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Special Issue February 2020 Karnataka Heralds a New Era in Global Investments

Emphasising on its unique motto of ‘Invest, Innovate and Grow’, Karnataka, a land rich in natural resources and known for its industry-friendly policy incentives and infrastructure, the state of Karnataka is now a major investment destination in . With the B S Yediyurappa having announced the upcoming Karnataka Global Investors Meet during his speech at World Economic Forum summit in Davos, the state is spearheading the inflow of foreign investments into India.

Jagadish Shettar B. S. Yediyurappa Hon’ble Minister of Large and Medium Scale Industries Hon’ble Chief Minister of Karnataka

ith the distinction of being strategic growth plans that offer immense one among the foremost investment potential across its varied Windustrial-friendly states in sectors. Thanks to a number of favourable India, Karnataka has been attracting a factors and policies by the state government, global audience with its integrated and the state is the frontrunner in attracting ADVANTAGE KARNATAKA

Chief Minister B. S.Yediyurappa with Prime Minister Narendra Modi industrial giants to invest in pass through Karnataka. and Commissioner, Industrial in India, contributing 8.5% India. With the Chief Minister Karnataka is ahead of most Development and Director to the national output. It is B S Yediyurappa having other states regarding exports of Industries and Commerce home to 7 major OEMs and announced the upcoming also. Exports from the state Gunjan Krishna have been more than 50 auto component Karnataka Global Investors stood at around 17.4 bn US working to consolidate as manufacturers. Karnataka Meet during his speech at Dollars in 2018-19, which is well as improve Karnataka’s has identified the automotive World Economic Forum 5.3% of India’s total exports. position in the country’s sector as one of the focus summit in Davos, the state is The state stands third among industrial landscape. sectors in its Industrial spearheading the inflow of Indian states in terms of Among the sectors that have Policy. The state has a huge foreign investments into India. FDI inflows, attracting FDI helped Karnataka take a big local market with over 14 One reason is that state worth 40.7 bn US Dollars leap in industry, Aerospace mn registered vehicles and is the knowledge, research between 2000 and 2019. and Defence has a big role. connectivity to four of the top and innovation hub of Asia, A recent milestone crossed In fact, the state is the leader five automobile markets in hosting over 400 high-tech by Karnataka is the setting in this sector, producing a the country. Over 400 R&D R&D centres. Karnataka up of Pavagada Solar Park. quarter of India’s aircrafts and centres and 200 engineering is also a leader in the This facility has an installed spacecrafts. The state also colleges are driving technology sector, in terms capacity of 2000 MW, of contributes 65% of aerospace- innovation across the state. of investments as well as which 1400 MW is operational related exports from India. Meanwhile, Karnataka exports. Moreover, the state making it the largest in the Karnataka is also the first accounts for 60% of total attracts significant investments country. The total installed state in India to roll out a biotech companies in India. in the auto, electronics, food power capacity in Karnataka dedicated Aerospace Policy. There are over 950 biotech processing, heavy machinery stands at 28,400 MW. Over the years, state has units in the country, of which and textiles industries. Among the honours developed Hi-tech Defence 380 companies and 194 start- Governments over the years Karnataka enjoys are, and Aerospace Park in 1,214 ups are located in Karnataka. have put in place a strong largest software exporter hectares of land with world- Bengaluru, the state’s capital, infrastructure in the state. in India; largest producer class infrastructure next to is a popular destination for As a result, Karnataka is of aerospace and defence Kempagowda International biotech start-ups. Leading well connected to all major equipment in India and largest Airport, Bengaluru, which institutions such as the cities with two international producer of coffee in India. includes Aerospace SEZ in 102 Indian Institute of Science airports, over 3 lakh km of After Chief Minister B S hectares of land. Meanwhile, (IISc.) and the Institute of road network and 5,543 km Yediyurappa took charge Aequs Global, a precision Bioinformatics and Applied of rail network. The state as the Chief Minister of manufacturing company Biotechnology (IBAB) have has 12 minor ports and one Karnataka, all the efforts headquartered in Karnataka, set the base for existing and major port in Mangaluru. to attract investments to has developed India’s first upcoming players in the state. Apart from all these, the the state have received a private Aerospace SEZ in Another distinction Bengaluru - Mumbai Economic boost. Moreover, Minister 121 ha of land in Belagavi. Karnataka enjoys is being the Corridor and - of Large and Medium Scale Karnataka is also the 4th fourth largest contributor to Bengaluru Industrial Corridor industries largest automobile producer electronic industrial output in

2 the country and accounting Karnataka recorded US for 10% of India’s total Dollars 17.3 bn worth Government Focuses on electronic industrial output. of exports in 2018-19, Karnataka is the second- contributing 5.25% to India’s Growth in Tier-II Cities largest chip-design hub in net exports. The state’s GSDP India with a presence of 85 at 2018-19 prices stood at US chip-designing companies. It dollars 216 bn and the GSDP is the first state to have rolled growth rate, YoY was 13.9%. out initiatives for innovation Meanwhile, the per capita centres, skill centres and income in 2018-19 stood at dedicated ESDM clusters. US Dollars 2,961. The FDI Karnataka’s capital Bengaluru is inflow to the state during the the fourth-largest technological years 2000-19 was 40.7 bn. cluster in the world. The state government Heavy Engineering and is implementing various Machine Tools is yet another projects to create conditions key sector where Karnataka favourable to industries. One has displayed its prowess. such initiative is the Karnataka In fact, Bengaluru alone Cluster Development produces 60% of India’s total Programme, which is inspired machine tools by value. by the Chinese Cluster Karnataka is also the second- Development Model. Under highest producer of special this programme, 9 sector- Jagadish Shettar purpose machinery and heavy specific manufacturing Hon’ble Minister of Large and Medium Scale Industries electrical machinery in India. clusters have been set up India’s first Integrated Machine across 9 in several mphasising on the The region has good road Tool Industry Park was set parts of the State. government of and train connectivity too. up near Bengaluru in 121 ha The benefits of the EKarnataka’s focus on Around 500 acres of land land by India Machine Tools programme include increasing attracting investments in is available for allotment at Manufacturing Association. the share of manufacturing in tier-II cities, Minister for Large Mummigatti and Itigatti, while A well-known fact is that Karnataka’s GDP, development and Medium-Scale Industries more land would be acquired the state is the Information of state-of-the-art product Jagadish Shettar said that for industrial purpose. The Technology hub of India and / sector specific clusters, the department is planning plan is to have a land bank home to the world’s fourth generation of 1 lakh jobs to organise investor meets of 3,000 acres near the largest technological cluster. in each cluster / , at Belagavi, Davanagere and twin cities,” Shettar said The state has over 3,500 IT attracting Rs. 5,000 crore Shivamogga after holding while addressing the press. companies that contribute investment for each cluster the Invest Karnataka meet At a time when even more more than US Dollars 32 / district and providing skill at Hubballi in the second conditions for attracting and bn in exports and employ development training for 2 week of February. absorbing new investments over 1 mn direct and 3 mn lakh youth in the State. During the roadshow for the across many sectors, the indirect professionals. To take Karnataka to greater Hubballi meet, he said that government is focused on Nearly 80% of Fortune heights in the industrial sector, entrepreneurs from various providing the momentum 500 companies have their several new initiatives are being states such as Maharashtra for emerging itself as a outsourcing operations in launched by the government, and Telangana are showing number one industry investor Bengaluru. The state is all set to thereby opening up a host of interest in tier-II cities in friendly state in the country. be the largest IT cluster globally new opportunities. With a rich Karnataka. As the beginning To encourage investors and during 2020, employing talent pool, the state offers the the prime focus will be on industrialists, the government around 2 mn professionals. chance to augment research, Hubballi and the government is mulling providing tax It also has the second-fastest design and development is marketing on the potentials rebate to set up industries growing start-up ecosystem capacities. Moreover, hi-tech of the regions to attract in backward regions, in the world and is home to defence and aerospace parks investments. Shettar said that which is a longstanding billion-dollar Indian start-ups. at Bengaluru and the government is changing demand of investors. With as much a 20% provide the apt ecosystem the mindset of investors about The new industrial policy is of India’s total garment for new expansion projects. this region, by convincing in its last leg of preparation production valued at US Meanwhile, the Karnataka them about the potential will further boost the inflow Dollars 1.6 bn, Karnataka has Aerospace Training Centre for industrial growth here, of investments in the state. a share of 65% silk, 12% wool (KATC) is being set up at including good connectivity The industrial department and 6% cotton production. Bengaluru as an incubator and availability of land. is addressing the concerns The state also has a 5% share for start-ups. Karnataka is “Hubballi has air raised by the investors to in global textiles and apparel also coming up with a new connectivity with all major make the process easy trade and contributes 15% defence cluster to propel cities, while Kalaburagi airport for doing business. to India’s export earnings. ‘Make in India’ in Defence. has also become operational.

3 ADVANTAGE KARNATAKA Karnataka Woos Investors at WEF Summit in Davos

Launching the Invest Karnataka 2020 at Davos: Chief Minister B.S.Yediyurappa, Industries Minister Jagadish Shettar, Vijay Bhaskar T M, Principal Secretary Industries and Commerce Gaurav Gupta, Union Minister for commerce and Industry Piyush Goyal are also seen.

After nearly seventeen years, the state of ith the most pertinent investments talks and discussions. Besides managing to get Karnataka has once again made its strong presence theme of Globalization 4.0, the World Economic commitments from investors in youth at the World Economic Forum’s (WEF) annual meet W Forum in Davos 2019 has once again training, steel, research, aviation and in Davos. Chief Minister B S Yediyurappa said that brought together leaders from every solar power generation among others, his administration was doing everything to facilitate sector and every part of the world Yediyurappa at a curtainraiser event ease of doing business for the investors. With the to discuss how to cooperate on the of WEF announced that it will host hopes of converting investment proposals at Davos challenges ahead. And the state of the much-delayed Global Investors Karnataka after several years, once Meet (GIM) in Bengaluru during into reality in Karnataka, the CM has announced again highlighted at the event how 3-5 November. With the theme of that Karnataka will host its much delayed global it was fast becoming an investment ‘Innovate Now, Growth Forever’, the investors’ meet (GIM) in November to create hub. And this time it was the chief GIM will aim at creating more formal more formal jobs, considering the state’s shrinking minister of Karnataka B S Yediyurappa jobs in the state where its agricultural agriculture sector that was hit by multiple natural himself who went to the Swiss Alps sector has been bearing the brunt calamities. “My visit to Davos will bear fruits for the town of Davos braving the sub-zero of the multiple natural calamities. temperature to raise the heat of The GIM is a biennial event, but state in the next couple of years, said Yediyurappa.

4 “Karnataka Looks at Investment in Diversified Sectors”

the last such meet was held LuLu Group International and in 2016 in Karnataka. Leading pharmaceutical major Novo a delegation from Karnataka Nordisk, among others. The Gaurav Gupta with the hope of attracting CM assured them that his Principal Secretary more investors to start or government was ready to Industries and Commerce Department expand their facilities in the resolve all outstanding issues. state, Yediyurappa said that “My visit to Davos will bear he state of Karnataka that can happen over there are several reasons for fruits for the state in the next is becoming one the next five years or so the state to have become an couple of years. I held talks Tamong the leading years. Hubballi-Dharwad investment destination. “The with over 40 companies and investment hubs in India and is strategically located, state’s growth rate is higher got opportunities to speak the government is not looking hence more opportunities than the national average with them one-on-one. at investment in any specific for industrial development while its unemployment Everybody had Bengaluru and sector but in diversified have arisen in the region. rate is much lower. The Karnataka in their minds and sectors that could lead to The Union government’s growth rate is important in many foreign companies are the comprehensive growth announcement of Mumbai- fulfilling India’s aspirations vying to invest in Karnataka,” of the state, said Karnataka Bengaluru industrial corridor of becoming a $5-trillion said Yediyurappa. principal secretary, industries would benefit this region economy as Karnataka is the According to the data from and commerce department, also. The government is also biggest software exporter the department for promotion Gaurav Gupta. With the working on creating centres in the country, and has of industry and internal trade, comprehensive development, of Excellence and incubation one of the largest startup Karnataka had attracted Rs. the government aims to spaces in new technologies ecosystems in the world. 32,431 crore ($4649 million) expand its projects to all such as IoT, AI, ML, Robotics Growth sectors such as of foreign direct investment regions of the state with with Industry partners. aviation and biotechnology (FDI) in April-September 2019. focus on all sectors. According to Gupta, the are also displaying positive The facts that state’s growth Supporting the above state is also a frontrunner in trends,” Yediyurappa said. rate is higher than the national reference of the expansion the Electric Vehicle sector Before making public his average and its unemployment of the growth to all and is thriving to contribute plans for the GIM, the chief rate much lower than regions, the state is giving to green transport. In a minister said that the state the national average are enough prominence to the recent tweet about his was hopeful of receiving promising. “Unemployment development of Hubballi- speech on ‘Electric Vehicle green signal from corporations in Karnataka stands at Dharwad. “We are looking & Changing Landscape such as French 3D design 4.8% for people above 15 at developing a cluster for on Mobility’ at company Dassault Systemes, years of age, lower than FMCG goods, particularly Tech Summit, Gupta said steelmaker ArcelorMittal, auto the national average of 6%, consumer goods, which “Karnataka Government has components maker Bharat according to data from the can be set up in Hubli- been giving utmost priority Forge Ltd, aircraft maker Periodic Labour Force Survey Dharwad,” Gupta said to promoting EVs in the Lockheed Martin, Abu Dhabi- (PLFS),” Yediyurappa said. recently while talking state. In this regard, charging based retail conglomerate Florence Verzelen, vice- about the government’s stations and reserved parking plans for the region. space are being planned Gupta said that the region while electric buses will be has a land bank of about introduced shortly all over Visit Karnataka Pavillion thousand acres and the the state. We aim to be the state easily sees 20,000- frontrunners in this sector.” at Hall 3 30,000 crores investment

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president of Dassault Systemes 3DS’ group, which has a substantial presence in Bengaluru, said that they will set up two centres of excellence — one in Bengaluru and another elsewhere in the state. Also the company will train 2,000 youths to take up skilled jobs in big companies and in smart city projects. With an investment of about Rs 8 crore Dassault will also prepare and technically train qualified graduates in engineering when Yediyurappa assured her that there is a huge demand for youths trained in aerospace and defence production, considering that Bengaluru is becoming a hub of defence equipment. After meeting Yediyurappa, steel baron Laxmi Mittal has assured to take steps to start a research and development centre in Bengaluru. Lulu Group chairman Yusuf Ali also promised the CM that he will take steps to invest Rs 2,000 crore in Karnataka in the field of logistics. Yediyurappa also met his Madhya Pradesh counterpart Kamal Nath who visited the state pavilion at Davos. Union minister for railways and commerce and industry Piyush Goyal also supported Karnataka’s investment call and said the state has a robust and congenial industrial atmosphere. “The investors should spread your tentacles to all parts of India,” he said. The Chief Minister has urged global investors

6 and multinationals to invest in Karnataka in sectors Karnataka’s Mobility Sector that will create more jobs in the state’s rural and semi-urban areas. He has also invited 2000 Gets a Redefinition Watt company to invest in the state’s agro-food processing and products for value addition and better remuneration to growers and farmers. The Swiss firm said it had technology and resources to invest in food clusters across rural areas where over 60 per cent of the state’s 70 million population live. The ease of doing business in Karnataka, which is still mentioned as a challenge by economic experts, continues to be a hurdle in investment even if the investors are willing to spend their money in the state. Ensuring actual investments, delays in approvals, hurdles in land clearances, and provision of basic infrastructure has been a major challenge raised by foreign investors over the past. Yediyurappa did not hesitate to openly address these issues at the WEF. “We will make sure that all their concerns are resolved in a time-bound manner. We will listen to them and make sure all their hurdles are removed as soon as possible. I am serious on this score and my officers will work over time to facilitate your Gunjan Krishna investments,” Yediyurappa assured investors at Davos. Commissioner, Industrial Development & Director of Industries & Commerce With Karnataka fast coming out with a new he mobility space in Karnataka is getting a major industrial policy this year and gearing up to hold an redefinition with the growth in electric vehicle sector and investors meet in Hubballi in February as a prelude Tthe state government in excited to propel this growth to GIM, the government is hopeful to promote to higher levels, said Gunjan Krishna, Commissioner, Industrial investment in other parts of Karnataka as well. Development & Director of Industries & Commerce, Government of Karnataka. While addressing the E-Mobility Convention recently, she said that the market is witnessing a huge increase in Global Investors Meet the demand for autonomous vehicles and interconnected vehicles. “The characteristics of mobility are being redefined completely Aims High for Karnataka and people are now ready to accept interconnected, intelligent and autonomous vehicles instead of those using the conventional internal combustible engines. More startups are venturing out into the sector and many companies are working on bringing a radical improvement in cost effectiveness and reduce impact on the environment by mobility sector,” she said. Krishna added that Karnataka, which has already rolled out a dedicated EV policy for the first time in the country, is the urthering its drive towards attracting investment frontrunner in EV mobility in terms of manufacturing and from foreign industries and OEMs, the Karnataka attracting investments. The government is working towards Fgovernment will hold its Global Investors Meet the development of infrastructure for nourishing the EV sector. (GIM) from November 3-5 this year. Chief Minister B S “Charging infrastructure is the key towards the success of Yediyurappa held the first roadshow on the GIM at the E-mobility and power providers like BESCOM are working out 50th World Economic Forum (WEF) annual meeting, held at to set up more than 650 charging stations which will also cover Davos in Switzerland last month and invited global firms to Highways. The government is also working on the grid expansion participate in the 3-day event for investment opportunities. to meet the power requirements of e-mobility,” she said. Over the years, Invest Karnataka - Global Investors Through the holistic approach the government is also sorting Meet has transcended all boundaries and provided a out various challenges in the e-mobility sector like the need to platform for the best minds to congregate, network, have a skilled workforce in EV sector, reducing the high cost share expertise & knowledge and conduct business. of EVs, lack of charging infrastructure, promoting innovations Yediyurappa assures all stakeholders of the complete that could reduce the charging time etc. The cost will decrease support and commitment by the Government of Karnataka with the increase in demand for EVs, which will happen over towards facilitating and grounding investments. the next decade. “Reimagining mobility space is happening and we need to be ready for the change,” she said. Edited, Printed & Published by Sunny Jerome, Managing Editor, ADVANTAGE KARNATAKA,Aerosun Media Pvt. Ltd., Email : [email protected] B-2, SAPPHIRE, 1st Block, 3rd Cross, Prakruthi Township, Tel : +91 9449061925 / +91 80 43747492 Babusapalya, Kalyan Nagar, Bangalore - 560113. Email : [email protected] Printed at Rashtrotthana Mudranalaya, 19/1, K.G. Nagar, Bangalore - 19 www. advantagekarnataka.in

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