Karnataka State is the biggest industries area in India. India is now growing to be a strong industrial power in the world. The States of India have different features in agriculture and industry.
Economy of Karnataka: Karnataka is one of the high economic growth states in India with the expected GSDP (Gross State Domestic Product) growth of 8.2% in the fiscal year 2010-2011. The total expected GSDP of Karnataka in 2010-2011 is about Rs. 2719.56 billion. Per capita, GSDP during 2008-2009 was US$ 1034.9. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other States. In 2008-2009, the tertiary sector contributed the most to the GSDP amounting to US$31.6 billion (55 per cent), followed by the secondary sector, contributing US$17 billion (29 per cent), and the primary sector’s contribution amounting to US$9.5 billion (16 per cent). With an overall GDP growth of 56.2% and a per capita GDP growth of 43.9% in the last decade, Karnataka surpassed all other States in India.
Sectors in the economy: A fiscal year in Karnataka begins on 1 April of the previous calendar year and ends on 31 March of the year with which is numbered. The different entities that contribute to the economy are broadly classified into three sectors:
(A) Primary: consisting of Agriculture, Animal husbandry, Forestry, Logging and Fishing
(B) Secondary: consisting of Mining, Quarrying, Manufacturing. Construction, Electricity, Gas and Water supply.
(C) Tertiary: consisting of Transport, Education, Storage, Communication, Trade, Hotel, Restaurant, Banking, Insurance, Real Estate, Business Service, Public Administration and another service.
The contribution of primary, secondary and tertiary sectors to Karnataka’s GSDP on average has been 19%, 26% and 54% respectively.
Agriculture of Karnataka: For many rural residents of Karnataka, agriculture is the major occupation. A total of 123,100 km² of Land is cultivated in Karnataka constituting 64.6% of the total geographical area of the State. According to the previous census, farmers and agricultural labourers formed 56% of the workforce of Karnataka.
Education as an industry: Education is an important industry for Karnataka. It boasts one of the largest concentration of Higher educational institutions like Medical and Engineering colleges. Apart from Bengaluru places like Belgaum, Mangalore, Mysore, Bubli-Dharwad and Davangere has been producing professionals for the IT industry. A large number of professionals educated in Karnataka can be seen all over India and the World.
Large scale industry: A majority of the 35 billion silk industry in India is headquartered in Karnataka State, particularly in the North Bengaluru regions of Muddenahalli, Kanivenarayanapura, and Doddaballapura, the upcoming sites of a 700 million “Silk City”.
Karnataka evolved as the manufacturing hub for some of the largest public sector industries of India after independence. Hindustan Aeronautics Limited which is dedicated to research and development activities for indigenous fighter aircraft for the Indian Air Force employs over 9,500 employees making it one of the largest public sector employers in Karnataka.
Other heavy industries such as National aerospace Laboratories, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited (BEML), Bharat Electronics Limited, Hindustan Machine Tools and Indian subsidiaries of Volvo and Toyota are also headquartered in Bengaluru. India’s national space agency India Space Research Organization (ISRO) is headquartered in Bengaluru and employs approximately 20,000 people. TVS Motors has a motorcycle manufacturing plant at Mysore and Tata Motors at Dharwad. Karnataka has many companies engaged in the manufacturing of electrical equipment and machinery like Kirloskar, ABB, Kavika, Larsen and Toubro etc. This may be due to the location of the Central Power Research Institute (CPRI) at Bengaluru.
There is petroleum refinery, Mangalore Refinery and Petrochemicals Limited (MRPL) at Katipalla in Dakshina Kannada district. There is also fertiliser factory MCF near New Mangalore port.
Information and Biotechnology: Karnataka is the leader in the information technology sector in India and its capital Bengaluru is known as the Silicon Valley of India. In the IT sector, Karnataka generates a huge revenue of Rs. 516.5 billion which included Rs. 487 billion from software exports and Rs. 29.5 billion from hardware exports in previous years. A total of 1973 companies in Karnataka are involved in Information Technology related business. While the bulk of the IT-related companies are located in Bengaluru, some companies are located in Mysore, Mangalore and Hubli as well. Bengaluru is also the headquarters of Wipro and Infosys which are among the top three IT companies in India with respect to market capitalisation. The Nandi Hills area in Devanahalli outskirts is the site of the upcoming $22 Billion, 50 square kilometre BIAL IT Investment Region, one of the largest infrastructure projects in the history of Karnataka.
Industrial infrastructure: Karnataka Industrial Area Development Board (KIADB) and Karnataka State Industrial Investment Development Corporation (KSIIDC) are jointly responsible for the development of industrial infrastructure in the State.
Directorate of Commerce and Industries has set up the district and taluk industrial centres across the Karnataka State to facilitate investment.
The Government of Karnataka is promoting the development of several SEZs across Karnataka such as pharma and biotech SEZ, food processing and agro-based industries and textiles SEZ at Hassan and IT and Coastal SEZs at Mangalore.