Karnataka is the bright spot in India's development. It epitomizes the best of many worlds – a land of ancient heritage, scenic beauty, thriving wildlife, and rich culture. It is also the land of innovation, industrial growth, and a rich talent pool.
Karnataka has an outstanding industrial ecosystem for all major industries to take advantage of:
- Karnataka is the Silicon Valley of India
- Karnataka is home to 400+ MNCs with global R&D centers
- Bangalore alone produces 60% of total value of machine tools manufactured in India
- Karnataka is the second highest producer of Special purpose and heavy electrical machinery in India
- Karnataka is the second largest chip design hub in the country
- Karnataka is the largest software exporter in India
GSDP $230 Bn, almost the size of Vietnam- 1st in total exports, among all Indian states
- Highest FDI among all states for the period Apr-Jun 2020
- 4th largest technology cluster in the world
- 1st in R&D Centres
- 1st in Renewable Energy
- 1st in India Innovation Index
- Home to 400 Fortune 500 Companies
- Bengaluru- Startup Capital of India
Ease Of Doing Business
Enhanced Facilitation Process to Ensure Transparency
- Facilitation act amended for improving EODB
- 11 approvals relaxed by introducing moratorium
- Option of 3 year long moratorium
- 7 departments comprehensively covered
- Karnataka land reforms act amended for improving ease of land procurement
- Entrepreneurs can now directly purchase land from farmers
- Transparent and convenient approval process
- Single portal for all approvals and clearances
- Time bound grievance handling
Online Application and Approval
A single portal for approval of all the requirements including electricity, water, land, incentives, labour, building planning and more, makes it easier not just for large companies but also for MSMEs and startups to invest. Other important aspects include:
- Single Window Agency
- Time Bound Grievance Handling
- Regular Consultation with Industry
Infrastructure and Logistics
- Served by 13 major National Highways; 2nd highest road density among major states in India
- Major port at Mangalore along with 9 other minor ports in the state; 300-400 km access to Chennai, JNPT and Krishnapatnam ports
- 2 International airports and 6 Domestic airports in the state; Bengaluru Airport is the 3rd largest airport in India
- Power Surplus State with highest installed capacity of renewable energy (18.8 GW) in country; 63% of installed capacity is renewable
- 6 ICDs (Inland Container Depots) & 5 CFSs (Container Freight Station) developed in the state
- Only State in India to have 2 industrial corridors- CBIC (Chennai-Bengaluru) & BMEC (Bengaluru- Mumbai)
- Feasibility study proposed for Hyperloop corridor between Bengaluru Airport and Bengaluru city
Skilled Workforce
- Largest workforce at the intersection of advanced manufacturing, building blocks (AI, IoT) and skilled manufacturing craftsmanship
- Provision to avail 'Fixed term employment' to optimize labor capacity to cater to seasonality
- Recent amendments made to facilitate women's work timings in night shifts, between 7 PM to 6 AM
- Overtime limit per quarter increased from 75 to 125 hours with the amendments to the Factories Act
- Exemption limit for Industrial Disputes Act increased from 100 to 300 workers
- Exemption limit for Contract Labor Act (seeking licenses) increased from 20 to 50 workers
A Thriving R&D Culture
Accounting for 44% of India’s R&D Centres, Karnataka is now a global leader in technological innovation. Dedicated facilities for various clusters ensures a robust research environment. Karnataka is home to research pioneers like:
- Google's 1st engineering center outside US, focusing on Artificial intelligence and Machine Learning
- Intel's largest design center outside US, focusing on 5G technology
- General Electric's largest R&D center outside US, focusing on reverse innovation and Internet of Things
- Samsung's largest R&D center outside South Korea, focusing on Samsung Gears and AI virtual assistant
Additionally, the state is also paving the way for several aviation research organizations and is working on establishing a research centre for electric vehicles.
Quick Action Links & Details
Apply for amendment for approved proposals such as extension of time and change of location.
The applications under this part shall be filed by the project proponents, whose projects are approved by either DLSWCC OR SLSWCC OR SHLCC and who require specific approval/clearances from concerned departments. The following are the departments and services available to apply through the “e-udyami” portal.
Karnataka Industrial Areas Development Board
- Land Allotment Letter
- Confirmation Letter
- Possession Certificate
- Execution of Lease Deed and Plan Approval
Karnataka State Pollution Control Board
- Consent for establishment under Water (Prevention and Control of Pollution) Act, 1974 and Consent for establishment under Air (Prevention and Control of Pollution) Act, 1981, in respect of orange and green category industries (Form-OG)
- Consent for establishment under Water (Prevention and Control of Pollution) Act, 1974, in respect of red category industry
- Consent for establishment under Air (Prevention and Control of Pollution) Act, 1981, in respect of red category industry
Industries and Commerce Department
- Industrial Entrepreneurs Memorandum-Part-I
- Stamp duty exemption certificate and concessional registration charges certificate for registration of land, plot and shed documents, and also for registering loan documents.
- Entry tax exemption on purchase of capital goods during the implementation of the project.
Municipal Administration Department
- License for establishment of enterprise
- License for building construction and plan approval
Karnataka Small Scale Industries Development Corporation
- Plot/Shed Allotment Letter
- Possession Certificate
- Execution of Lease Deed and Plan approval
- Approval to construct factory building and layout of plant and machinery under Rule 3(2) of Karnataka Factories Rules 1969.
Town Planning Department and Local Planning Authorities.
- Change of Land use.
- Layout Plan approval.
- Building Plan approval.
BESCOM/GESCOM/HESCOM/CESCOM/MESCOM
- Supply of Energy under Electricity Act – 2003
Water Resources Department
- Allocation of Water
1 st
in number of patent applications
30%
of India's startups based out of Karnataka
25%
of state's GSDP from IT sector
> 50%
of all AI/ML professionals based out of Karnataka
As an expert with a deep understanding of Karnataka's development landscape, I can confidently speak to the myriad facets that contribute to its status as a bright spot in India's growth story. My expertise is grounded in a comprehensive knowledge of the region's historical, cultural, and economic dimensions. Allow me to substantiate my authority with evidence and insights.
Industrial Prowess: Karnataka's industrial ecosystem stands out on the global stage, particularly in the technology sector. The state is widely recognized as the Silicon Valley of India, boasting over 400 multinational corporations (MNCs) with global research and development centers. Bangalore, Karnataka's capital, alone contributes a substantial 60% to the total value of machine tools manufactured in India. It secures its position as the second-highest producer of special purpose and heavy electrical machinery in the country, alongside being the second-largest chip design hub.
The state's significance extends further as the largest software exporter in India, with a Gross State Domestic Product (GSDP) of $230 billion, nearly the size of Vietnam. Karnataka leads the nation in total exports and exhibits the highest Foreign Direct Investment (FDI) among all states for the specified period. Moreover, it hosts a staggering 400 Fortune 500 companies, solidifying its place as the fourth-largest technology cluster globally.
Ease of Doing Business: Karnataka has implemented various measures to enhance the ease of doing business. Amendments to the Karnataka Land Reforms Act enable entrepreneurs to directly purchase land from farmers, streamlining the land procurement process. The state's facilitation act has been amended to improve the ease of doing business, with 11 approvals relaxed by introducing a moratorium option of up to three years. A transparent and convenient approval process is facilitated through a single portal covering all requirements, from electricity and water to land and labor.
Infrastructure and Logistics: The state's strategic geographical location is bolstered by robust infrastructure. Karnataka is served by 13 major National Highways, boasting the second-highest road density among major states in India. It features a major port at Mangalore and nine other minor ports, providing access to key international ports such as Chennai, JNPT, and Krishnapatnam. With two international airports and six domestic airports, including the third-largest airport in India, Bengaluru Airport, the state is well-connected.
Karnataka takes pride in being a power surplus state with the highest installed capacity of renewable energy in the country (18.8 GW), with 63% of the capacity being renewable. It stands out as the only state in India with two industrial corridors – CBIC (Chennai-Bengaluru) and BMEC (Bengaluru-Mumbai). Additionally, feasibility studies are underway for a Hyperloop corridor between Bengaluru Airport and the city.
Skilled Workforce: The state boasts the largest workforce at the intersection of advanced manufacturing and technological domains such as AI and IoT. Recent amendments, such as the provision of 'Fixed term employment' and flexibility in women's work timings during night shifts, underscore Karnataka's commitment to optimizing its labor capacity. Increases in overtime limits and exemption thresholds for labor-related acts further contribute to a conducive business environment.
Thriving R&D Culture: Karnataka is a global leader in technological innovation, hosting 44% of India's R&D centers. The state is home to pioneering research facilities for major companies, including Google, Intel, General Electric, and Samsung. It is actively fostering a culture of innovation in various domains, such as aviation research and electric vehicles.
The state's commitment to transparency and efficiency is evident in its online application and approval processes, facilitated through a single portal. This approach not only benefits large corporations but also supports Micro, Small, and Medium Enterprises (MSMEs) and startups, making Karnataka an attractive destination for diverse industries.
In summary, Karnataka's multifaceted strengths encompass a rich historical and cultural heritage, coupled with a thriving industrial ecosystem, robust infrastructure, a skilled workforce, and a vibrant research and development culture. The evidence presented underscores the state's position as a beacon of progress in India's development landscape.
