Karnataka economy and its main features
Karnataka is one of the most progressive and industrialized states in the country and is leading States in driving India’s economic Growth. Economic growth and fast development of any state depends on Industrial relations.
The state has an illustrious history of successfully introducing several industrial and technological initiatives. State’s pre-eminent position on the industrial and business map of India is based on several factors
Karnataka is rich in natural Resources and known for its salubrious Climate. It has a strong resource base of highly educated people, backed by an extensive educational Infrastructure-2/”>INFRASTRUCTURE comprising world-renowned schools, colleges, institutes of higher Learning, research and development centres, and highly skilled labour force, disciplined and hardworking. And, above all, it has a far-sighted, development-oriented, investor-friendly government that firmly believes in, and actively encourages, public – private partnerships. Today, Karnataka is driving domestic growth and creating wealth through a potent mix of resource-based, skill-based, technology-based and knowledge-based products and Services.
Karnataka is one of the leading states in the field of industrial development both in the private and public sectors and in the area of computer Software, which has attracted national and international firms to the city of Bangalore. The state capital was long ago chosen by the central government for the location of a number of industries like Bharat Electronics Ltd, Bharat Earth movers, Hindustan Machine Tools (HMT), Bharat Heavy Electricals (BHEL) etc. Bangalore has become one of the major centres of electronic Industry apart from computer software. The state has a number of traditional cottage and small industries like handlooms, silk weaving etc. Karnataka has been the leading state for silk rearing and production of Khadi and village industries. Apart from the numerous factories in engineering, chemicals, electrical, and electronic goods, there are Food Processing and processing of plantation products like tea, coffee, rubber, cashew etc. About 70% of the people live in the villages and 71% of the total work force is engaged in agriculture. The main crops are rice, ragi, jowar, maize, and pulses besides oilseeds and number of Cash Crops. Coffee is the principal plantation crop. Cashew, coconut, arecanut, cardamom, chillies, Cotton, sugarcane and tobacco are among the other crops.
Information Technology:
Karnataka is leading IT hub of the country. Bengaluru as the 2nd largest technology cluster in the world after Silicon Valley.
- 3500 IT companies contribute over 38% of the IT exports in the country with Karnataka being the largest software exporter.
- 33 Billion USD IT exports in the year 2014-15.
- More than 400 out of Global Fortune 500 companies outsource their IT services from Bengaluru.
- More than 85 Chip Design houses and 370+ R & D houses provides direct EMPLOYMENT to over 10 lakhs and indirect employment over to 25 lakhs as on 2014-15.
- 50% of the world’s SEI CMM Level 5 certified companies located in Bengaluru.
- Presence of almost all leading IT companies of the world, including Infosys, Wipro, Tata Consultancy Services, Oracle, Dell, IBM, Microsoft, Accenture, Cognizant, etc.
Bengaluru – Start-up Capital of India:
Bengaluru has emerged as IT Start-up Capital of India with more than 30% of national share. Start-ups are being supported with integrated package of subsidised incubation space, fully equipped laboratories, early stage funding and capacity building, partnerships with NASSCOM 10 K program, IAMAI‘s 10X initiative and DietY, GOI‘s IOT initiative. Incubation Centres established and start-ups being supported in Tier-2 cities to develop them as upcoming ICT destinations over 70 Venture Capital Firms.
Karnataka placed at the forefront of Biotechnology in the country, is rightly known as the Biotech Capital of India. Karnataka is home to large array of biotechnology educational, R&D institutions and enterprises: large companies, medium-sized ones, and many promising biotech start-ups.
All of these are integral parts of the ecosystem required to find innovative solutions and to convert them into products and processes to mitigate challenges such as hunger, Malnutrition, Health and wellness, energy deficiency and deterioration of the Environment.
Biotech Sector in Karnataka reflects:
- 200 plus biotech companies including BIOCON the first one to go public.
- Rapidly growing number of biotech start-ups
- Contribution of 26% of India‘s biotech revenues including high export revenues and domestic sales.
- Highest expenditure for R&D
- A diverse range of specialized domain training from agriculture to energy to bio-engineering.
Manufacturing Hub:
Karnataka is the preferred choice for global players in Aerospace research and development. Extensive experience and inherent competencies in aerospace make Karnataka the producer of more than a quarter of India’s aircraft and spacecraft. Global giants such as Boeing Research & Technology Centre and Airbus Engineering Centre have made Karnataka their base. Karnataka has India’s first and top R&D Centres in Aerospace & Defence such as Indian Space Research Organization (ISRO) and the Defence Research and Development Organization (DRDO).The Government of Karnataka has earmarked 984 acres of exclusive industrial area and sector specific SEZ for Aerospace industries near Bangalore International Airport. India‘s first Aerospace SEZ is operational in Belgaum. Dedicated Aerospace policy (first in India) was drafted by the Government ofKarnataka.
Automotive Manufacturing
The State is a manufacturing hub for automotive majors such as Toyota Kirloskar, Volvo, TVS Motors, Tata Marcopolo, L&T Komatsu, Mahindra Reva, BOSCH, Siemens, and JK Tyres.Bosch India, the world’s largest automotive supplier, has been headquartered in Bangalore since 1953. Honda’s largest two wheeler manufacturing plant in the world is coming up in Narsapur, Kolar District. Three existing auto clusters, one industrial valve cluster and one auto component cluster make Karnataka the preferred Investment destination for automotive players globally. Two more manufacturing hubs are coming up in Narsapur and Vemagal Industrial Areas in KolarDistrict. The government is inthe process of announcing a Dedicated Automobile Policy
There is a huge potential in automobile manufacturing in Karnataka. The component industry caters to OEMs (all kinds of automobiles such as trucks, cars, SUVs, LCVs, buses, two-wheelers, and tractors) and exports.
With major international OEMs having manufacturing facilities in Karnataka, supply to them from within the country and this region in particular, has given the sector a huge impetus. Components are also being supplied across India to other OEMs from Karnataka.
Machine Tools Manufacturing
Huge potential is estimated in machine tools manufacturing in Karnataka. Total industry size in India in terms of production is INR 3,600 crore. Bangalore alone produces 60% of the machine tools of India in terms of value, which is estimated at INR 2,160 crore. India‘s first Integrated Machine Tool industry Park (IMTIP) is set to come up in Karnataka near Bangalore. 100% FDI is allowed in the Machine Tools industry by the Indian Government.
Electronics & Semiconductor Manufacturing
In 2014-15, the domestic production of electronic hardware in the Karnataka stood at US$ 42.40 bn whereas the export was US$ 32.18 bn.80 of the 120 companies engaged in chip designing are located in Karnataka. Bengaluru is a global hub for R&D activity in the software industry, which will greatly aid the electronic hardware industry. Karnataka also has the advantage of having maximum skilled/technical manpower. Karnataka is setting up the first ESDM cluster development in Electronics City
Drugs & Pharmaceuticals Manufacturing
Karnataka is home to 221 formulation units and 74 bulk drug units. State‘s Pharmaceutical industry generated Rs 8k crore in revenue contributing 8% of the country’s total revenues, ranking 10th in the number of Pharmaceutical manufacturing. Karnataka exports 40% of its pharma produce. GSK Pharmaceuticals is establishing one of the world‘s largest drug formulation units in Vemgal, Kolar. Besides there is a huge presence of exclusive Pharma SEZ, Pharma industrial areas and R&D Centres in Karnataka.
Agro & Food Processing
Karnataka leads in the exports of silk in India accounting for approximately 25% of the total Indian export market.
Karnataka is the leader in horticultural products and spices, aromatic and medicinal crops,and tropical fruits. Only Indian State to have all varieties of fruit. It is the largest producer of coffee and cocoa in the country. It is also the second-largest milk producing state, and third and fourth largest producer ofsugar and sugarcane respectively. Karnataka has 5 dedicated Food Parks and one Food Processing SEZ.
Chemicals and Petrochemicals:
Karnataka is positioning as major growth centre for chemical industry with presence of 500 companies with leading players like MRPL, BASF, Mangalore chemicals and fertilisers, United Phosphorus, attracting large R&D Centres for Chemicals/Petrochemicals including planned centre of SABIC. Mangalore in Karnataka is evolving as the epicentre of chemical and petrochemical industries in the state. Mangalore Refinery and Petrochemicals Limited (MRPL) the state’s leading player, and public sector refinery is undergoing major expansion from current 9 mln tons to 15 mln tons refinery capacity.,
Karnataka is a state in southern India. It is the sixth-largest state by area and the ninth-most populous state in India. The capital of Karnataka is Bangalore, which is also the third-most populous city in India.
Karnataka has a rich history dating back to the 3rd century BCE. The state was ruled by a number of dynasties, including the Chalukyas, the Hoysalas, and the Vijayanagara Empire. In the 18th century, Karnataka was conquered by the Mughal Empire. In the 19th century, the state was ruled by the British East India Company.
Karnataka is a land of contrasts. The state has a diverse climate, ranging from the tropical climate of the coastal region to the temperate climate of the hill stations. The state is also home to a variety of landscapes, including forests, Mountains, and rivers.
Karnataka is a major economic hub in India. The state is home to a number of industries, including information technology, biotechnology, and manufacturing. Karnataka is also a major agricultural state. The state is known for its production of rice, sugar cane, and coffee.
Karnataka is a popular tourist destination. The state is home to a number of historical and cultural sites, including the Hampi ruins, the Mysore Palace, and the Belur and Halebid temples. Karnataka is also home to a number of natural attractions, including the Bandipur National Park, the Nagarhole National Park, and the Bheemeshwari Wildlife Sanctuary.
Karnataka is a state with a rich history, culture, and economy. The state is home to a diverse Population and a variety of landscapes. Karnataka is a popular tourist destination and a major economic hub in India.
Agriculture
Agriculture is the primary occupation of the people of Karnataka. The state is known for its production of rice, sugar cane, and coffee. Other important crops include cotton, tobacco, and vegetables.
The state has a well-developed Irrigation system, which helps to ensure a good crop yield. The government has also been promoting the use of modern agricultural techniques, such as Drip Irrigation and the use of high-yielding varieties of seeds.
Industry
Karnataka is a major industrial state. The state is home to a number of industries, including information technology, biotechnology, and manufacturing.
The information technology industry is the largest industry in Karnataka. The state is home to a number of multinational companies, such as Infosys, Wipro, and TCS. The biotechnology industry is also growing rapidly in Karnataka. The state is home to a number of research and development centers, as well as a number of biotechnology companies.
The manufacturing industry is also important in Karnataka. The state is home to a number of manufacturing units, including automobile manufacturing units, electronics manufacturing units, and pharmaceutical manufacturing units.
Services
The service sector is the largest sector of the economy in Karnataka. The sector includes a number of sub-sectors, such as tourism, Education, health, and social welfare.
Tourism is a major industry in Karnataka. The state is home to a number of historical and cultural sites, as well as a number of natural attractions. The state also has a well-developed infrastructure, which makes it a popular destination for tourists.
Education is another important sector of the economy in Karnataka. The state has a number of universities, colleges, and schools. The government has been promoting the use of information technology in education, and the state has a number of e-learning initiatives.
Health is another important sector of the economy in Karnataka. The state has a number of hospitals and clinics. The government has been promoting the use of modern medical techniques, and the state has a number of medical research centers.
Social welfare is another important sector of the economy in Karnataka. The government provides a number of social welfare schemes, such as pensions, scholarships, and housing assistance. The government has also been promoting the use of information technology in social welfare, and the state has a number of e-governance initiatives.
Infrastructure
Karnataka has a well-developed infrastructure. The state has a number of roads, railways, Airports, and Ports. The state also has a number of power Plants and water supply schemes.
The government has been investing heavily in Infrastructure Development. The state has a number of infrastructure development projects, such as the Bangalore-Mysore Expressway, the Bangalore Metro, and the Hubli-Dharwad Airport.
Tourism
Karnataka is a popular tourist destination. The state is home to a number of historical and cultural sites, as well as a number of natural attractions.
The state has a well-developed tourism infrastructure. The state has a number of hotels, resorts, and restaurants. The state also has a number of tourist attractions, such as the Hampi ruins, the Mysore Palace, and the Belur and Halebid temples.
What is the economy of Karnataka like?
Karnataka is one of the most developed states in India. It has a strong manufacturing sector, a thriving IT industry, and a growing agricultural sector. The state’s economy is growing at a healthy rate, and it is expected to continue to grow in the coming years.
What are the main industries in Karnataka?
The main industries in Karnataka are manufacturing, IT, and agriculture. The manufacturing sector is the largest, accounting for about 30% of the state’s GDP. The IT sector is the second largest, accounting for about 20% of the state’s GDP. The agricultural sector is the third largest, accounting for about 15% of the state’s GDP.
What are the main exports of Karnataka?
The main exports of Karnataka are software, electronics, and engineering goods. The state’s exports have been growing rapidly in recent years, and they are expected to continue to grow in the coming years.
What are the main challenges facing the economy of Karnataka?
The main challenges facing the economy of Karnataka are infrastructure development, Skill development, and water management. The state needs to invest in infrastructure development to improve its competitiveness. It also needs to invest in skill development to create a skilled workforce. And it needs to manage its Water Resources more effectively to meet the needs of its growing population.
What are the opportunities for foreign investment in Karnataka?
There are many opportunities for foreign investment in Karnataka. The state has a strong manufacturing sector, a thriving IT industry, and a growing agricultural sector. It also has a skilled workforce and a favorable investment climate. Foreign investors can take advantage of these opportunities to invest in the state and grow their businesses.
What are the key government initiatives to promote economic growth in Karnataka?
The government of Karnataka has taken several initiatives to promote economic growth in the state. These initiatives include:
- Investing in infrastructure development, such as roads, bridges, and airports.
- Promoting the IT industry, such as by providing tax breaks and incentives to IT companies.
- Developing the agricultural sector, such as by providing subsidies and loans to farmers.
- Managing water resources more effectively, such as by building Dams and reservoirs.
These initiatives are expected to help the state’s economy grow at a healthy rate in the coming years.
Karnataka is the _____ largest state in India by area.
(A) 1st
(B) 2nd
(C) 3rd
(D) 4thThe capital of Karnataka is _____.
(A) Bangalore
(B) Chennai
(C) Hyderabad
(D) MumbaiThe Official Language of Karnataka is _____.
(A) Kannada
(B) Hindi
(C) English
(D) TamilThe currency of India is _____.
(A) Rupee
(B) Dollar
(C) Euro
(D) PoundThe population of Karnataka is _____.
(A) 60 million
(B) 70 million
(C) 80 million
(D) 90 millionThe Literacy rate of Karnataka is _____.
(A) 70%
(B) 80%
(C) 90%
(D) 100%The GDP of Karnataka is _____.
(A) $100 billion
(B) $200 billion
(C) $300 billion
(D) $400 billionThe main industries in Karnataka are _____.
(A) Agriculture, IT, and manufacturing
(B) Tourism, IT, and manufacturing
(C) Agriculture, tourism, and manufacturing
(D) IT, tourism, and manufacturingThe main agricultural products in Karnataka are _____.
(A) Rice, sugarcane, and coffee
(B) Wheat, rice, and cotton
(C) Rice, wheat, and maize
(D) Maize, rice, and sugarcaneThe main IT companies in Karnataka are _____.
(A) Infosys, Wipro, and TCS
(B) HCL, Cognizant, and Infosys
(C) Tata Consultancy Services, Infosys, and Wipro
(D) Wipro, HCL, and InfosysThe main tourist attractions in Karnataka are _____.
(A) Hampi, Mysore Palace, and Bangalore Palace
(B) Taj Mahal, Red Fort, and Agra Fort
(C) Goa, Hampi, and Mysore Palace
(D) Agra Fort, Taj Mahal, and Red FortThe main exports of Karnataka are _____.
(A) Software, hardware, and gems and jewelry
(B) Textiles, garments, and leather products
(C) Engineering goods, chemicals, and pharmaceuticals
(D) Gems and jewelry, engineering goods, and chemicalsThe main imports of Karnataka are _____.
(A) Crude oil, petroleum products, and gold
(B) Iron Ore, coal, and crude oil
(C) Gold, silver, and diamonds
(D) Diamonds, gold, and silverThe main trading partners of Karnataka are _____.
(A) The United States, the United Kingdom, and Germany
(B) China, Japan, and South Korea
(C) The United States, China, and Japan
(D) The United Kingdom, Germany, and FranceThe main challenges facing the economy of Karnataka are _____.
(A) Infrastructure, education, and healthcare
(B) Agriculture, manufacturing, and IT
(C) Tourism, agriculture, and manufacturing
(D) IT, tourism, and agricultureThe main opportunities for the economy of Karnataka are _____.
(A) Infrastructure development, education reforms, and healthcare reforms
(B) Agriculture modernization, manufacturing expansion, and IT growth
(C) Tourism promotion, agriculture diversification, and manufacturing diversification
(D) IT expansion, tourism promotion, and agriculture modernizationThe main goals of the government of Karnataka for the economy are _____.
(A) To make Karnataka a developed state by 2020
(B) To make Karnataka a knowledge economy by 2020
(C) To make Karnataka a sustainable economy by 2020
(D) To make Karnataka a globally competitive economy by 2020The main strategies of the government of Karnataka for achieving the goals are _____.
(A) Infrastructure development, education reforms, and healthcare reforms
(B) Agriculture modernization, manufacturing expansion, and IT growth
(C) Tourism promotion, agriculture diversification, and manufacturing diversification
(D) IT expansion, tourism promotion, and agriculture modernizationThe main achievements of the government of Karnataka for the economy are _____.
(A) Karnataka has become the first state in India to achieve 100% electrification
(B) Karnataka has become the first