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Karnataka-March-2021.Pdf KARNATAKA MALLIKARJUNA TEMPLE IN PATTADAKAL, KARNATAKA March 2021 For updated information, please visit www.ibef.org Table of Contents Executive Summary 3 Introduction 5 Economic Snapshot 10 Physical Infrastructure 16 Social Infrastructure 25 Industrial Infrastructure 28 Key Sectors 30 Key Procedures & Policies 40 Appendix 51 2 Executive summary…(1/2) Strong growth in GSDP • At current prices, Karnataka’s gross state domestic product (GSDP) stood at ~Rs. 16.65 trillion (US$ 225.99 billion) in 2020-21. 1 • The GSDP (in Rs.) of the state increased at a CAGR of 9.76% between 2015-16 and 2020-21. IT hub of India • Karnataka is the IT hub of India & home to the fourth largest technology cluster in the world. It has 23 operational IT/ ITeS SEZs, five software technology parks & dedicated IT investment regions. 2 • Export of electronics and computer software from the state reached US$ 42.16 billion in FY20 (till November 2019). Export of IT and electronic products accounted for around 38.99% share in India's electronics and computer software export and 76.36% share in Karnataka’s overall export. Vibrant industrial base • Karnataka has vibrant automobile, agro, aerospace, textile & garment, biotech & heavy engineering industries. The 3 state has sector-specific SEZs for key industries such as IT, nanotechnology, biotechnology, engineering, food processing and aerospace. One of the preferred investment destinations • The cumulative FDI inflow in the state reached US$ 46.61 billion between April 2000 and March 2020, the third highest in India after Maharashtra and New Delhi. It accounted for a share of 9% of India’s cumulative FDI inflow. 4 • Karnataka attracted Rs. 1.20 lakh crore (US$ 16.38 billion) investments during COVID-19 Source: Visvesvaraya Trade Promotion Centre, Karnataka Economic Survey 2019-20 3 Executive summary…(2/2) Strong growth in export • In 2020-21, the state’s total exports stood at US$ 13.19 million (as of March 2021). In the overall exports from the 5 state, sectors such as iron & steel, petroleum products, electronic instruments and cotton accessories were the key contributors. Strong knowledge infrastructure • Karnataka has 52 universities, 4,519 pre-university colleges, 535 Technical Institutions, 206 engineering colleges & 314 polytechnics, 47 medical colleges & 38 dental colleges. 6 • The state also houses 401 R&D centres; around 400 of the Fortune Global 500 companies outsource their IT services to firms in Bengaluru. Significant agriculture base • Sugarcane is the key crop of the state, with production of ~39.6 million tonnes in 2019-20**. The state’s total food 7 grain production was estimated to be 11.9 million tonnes in 2019-20**. Karnataka is also the third largest producer of plantation crops in the country. Strong growth in tourism sector • Karnataka boasts of a diverse flora & fauna & a 320km natural coastline, which makes it a nature tourist's paradise. Tourist arrivals in the state increased from 214.85 million in 2018 to 228.54 million in 2019, at a growth 8 rate of 6.37% between 2018 and 2019. The state has world heritage sites at Hampi and Pattadakal. The sector contributes 14.8% to GSDP of Karnataka; plans are afoot to expand to 26% by 2020. Source: Economic Survey of Karnataka 2019-20, Karnataka State Budget 2020-21, Ministry of Tourism,GoI,**2019 - 20 As per 2ndAdvance Estimates. 4 INTRODUCTION 5 Karnataka fact file Bengaluru Capital 319 persons per sq km 61.1 million Population density total population 192,000 sq.km. geographical area 68.1% 82.5% Female literacy rate Male literacy rate Source: Maps of India 973:1000 Sex ratio 75.6% administrative districts: 30 (females per 1,000 males) Key Insights literacy rate • Karnataka is located in the southern region of India. The state is surrounded by the Arabian Sea in the west, Goa in the northwest, Maharashtra in the north, Andhra Pradesh in the east, Tamil Nadu in the southeast, and Kerala in the southwest. • Languages spoken are Kannada, Tulu, Kodava, Hindi and English. • Some of the prominent cities in the state are Ankola, Bengaluru, Bagalkot, Belgaum, Bidar, Bijapur, Chikmagalur, Chitradurga, Dandeli, Hubli- Dharwad, Mangalore, Mysore and Shimoga. • Karnataka has a tropical climate with three major seasons: warm and dry from February to May, monsoon from June to October and winter from November to January. Source: Economic Survey of Karnataka 2019-20, Census 2011 Office of Registrar General, India. 6 Advantage: Karnataka Policy support Infrastructure • Wide range of fiscal and policy incentives for • Well -developed social, physical and businesses under the Karnataka Industrial industrial infrastructure and substantial port Policy, 2020-25 with simplified procedures for infrastructure. investment. • Well-developed telecom infrastructure. • In January 2017, Karnataka Department of • Excellent healthcare facilities. Commerce and Industries introduced an NRI policy to attract investments from non-resident Kannadigas. High economic growth Rich talent pool • Karnataka is termed as the • The state’s GSDP Knowledge Capital of India. expanded at a CAGR of • The state has successfully 9.76% between 2015-16 attracted skilled labour, especially, and 2020-21. in the knowledge sector. Karnataka • Buoyant services (IT, is among the states that produce a tourism) and industries large number of doctors, engineers driving economic growth. and medical technicians in the • Sector specific SEZs and country. SIRs facilitating growth. Source: Ministry of Statistics and Programme Implementation, News articles 7 Karnataka in figures Karnataka’s Contribution to Indian Economy (2018-19) Physical Infrastructure in Karnataka Installed power capacity (MW) (as of February GSDP GSDP as a percentage of all states’ GSDP India: 100.0 | Karnataka: 7.93 India:2021) 379,130.41 | Karnataka: 30,056.48 GSDP growth rate** (%) Wireless subscribers (million) (as of January India: 10.5 | Karnataka: 9.76 India:2021) 1,163.41 | Karnataka: 67.45 Per capita GSDP* (US$) Internet subscribers (in June 2020) (million) India: 1877.76 | Karnataka: 3,392 India: 749.07 | Karnataka: 46.11 National highway length (km) (as of March 2019) Social Indicators India: 132,499.5 | Karnataka: 7,334.8 Literacy rate (%) India: 73.0 | Karnataka: 75.6 Major and minor ports (No.) India: 13+187 | Karnataka: 1 + 10 Birth rate (per 1,000 population) (2018) Airports (No.) India: 20.0 | Karnataka: 17.2 India: 125 | Karnataka : 5 Industrial Infrastructure Investments Operational PPP projects (No.) Cumulative FDI equity inflows (from October India: 1,824 | Karnataka: 139 2019 to December 2020) (US$ million) Operational SEZs (No) (as of February 2020) India: 75,351.56 | Karnataka: 10,659.45 India: 240 | Karnataka: 32 Note: GSDP, per capita GSDP figures are taken at current prices, For source refer to Annexure 8 Karnataka Vision 2022 8 POOR AND BACKWARD 1 INFRASTRUCTURE • Build infrastructure to boost productive CLASSES potential of the economy. • Increase rural incomes through • Various metro rail and mono rail greater viability of agriculture and projects are in progress. allied activities. • Bridge the gap between socially 1 8 backward and vulnerable groups and 2 EDUCATION/ rest of the people. SKILL DEVELOPMENT • Develop the state as a vibrant knowledge society. 7 HEALTHCARE/ • Focus on job oriented growth through SOCIAL AMENITIES skill development of the workforce. 2 7 • Improve access and availability of quality healthcare for all. 3 GOVERNANCE 6 TOURISM • Better governance through wider participation and deep democratic • Preserve and promote Karnataka’s decentralisation. 3 6 rich heritage. • Encourage transparency and • Karnataka Tourism Vision Group accountability. (KTVG) was set up in October 2013 to advise on promoting tourism in state. 4 INDUSTRY • Build and sustain Bangalore’s 4 5 5 WOMEN leadership in science, technology and EMPOWERMENT knowledge based industries. • Enhance opportunities and empower • Achieve a sustainable and orderly women across economic, social and process of industrialisation and political spheres. urbanisation. 9 ECONOMIC SNAPSHOT 10 Economic snapshot – GSDP GSDP at current prices GSDP per capita at current prices CAGR 9.76% 4,000 CAGR 8.95% 300000 250 18 3,500 16 250000 3,000 200 3,496 16.65 14 3,392 16.29 231.09 3,252 3,252 225.99 200000 3,189 3,189 249,947 249,947 246,419 246,419 14.91 2,500 213.28 12 207.43 227,299 227,299 2,773 2,773 150 13.37 10 2,000 150000 180.00 205,499 205,499 2,487 2,487 12.08 186,072 186,072 159.67 8 100 10.45 1,500 162,796 162,796 100000 6 1,000 50 4 50000 500 2 0 0 - 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 US$ billion Rs. trillion US$ Rs. At current prices, Karnataka’s gross state domestic product (GSDP) . The state’s per capita GSDP was Rs. 249,947 (US$ 3,392) in 2020- stood at Rs. 16.65 trillion (US$ 225.99 billion) in 2020-21. 21. The state’s GSDP increased at a CAGR of 9.76% between 2015-16 . The per capita GSDP (in Rs.) increased at a CAGR of 8.95% and 2020-21. between 2015-16 and 2020-21. Note: Exchange rates used are averages of each year, provided on page 53 Source: Directorate of Economics & Statistics of Karnataka, Central Statistics Office 11 Economic snapshot – NSDP NSDP at current prices NSDP per capita at current prices CAGR 8.90% CAGR 9.71% 240 16 3600 240000 14 210000 200 3000 15.11 14.75 12 180000 226,796 223,175 209.29 13.49 205.06 2400 160 3,166.05 205,697 3,077.70 193.01 150000 12.13 10 188.16 2,943.15 2,892.24 186,405 11.03 169,898 164.35 1800 120000 120 8 2,532.39 9.51 145.26 148,108 2,262.57 90000 6 1200 80 60000 4 600 40 30000 2 0 0 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 US$ Rs.
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