"Karnataka has a large pool of talented resources, lots of engineering colleges and is among the first states in the country to have a dedicated IT and BPO policy"
Chairman of the Unique Identification Authority of India
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From the World Economic Forum terming it an 'Innovation Hub' to Barack Obama urging schools in America to compete against Bangalore' and the sobriquet 'The Silicon Valley of India', Karnataka's investments in Education has taken its development to rapid strides when it capitalized on the growth in Information Technology, Outsourcing, Off shoring, Biotechnology, Aviation and Knowledge intensive industries.
Karnataka has premier institutes like the IISc, IIMB, NLSIU, NIFT; the state has 19 universities, 152 Engineering colleges, 144 medical colleges, 1124 industrial training institutes making it 30% of the Country's total.
The state has the ideal Knowledge base for Research and Development with 103 Research and Development Centers, the highest in the country.
The prominent research and development centers are Intel, Unilever, Dell, Texas Instruments, IBM, Boeing, Rolls Royce, General Motors, Daimler Chrysler, Oracle, Philips, Nokia, General Electric, Microsoft, Google, ZTE, HP, SAP, Sun Microsystems, EADS, Shell and Central Power Research Institute, Karnataka has the Aeronautical Development Agency, Center for Airborne Systems, Gas Turbine Research Establishment, Defense Avionics Research Establishment and the Center for Military Airworthiness and Certification.
Karnataka's proactive policies have taken development of Karnataka to unprecedented heights; the state was the first in the country to have an Industrial Policy and a State Facilitation Act. The state's Information Technology Policy, BPO Policy and its Biotech Policy went a long way in establishing Karnataka as a hub for Information Technology, Outsourcing, Off Shoring and Biotechnology.
Karnataka was the first to establish a tourism policy way back in 1992. The recent tourism policy has a master plan included and is on par with international standards. The state has been able to compete internationally with two UNESCO heritage spots and the Golden Chariot ranked by the 'Vanity Fair' as one of the 7 train journeys of the world.
The Infrastructure policy of Karnataka indeed went a long way into establishing Karnataka as a leader in PPP projects and the SEZ policy of Karnataka paved way for cluster development in the state.
These policies had led the state to build the first Software Technology Park, Aerospace SEZ, first to introduce the private sector in education and the state is making rapid strides in establishment of a Nano Park, a Global Financial District, Knowledge City and a Manufacturing Unit for Defense.
According to the estimates from the Department of Economic Affairs, Karnataka ranks top with respect to number of PPP projects and total value involved.
Recently Karnataka has added 112 projects with an outlay of 2 lakh Crore and this shall put Karnataka on par with the outlay for India which stands at 450 projects worth 224175.15 Crore.
The government for the Global Investors Meet is embarking on an ambitious land bank, for this the government has Identified 92000 acres and notified over 50000 Acres for the development of industries in the state.
A 360-degree infrastructure focus has led to the construction of mega projects like the Bangalore Metro, Mono Rail, PRIDe corridor and eight lane highways. An ultra-modern port terminal for doubling of cargo handling is also in the pipeline. An airport within 100 km from each of the 30 district HQs will further strengthen the connectivity in the State. The government has come up with an ambitious vision of Cluster Development and has embarked on balanced regional development for the Global Investors Meet. Most of the companies that expressed interest in the state of Karnataka are from cities other than Bangalore, and Karnataka as a state shall be holistically developed.
The government of Karnataka, proposed to implement a Suvarna Karnataka Development Corridor, the corridor envisages development of large industrial nodes and industrial areas along national highways and laterals, and a broad development is proposed to cover regions spread over Bangalore - Bidar via Bellary, Tumkur - Honnavar Via Shimoga, Chitradurga to Mangalore via Udupi.
The core Infrastructure such as energy, road and rail linkages, inland container depots, free trade zones and urban infrastructure are the major key segments to take advantage of this corridor to make a significant impact on Karnataka's economic growth. This corridor shall cover a massive 11 districts and more than 20 towns. The department of Industries and Commerce, proposed to develop six industrial zones on the PPP model
One company comes to Karnataka every week, and Karnataka has made 87 Fortune 500 companies and 700 Multinationals its base. Karnataka ranks third in the recipient of Foreign Direct Investment; the rise of companies in Karnataka has been its rapid growing economy, proactive policies, investor friendly government and its resource base.
Karnataka leads in Information Technology, Biotechnology, Aviation, Machine Tools, Floriculture, Coffee and Gold.
The state had rapid development of Information Technology and Biotechnology since last decade; the state today has 2084 Information Technology companies and is home to 60% of the Biotechnology companies. The first mover advantage for Aviation has led Karnataka to become the Aviation hub in the country. The state leads in Machine tools, according to the SIAM with a steady machine tool cluster.
Karnataka has benefited from its abundant natural resources, the state ranks high in Sericulture, Floriculture, Coffee and Gold. This abundant resources has made Karnataka an emerging destination for Food Processing.
Karnataka is an emerging leader in steel and cement, with global players eyeing the state due to its natural resources and policies.
The World Bank study in the year 2009 entitled 'Investment Climate among 16 States' ranked Karnataka as No 1 in investment climate. The state was the first to bring the 'Industrial Facilitation Act'. Karnataka has streamlined procedures for Investors through its Single Window Mechanism.
There is a State High Level Clearance Committee (SHLCC), chaired by the Hon'ble Chief Minister of the State of Karnataka to approve projects with investments above Rs.50 Crore.
The State Level Single Window Clearance Committee (SLSWCC) chaired by Hon'ble Minister for Large and Medium Industries meets every month to approve projects with investments between Rs.3 crore to Rs.50 crore.
The District Level Single Window Clearance Committee (DLSWCC) is chaired by the Deputy Commissioner of the District and approves projects with investments up to Rs.3 crores.
Resources in Karnataka, has always been one of the key growth drivers of the economy with the rise of Karnataka as key industrial hub attributed to optimum utilization of resources. Today Karnataka's resources pave way for growth, from Natural Resources to Human Resources.
Today with Karnataka contributing to 8% of the India's industrial income and 9.8% of India's product exports, the state today has the second largest iron ore reserves in India and is the third largest steel producer of India. The state also has India's only gold producing mines at Hutti. The state contributes to 6.5% of India’s cement production and is the seventh largest producer of cement and has large deposits of high value minerals which is a focus area targeted by the Government of Karnataka.
The state's has 10 agro climatic zones and has the climate and soil for cultivating every type of crop, and is the largest area under horticulture and third largest production of horticulture in the country, apart from being the third largest producer of fruits and vegetables in the country, producing 12% or fruits and 8% vegetables grown in the country, being the leader in floriculture, coffee, spices, aromatic and medicinal crops.
The state leads in limestone and iron ore deposits and now Bellary, with its investments in Steel and Cement is poised to become a steel corridor.
The state leads in granite exports, with the exports for 2009 standing at 1.4 lakh crore. The state also leads in production of Sandalwood in the country and Sandalwood.
Bangalore is ranked by the Global HR Consultancy Mercer as No. 1 as the 'Best place to live and work by Expatriates'. This rank and study helps governments and major companies place employees on international assignments.
The state has a salubrious climate, cosmopolitan culture and a global image, which makes the state an ideal destination to live and work.
One of the reasons Industrial relations have spurred growth across various sectors in Karnataka, are the industrial relations. Karnataka's industrial relations make sure that not a single day is lost due to industrial disputes in the state of Karnataka.
Economic growth and fast development of any state depends on Industrial relations, and the depiction of Karnataka as a knowledge hub and a rapid growing economy is credited to its peaceful industrial relations.
The state is well connected to 6 neighbouring states, and other parts of India through 14 national highways as the state accounts for six percent of the total national highway network in the country. In the district, its centres are linked through 114 state highways and the total road network of national highways, state highways and district roads is about 207397 kms out of which 127541 kms is surfaced.
The state has five domestic international airports at Bangalore, Mangalore, Hubli, Mysore and Belgaum and new minor airports are proposed at Hassan, Bellary and Gulbarga.
The Rail projects are proposed on a PPP basis with the state well connected to other parts of the country and Karnataka being the first state to share cost of railways on an ongoing PPP basis.
The state is a hub for Information Technology, Biotechnology, Business Process Outsourcing, Knowledge Process Outsourcing, Key Knowledge based industries, Semiconductor, Aviation and Aerospace, Construction Equipment, Machine Tools, PPP Projects, Floriculture, Silk, Coffee, Horticulture, Clinical Research and Research and Development Centres.
The state now has a vision for the other sectors to be No 1 as well, like Automobile, Steel and Cement, Power, Infrastructure and Textiles. There has been a considerable investment in Cement, Steel, Power and Infrastructure with global giants investing, the state is poised to be the steel corridor and investments in cement are taking rapid strides. The state has 112 Projects for Infrastructure and has a lot in store for tourism projects. Karnataka has become the avenue of investment, reiterating the fact the Karnataka stands for 'One Land, Many Opportunities'.