Invest in Karnataka - Business Opportunities in Karnataka

Aerospace and Defence

Karnataka is the leader in Aerospace and Defence sector, producing a quarter of India's aircrafts and spacecrafts. The state contributes 65% to aerospace-related exports from India.

It is the first state to roll out a dedicated Aerospace Policy. The state has developed Hi-tech Defence and Aerospace park in 1,214 ha of land with world-class infrastructure next to Kempagowda International Airport, Bengaluru, which includes Aerospace SEZ in 102 ha of land. Aequs Global, a precision manufacturing company headquartered in Karnataka, has developed India's first private Aerospace SEZ in 121 ha of land in Belagavi.

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Automobile and Auto-Components

Karnataka is the fourth largest automobile producer in India, contributing 8.5% to the national output. It is home to 7 major OEMs and more than 50 auto component manufacturers.

Karnataka has identified the automotive sector as one of the focus sectors in its Industrial Policy. There are 5 auto clusters in the state at Dharwad, Belagavi, Shivamogga, Ramanagara, and Bengaluru Rural.

The state has a huge local market with over 17 mn registered vehicles and connectivity to four of the top five automobile markets in the country. Over 400 R&D centers and 200 engineering colleges are driving innovation across the state.

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Agri and Food Processing

Karnataka accounts for about 70% of coffee production and 33% of silk production in India.

The state is also a leading producer of cashew nut, rose onion, gherkin, green chilli, tamarind, sunflower and Byadgi Chilli. Karnataka’s 300 km coastline yields annual marine production of 600,000 tonnes and offers varieties like Oil Sardines, Indian Mackerel, Threadfin Breams and Squids. The state has 6 food parks, a spice park and a seafood park.

Ten agro-climatic zones with 6 soil types make Karnataka conducive to grow a large variety of crops. The state has over 65% of its total geographical area under agriculture cultivation.

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Biotechnology

Karnataka accounts for 60% of total biotech companies, which is the highest in India. There are over 950 plus biotech units in the country, of which 380 companies and 194 start-ups are located in Karnataka.

Bengaluru, the state’s capital, is a popular destination for biotech start-ups. Leading institutions such as the Indian Institute of Science (IISc.) and the Institute of Bioinformatics and Applied Biotechnology (IBAB), with several success stories like Mission Mars and Raman Spectroscopy, have set the base for existing and upcoming players in the state.

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Electronic System Design and Manufacturing

Karnataka is the 4th largest contributor to electronic industrial output in the country and accounts for 10% of India's total electronic industrial output.

Karnataka is the second-largest chip-design hub in India with a presence of 85 chip-designing companies. It is the first state to have rolled-out initiatives for innovation centres, skill centres and dedicated ESDM clusters. Bengaluru, the state’s capital, is the fourth-largest technological cluster in the world.

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Electric Vehicle

Karnataka has more than 45 Electric Vehicle based startups. It was the first state to release an EV policy offering incentives to manufacturers.

The state has facilities for the entire value chain in the EV sector. Advanced battery cell manufacturing is also under planning in the state. An EV cluster is being planned in Ramanagar district, near Bengaluru.

Under the state EV policy, 15% capital subsidy to investors for plots of up to 50 acres. A production linked incentive of 1% of turnover for a period of five years from the first year of commercial operations will also be given.

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Heavy Engineering and Machine Tools

Karnataka is the leading state in Machine Tools industry, with Bengaluru alone producing 60% of India’s total machine tools by value.

Karnataka is the second-highest producer of special purpose machinery and heavy electrical machinery in India. India's first Integrated Machine Tool Industry Park was set up near Bengaluru in 121 ha land by India Machine Tools Manufacturing Association.

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Information Technology

Karnataka is the IT hub of India and home to the world’s 4th largest technological cluster. The state has over 3,500 IT companies that contributing more than $ 32 bn in export and employing over 1 mn direct and 3 mn indirect professionals.

Nearly 80% of Fortune 500 companies have their outsourcing operations in Bengaluru, the state’s capital. The state is expected to be the largest IT cluster globally by 2020, employing around 2 mn professionals. It also has the second-fastest growing start-up ecosystem in the world and is home to billion-dollar Indian start-ups.

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Textile and Apparels

Karnataka is home to 20% of India’s total garment production valued at $ 1.6 bn. It contributes 65% to silk, 12% to wool and 6% to the cotton production in the country.

The state has a 5% share in global textiles and apparel trade and contributes 15% to India’s export earnings. The state has nine handloom clusters in Bagalkot, Bengaluru Rural, Bengaluru Urban, Vijapura, Chitradurga, Chamrajnagar, Dharwad and Kalaburagi. Bengaluru is known as the 'Garment capital of the country', host to many large garment companies.

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Urbanisation Rate

Females/ 1000 Males

Female/Male Ratio

Demographics

Over 67% of Karnataka's population is in the working age group of 15-59 years.

Karnataka, the 8^th most populated state in India, is home to about 5% of the country's total population. The state's population of 61 mn is equivalent to the population of Italy.