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.

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.

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 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 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.

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.

Biotechnology

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.

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, 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% (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.