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.

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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.

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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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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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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

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.  

  • 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 PPP Policy for Infrastructure…

    To establish a PPP framework for infrastructure development

  • 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…

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    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…

Investible Projects

Investment Opportunities in Karnataka

  • Projects


  • Opportunity

    $8.6 bn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$2.46 bn

Sub-Urban Rail Project [Bangalore]

State (s) Karnataka

$1.58 bn

Peripheral Ring Road Project

State (s) Karnataka

$793.44 mn

Bantwal-Holalkere Road Upgradation Project [Dakshina Kannada-Chitradurga]

State (s) Karnataka

$263.63 mn

Baithkol Modern Deep Sea Port Project

State (s) Karnataka

Data on Map

  • Industries in Karnataka
  • Invest Karnataka
  • Business Opportunities in Karnataka

Major Investors

Updates from Karnataka