZ (Vikas Telecom
Bengaluru IT/ITeS
Limited)
Cessna Garden Developers Pvt Ltd Bengaluru IT/ITeS
Biocon Limited Anekal, Bengaluru Biotechnology
HCL Technologies Ltd Bengaluru IT/ITeS
KIADB (Textile) Hasan Textile
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 Hi-Tech Engineering Products
Udupi
Limited) 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 Product
Source: www.sezindia.nic.in

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Development Projects: SEZs and

Industrial Clusters … (3/3)

Some of the SEZs with Formal Approvals

Name/Developer Location Primary Industry

M/s. Biocon Ltd Bengaluru Biotechnology
Karnataka Industrial Areas 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
Bengaluru Biotechnology
Technology
Port-Based for Hi-Tech Engineering
Suzlon Infrastructure Ltd Near Mangalore Port
Products and Related Services
Karnataka Industrial Areas Development Board Hassan Pharmaceuticals
Mangalore SEZ Limited Dakshin Kannada Petrochemicals and Petroleum
Auto, Aerospace and Industrial
Quest Machining and Manufacturing Pvt Ltd Belgaum
Engineering
High Street Developers Private Limited Mandya IT/ITeS
Opto Infrastructure Limited Hassan Source:
Electronic Hardware www.sezindia.nic.in
& Software/ IT/ITeS

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Social Infrastructure – Education … (1/2)

Literacy Rates (%)

→ The state has a literacy rate of 75.6 per cent according
to the provisional data of Census 2011; the male Literacy Rate 75.6
literacy rate is 82.8 per cent and the female literacy rate Male Literacy 82.8
is 68.1 per cent.
Female Literacy 68.1

→ The state has 3,640 pre-university colleges, 1,362 other Source: Census 2011 (provisional data)
colleges and 18 universities to impart general
education. There are about 0.968 million students in
the pre-university colleges. Educational Infrastructure (No)
• Universities: 18
→ There are 289 Polytechnics and 187 Engineering • Pre-University Colleges: 3,640
colleges to provide technical education in the state. • Other Colleges: 1,362
• Engineering Colleges: 187
• Polytechnics: 289
• Vocational Institutes: 553
• Medical Colleges: 39
• Dental Colleges: 41
• Ayurvedic Colleges: 75
• Homeopathy Colleges: 12
• Unani Colleges: 4

Source: Economic Survey of Karnataka 2011-12

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 Karnataka
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Social Infrastructure – Education … (2/2)

→ The state participation in primary education is

significant as 76.86 per cent of the primary schools are Karnataka Education Statistics (2010-11)
managed by Department of Education. Lower Primary: 26,302
Number of Schools Higher Primary: 33,126
→ Karnataka is home to several premier institutions: High Schools: 13,447
Lower Primary: 2.09
→ Indian Statistical Institute School Dropout Rate
Higher Primary: 5.47

→ Indian Institute of Science Pupil-Teacher Ratio 25:1

Source: Economic Survey of Karnataka 2011-12

→ Indian Institute of Management

→ National Law School of India University

→ Institute for Social and Economic Change

→ University of Agricultural Sciences, Bengaluru

→ Kannada University, Hampi

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Karnataka
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Social Infrastructure – Health

→ Three-tier health infrastructure comprising Primary

Health Indicators (2010)
Health Centres, Health Units, Community Health
Centres and Sub-Centres is available in the state. Bed Per 100,000 Population (2010-11) 112
Birth Rate* 19.2
→ The policy of the government is to establish one
Death Rate* 7.1
primary health centre for every 30,000 inhabitants, one
dispensary for every 15,000-20,000 inhabitants, and Infant Mortality Rate** 38
one sub-centre for every 5,000 inhabitants. Life Expectancy at Birth (years)
Male (2002-06) 63.6
Health Infrastructure (December, 2011)
Female (2002-06) 67.1
• District Hospitals: 17
• Other Hospitals: 10 Source: Economic Survey of Karnataka 2011-12,
• Community Health Centres: 326 Sample Registration System (SRS) Bulletin 2011
• (www.censusindia.gov.in)
Primary Health Centres: 2,310 *Per thousand persons
• Sub-Centres: 8,871 **Per thousand live births
• Dispensaries: 659
• Beds in Hospitals: 61,848

Source: Economic Survey of Karnataka 2011-12

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Karnataka
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Cultural Infrastructure

→ 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 Kanteerava Stadium in Bengaluru, Chamundi Vihar
Stadium in Mysore and the Mangala Stadium in Mangalore.

→ The Bangalore Golf Course and the Karnataka Golf Association are well known golf courses in the state.

→ Karnataka is also home to a number of convention centres, which are used for exhibitions, both indoor and outdoor,
such as Palace Grounds and the Bengaluru International Exhibition Centre.

→ Under the Rural Tourism Project, Anegundi, Kokkre Bellur, Attivari Bird Sanctuary, Gokarna and Kodagu have been
developed. Schemes are prepared to develop Rural Tourism at other places also to showcase the rural life, art and
culture and heritage.

→ Rangashankara and 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.

For updated information, please visit www.ibef.org INFRASTRUCTURE STATUS 33

Karnataka
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Contents
 Karnataka – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Karnataka

 State Acts & Policies

For updated information, please visit www.ibef.org

34
Karnataka
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Key Industries

→ The natural resources, policy incentives and

Key Industries in Karnataka
infrastructure in the state favour investments in the
IT/ITeS, biotechnology, engineering, electronics, • IT and ITeS
automotive, textiles, agri- and food-processing sectors. • Biotechnology
• Engineering
→ Karnataka is making significant investments in industrial • Electronics and Telecom
infrastructure, such as setting up industrial clusters and • Automotive
Special Economic Zones (SEZs) and Public Private • Textiles and Apparel
Partnership (PPP) projects to provide an impetus to • Agro and Food Processing (Floriculture)
further industrial development.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 35

 Karnataka
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Key Industries – IT and IT-enabled Services …

(1/2)

→ Karnataka has emerged into a major base of Information

Technology (IT) industry. Some of the Key Players
• Wipro Technologies
→ About 50 per cent of the world's SEI CMM Level 5 • Infosys
certified companies are located in Bengaluru. • Genpact
• Accenture
→ Bengaluru is the 4th largest technological cluster in the
world after Silicon Valley, Boston and London.

→ There are about 1,256 IT companies registered in STPI

Bengaluru.

→ The state is India’s largest software exporter with

exports (made by registered units through STPI) of US$
15.4 billion in 2010-11.

STPI: Software Technology Parks of India

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 36

 Karnataka
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Key Industries – IT and IT-enabled Services …

(2/2)

→ Wipro Ltd established in 1945; revenues of US$ 7.3 billion in 2011-12; present in areas of IT
services, product engineering, technology infrastructure services, BPO and other consulting
Wipro Ltd solutions. Provides services such as application development, deployment and maintenance,
business intelligence and Customer-Relationship Management (CRM).

→ Based in Bengaluru, the company has 72 plus global delivery centers and 50 plus industry specific
‘centers of excellence’ in over 54 countries. In September 2009, the company launched its Centre
of Excellence on its Electronic City campus; to work with other leading IT firms to develop
innovative IT solutions.
→ Infosys Technologies Ltd set up in 1981, revenues of US$ 6.99 billion in 2011-12. Present in areas
of IT consulting, modular global sourcing, process re-engineering and BPO services.
Infosys Technologies Ltd
→ The company has 65 offices and 74 development centers in US, India, China, Australia, Japan, UK,
Germany, France, and many other countries; marketing and technological alliances with IBM, Intel,
Microsoft, Oracle etc; Operations at multiple locations at Bengaluru, Mangalore and Mysore in
Karnataka.
→ Genpact was set up in 1997 in India; formerly known as GE Capital International Services, the
Genpact company’s net revenues in 2011 stood at US$ 1.6 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, IT-infrastructure. The company employs over 55,400 employees.
The company has one office in Bengaluru in Karnataka.

Accenture → Accenture is a global management consulting, technology services and outsourcing company,
with more than 246,000 people serving clients in more than 120 countries.

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

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 37

 Karnataka
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Key Industries – Biotechnology … (1/2)

→ Karnataka has played a key role in India’s emergence as

a significant player in the global biotechnology industry. Some of the Key Players
Karnataka is home to 60 percent of the country’s • Biocon
biotech units. • AstraZeneca India
• Jubilant Life Sciences Ltd
→ As of 2010-11, there were 324 biotech units in • GlaxoSmithKline Pharmaceuticals Ltd
Karnataka.

→ Karnataka has around 6,800 scientists involved in

biotech research.

→ Premier Life Sciences institutions such as Indian

Institute of Science, National Centre for Biological
Science, Jawaharlal Nehru Centre for Advanced
Scientific Research, etc., are present in the state.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 38

 Karnataka
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Key Industries – Biotechnology … (2/2)

→ Biocon India was incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd of
Biocon Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. It is among the leaders in bio-
pharmaceuticals and bio-services. It has corporate headquarter at Bengaluru.

→ The company’s revenue was about US$ 448 million in 2011-12.

→ AstraZeneca India was established in 1979. The company is involved in the areas of
AstraZeneca India manufacturing/marketing of bulk drug chemicals, liquid formulations, tablets and capsules,
injectibles and ointments for various disease segments such as cardiovascular, respiratory,
maternal healthcare, etc.

→ The company’s manufacturing plant is located at Yelhanka and R&D centre in Bengaluru.

Jubilant Life Sciences Ltd → Jubilant Life Sciences Limited (formerly Jubilant Organosys Ltd) is an integrated pharma and life
sciences company. It is the largest Custom Research and Manufacturing Services (CRAMS)
company and provides leading drug discovery & development solutions outside India.

→ The company has a manufacturing facility in Nanjangud, with over 625 employees.

GlaxoSmithKline → GlaxoSmithKline Pharmaceuticals Ltd was established in 1924, it is one of the oldest
Pharmaceuticals Ltd pharmaceutical companies in India.

→ GSK India product portfolio includes prescription medicines and vaccines. The company has a
clinical development centre in Bengaluru.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 39

 Karnataka
AUGUST
2012
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Key Industries – Engineering … (1/2)

→ The Engineering industry in Karnataka has positive

prospects in its performance. Some of the Key Players
• Bharat Earth Movers Limited (BEML)
→ In 2010-11, the export of engineering products stood • Hindustan Machine Tools Limited (HMT)
at US$ 1.60 billion. • Bharat Heavy Electricals Limited (BHEL)
• Saint-Gobain India
→ Bharat Earth Movers Limited, Hindustan Machine Tools
Limited and Bharat Heavy Electricals Limited are among
the leading companies in this sector in the state.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 40

 Karnataka
AUGUST
2012
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Key Industries – Engineering … (2/2)

→ BEML Limited (formerly Bharat Earth Movers Limited) was established in 1964. BEML manufactures
BEML Limited a wide range of products such as earth moving equipment.

→ BEML has its registered office at Bengaluru and units at Kolar Gold Fields, Mysore and Bengaluru.

Hindustan Machine Tools → HMT was established in 1953. The company manufactures various types of machine tools
Ltd (HMT) including watches, tractors, printing machinery, metal forming presses, die casting & plastic
processing machinery, CNC systems & bearings.

→ The company has a manufacturing plant in Bengaluru.

Bharat Heavy Electricals → Bharat Heavy Electricals Ltd (BHEL) is the largest engineering and manufacturing enterprise in
Ltd India in the energy-related/infrastructure sector. It has 15 manufacturing divisions, 2 repair units,
4 regional offices, 8 service centres ,8 overseas offices, and 15 regional centres.

→ BHEL has electronics division at Bengaluru.

→ Saint-Gobain India was established in India in 1996. The group comprises eight manufacturing
Saint-Gobain India companies in India for a variety of products ranging from glass to engineering products.

→ The company has a manufacturing plant in Bengaluru.

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 Karnataka
AUGUST
2012
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Key Industries – Telecommunications and

Electronics … (1/2)

→ Karnataka is the leading state of the country in

electronics and telecommunication with over 300 of the Some of the Key Players
world’s leading companies. • Bharat Electronics Ltd
• Nokia
→ The state has high end research and development • Siemens
organisations like Indian Institute of Science, Cosmic • Philips Electronics India Ltd
Industrial Laboratories Ltd, Indian Space Research
Organization (ISRO), CSIR Centre for Mathematical
Modelling and Computer Simulation (CMMACS),
National Aerospace Laboratories, Centre for Liquid
Crystal Research, John F. Welch Technology Centre.

→ It has excellent telecom infrastructure with 140 out of

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

→ Bengaluru district is the major hub of electronics and

telecommunications industries. The other districts of
Hassan, Tumkur, Mysore, Mangalore, Shimoga are the
new destinations for promotion of electronics and
hardware industries.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 42

 Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Key Industries – Telecommunications and

Electronics … (2/2)

Bharat Electronics Ltd → Bharat Electronics Limited (BEL) was incorporated in 1954 and is a multi-product, multi-unit, multi-
technology company. Products manufactured by the BEL are mainly categorised as
systems/turnkey solutions, defence and non-defence products.

→ The company has manufacturing unit at Bengaluru, Karnataka.

Nokia → 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.

→ It has an R&D facility and a design studio in Bengaluru.

Siemens → 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, employs over 18,000 people in India and has over 21
manufacturing facilities in India. It has several offices in Bengaluru.

Philips Electronics → Philips is present in India for over 75 years. It is a leader in consumer electronics, healthcare and
India Ltd lighting systems; employs over 4,500 people in India.

→ The company has a R&D facilitation – Philips Innovation Campus – at Bengaluru.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 43

 Karnataka
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Key Industries – Automotive … (1/2)

→ Karnataka has a vibrant auto industry with investments

Some of the Key Players
of over US$ 713 million and the state’s auto sector
revenue stood at US $ 604 million. • Toyota Kirloskar
• Volvo India
→ The main locations for automobile industries are • TVS Motor Company
Bengaluru, Ramanagara, Kolar, Shimoga, Dharwad, • Delphi Automotive Systems Pvt Ltd
Belgaum.

→ General Motors Technical Center located in Bengaluru,

is actively involved in research, design, analysis and
development of vehicles and powertrains for foreign 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.

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 Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Key Industries – Automotive … (2/2)

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

→ The company has manufacturing facilities at Bidadi.

Volvo India → Volvo India has state-of-the-art bus manufacturing unit near Bengaluru. Volvo Group has about
100,000 employees, production facilities in 20 countries, and sales activities in some 190 countries.

→ In 2009, the Bengaluru bus plant delivered over 600 buses, a 50 per cent increase over 2008.

TVS Motor Company → TVS Motor Company is one of the largest two-wheeler manufacturers in India. It is the flagship
company of the TVS Group. The company has four manufacturing plants across India, including
Mysore in Karnataka.

Delphi Automotive Systems → Delphi India was incorporated in 1995 as a wholly owned subsidiary of Delphi. It is a leading global
supplier of electronics and technologies for automotive, commercial vehicle and other market
Pvt Ltd segments.

→ The company has a technical centre at Bengaluru, which is the largest technical centre outside the
US.

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 Karnataka
AUGUST
2012
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Key Industries – Textile and Apparel …

(1/2)

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

and wool which are the key raw materials required for Some of the Key Players
textile manufacturing units. The state produces 65 per • Gokaldas Exports Limited
cent of India’s silk. • Karnataka Silk Industries Corporation
(KSIC)
→ Karnataka is a major apparel sourcing destination for • Himatsingka Seide
the global market. The state accounts for 20 per cent of • Shahi Exports Private Limited
the national garment production.

→ The sector has potential for future growth as the state

has Apparel Park at Dodaballapur near Bengaluru and
other mega textile parks in the other parts of the state.

→ There are over 0.38 million manufacturing units

engaged in textile and garment sector at the organised
and unorganised level.

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 Karnataka
AUGUST
2012
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Key Industries – Textile and Apparel …

(2/2)

→ Gokaldas is one of the largest garment exporters in the country. It commenced operations in 1979.
Gokaldas Exports Ltd
→ The company has headquarter at Bengaluru and 46 factories across Karnataka; employs around
47,000 employees. It has capacity to produce and export 3 million woven & 1 million knit apparel
per month.

Karnataka Silk → Karnataka Silk Industries Corporation (KSIC) is a government of Karnataka enterprise. It is a
Industries Corporation leading manufacturer of silk.

→ The company has two modern factories located in T. Narasipura & Mysore, engaged in
manufacturing silk goods right from raw silk yarn to silk fabrics.

→ Himatsingka Seide was incorporated in 1985. It is a Bengaluru-based company and deals in natural
Himatsingka Seide silk fabric.

→ The company’s focus area is textile designing and manufacturing. It has a spinning division as well
as a weaving division. The company’s brand ‘Atmosphere’ is India’s first luxury home textile brand,
with an exclusive collection of over 2,500 products.

Shahi Exports Pvt Ltd → 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. It has manufacturing
facilities in Delhi, Bengaluru, Salem and Tirupur.

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 Karnataka
AUGUST
2012
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Key Industries – Agro and Food Processing …

(1/2) → Most of the civil infrastructure work has been
established in Malur, Hiriyur, Bagalkot and Jewargi
food parks which had been approved by Ministry of
Food Processing Industries, Government of India.
→ Karnataka with a good agricultural base including a
variety of food crops offers immense scope for the
development of food processing industries.
Some of the Key Players
→ The state accounts for around 70 per cent of the • Hindustan Unilever Limited
country’s total coffee production. In 2011-12, the • Nestle India
coffee production in the state was estimated to • Britannia Industries Limited
227,675 metric tonnes.
• United Breweries Group

→ 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 various stages of
development.

→ A Spice Park is proposed to be developed at Byadagi in

Haveri district.

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 Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Key Industries – Agro and Food Processing …

(2/2)

Hindustan Unilever Ltd → Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. It recorded revenues of
US$ 4.53 billion during 2011-12. The company employs over 16,000 people nationwide.

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

Nestle India → Nestle has been in India for almost a century, with seven production facilities across the country,
including one at Nanjangud, Karnataka. It produces chocolate and confectionaries, prepared
dishes and cooking aids, beverages and milk products and nutrition.

Britannia Industries Ltd → Britannia is a leading food processing company in India. The company is manufacturing food
products such as biscuits, cheese and bread. It is based in Bengaluru. The company had a revenue
of US$ 931.7 million in 2010-11.

→ United Breweries Limited is a flagship company of UB Group. The company is also referred to as
United Breweries Ltd the beer division of the UB Group. The company is based in Bengaluru. It has recorded a net
turnover of US$ 679 million in 2010-11.

→ The company has around 2,315 employees. It manufactures products, primarily, under the brands
Kingfisher, London Pilsner and UB Premium Ice. The UB group is also into the aviation sector and
owns the Kingfisher Airlines.

For updated information, please visit www.ibef.org BUSINESS OPPORTUNITIES 49

Karnataka
AUGUST
2012
THE SILICON VALLEY OF INDIA

Contents
 Karnataka – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Karnataka

 State Acts & Policies

For updated information, please visit www.ibef.org

50
 Karnataka
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2012
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Key Investment Promotion Offices … (1/2)

Agency Description Contact Information

No. 49, South Block, Khanija Bhavan
• Anchor department for development/
Race Course Road
establishment of industries in
Department of Bengaluru - 560 001
Karnataka.
Phone: 91 -80 2238 9901 -08
Industries and Fax: 91 -80-2238 9909
Commerce (DIC) • Responsible for formulating and
E-mail:
implementing industrial policies in
commissioner@karnatakaindustry.gov.in
the state.
Website: www.karnatakaindustry.gov.in
• It is the single contact point for
investors in the state.

• Considers/ forwards proposals to

No.49, South Block, Khanija Bhavan
concerned agencies and
East Entrance, Race Course Road
communicates status to investors.
Bengaluru - 560 001
Karnataka Udyog
Phone: 91 -80-2228 2392/5659,
Mitra (KUM) • Monitors implementation of
Fax: 91 -80-2226 6063
approved projects.
E-mail: md@kumbangalore.com
Website: www.kumbangalore.com
• Single point contact for information
on various aspects including land
availability, statutory approvals and
coordination.

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 Karnataka
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Key Investment Promotion Offices … (2/2)

Agency Description
District Level Single Window • Functions under the chairmanship of respective Deputy Commissioners
Clearance Committee (DLSWCC) for industrial projects for investments less than US$ 0.65 million.

State Level Single Window • Functions under the chairmanship of Minister for Large and Medium
Clearance Committee (SLSWCC) Industries for investments that range between US$ 0.65–1 0.9 million.

State High Level Clearance • Functions under the chairmanship of the Chief Minister for projects
Committee (SHLCC) involving investment of more than US$ 1 0.9 million.
• Nodal agencies for approval of projects at district level.
District Industries Centres • The primary focus of the agency is to promote small scale, village and
cottage industries.
• There are various sector-specific departments such as Department of
Tourism, Department of Information Technology and Biotechnology,
Other Departments Department of Food Processing, Department of Textiles, Department of
Mines and Geology.

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Karnataka
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Key Approvals Required

List of Approvals and Clearances Required Departments to be Consulted

Prior to Setting up the Unit
Department of Industries and Commerce Department, Karnataka Udyog Mitra
Registration
(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
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 1 956 Central and State Excise Departments
After Commencement of Production /Activity
Department of Industries and Commerce and Respective Sector Departments
Registration
such as IT/BT/Tourism etc.

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Karnataka
AUGUST
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Approval Process

Stage 1 Clearance of the Project/Industry Stage 2 Clearance

State level Single Window Agency

High Level Clearance Committee
(Large/Mid Size Industries US$ 0.65 –
(Mega Industries > US$ 1 0.9 mn
1 0.9 mn)

KIADB
(Land Acquisition)

KSPCB
Karnataka Udyog Mitra (Pollution Board)
(Department of Industries and Commerce)
KPTCL
(Electricity)
Inspectorate of
Other Sector-Specific Factories and
Departments Boilers

Commercial Tax
District Industries
Centre Land Conversion
(Tiny Industries < US$ Investor
0.65 mn)
BWSSB / KUWSDB
Source: Karnataka Udyog Mitra, Karnataka Industrial Areas Development Board and Department of Industries & (Water Supply)
Commerce
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Karnataka
AUGUST
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Cost of Doing Business in Karnataka

Cost Parameter Cost Estimate

Industrial Land (per sq ft) US$ 4.5 to US$ 1 20

Industrial: US 8.3 cents to 1 1 .5 cents

Power Cost (per kWh)
Commercial: US 1 1 .8 cents to US 1 5.0 cents

Labour (minimum wage per day) US$ 2.8 to US$ 3.6

Bengaluru Metropolitan Area:

Water (per kilolitre) Non-Domestic: US 75 cents to US 1 25 cents
Industries: US$ 1 .25

Sources: Industry Sources, Ministry of Labour and Employment, Government of India,

Bangalore Water Supply and Sewerage Board, Karnataka Electricity Regulatory Commission

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Karnataka
AUGUST
2012
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Contents
 Karnataka – An Introduction

 Infrastructure Status

 Business Opportunities

 Doing Business in Karnataka

 State Acts & Policies

For updated information, please visit www.ibef.org

56
Karnataka
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State Acts & Policies … (1/5)

Information and Communications Technology Policy

2011
To maintain Karnataka’s leadership in outsourced IT services.
Objectives
•
• To retain Karnataka’s position as the state with largest skilled workforce in India for IT
services, Products and R&D.
• To enable Karnataka to be the most preferred destination for MSME (micro, small and
medium enterprises).
Read more

Integrated Agribusiness Development Policy 2011

To position Karnataka in a sustained growth path in the field of agricultural and allied
Objective
•
sectors through global technologies and innovative tools, by creating enabling
frameworks and state of art infrastructure facilities, thereby generating higher returns to
farming communities.
Read more

Karnataka Renewable Energy Policy 2009-14

Development, propagation and promotion of renewable energy sources and
Objectives
•
technologies.
• Creation of suitable environment for private sector participation in renewable energy
power generation.
Read more

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State Acts & Policies … (1/4)

Karnataka Industrial Policy 2009-14

To build a prosperous Karnataka through development of human and natural resources
Objective
•
in a systematic, scientific and sustainable manner.

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Karnataka Tourism Policy 2009-14

To make tourism, Karnataka’s principal and largest economic activity, as an employer,
Objective
•
revenue-generator and engine of growth, by being among the top two tourism
destinations in India by 2016-17.
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State Policy for Special Economic Zones

2009
To facilitate and expedite establishment of SEZs, at the same time safeguarding the
Objective
•
environment and the interests of land owners.
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State Acts & Policies … (2/4)

Millennium Biotech Policy II

2009
• To increase the quality of human resources by supporting education and research
Objective institutions like the Institute of Agri-Biotechnology (IABT), the Institute of
Bioinformatics and Applied Biotechnology (IBAB), the Centre for Human Genetics (CHG)
and BT finishing schools; to create specific infrastructure such as focused biotech parks
in the areas of agriculture, marine biotech and animal husbandry; to provide specific
fiscal incentives.
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Karnataka Textile Policy 2008-

13
• To achieve balanced, higher and sustainable growth in the entire textile value chain
Objectives from fibre to finished products, with emphasis on balanced regional development.

• To increase the income levels of the people dependent on the SMEs within the textile
and garment sector thereby creating additional employment opportunities to at least 5
lakh people during the policy period.

• To facilitate emerging units in critical areas such as production technology, market

research and development, HRD & ITeS for exploiting the emerging global and
domestic trade opportunities.
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State Acts & Policies … (3/4)

Karnataka Mineral Policy

2008
• To optimize the States geological potential by scientific and detailed prospecting. State
Objectives of the art techniques will be encouraged by combining the resources of the private and
public sector.

• To resolutely pursue the policy of preserving flora, fauna, and bio-diversity and ensure
that the invaluable forest wealth is safe guarded while granting mineral concessions.

• To promote transparency in granting mining concessions. Priority will be given to the

applicants who propose establishment of industries for value addition within the vicinity
of the mineral bearing areas.
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Infrastructure Policy 2007

Objective • To provide a fair and transparent policy framework to facilitate the process of economic
growth and encourage Public-Private Partnership (PPP) in infrastructure.
Read more

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Annexure

Exchange Rates

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-1 0 47.41

201 0-1 1 45.57

201 1 -1 2 47.94

Average for the year

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