| The overseas Indian community has been showing growing interest to invest in the state of Karnataka on the back of its well-earned reputation as the most sought after destination for technological and innovative multinational companies. The state, no wonder, is popularly known as the intellectual capital of the country. |
 |
| Significantly, more than 300 globally well-known investors have already expressed their keenness to invest nearly Rs 3 lakh crore (US$ 66.3 billion) in Karnataka, according to the Karnataka Chief Minister, Mr B S Yeddyurappa. The chief minister has also remarked at a press meet that the proposed Global Investors' Meet (GIM) to be held in Bengaluru on June 3 and 4, 2010, is aimed at devising a special strategy to achieve all-round development of the State. |
|
| For more details on the Meet, log on to http://advantagekarnataka.com/ |
|
| Bengaluru region (including State of Karnataka) is ranked third most prolific destination for investment in the country with FDI inflows worth US$ 6,850.95 million following Mumbai and Delhi regions, according to the data provided by the Reserve Bank of India (RBI). The state of Karnataka has received industrial investment proposals worth Rs 5,219 crores (US$ 1.2 billion)—about 2.21% of total proposed investments of Rs 235,992 crores (US$ 52.13 billion) in the country—up to February 2010, according to the latest statistics provided by the Department of Industrial Policy and Promotion (DIPP). |
|
| The State performance has been lauded as developments are becoming visible on sectoral fronts. Karnataka's Annual Plan outlay for 2010-11 has been earmarked at about US$ 6.82 million, about 19 per cent higher than the revised estimates of 2009-10. Karnataka's per capita income too has increased from US$ 398.3 to US$ 536.4 from 2002-03 to 2008-09 and the State is ranked 9th among all the states. State's growing literacy rate is 66.64 per cent at the end of the Eleventh Plan. |
|
| Amongst the majors keen on investing into the State are ArcelorMittal, Posco and Lafarge, domestic companies such as ONGC, GAIL, Reliance and NMDC. |
|
| Advantage Karnataka – Karnataka state offers certain advantages in terms of investment, having introduced several measures and liberal reforms such as: |
|
|
|
|
|
Introduction and implementation of the new industrial policy which provides incentives like interest free loan on VAT, anchor unit subsidy, stamp duty exemption etc |
|
|
|
|
The first state in India to create a land bank – 92,000 acres identified; 50,000 acres – notified |
|
|
|
|
Well-networked connections with five airports, two major and eleven minor sea ports |
|
|
|
|
The first state in India to announce policies on Industry, Tourism, Wine, Information Technology, Biotechnology, Semiconductor, Renewable Energy etc |
|
|
|
Home to the highest number of R&D centres in India |
|
|
|
Ranked by travellers (local and international) as one of the best in India to live in because of the climate, cosmopolitan lifestyle, international schools etc |
|
|
|
|
| (Source: Government of Karnataka) |
|
| The state has been focussing on certain sectors other than IT also, which are deemed as promising because of the immense potential for investment. In fact, key sectors which have found favour are infrastructure (specially urban development), tourism, power, education, science & technology, R&D, micro & small enterprises, steel, health, IT & BT, textiles, cement, food processing, automobiles, aerospace amongst many others. Bolstering growth in tourism sector, a master plan has also been released by the state government's Department of Tourism. The state has also been the pioneer in hydel power generation (Shimsha was the first power station in India) and is one of the top 5 hydel power generating states in India with high potential for investment opportunities in thermal power. |
|
| Karnataka is also: |
|
|
|
|
|
Manufacturing hub for leading Auto & Auto components |
|
|
|
|
Global outsourcing hub for IT & ITES |
|
|
|
|
Preferred destination for outsourcing of IT projects/product design & development |
|
|
|
|
Home for Drug discoveries & Biotech clusters |
|
|
|
Leader and pioneer of BT Revolution |
|
|
|
Base for several international apparel brands for various international brands like Tommy Hilfiger, NIKE, GAP, Wal-Mart |
|
|
|
Aero-space hub and base (Bengaluru) for aviation majors such as HAL, NAL, GE, Honeywell, Rolls Royce |
|
|
|
Base for oil and gas majors – MRPL (ONGC), excellent connectivity to Ports |
|
|
|
|
| Source: Karnataka Udyog Mitra (KUM) |
|
| Separate booklets on Industrial Policy and Package of Incentives & Concessions and SEZ Policy are available with KUM / DIC or visit www.kumbangalore.com |
|
| Top References: |
|
Karnataka government accords approval to 60 new projects
OIFC: May 25, 2010 |
|
| The 22nd State High Level Clearance Committee (HLCC) of the Karnataka government has given its approval for 60 new industrial projects investing US$ 12.3 billion, including two of Infosys Technologies and one of Wipro... |
|
|
|
Karnataka SHLCC grants in-principle approval to slew of investment proposals
OIFC: March 30, 2010 |
|
| The Karnataka State High Level Clearance Committee (SHLCC), headed by the chief minister, Mr B S Yeddyurappa, gave its in-principle approval to 34 investment proposals worth almost US$ 20.89 billion. The memorandum of understanding (MoU) with the project investors would be signed... |
|
|
|
Karnataka preparing for onslaught of investments: Global Investor Meet on June 3 and 4
OIFC: March 19, 2010 |
|
| Mr V P Baligar, Principal Secretary, Commerce and Industries, Government of Karnataka, during his address at the 'Conference on Brand Karnataka' informed that more than 200 industries are keen on active participation at the Global Investors' Meet... |
|
|
|
Karnataka's first tourism master plan released
OIFC: March 9, 2010 |
|
| Based on the Karnataka State Planning Board's Vision 2020 document, Minister for Tourism and Infrastructure Development, Mr G Janardhan Reddy, said that the master plan looks to attract private investment through public private participation (PPP)... |
|
|
|
BHEL bags Rs 6,300 crore order for power plant in Karnataka
The Economic Times/PTI: April 19, 2010 |
|
| BHEL has won a Rs 6,300 crore (US$ 1.4 billion) contract for executing a 1,600 MW supercritical thermal power project in Karnataka for Raichur Power Corporation Limited (RPCL)... |
|
|
|
Second IISc campus will come up in Karnataka: CM
PTI: April 26, 2010 |
|
| Bengaluru-based Indian Institute of Science (IISc) has confirmed that its second campus will come up in Kundapur village of Chitradurga district in Karnataka... |
|
|
|
Kitven, Accel invest in Mitra Biotech
OIFC: May 04, 2010 |
|
| Bengaluru-based translational biology research company, Mitra Biotech Pvt Ltd, founded by a team of scientists from Massachusetts Institute of Technology (MIT) and Harvard Medical School, has raised funding from Karnataka Information Technology Venture Capital Fund (KITVEN) and... |
|
|
|
|