Karnataka is the eighth largest State in India both in area and population.  Its neighboring states are Maharashtra in the north, Andhra Pradesh on the east and Tamil Nadu and Kerala in the South.  It has a thin strip of coastal land, with the Arabian Sea in the west.  The eastern and western ghats that cover Karnataka are the source of many east and west flowing rivers.  The beautiful hill station of Kodagu (Coorg) is situated in this mountain range.  The important rivers that originate from these mountains are the Krishna, Kaveri and their tributaries.  The pleasant hill resorts, wide sandy beaches, ancient palaces, together with the refreshing climate, make Karnataka a tourist delight.  Ancient sculptured temples, magnificent palaces, ornate buildings and colorful festivals blend beautifully with the ever green forest. Golden beaches, Orange groves and garden cities to form this exquisite land. Having been the most industrious State, it also has the credit of being the first state to step into the industrial dawn.  While nearly 69% of the population lives in rural areas, urbanization is fast increasing.  Bangalore, the State capital, is one of the fastest growing cities in the world today, with a population of over 4 million.  Most parts of the State enjoy an equable climate, particularly in the South.  Some northern parts of the state experience wide temperature ranges and semi-arid conditions, while the western coastal regions are lust and tropical.  The average annual rainfall for the State is about 1,139 mm, with nearly 70% occurring in the monsoon months between June and September.

The need for industrialization and potential for industrial growth was realized even in pre-independence days as is evident in Mr. M. Visvesveraya’s famous words – ‘Industrialize or perish’.  Successive State Governments have continued a progressive policy of industrialization.  This has given the State and especially Bangalore, strong technology base, easily available qualified and trained manpower, supporting ancillary industries and a stimulating environment for the progressive development of technology.  And today the state capital Bangalore is known internationally as the hub of information technology and electronics in India.

The performance of the State’s Economy has been good during the current year.  The Gross State Domestic Product (GSDP) has grown at 5.8% 1998-99 as against 5.6% in 1997-98.  Over the years, the State has made much progress in all economic sectors.  Industrial growth in 1996-97 was at 8.7%.  Inflation in Karnataka for the year 1996-97 was 8.7% (measured in terms of industrial price index on a point to point basis), against a 9.4% national average.  The State Government, in 1996097, increased annual budgeted expenditure for industrial development by more than 45% over the previous year – a strong reflection of the State’s continued commitment to industrial development.  The State’s commitment to investment is further reflected by the number of major infrastructure projects coming up in the State, e.g., the Bangalore-Mysore Infrastructure Corridor Expressway, the Information Technology Park at Bangalore and the Bangalore International Airport.

It was one of the earliest states to electrify all its villages.  Karnataka is regarded as one of India’s most investor friendly states.  The large number of major Indian and foreign companies that have been using Karnataka as a base, bears testimony to its growing industrial tradition.

The Agriculture Sector also did well registering a growth rate of 3.7%.  Karnataka is predominantly rural and agrarian.  About 76% of the population lives in rural areas.  71% of its working force is engaged in agriculture and allied activities which generate 49% of the State’s income.

Karnataka is rich in mineral wealth.  It has deposits of gold, iron, manganese, chromate, bauxite and copper.

For balanced industrial development in the State, the Government, through KIADB, has set up Growth Centers at Dharwad, Hassan and Raichur. In order to explore opportunities in exports from Karnataka, Hassan Growth Centre is being upgraded to establish Special Economic Zone by acquiring additional 250 acres of land and improving infrastructure.

The State Government has also taken action to develop EPIP at Mangalore, five Agro-food Processing Parks at Malur, Bagalkot, Belgaum, Chittradurga and Maddur, Two Apparel Export Parks at Bangalore and bellary, a Knowledge Park dedicated to Bio-Technology elated industries at Bangalore and three Auto Park at Bidadi, Shimoga & Dharwad.

Comprehensive infrastructure facilities – basic facilities like power, water, roads, transport, telephone, housing and secondary facilities like education, health, restaurants, entertainment – are provided in the Growth Centres.  The centres are well connected by road and rail to important places in the country and receive highest levels of government incentives.

• Stable and Proactive Government

• Good Law and Order

• Investor friendly and transparent administration

• Progressive Industrial, Fiscal and Infrastructure policy

• Approvals / Clearances through Single Window Approach

• Dedicated escort service by Govt. agencies.

• World class Technical Manpower

• Excellent Social, Education & health facilities

• Most congenial Industrial Relations

• Abundant Natural Resources

• Salubrious Climate

This once quaint little cantonment town has undergone a remarkable metamorphosis with its metropolitan grandeur.  And has emerged as the fastest growing city in Asia.  Bangalore’s greatest assets are its salubrious climate and its warm and courteous people with a cosmopolitan outlook.

There is always something special happening in Bangalore ,  a lively city with a rich cultural life.  Dance and music festivals, rock and ramp shows, theatre productions, sport meets, scientific conventions, art exhibitions and seminars are on through the year.

Bangalore has the highest number of engineering colleges to a city in the world – 21 in number, and also other well established institutions offering a wide gamut of eduction services.  The Indian institute of Science (IISc.), Bangalore, is ranked the 18thb Best university in the world and the Indian Institute of Management (IIM) is one of the most admired and sought after management institutes in India.  Recently, another premier institution – Indian Institute of Information Technology has been started which delivers the best of IT academics and industry.  The National Law School, Bangalore is the premier law school of the country.

A pool of professional talent; a sizeable, well settled expatriate population; health clubs and parks, pubs and shopping malls, renowned hospitals and medical centers, international hotels, car rental agencies, 24-hour radio taxi services, cafes, fast food joints, bistros and restaurants serving a multitude of cuisines, five sprawling golf courses and a number of tourist spots not far from the city that are perfect for weekend getaways.  The garden city has it all.

Karnataka has always been at the forefront of Industrial growth in India. With its inherent capabilities coupled with its enterprising citizens, Karnataka provides the ideal choice for investment opportunities. Superior Human Resources available includes trained technical manpower in Engineering, Management and Basic Sciences. Due to the presence of Central Government laboratories and research institutions in Karnataka, high level of research and development facilities are available. Favourable climate and habitat, excellent communication facilities and accessibility are provided by broad gauge railway, airport, national highways and sea ports.

Karnataka has large mineral resources like iron ore, manganese ore, dolomite, chromite, bauxite, quartz, silica and is the only state in the country with gold deposits.  Karnataka is one of the states which lead in sugar production with a production of 15 lakh tones. Karnataka contributes 60 % of India’s silk, 70% coffee and is a leading producer of spices, fruits and vegetables. Karnataka leads in electronics and Bangalore is known as the Silicon Valley of India. Karnataka is emerging as the leading Ready-made Garment Center of India with reputed brands having set up base here.

Industrial relations in Karnataka are excellent with a number of Man-days lost being the least among the leading industrial states of India. Karnataka has a large and vibrant industries base.A number of big industries produce items such as electronic products, watches, aircraft, telecommunication equipment etc., Core industries of the economy like Iron & Steel, Paper, and power, were the first to be set up here. Likewise Cement, Chemicals & Fertilizers, Silk, Textiles, Sugar, Electrical Industries, etc., were not only established during the early part of the century but has grown substantially over the decades to cover many more sectors. The country’s only gold mine- one of the deepest in the world – is in Karnataka.

State has received large investment proposals in certain Sectors, viz, Steel, Cement, electronics- Software, Precision Engineering- Automobile Components. There is a need to consolidate investment in these sectors and provide for growth of the Ancillary- Small Scale Sector to cater to the needs of these large investments. There is also a need to attract investments to other important sectors such as Agro food based industries, textiles, petrochemicals and Pharmaceutical Industries, Leather & Coir based distribution of developments throughout the state.

As a Preferred place of investment Karnataka has one of the most congenial industrial environments in the country. Labour unrest is few and unheard of. Law and order problems are minimal. A stable government and good infrastructure, Large pool of human resources, aided by the presence of a large number of engineering, medical and other educational institutes, a single window clearance system and many other benefits make Karnataka a favorite investment location.

Karnataka has embarked on a massive infrastructure expansion programme aimed at providing industry with world-class facilities at competitive prices.  Some of the major projects on the fast-track of implementation are:

• Bangalore International Airport at Devanahalli

• Bangalore – Mysore Expressway

• Bangalore Mass Rapid Transit System

• Up-gradation of Minor Airports and development of Minor Seaports

• Up-gradation of existing roads and laying of new ones on BOT/BOOT basis.

• Five new Food Processing Industrial Parks

• Export Promotion Industrial Part at Mangalore

• Special Economic Zone at Hassan

• Jewellery Park at Karwar

• Garment Parks at Bangaloe and Bellary.

The United Nation’s Human Development report – 2000, recognizes Bangalore as the fourth leading global hub of technological innovation, with San Francisco and Austing in USA and Taiwan capital Taipei.  Ahead of many other cities in USA, Europe, Japan, China and South east Asia.

The State has a wide-spread 122,430 km network of roads consisting of 1968 kms of National highways and 11260 kms of State highways.  The District, Village and Municipal Roads cover 1,15,654 kms.

A “Road Fund” has been set up, the corpus of which will be dedicated to the up-gradation and development of the road network in the State.  In addition, the road fund will also be used to promote increased investment sin the road sector.  To establish the corpus of the Road Fund, the Government will take steps to levy cess on royality charged on Granite, Iron Ore and Lime Stone.  The Road fund will be administered by committee at the State and District Levels.  It is hoped that the Committees will ensure that roads of economic importance are prioritized and resources of the Road Fund are deployed effectively.

The State Government has identified the cities of Dharwad, hassan and Raichur as growth centers.  In order to facilitate the development of these centers, the Government is committed to  providing adequate road links with potential markets as well as to the ports.  Further, the two mega steel plants coming up in the Hospet-Bellary region would require good connectivity.  In the absence of connecting rail links, adequate roads are needed from mines and ports to the plant locations.

The State Highways Act has been amended to allow private participation in roads.  Private companies will no be allowed to collect tolls and regulate traffic for an agreed period of time.  The Government will help expedite land acquisition.  This is typically the most time consuming activity in road development.  If required, the Government may even acquire land for developers, as done for the Bangalore-Mysore expressway project.