Scope : The demand for petrochemicals is driven by two key needs,  i.e. cost-effective synthetic alternatives to natural products and functionally superior materials for demanding applications. The demand for petrochemicals is fast increasing in India. Historically, the industry has grown at double digit rates (synthetic fibres grew at 15 % after 1991). Similar growth is expected in the future and the present rate of capacity addition needs to be enhanced. The removal of capacity licensing has lead to a number of new projects in the country.

The petrochemicals sector in Karnataka:

The Mangalore refinery and petrochemicals project will have a final capacity of 9 million tones. Currently, the first phase of the project ( 3 million tones) has been commissioned. A naphtha cracker unit is also being set up near Mangalore. There is tremendous potential for downstream units near these large projects.

Policy Measures /initiatives :

The State has a policy of providing special incentives to plants requiring an investment outlay of over US$ 27 million.  These include government assistance in land acquisition as well as a host of fiscal incentives.

Projects Proposed: 

Proposals are invited from the private sector for the setting up of petrochemical units in the state.  The Government will help investors identify suitable sites for their units and will assist the downstream projects that are set up neat Mangalore.

Karnataka leads the Indian biotechnology revolution with its excellent infrastructure and a highly integrated environment for biotech research.  It is host to a number of leading bio-tech companies and start-ups, as well as some of the finest R&D facilities in the world-the Indian Institute of Science (ranked 18^th Best University in the world), the National Centre for Biological Sciences, the Jawaharlal Nehru Centre for Advanced Scientific Research, the University of Agricultural Sciences, the Central Food Technological Research Institute, and the Institute of Bio-informatics and Biotechnology.

Karnataka was the first to set up a Vision Group on Biotechnology as well as the first to announce a Biotech Policy aimed at encouraging investments, developing infrastructure and enhancing human resources for this sector.  On the anvil are biotech parks at Bangalore and Dharwad, a marine biotech part at Karwar, a biotech corridor at Bangalore, a centre for human genetics and an institute of agri-biotechnology.  

Karnataka leads the rest of the country in electronics and telecommunication with over 300 of the world’s leading companies located here.  From consumer electronics to avionics, you’ll find everything here.  The list of companies includes global giants like Siemens, Motorola, AT&T, Alcatel, Sony, Sanyo, GE and British Aerospace as well as national biggies like Bharat  Electronics Limited, Indian Telephone Industries Limited, BPL Ltd and a host of others.

The state’s turnover of over US$ 1 billion accounts for 20% of the national output.

Bangalore offers the highest bandwidth in the country.  STPI-Bangalore, with its world-class telecom infrastructure, delivers bandwidth within 48 hours.  And, with Karnataka Government’s Free Right of Way Policy which allows private companies to lay optic fiber cables anywhere in the State, the city will shortly have more players offering hi-tech connectivity at competitive costs.

Being a major producer of cotton (1,70,000 tonnes) and silk (8,200 tonnes), it is only natural that Karnataka should be a major centre for textiles and garments.  Today, the State is a major market, with exports of over US$ 1 billion in the year 2000-2001.  It is home to over 1000 garment manufacturing units equipped with state-of-the-art machinery and stringent quality control procedures.  Many leading international brands are now manufactured in Karnataka viz, Arrow, Allen Solly, Lacoste, Tommy Hilfiger, lee, Levi Strauss.  Bellary is emerging as a major jeans manufacturing centre for international brands, leading it to be dubbed as the ‘Jeans City”

Of late, Bangalore has been creating ripples in the fashion world with world-class designers creating designer clothes for the Indian and world markets.  The National Institute of Fashion Technology (NIFT), located in Bangalore, provides world-class human resources for the apparel industry.  The Karnataka Government actively encourages the industry by setting up apparel park one in Bangalore for high fashion, value added export garments, and a silk corridor linking the towns of Mysore, Mandya, Kolar, Channapatna and Bangalore is being developed.  Also a Productivity Research and Improvement Centre will enable the introduction of world-class productivity standards and methods.  And there are plans to establish a Clothing Technology Display Centre as well as a Retail Technology and Management Centre.

In order to make the garment industry globally competitive, the Government of Karnataka has evolved several measures.  The business environment has been deregulated to reduce transaction costs and speed up turn-around time.  Several compliance-related requirements have been removed and progressive labour policies have been put in place.  There are a host of incentives that are a motivation to business.

Karnataka, a land rich in history and culture, presents a bewitching range of object d’art.  The skilled craftmen create masterpieces out of mere wood, metal, fabric or just good earth which capture hearts and markers across the globe.  Enjoying the patronage of the Maharajas of the land for centuries, now these traditional crafts are preserved, developed and promoted by the State.

The variety offered is really astonishing exquisite sandalwood carvings, intricate inlay work on rosewood, splendid bronzes, beautiful bidriware, colorful lacquerware toys, ethnic dhurries, batiks, stone-studded jewellery and incense sticks.

Prepared from FIEO’s Study on Karnataka