Given economic growth that is running at a much higher rate in Karnataka compared to other states in India, investors simply cannot afford to ignore the state. Today Karnataka is the top destination for business expansion by enterprises. The state government is promoting business objectives more vigorously.
Today, many companies from around the world are willing to set up businesses in Karnataka which is one of the top destinations for investment. Today, vast majority of businesses operating in Karnataka are making profits. There has been a dramatic growth in the businesses of the MNCs in the state. Several foreign companies that include global behemoths such as Google, IBM have set-up their presence in the country.
Karnataka is termed as the Knowledge Capital of India. The state attracts skilled labour, especially in the knowledge sector. The state ranks high among the states that produce a large number of engineers and doctors in the country.
Karnataka has well-developed social, physical and industrial infrastructure. The state is equipped with good road, rail, water and air connectivity and substantial port infrastructure. Well-developed telecom infrastructure is an added advantage. The state also boasts excellent healthcare facilities. Karnataka Udyog Mitra (KUM) is a single contact point for investors who intend to establish business in the state Karnataka. It provides information on various aspects such as land availability, coordination and statutory approvals.
Between 1988-89 and 2012-13, the State Level Single Window Clearance Committee (SLSWCC) of Karnataka has cleared 5,661 projects totalling Rs. 84,652 crore (up to 72nd SLSWCC meeting). Of these, 1,396 projects have been implemented, totalling investment of Rs. 20,130 crore. Of the total projects implemented, 50 per cent of the investment is concentrated in five sectors alone, namely engineering, software technology park, food processing, software and hardware and power projects. Bangalore Urban and Bangalore Rural districts have garnered about 50 per cent of the total investments. Bellary, Belgaum and Mysore are the other districts that have attracted investments.