Karnataka has always been at the forefront of industrial growth in India. With its inherent capabilities coupled with its enterprising citizens, Karnataka provides the ideal choice for investment opportunities.
- Superior Human Resources which includes trained technical manpower in Engineering, Management and Basic Sciences.
- High level of research and development facilities originating from a number of Central Government laboratories and research institutions located in Karnataka.
- Favourable climate and habitat.
- Excellent communication facilities and accessibility provided by broad gauge railway, airport, national highways and sea ports.
- Harmonious industrial relations.
While the national GDP grew at 8.7% between 2005 and 2010, the combined growth rate of the four southern states was merely 7.85%, with Karnataka leading at 8.7%, Kerala 8.1%, Andhra Pradesh and Tamil Nadu at 7.4% each (according to a McKinsey survey report, commissioned by the Confederation of Indian Industry in March 2011)
North Indian states like Bihar and Uttarakhand, which had for long borne the tag of backward states, have also overtaken the southern states.
The last three years have seen the two states grow at a furious pace of 16% and 14% respectively, albeit on a lower base. Other states ahead of the southern states are Gujarat at 11.3% and Haryana at 11%. Bihar’s GDP growth rate for the last five years at 9.6% is also higher.
Industry leaders attribute several factors to the recent slump in south India’s growth. These are the rising land prices, labour shortage, infrastructural bottlenecks, including port capacity and growing urban congestion in Bangalore, Chennai and Hyderabad and concerted efforts of other states in attracting investments in recent years.
The fact that South India continues to be among the top 10 contributors to the GDP nationally would help.
The region’s current GDP at $300 billion, places it just outside of the top 30 economies of the world, but the report predicts South India could spearhead the country’s growth over the next few years with its GDP projected to hit $500 billion by 2016 and close to $650 billion by 2020.
The region’s growth in skill-intensive industries like automotive manufacturing and information technology and information technology-enabled services (IT& ITES) has also outpaced the all-India average.
- The Directorate of Industries and Commerce co-ordinates all activities required for industrial development. It allots to the entrepreneur, power, land and water besides sanction of fiscal incentives.
- Karnataka Industrial Area Development Board (kiadb.com is not active anymore) acquires tracts of land for development into industrial sites.
- The Technical Consultancy Services Organisation of Karnataka offers expert consultancy services to small entrepreneurs at moderate rates.
- The Karnataka State Finance Corporation, Industrial Investment Development Corporation, Small Scale Industries Development Corporation and Karnataka Electronics Corporation provide them finance, equity participation, factory sheds and raw material supplies.
All the 123 associations are affiliated to a parent : Federation of Karnataka Chambers of Commerce and Industries (FKCCI).
Foreign investment approved in Karnataka during 1993-94 brought about 169 foreign investors from Germany, Japan, USA, UK, Switzerland and Sweden. They have invested in computer software, telecommunications equipments, electronics and electricals, machine tools and engineering products, medical and laboratory equipments, minerals, ceramics, chemicals, leather products, food processing and tourism.
- Karnatak Chamber of Commerce and Industry is a premier organisation situated in Hubli, the Industrial, Financial and Commercial Centre of North Karnataka.
- LabourNet creates and develops jobs for informal sector workforce beginning with construction workers in Bangalore
- Karnataka to do a Gujarat on industriesChief minister B S Yeddyurappa had spoken admiringly of the Gujarat model of governance. Now, he’s done something about it. As a first step, a team of officials led by large and medium industries minister Murugesh R Nirani visited Gujarat last week to study its strategies for industrial development. Impressed by some aspects, the state plans to include those beneficial to Karnataka in the proposed modification to the industrial policy.
- Brand Bangalore takes a hitThe ongoing political circus seems to have pushed Karnataka Inc. into suspended animation. It has tarnished its image of a favoured business destination. The political tamasha the state has endured is being discussed by global CEOs and international venture capital and private equity funds.