Invest in Karnataka - Business Opportunities in Karnataka

Aerospace and Defence

Karnataka is the leader in Aerospace and Defence sector, with Bengaluru alone housing a quarter of India's aircrafts and sapcecrafts industries.

It is the first State to roll out a dedicated Aerospace policy. The has developed an Aerospace and Defence Park with world-class infrastructure over 2,980 acres in Devanahalli district near Bengaluru International Airport. This includes an Aerospace SEZ of 252 acres. Aequs Global, a precision manufacturing company, headquartered in Karnataka, developed India’s first private Aerospace SEZ in Belagavi district.

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Automobile and Auto-Components

Karnataka is the 4th largest manufacturer of automobiles in India, contributing 8.5% to the total national output.

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

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Agri and Food Processing

Karnataka accounts for about 70% of coffee production and 43% of mulberry silk production in India.

The State is also a major producer of cashew nut, rose onion, gherkin, green chilli, tamarind, sunflower and Byadgi chilli. The State has 4 food parks, 2 mega food parks along with a spice park and a seafood park. Hubballi district in Karnataka is home to an FMCG cluster. Investors in FMCG businesses are also offered special incentives in the State.

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Biotechnology

Karnataka contributed about 20% to India's BioEconomy in 2022 and has a 60% share in biotech production and exports.

Karnataka’s Biotech industry crossed $ 200 Mn R&D spent in 2022 and records around 15% YoY growth. The state has the second highest number of biotech focused startups. Currently, the Bengaluru Life Sciences Park is being developed in around 52 acres in PPP mode an integrated Industry zone. It is envisioned to have best-in-class laboratory infrastructure to support a host of R&D activities to have 60% of the area reserved for biotech/lifesciences companies.

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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 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. An Electronic Manufacturing Cluster was recently set up in Dharwad district. The cluster is estimated to attract INR 1500 Cr in investment and create 18000 jobs.

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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 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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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.

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Textile and Apparels

Karnataka contributes about 32% to silk and 6% to cotton production in the country.

The state contributes about 20% to India's apparel exports. 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. Kalburgi in Karnataka has been selected under PM-MITRA scheme for setting up of an integrated textile park. The state government will also be developing mini-textile parks in 25 administrative districts (taluks) with a greater weaver population.

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