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Knowledge, research and innovation hub of Asia and home to 400 Fortune 500 companies

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,14 national highways and 115 state highways, and a rail network of 3,250 km. The state has a coastline of 300 km with 10 minor ports and one major port in Mangaluru. The Bengaluru - Mumbai Economic Corridor and Chennai - Bengaluru Industrial Corridor pass through the state.

Karnataka is the top recipient state during the F.Y. 2021-22 (upto June, 2021) with 48% share of the total FDI Equity inflows. Karnataka stands 4th in merchandise exports in the national export basket. Exports from the state stood at around $15 bn in 2019-20 which is 5.2% of India’s total exports. 

Karnataka stands first in the world to set up a 2,000 MW Solar Park at Pavagada, the largest in the country of which 1,400 MW is operational. The total installed power capacity in the state stands at 28,800 MW.

 

 

Software Exporter

Largest software exporter in India  

Aerospace

Largest producer of aerospace and defence equipment in India 

Coffee

Largest producer of coffee in India 

Aerospace

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 Aerospace and Defence park in 400 ha 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 Belagavi.

Automobile

Automobile and Auto-Components

Karnataka is the 4th largest manufacturer of automobiles in India, contributing 8.5% to the total national output. It is home to the first indigenously built electric car in the country, and 45+ EV innovation start-ups

Karnataka has 7 major OEMs and over 50 automobile component manufacturing companies. There are 5 auto clusters in the state at Hoskote, Bidadi, Hubballi-Dharwad, Shivamogga, and Belgaum.

It is the first state to introduce a comprehensive and well-designed ‘EV and ES Policy 2017’ to attract investment of 31,000 cr and create employment for 55,000 people. Karnataka has a firm vision to make the state the ‘EV Capital’ of India.

Food processing

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 4 food parks, 2 mega food parks along with 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.

Biotechnology

Biotechnology

Karnataka accounts for 60% of total biotech companies, which is the highest in India. It contributes to over one-third of all biotech exports and 12% of pharma exports from India.

It is home to Bio-innovation clusters, bio-tech finishing schools, a proposed marine biotech park, animal biotech park, and Agri biotech park. Bengaluru and Mysore are major hubs for manufacturing of medical devices.

ESDM

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 largest chip design hub in India with a presence of over 85 fabless chip design houses. 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.

Electric Vehicle

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.

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.

Innovation and start-up sector

Innovation and start-up sector

Karnataka has the 3rd highest number of startups globally with more than 400+ global R&D centers and 4000+ startups in Bangalore.

It is the first state to announce a multisector startup policy in India. $ 5.1 bn out of total 13.9 bn raised across India are from companies based out of Banglore. The state is home to several international incubators from gobally recognized corporations such as Microsoft, Airbus, BizLab, SAP, Net App, NUMA.

Textiles

Textile and Apparels

Karnataka is home to 20% of India’s total garment production valued at $1.6 bn. It contributes 49% 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.

39

Urbanisation Rate

Females/ 1000 Males
973

Female/Male Ratio

Male/Female Ratio

Demographics

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 69 mn is equivalent to the population of the United Kingdom.  

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