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

Karnataka is the IT hub of India and home to the world’s fourth-largest technological cluster. The state has over 3,500 IT companies that contribute over $ 32 bn in exports, employs over 1 mn professionals and creates 3 mn indirect jobs.

Karnataka is India’s largest software exporter, second largest chip design hub, fourth largest automobile producer and fourth largest contributor to electronic industrial output. It is also a leader in exports of readymade garments, gems and jewellery, petrochemicals and engineering goods from the southern region of India. Bengaluru, the state’s capital, has a very strong cluster of IT and biopharmaceutical companies. The state also has the second fastest growing start-up ecosystem in the world and is home to billion-dollar Indian start-ups. It is expected to be the largest IT cluster globally by 2020, employing around 2 mn professionals.

Besides being a top software exporter, the state also stands fourth in merchandise exports in the national export basket. Exports from the state stood at around $ 82 bn in 2016-17, which is about 18.8% of India’s total exports. The state stands fourth among Indian states in terms of FDI inflows, attracting close to $ 29 bn between 2000 and 2017.

Karnataka is well connected to all major markets with 2 international airports, 264,639 km of total road network and 3,281 km of rail network. The state has a coastline of 300 km with 12 minor ports and one major port at Mangalore. The total installed power capacity in the state stands at 22,290 MW.

Software Exporter

Largest software exporter in India  


Largest producer of aerospace and defence equipments in India 


Largest producer of coffee in India 

Aerospace and Defence

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

It is the first state to roll out a dedicated Aerospace Policy (2017-23). It 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 has developed India's first private Aerospace SEZ in 121 ha of land at Belagavi.

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Agri and Food Processing

Karnataka accounts for 70% of India’s coffee production, 75% of India’s flower production and 47% of India’s silk production.

The state is also a leading producer of cashew nut, rose onions, gherkins, green chilli, tamarind, sunflower and byadgi chilli. Karnataka’s 300 km coastline yields annual marine production of 393,000 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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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 contribute over $ 32 bn in exports, employs over 1 mn professionals and creates 3 mn indirect jobs.

Nearly 80% of Fortune 500 companies have their outsourcing operations in Bangaluru, 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 of 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 Bagalkote, Bengaluru Rural, Bengaluru Urban, Bijapur, Chitradurga, Chamrajnagar, Dharwad and Gulbarga. Bengaluru is known as the 'Garment capital of the country' hosting many large garment companies.

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Automobile and Auto-Components

Karnataka is the 4th largest automobile producing state in India, contributing 8.5% to the national output. It is home to 7 major OEMs and more than 50 auto component manufacturers.

The state has identified automotive as one of the focus sectors in the Industrial Policy 2014–19. Karnataka 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 is driving innovation across the State.

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Karnataka accounts for 60% of total biotech companies, which is the highest in India. There are over 950 plus biotech units in the country out of which 380 companies and about 194 biotech startups are in Karnataka.

Bengaluru, the state’s capital, is a popular destination for biotech startups. Leading institutions such as Indian Institute of Science (IISc.) and 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 sector.

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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.

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

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Heavy Engineering and Machine Tools

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

It 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 an area of 121 ha by India Machine Tools Manufacturing Association.

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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.  

Upcoming Projects

Upcoming projects:

  • Aerospace SEZ near Bengaluru International Airport, spread over 385 ha of land
  • Greenfield airports at Shimoga, Bijapur, Hassan and Gulbarga through the PPP model
  • IT Investment Region (ITIR) of area 4,258 ha, near the international airport, expected to bring in $20 bn and create 1.2 mn direct and 2.8 mn indirect jobs     
  • Mega Textile Zone in 405 ha of land in Yadgir district     
  • Machines Tool Park in more than 120 ha of land in Tumkur district  
  • Bengaluru International Convention Centre Complex, adjacent to the Bengaluru International Airport on PPP mode
  • Sea Port at Tadadi in Uttara Kannada District, at an estimated cost of $584 mn
  • Railway Fiat Coach Factory at Yadgiri district, spread over 61 ha of land
  • Dabhol Bengaluru Gas Pipeline and City Gas Distribution Project for Bengaluru, where the development of the first phase will entail an investment of $115 mn
  • Development of Devanahalli Business Park 
  • Development of Tadadi port and two other greenfield ports at Belekeri and Pavankurve     
  • Smart Cities Mission, for which Bengaluru, Mangalore, Belagavi, Shimoga, Hubli-Dharwad, Tumkur and Davangere are the cities identified in Karnataka
  • Chennai Bengaluru Industrial Corridor passes through Karnataka, with a National Investment and Manufacturing Zone in Tumkur     
  • Industrial corridor in Tumkur to be developed at $2,286 mn     
  • Bengaluru Mumbai Industrial Corridor, with the first industrial node in Dharwad


  • Open

    Karnataka Aerospace Policy 2013-23

    To position Karnataka as a vibrant aerospace hub of Asia and…

  • Open

    Karnataka Agribusiness & Food Proces…

    To make Karnataka a leading investment destination for the a…

  • Open

    Karnataka Animations, Visual effects, Ga…

    To develop Karnataka into a leading global AVCG hub.

  • Open

    Karnataka Biotech Policy 2017-22

    To provide direction and support the sustainable development…

  • Open

    Karnataka Electric Vehicle & Energy…

    To make Karnataka a preferred destination for manufacturing…

  • Open

    Karnataka Electronics Hardware Policy

    To facilitate, promote and develop Karnataka's Electronics H…

  • Open

    Karnataka Grape Processing & Wine Po…

    To develop wine production and marketing and also to provide…

  • Open

    Karnataka ICT Policy 2011

    To position Karnataka to be the IT R&D and product hub o…

  • Open

    Karnataka Industrial Policy 2014-19

    To make Karnataka a preferred destination for industrial inv…

  • Open

    Karnataka Mineral Policy 2008

    To optimize Karnataks's geological potential by scientific a…

  • Open

    Karnataka Minor Port Development Policy…

    To cater to the needs of increasing traffic of Karnataka and…

  • Open

    Karnataka New Textile Policy 2013-18

    To achieve higher and sustainable growth in the entire texti…

  • Open

    Karnataka NRI Policy 2016

    To comprehensively look into aspirations, requirements and e…

  • Open

    Karnataka Retail Trade Policy 2015

    To boost Karnataka‘s position in the retail trade and to acc…

  • Open

    Karnataka Semiconductor Policy 2010

    To retain Karnataka's edge in semiconductor design by attrac…

  • Open

    Karnataka SEZ Policy 2009

    The Policy provides various incentives to facilitate and exp…

  • Open

    Karnataka Solar Policy 2014-21

    To add solar generation of minimum 2000 MW by 2021 and to en…

  • Open

    Karnataka Startup Policy 2015-20

    To create a world-class startup ecosystem through strategic…

  • Open

    Karnataka Tourism Policy 2015-20

    To develop Karnataka as a safe, sustainable and most-favoure…

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