Knowledge, research and innovation hub of Asia, with over 400 high-end R&D centres

Karnataka is a leader in India’s technology sector, both in terms of investments and exports. It is also a popular investment destination for auto, electronics, food processing, heavy machinery and textiles industries.

Karnataka is well connected to all major markets with 2 international airports, 307,030 km of the road network and 5,543 km of the rail network. The state has a coastline of 300 km with 12 minor ports and one major port in Mangaluru. The Bengaluru - Mumbai Economic Corridor and Chennai - Bengaluru Industrial Corridor pass through the state. 

Karnataka stands fourth in merchandise exports in the national export basket. Exports from the state stood at around $17.4 bn in 2018-19, which is 5.3% of India’s total exports. The state stands third among Indian states in terms of FDI inflows, attracting FDI worth $40.7 bn between 2000 and 2019.

It is home to the Pavagada Solar Park which has an installed capacity of 2000 MW, the largest in the country of which 1400 MW is operational. The total installed power capacity in the state stands at 28,400 MW.


Software Exporter

Largest software exporter in India  


Largest producer of aerospace and defence equipment in India 


Largest producer of coffee in India 

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.

Automobile and Auto-Components

Karnataka is the 4th 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. The state has a huge local market with over 14 mn registered vehicles and connectivity to four of the top five automobile markets in the country. Over 400 R&D centres and 200 engineering colleges are driving innovation across the state.

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.


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.

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.

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.

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. 

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.


Urbanisation Rate

Females/ 1000 Males

Female/Male Ratio

Male/Female Ratio


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

Karnataka, the 8th 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.  

Industrial Information System (IIS) Portal

GIS - based map displaying available infrastructure for setting up manufacturing operations in the state.


Updates From Karnataka

  • Guide for Investors “Single Point Clearance – 2020”


    Guide for Investors “Single Point Clearance – 2020”

    Read Now
  • Koppal Toy Manufacturing Cluster, Karnataka - India's first toy manufacturing cluster


    Koppal Toy Manufacturing Cluster, Karnataka - India's first toy manufacturing cluster

    Read Now
  • Cabinet approves Industrial Corridor nodes at Krishnapatnam and Tumakuru under CBIC

    Press Release

    Cabinet approves Industrial Corridor nodes at Krishnapatnam and Tumakuru under CBIC

    Read Now
  • State Finances: A Study of Budgets 2020-21 - COVID -19 and its Spatial Dimensions in India


    State Finances: A Study of Budgets 2020-21 - COVID -19 and its Spatial Dimensions in India

    Read Now
  • FDI Policy

    FDI Policy 2020

    DPIIT released the 'Consolidated FDI Policy' (Effective from October 15, 2020)

    Read Now
  • State-wise and item-wise value of output from Agriculture, Forestry and Fishing (2011-12 to 2017-18)


    State-wise and item-wise value of output from Agriculture, Forestry and Fishing (2011-12 to 2017-18)

    Read Now
  • Industrial Corridor Projects


    Industrial Corridor Projects

    Read Now


    Industrial Information System (IIS) Portal

    Visit Now
  • BRAP Guidelines


    State Reforms Action Plan 2020-21 Implementation Guide for States/ UTs

    Read Now
  • Business Reform Action Plan 2020-21


    State Business Reform Action Plan 2020-21 Report

    Read Now
  • Report on Nineteenth Electric Power Survey of India (Mega Cities)


    Report on Nineteenth Electric Power Survey of India (Mega Cities)

    Read Now
  • Export Preparedness Index 2020


    Export Preparedness Index 2020

    Read Now
  • Industrial Policy


    Karnataka New Industrial Policy 2020-25

    Read Now
  • Taxpayers' Charter Ministry of Finance


    Taxpayer's Charter by Ministry of Finance

    Read Now
  • Doing Business in India 2020


    Doing Business India 2020

    Read Now
  • Skill Index - Measuring Across Clusters in India


    Skill Index - Measuring Across Clusters in India

    Read Now
  • Economic Survey

    Karnataka Economic Survey 2019-20

    Read Now
  • Budget 2020

    Karnataka Budget 2020-21

    Read Now
  • Workshop

    Enablers for Establishing Globally Competitive ESDM Clusters Workshop, Bengaluru, 19 February 2020

    Register Now
  • Brochure

    India Investment Atlas

    View Now
  • Report

    India Budget 2020: Tax and Sector Highlights

    Read Now
  • Report

    SARAL - State Rooftop Solar Attractiveness Index 2018-19

    Read Now
  • Report

    Karnataka District Profiles

    Read Now
  • Toy CLuster


    Karnataka Industrial Cluster Development Program - Toy Manufacturing Cluster at Koppal

    Read Now
  • Report

    Healthy States Progressive India

    Read Now