Karnataka is India's eighth-largest state, both in terms of area and
population. Situated on the west coast of India, it is surrounded by Maharashtra,
Goa, Andhra Pradesh, Tamil Nadu and Kerala and opens out to the Arabian Sea. The
state is endowed with rich natural resources. It is best known as India's IT
powerhouse or the Silicon State of India.
Karnataka is among the leaders in economic growth in the country. Employment
and per capita income levels are high and almost the entire population has
access to education and health facilities.
Although agriculture is the mainstay of the population, the services and
industrial sectors have shown significant growth attracting major companies from
all over the world. Today, the services sector contributes the maximum to the
state's income.
Karnataka's capital city, Bangalore, is known as the 'IT Capital of India'
and is the fourth largest technology hub in the world. In 2003-04, Karnataka's
Information Technology (IT) sector contributed 36 per cent to the country's
total software exports. Karnataka's software and BPO exports touched US$ 4
billion in 2003-04, a 46 per cent jump over US$ 2.6 billion in 2002-03.
Karnataka possesses a vast pool of IT professionals and some of the country's
best academic and premier research institutions. The state is a prefered hub for
R&D with several multinational and domestic companies. It has over 100
R&D organisations. Karnataka also has the highest number of biotech
companies in the country.
Karnataka's investment in infrastructure is the highest among all the states
in the country and several mega projects are underway to upgrade its existing
infrastructure to world-class standards. The state was first in India to set-up a
Software Technology Park (STP) as early as 1991 .Today, it has the country's
best telecommunications infrastructure ensuring high bandwidth connectivity to
global destinations.
Karnataka is focused on improving its investment climate. It has been
proactive in inviting the private sector and was among the first to invite
private investment in the education sector. With its encouraging policies and
favourable environment, the state has attracted investors and has seen a steady
increase in Foreign Direct Investment (FDI) inflow in recent years.
