Economy of Karnataka

2021-07-07T16:01:24Z

103.5.133.133: /* Minerals */

{{Use Indian English|date=February 2017}}
{{Use dmy dates|date=March 2013}}
{{short description|Overview of the economy of Karnataka}}
{{Infobox economy
| country = Karnataka
| image = Centro Direzionale - Napoli.jpg
| image_size = 300px
| caption = Bengaluru, The capital city of Karnataka
| organs =
| year = 1 April – 31 March
| currency = [[Indian Rupee]] [[₹]]
| gdp = {{INRConvert|18.05|t|lk=r}} (2019–20)<ref name=":0">{{cite web|url=http://mospi.nic.in/sites/default/files/press_releases_statements/State_wise_SDP_31_07_2020_website.xls|title=MOSPI Gross State Domestic Product|date=31 July 2020|website=[[Ministry of Statistics and Programme Implementation]], [[Government of India]]|access-date=8 October 2020}}</ref>
| gdp rank = [[List of Indian states and union territories by GDP|4th]]
| growth = 7.8% (2019–20 est.)<ref name="Budget Analysis"/>
| per capita = {{INRConvert|251246}} (2019–20)<ref name=":0"/>
| per capita rank = [[List of Indian states and union territories by GDP per capita|7th]]
| sectors = Agriculture 10% Industry 26% Services 64% (2019–20)<ref name="Budget Analysis"/>
| components =
| inflation =
| bankrate =
| poverty = {{decreasepositive}} [[List of Indian states and union territories by poverty rate|10.91%]] in poverty (2017–18)<ref>{{cite web | title=SDGs India Index | url=https://sdgindiaindex.niti.gov.in/#/ranking |work=[[NITI Aayog]] | date=31 December 2019}}</ref>
| gini =
| hdi = {{increase}} 0.689 {{color|darkorange|medium}} (2018) ([[List of Indian states and territories by Human Development Index|19th]])
| labor =
| occupations =
| unemployment = {{decreasePositive}} 1.5% (Nov 2020)<ref>{{cite web|title=Unemployment Rate in India |url=https://unemploymentinindia.cmie.com/ |publisher=Centre for Monitoring Indian Economy |page=1 |access-date=3 November 2020}}</ref>
| average gross salary =
| gross median =
| average net salary =
| net median =
| industries =
| exports =
| export-goods =
| export-partners =
| imports =
| import-goods =
| import-partners =
| FDI =
| current account =
| gross external debt =
| debt = 19.5% of GSDP (2020–21 est.)<ref name="Budget Analysis"/>
| balance = {{INRConvert|-46072|c}} (2.55% of GSDP) (2020–21 est.)
| revenue = {{INRConvert|1.80|lc|nolink=yes}} (2020–21 est.)<ref name="Budget Analysis"/>
| expenses = {{INRConvert|2.38|lc|nolink=yes}} (2020–21 est.)<ref name="Budget Analysis">{{cite web|title=Karnataka Budget Analysis 2020-21|url=https://www.prsindia.org/parliamenttrack/budgets/karnataka-budget-analysis-2020-21|website=PRS Legislative Research|access-date=19 March 2020}}</ref>
| aid =
| credit =
| spelling = Oxford
| presentUS$asdefault = no
}}
[[File:Gross State Domestic Product of Karnataka (chart of yearly growth).jpg|right|300px]]
[[Karnataka]] is one of the highest economic growth states in [[India]] with an expected [[Gross domestic product|GSDP]] (Gross State Domestic Product) growth of 8.2% in the 2010–11 fiscal year.<ref name="gsdp">{{cite news|url=http://www.hindu.com/2011/02/24/stories/2011022462350600.htm|archive-url=https://web.archive.org/web/20110303211914/http://www.hindu.com/2011/02/24/stories/2011022462350600.htm|url-status=dead|archive-date=3 March 2011|title= State's economic growth poised at 8.2 per cent|access-date=2011-04-06|location=Chennai, India|work=[[The Hindu]]|date=24 February 2011}}</ref><ref name="ibef">{{cite web|url=http://www.ibef.org/download/Karnataka_190111.pdf|work=Online webpage of the India Brand Equity Foundation|publisher=Ministry of Commerce with the Confederation of Indian Industry|title=Karnataka|access-date=2011-04-06}}</ref> The total expected GSDP of Karnataka in 2010–2011 is about {{INR}}2719.56 billion.<ref name="ibef"/> Per capita GSDP during 2008–2009 was US$1034.9. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the [[Tertiary sector of the economy|tertiary]] sector contributed the most to GSDP (US$31.6 billion─55 percent), followed by the [[Secondary sector of the economy|secondary]] sector ($17 billion─29 percent), and the [[Primary sector of the economy|primary]] sector (US$9.5 billion─16 percent).<ref name="contrib">{{cite web|url=http://www.ibef.org/download/Karnataka_171109.pdf|title=STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Karnataka|work=Department of Commerce & Industry|publisher=India Brand Equity Foundation|access-date=2009-09-30}}</ref>

With an overall GDP growth of 56.2% and a [[per capita GDP]] growth of 43.9% in the last decade, Karnataka surpassed all other states in India, pushing Karnataka's per capita income in Indian Rupee terms to sixth place.<ref name="percapita">{{cite web|url=http://www.thehindubusinessline.com/2005/06/09/stories/2005060900951700.htm|title= In terms of per capita GDP – Karnataka, Bengal fastest growing States|work=The Hindu |date=2005-06-09 |access-date=2007-06-11}}</ref> Karnataka received US$2,026.4 million worth of [[Foreign Direct Investment]] for the fiscal year 2008–09, placing it at the third spot among states in India.<ref name="fdi_08">{{cite news|url=http://www.deccanherald.com/content/43090/karnataka-stands-3rd-fdi-inflows.html|title= Karnataka stands 3rd for FDI inflows in India after Maharashtra, Gujarat|work=Deccan Herald |access-date=2011-04-06|location=Bangalore, India|date=24 December 2010}}</ref> At the end of 2004, the unemployment rate of Karnataka was 4.57% compared to a national rate of 5.99%.<ref name="unemployment">{{cite web|url=http://indiabudget.nic.in/es2003-04/chapt2004/chap104.pdf|title=Employment and Unemployment|author=Government of India|work=Online webpage of Indian budget|access-date=2007-06-19|archive-url=https://web.archive.org/web/20101224155012/http://indiabudget.nic.in/es2003-04/chapt2004/chap104.pdf|archive-date=24 December 2010|url-status=dead}}</ref> For the fiscal year 2006–07 the inflation rate of Karnataka was 4.4%, which was less than the national average.<ref name="inflation">{{cite web |url=http://www.kar.nic.in/finance/bud2006/budhig06.htm |title=Budget 2006–2007 |work=Online webpage of the Finance Department |publisher=Government of Karnataka |access-date=2007-06-19 |url-status=dead |archive-url=https://web.archive.org/web/20060822072325/http://www.kar.nic.in/finance/bud2006/budhig06.htm |archive-date=22 August 2006 |df=dmy }}</ref>

Between 2011-12 and [https://www.ibef.org/states/karnataka-presentation 2017-18], the GSDP of the state grew at a Compound Annual Growth Rate (CAGR) of 13.11 per cent to reach {{INR}}12.69 trillion (US$ 196.88 billion) and the net state domestic product (NSDP) grew at a CAGR of 12.83 per cent to reach {{INR}}11.45 trillion (US$ 177.68 billion).<ref>{{Cite web|url=https://www.ibef.org/states/karnataka-presentation|title=GSDP of Karnataka, Manufacturing Industries in Karnataka|website=www.ibef.org|access-date=2018-06-25}}</ref>

A [[fiscal year]] in Karnataka begins on 1 April of the previous calendar year and ends on 31 March of the year with which it is numbered.

After [[Bangalore Urban district|Bengaluru Urban]], [[Dakshina Kannada|Dakshina Kannada (Mangaluru)]] and [[Belgaum district|Belagavi]] districts contribute the highest revenue to the state respectively.

==Agriculture and Livestock{{anchor|Agriculture}}==
[[File:UKanaraHaystack.jpg|thumb|300px|Haystack on stilts in paddy fields of [[Uttara Kannada|Uttara Kannada district]]]]
Agriculture is the primary occupation of most of Karnataka's rural people. A total of 123,100 km2 of land is cultivated in Karnataka, constituting 64.60% of the total geographical area of the state.<ref name="stats">{{cite web|url=http://raitamitra.kar.nic.in/Agri%20Policy%20Eng.pdf|title=Karnataka Agricultural Policy 2006|work=Online webpage of Department of Agriculturesankalp
|publisher=Government of Karnataka|access-date=2007-06-04}}</ref> According to the 2001 census, farmers and agricultural labourers formed 56% of the workforce of Karnataka.<ref name="excel">{{cite web|url=http://planningcommission.nic.in/plans/stateplan/sdr_pdf/shdr_kar05.pdf|title=Karnataka Human Development Report 2005|work=Online webpage of the Planning Commission|publisher=Government of India|access-date=2007-06-04}}</ref> Agriculture in Karnataka is heavily dependent on the southwest [[monsoon]] since the extent of arid land in the state is second only to Rajasthan.<ref name="excel"/> Only 26.5% of sown area (30,900 km2) is subjected to [[irrigation]].<ref name="stats"/> The state has three agricultural seasons – [[Kharif]] (April to September), [[Rabi crop|Rabi]] (October to December) and Summer (January to March).<ref name="stats"/>

Given below is a table of 2015 national output share of select agricultural crops and allied segments in Karnataka based on 2011 prices<ref>[http://www.mospi.gov.in/sites/default/files/publication_reports/Final1Brochure_30july2018.pdf 2015 agricultural output of Karnataka based on 2011 prices]</ref>
{| class="wikitable"
|-
! Segment || National Share %
|-
| Mulberry || 98.7
|-
| Coffee || 92.7
|-
| Safflower || 62.1
|-
| Ragi || 59.2
|-
| Arecanut || 58.6
|-
| Sunflower || 55.2
|-
| Tamarind || 32.4
|-
| Sericulture and Apiculture || 28.9
|-
| Jowar || 26.9
|-
| Horsegram || 25.6
|-
| Sapota || 24.6
|-
| Capsicum || 19.9
|-
| Pomegranate || 19.8
|-
| Water melon || 19.7
|-
| Coconut || 17.3
|-
| Grape || 17.3
|-
| Floriculture || 16.8
|-
| Narcotics || 15.9
|-
| Wool and hair || 14.8
|-
| Maize || 14.5
|-
| Pepper || 14.2
|-
| Cucumber || 13.9
|-
| Condiments and spices || 13.5
|-
| Sugarcane || 10.7
|-
| Cashew nut || 9.6
|-
| Arhar || 9.4
|-
| Tobacco leaf || 9.2
|-
| Tobacco stem || 9.2
|-
| Fuel wood || 8.4
|-
| Carrot || 7.9
|-
| Tomato || 7.2
|-
| Pineapple || 7.1
|-
| Egg || 6.7
|-
| Bean || 6.6
|-
| Lemon || 6.6
|-
| Pulse || 6.5
|-
| Jackfruit || 6.4
|-
| Turmeric || 5.8
|-
| Cocoa || 5.6
|-
| Groundnut || 5.6
|-
| Marine fish || 5.5
|-
| Ginger || 5.4
|-
| Mango || 5.4
|-
| Grass || 5.2
|-
| Papaya || 5.2
|-
| Rubber || 5.1
|-
| Kitchen garden || 5.0
|}

=== Primary Crops grown in Karnataka ===
The main crops grown are Rice, Ragi, Jowar (sorghum), maize, and pulses (Tur and gram) in addition to oilseeds and a number of other cash crops.<ref name="stats" /> [[Cashew]]s, coconut, [[arecanut]], [[cardamom]], [[Chili pepper|chillies]], cotton, sugarcane and tobacco are also produced. Karnataka is the largest producer of coarse cereals,<ref name="coarse">{{cite web|url=http://dacnet.nic.in/eands/4.8(b)Area,Production%20and%20Yield%20of%20Coarse%20Cereals%20during2004-05%20and%202005-06%20in%20respect%20of%20major.xls|title=Area, Production and Yield of Coarse Cereals during 2004–05 and 2005–06 in respect of major Coarse Cereals Producing States along with coverage under Irrigation|work=Online webpage of DACNET|publisher=Government of India|access-date=2007-06-04|url-status=dead|archive-url=https://web.archive.org/web/20070929115604/http://dacnet.nic.in/eands/4.8%28b%29Area%2CProduction%20and%20Yield%20of%20Coarse%20Cereals%20during2004-05%20and%202005-06%20in%20respect%20of%20major.xls|archive-date=29 September 2007|df=dmy-all}}</ref> coffee,<ref name="coff">{{cite web|url=http://indiacoffee.org/coffeeinindia/default.htm|archive-url=https://archive.today/20070509021450/http://indiacoffee.org/coffeeinindia/default.htm|url-status=dead|archive-date=2007-05-09|title=Coffee data|work=Online webpage of Coffee Board of India|access-date=2007-06-04 }}</ref> raw silk<ref name="silk">{{cite web|url=http://www.fao.org/sd/Teca/search/tech_dett_en.asp?lang=en&tech_id=1195|title=Bamboo in Sericulture|work=Online webpage: TECA – Technology for Agriculture|publisher=FAO, United Nations|access-date=2007-06-04}}</ref> and tomatoes among the states in India. Horticultural crops are grown in an area of 16,300 km2 and the annual production is about 9.58 million tons.<ref name="stats" /> The income generated from horticulture constitutes over 40% of income generated from agriculture and it is about 17% of the state's GDP.<ref name="stats" /> In floriculture, Karnataka occupies the second position in India in terms of production and 700 tons of flowers (worth {{INR}}500 million) were produced in 2004–05.<ref name="stats" />
[[File:Traditional ploughing - Karnataka.jpg|thumb|300px|Traditional Farming Methods are still in use]]
A majority of the thirty-five billion rupee silk industry in India is headquartered in Karnataka State, primarily in [[Mysore]] and North Bangalore regions of [[Doddaballapura]], the site of a planned 700 million "Silk City".<ref>{{cite web|url=https://www.deccanherald.com/content/31009/silk-city-come-up-near.html|title=Silk city to come up near B'lore|date=17 October 2009|website=Deccan Herald}}</ref><ref>{{cite web|url=http://sify.com/news/fullstory.php?a=jg1rkmebjfi&title=Karnataka_silk_weavers_fret_over_falling_profits_due_to_globalisation&tag=Karnataka|archive-url=https://web.archive.org/web/20150418235819/http://www.sify.com/news/fullstory.php?a=jg1rkmebjfi&title=Karnataka_silk_weavers_fret_over_falling_profits_due_to_globalisation&tag=Karnataka|url-status=dead|archive-date=2015-04-18|title=Karnataka silk weavers fret over falling profits due to globalisation|website=Sify}}</ref>

==Education==
[[File:IISc.jpg|thumb|300px|Main building of IISc, Bangalore]]
Karnataka has one of the largest concentrations of higher education including medical and engineering colleges. Apart from Bengaluru, places like [[Mangalore]], [[Hubli–Dharwad]], [[Mysore]], [[Belagavi]], [[Udupi]], [[Tumakuru]] and [[Davanagere]] have been producing professionals for the Information Technology industry. [[Muddenahalli]], in North Bangalore, is the site of the upcoming Sri Sathya Sai Baba University and College of Medicine and a branch of the [[Visvesvaraya Institute of Advanced Technology]].<ref>{{cite news| url=http://www.hindu.com/2009/07/09/stories/2009070954310500.htm | archive-url=https://web.archive.org/web/20090713122731/http://www.hindu.com/2009/07/09/stories/2009070954310500.htm | url-status=dead | archive-date=13 July 2009 | location=Chennai, India | work=[[The Hindu]] | title=International sports village location to be finalised soon | date=9 July 2009}}</ref> [[Devanahalli]] is set to be the location of a 95 billion Devanahalli Business Parks, which will contain Aerospace Education Special Economic Zones, near the Bengaluru International Airport. The North Bangalore region is set to be a premier educational hub of Karnataka. City of [[Bengaluru]] as many prestigious Institutions such as [[Indian Institute of Science]], [[Ramaiah Institute of Technology]], [[R.V. College of Engineering]], [[PES University]], [[REVA University]], [[Indian Institute of Management Bangalore]], [[International Institute of Information Technology, Bangalore]], [[Jain University]] etc.
<ref>http://www.thehindubusinessline.com/2009/09/05/stories/2009090551001700.htm</ref> Dharwad in the northern part of the state is another hub for education with several engineering colleges With National importance institutions like IIT dharwad, IIIT Dharwad and Dakshina Prachara Sabha are present in dharwad and hence called Education Hub. and a central university present in Kalaburgi.<ref>{{cite web|url=http://www.cuk.ac.in/aboutcuk.html |title=About Central University of Karnataka |access-date=2011-07-21 |url-status=dead |archive-url=https://web.archive.org/web/20110721150326/http://www.cuk.ac.in/aboutcuk.html |archive-date=21 July 2011 |df=dmy }}</ref> These developments are set to contribute significantly to Karnataka's economy by creating jobs, expanding educational opportunities, and spurring infrastructure development. [[Manipal Academy of Higher Education]] is one of the best university present in [[Manipal]] . With many great and prestigious Institutions [[Karnataka]] has been the Educational Hub of India.

==Industry==
Karnataka evolved as the manufacturing hub for some of the largest [[public sector]] industries of India after India's independence. [[Hindustan Aeronautics Limited]], which is dedicated to [[research and development]] activities for indigenous [[fighter aircraft]] for the [[Indian Air Force]], employs over 9,500 employees making it one of the largest public sector employers in Karnataka.

Other heavy industries such as [[National Aerospace Laboratories]], [[Indian Telephone Industries]], [[BEML|Bharat Earth Movers Limited]], [[Bharat Electronics Limited]], Hindustan Machine Tools and Indian subsidiaries of [[Volvo]] and [[Toyota]] are also headquartered in Bangalore. India's national space agency, the Indian Space Research Organization, is headquartered in Bangalore and employs approximately 20,000 people.

TVS Motors has a motorcycle manufacturing plant at Mysore and Tata Motors at [[Dharwad]]. Karnataka state has many companies engaged in the manufacturing of electrical equipment and machinery like [[Kirloskar Group|Kirloskar]], [[ABB Group]], Kavika, [[Larsen and Toubro]] etc. This may be due to the location of the [[Central Power Research Institute]] at Bangalore. Many multinational companies have set up their manufacturing units in Karnataka such as [[BASF]], and [[Robert Bosch GmbH|Bosch]].

The state owns sugar factories in the northern region, edible oil processing factories, pharmaceutical factories, textile processing centers, and steel producing facilities. Vishwesharaiya steel plant at [[Bhadravati, Karnataka|Bhadravati]] is run by SAIL.

===Minerals===
Lithium has been discovered in Karnataka's Mandya district which is 100km from Bangalore, becoming the Nation's first-ever Lithium reserves so far confirmed at 1,600 tonnes.

Gold, iron ore, quartz, limestone, manganese, [[kyanite]] and bauxite are some of the minerals that are found in Karnataka.<ref name="mines">{{cite web |url=http://www.kar.nic.in/mines/Mining%20Leases.doc |work=Online Webpage of the Department of the Mines and Geology |title=List of Mining Leases in Karnataka |publisher=Govt. of Karnataka |access-date=2007-06-05 |url-status=dead |archive-url=https://web.archive.org/web/20060411183957/http://www.kar.nic.in/mines/Mining%20Leases.doc |archive-date=11 April 2006 |df=dmy }}</ref> After the closure of the [[Kolar Gold Fields]] mine, the only company in India that produces gold by mining and extracting it from the ore is [[Hutti Gold Mines Limited]] that has plants at [[Hatti, Raichur|Hutti]] and [[Chitradurga]] in Karnataka.<ref name="gold">{{cite web |url=http://www.blonnet.com/2004/09/26/stories/2004092601000500.htm |work=The Hindu Business Line |date=2004-09-26 |title=Global mining houses on 'gold rush' to India|author=Amit Mitra |access-date=2007-06-05}}</ref> The major mines of manganese and iron ore are located at [[Sandur, India|Sandur]] in [[Bellary district]].<ref name="sandur">{{cite web|url=http://www.blonnet.com/2004/04/10/stories/2004041001510200.htm |work=The Hindu Business Line |date=2004-04-10|title=Sandur Manganese set to clear dues|author=Madhumathi D.S. |access-date=2007-06-05}}</ref> Visweswaraiah Iron and Steel Ltd. at [[Bhadravathi, Karnataka|Bhadravathi]] and Jindal Vijayanagar Steel Ltd. at Toranagal are engaged in the production of iron and steel. Indian Aluminium Company Ltd. (Hindalco) has an aluminum plant near Belgaum.<ref name="minind">{{cite web|url=http://minerals.usgs.gov/minerals/pubs/country/2001/inmyb01.pdf|work=Online Webpage of the U.S. Geological Survey|title=The Mineral Industry of India|author=Chin S Kuo|publisher=U.S. Geological Survey|access-date=2007-06-05}}</ref> Mysore Minerals Limited is in the mining and production of chromite industry in [[Hassan district]].<ref name="minind"/> Rajashree Cements at Adityanagar, Vasavadatta Cements at [[Sedam]] and The Associated Cement Company Ltd. at [[Wadi]] are engaged in the production of cement.<ref name="minind"/> Uranium deposits have been found in Deshnur, a small village near Belgaum.

===Information and biotechnology===
{{details|Software industry in Karnataka}}

[[File:Infosys (4911287704).jpg|thumb|300px|Infosys, Bangalore]]

Karnataka is the leader in the information technology sector in India and its capital, Bangalore, is known as the [[Silicon Valley of India]]. In the IT sector, Karnataka generated a total revenue of {{INR}}516.5 billion in the financial year 2006–07 which included {{INR}}487 billion from software exports and {{INR}}29.5 billion from hardware exports.<ref name="it">{{cite web|url=http://www.financialexpress.com/fe_full_story.php?content_id=164868|work=The Financial Express |date=2007-05-22|title=IT exports from Karnataka cross Rs 50k cr |access-date=2007-06-05}}{{Dead link|date=August 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> A total of 1973 companies in the state are involved in Information Technology-related business.<ref name="it"/> While the bulk of the IT related companies are located in Bangalore, some companies are located in Mysore and Mangalore as well. Bangalore is also the headquarters of [[Wipro]] and [[Infosys]] which are among the top three IT companies in India in regards to [[market capitalization]].<ref name="capital">{{cite news|url=http://economictimes.indiatimes.com/articleshow/1753981.cms|work=The Economic Times |title=TCS topples Infosys as m-cap leader in IT space |access-date=2007-06-05|date=14 July 2006}}</ref> The [[Nandi Hills, India|Nandi Hills]] area in [[Devanahalli]] outskirts is the site of the upcoming $22 Billion, 50 square kilometre [[BIAL IT Investment Region]], one of the largest infrastructure projects in the history of Karnataka.<ref>{{cite news| url=http://www.hindu.com/2010/01/29/stories/2010012953620400.htm | archive-url=https://web.archive.org/web/20100201235839/http://www.hindu.com/2010/01/29/stories/2010012953620400.htm | url-status=dead | archive-date=1 February 2010 | location=Chennai, India | work=[[The Hindu]] | title=State Cabinet approves IT park near Devanahalli airport | date=29 January 2010}}</ref>

As of June 2006, Karnataka housed 55% of [[biotechnology]] related companies in India.<ref name="biotech">{{cite web|url=http://www.blonnet.com/2006/06/08/stories/2006060804710300.htm|work=The Hindu Business Line |date=2006-06-08 |title=Bangalore tops biocluster list with Rs 1,400-cr revenue |access-date=2007-06-05|archive-url=https://web.archive.org/web/20070929121144/http://www.blonnet.com/2006/06/08/stories/2006060804710300.htm|archive-date=29 September 2007|url-status=dead}}</ref> Bangalore is also the home of the largest biocluster in India with total revenues of {{INR}}14 billion and having 158 of the 320 companies working on biotechnology in India.<ref name="biotech"/> Karnataka has a headcount of over 6,800 scientists involved in biotech research and out of twenty eight biotech companies that were registered in India in the year 2005–06, 27 were located in Karnataka.<ref name="biotech"/>

===Banking in Karnataka===
{{details|Banking in Karnataka}}
Karnataka, particularly the coastal districts of [[Dakshina Kannada]] and [[Udupi district|Udupi]], is sometimes called the "cradle of banking" in [[India]].<ref name="cradle">{{cite web|url=http://www.flonnet.com/fl2221/stories/20051021002509200.htm |work=The Frontline |date=October 8–21, 2005 |title=Building on a strong base |author=Ravi Sharma |access-date=2007-06-21 |url-status=dead |archive-url=https://web.archive.org/web/20071007155202/http://www.flonnet.com/fl2221/stories/20051021002509200.htm |archive-date=7 October 2007 |df=dmy }}</ref> This is because seven of the country's leading banks, [[Canara Bank]], [[Syndicate Bank]], [[Corporation Bank]], [[Vijaya Bank]], [[Karnataka Bank]], [[Vysya Bank]] and the [[State Bank of Mysore]] originated in this state.<ref name="cradle"/> The first five in the above list of banks were established in the districts of Dakshina Kannada and Udupi. These districts have among the best distribution of banks in India—a branch for every 500 persons.<ref name="fl">{{cite web|url=http://www.hinduonnet.com/fline/fl2015/stories/20030801002810400.htm|work=Frontline | volume=20 | issue=15 | date=19 July – 1 August 2003|title=A pioneer's progress|author=Ravi Sharmga |access-date=2007-06-21}}</ref> Between 1880 and 1935, twenty two banks were established in coastal Karnataka, nine of them in the city of Mangalore.

As of March 2009, Karnataka had 5,759 branches of different banks servicing the people of the state.<ref name="rbi">{{cite web|url=http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/3T_BBS300810.pdf |title=State/Union Territory-Wise Number of Branches of Scheduled Commercial Banks and Average Population Per Bank Branch – March 2009|work=Online webpage of the Reserve Bank of India|access-date=2014-09-22}}</ref> The number of people served by each branch was 10,000 which was lesser than the national average of 15,000, thereby indicating better penetration of banking in the state.<ref name="rbi"/>

==Infrastructure==

===Roads===

The state is well connected to its six neighboring states and other parts of India through 14 National Highways (NH); it accounts for about six percent of the total NH network in India.

Its district centers are linked through 114 State Highways (SH)

The total road network of NH, SH, and district roads is about 2,07,379 km, of which 1,27,541 km is surfaced (61.5 percent)

Road Type Road length (km)

National highways: 4,396

State highways: 28,311

District roads: 19,801

===Ports===

[[New Mangalore Port]] '''(2010–11).'''

Total traffic handled: 67.30 MTA.

Total imports handled: 23.6 MTA.

Total exports handled: 32.9 MTA.

Number of vessels: 1,186

Cruise vessels: 26

Revenue: US$65 million

'''Karwar Port (2007–08)'''

Total cargo handled: 2.7 MTA

Total imports and exports: 6 MTA

Revenue: US$2.7 million

25 Private liquid cargo tanks: 75,000 MT

===Airports===
====Domestic airports====
*[[Belgaum Airport]]
*[[Hubli Airport]]
*[[Mysore Airport]]
*[[Gulbarga Airport]]
*[[Shivamogga Airport]]

====International airports====
*[[Kempegowda International Airport]], Devanahalli – formerly Bangalore International Airport [[File:BIA-Curbside.jpg|thumb|Kempegowda International Airport]]
*[[Mangalore International Airport]], Bajpe

===Railways===

Railway network of 3,172 km

South Western Railway covers almost part of Karnataka Railway

Hubballi is a Headquarters of South Western Railway

There are 3 divisions in SWR
* Hubballi Railway Division
* Bengaluru Railway Division
* Mysore Railway Division

There are Two Railway heritage museum in Karnataka
* Mysore Railway Museum
* Hubballi Railway Heritage Museum

'''Urban transport'''

Metro rail and mono-rail projects are underway in Bangalore. The first phase of the Namma Metro is complete and covers a total of 42.3 km. Second phase is in testing phase and targeted to operate by mid 2021.

====Ongoing projects====

Hassan–Sakhleshpura–Mangalore line gauge conversion is completed. Both freight and passenger trains run on this route on a daily basis connecting the seaport city of Mangaluru to the state capital of Bengaluru and Mysooru.

Key connectivity projects, doubling of Mysore–Bangalore railway line, Gadag–Bagalokot, Bangalore–Hassan to be taken up in the near future.

===Power===

Generation: [[Karnataka Power Corporation Limited]] and IPPs (GMR/Jindal/ Bhoruka)

KPCL has an installed capacity of over 9315 MW.

Number of consumers: 16.3 million

Independent power producers have installed capacity of 2,005 MW.

* KPCL -Karnataka Power Corporation Ltd.
* IPPs is Independent Power Producers

Transmission: Karnataka Power Transmission Corporation Limited ([[KPTCL]]).

Area covered: 192,000 km2

Sub stations: 1,205

Transmission lines: 28,000 km, 33 kV, 130,000 km of 11 kV.

LT lines: 451855 km

Distribution transformers: 1,50,000

'''Physical infrastructure – power'''

Distribution/supply: Electricity Supply Companies (ESCOMs)

Bangalore Electricity Supply Company (BESCOM)

Mangalore Electricity Supply Company ([[MESCOM]])

HubliElectricity Supply Company (HESCOM)

Gulbarga Electric Supply Company (GESCOM)

ChamundeshwariElectric Supply Corporation (CESC)

Source: Power sector at a glance as on July 2009‖, Karnataka Power Transmission Corporation Limited website, accessed 23 September 2009.

===Telecommunications===

Leading telecom companies in the sectors of telecommunication network, basic telephony services (both wire line and wireless) and networking services for telecommunication equipment are operating in the state.

The entire State is networked via Optic FibreCables (OFC) by the state-run BSNL (formerly DOT) as well as private companies like Bharti, Reliance, VSNL and TATA Tele Services.

Last Mile Access is provided by BSNL as well as TATA Tele Services in various parts of the state. Bhartiand Reliance Communications provide the Last Mile Access directly to the customer in all major cities in Karnataka.

Seven new telephone exchanges were opened in 2007–2008.

Telecom service providers in Karnataka.

BSNL, BhartiAirtel, Reliance Communications, Vodafone Essar, Spice Communications, Tata Teleservices Ltd.

Key statistics (2007–08)

Cellular subscribers: about 10 million

Internet/broadband

Subscribers: about 0.8 million

Telecom towers: about 14,000

Post offices: 9,826

Telephone connections provided: 2,610

Telephone exchanges: 2,727

===Industrial infrastructure===

Karnataka Industrial Area Development Board (KIADB) and Karnataka State Industrial Investment Development Corporation (KSIIDC) are jointly responsible for the development of industrial infrastructure in the state.

Directorate of Commerce and Industries has set up a district and [[Tehsil|taluk]] industrial centres across the state to facilitate investment

The Government of Karnataka is promoting the development of several SEZs across Karnataka such as pharma and biotech SEZ, food processing and agro-based industries and textiles SEZ at Hassan and IT and Coastal SEZs at Mangalore.

Key industrial clusters

IT/ITES cluster in electronic city and Whitefield (Bangalore).

Food Parks – 4 old State sponsored and 2 new MoFPI sponsored Food Parks in 6 Districts of Karnataka

Biotech park/cluster in electronic city, Bangalore.

Integrated Food Parks in Hiriyur, Bagalkote, Jewargi & Malur for pay-n-use common facilities & MSME Food Processing Manufacturers

Machine tool cluster at Peenyaindustrial estate

Textile cluster at Doddaballapur

Foundry cluster at Belgaum

Industrial valve cluster at Hubli–Dharwad

Coir clusters at Hassan.

Handicrafts cluster at Channapatna.

Coffee production and processing cluster in Madekeri

SEZs in Karnataka

Notified: 27

Formal approvals: 52

In-principle approvals: 9

Source: StatewiseSEZs in India, www.sezindia.nic.in. accessed 23 September 2009

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===Water supply===
The water supply is provided by the local authorities like municipalities and [[Panchayati raj|panchayats]]. The first hydroelectric plant in the state was built at [[Shivanasamudra Falls]] on the [[Kaveri River]] in 1902.<ref name="mysore">{{cite web
|url=http://www.mysore.net/travel/otherplace3.htm
|title=Places of interest – Sivasamudram
|work=mysore.net
|access-date=2006-11-09
}}</ref>

===Electrical supply===
Karnataka has an installed capacity of 27 gigawatts (GW) of electricity, of which 12 GW comes from renewable energy sources.<ref>{{Cite web|url=https://www.firstpost.com/business/how-karnataka-could-become-self-reliant-in-electricity-in-just-10-years-with-investments-in-clean-energy-4865731.html|title=How Karnataka could become self-reliant in electricity in just 10 years with investments in clean energy|last=Tripathi|first=Bhasker|date=August 1, 2018|website=Firstpost|access-date=2019-03-21}}</ref> The state is India's top producer of solar energy, with an installed capacity of 5.16 GW.<ref>{{Cite web|url=https://www.deccanherald.com/national/solar-energy-karnataka-earns-686315.html|title=Solar energy: Karnataka earns top position|last=Athrady|first=Ajith|date=2018-08-08|website=Deccan Herald|language=en|access-date=2019-03-21}}</ref><ref>{{Cite web|url=https://www.businesstoday.in/sectors/energy/karnataka-is-the-top-solar-state-in-india-mercom-capital/story/274820.html|title=Karnataka is the top solar state in India: Mercom Capital|last=Kiran|first=Niti|date=April 13, 2018|website=Business Today|access-date=2019-03-21}}</ref>

Karnataka Power Transmission Corporation Limited (KPTCL) is the sole provider of electricity for the state. The Linganamakki reservoir will supply around 35 percent of power to the state. Electric power from KPTCL is distributed through distribution companies like Bangalore Electricity Supply Company (BESCOM), Mangalore Electricity Supply Company ([[MESCOM]]), Gulbarga Electricity Supply Company (GESCOM), Hubli Electricity Supply Company (HESCOM) and Chamundesvary Electricity Supply Company (CESCOM) for different parts of the state. A good number of [[windmills]] were present. The [[Raichur Thermal Power Station]] and Near Bellary (Kuduthini). Karnataka is also the location of companies like [[SELCO (India)]], which is promoting the use of [[Solar thermal energy|solar electricity]] among the rural areas of the state and is also a twice winner of the [[Ashden Award]]s.

==See also==
*[[Economy of Bangalore]]
*[[Economy of Mangalore]]
*[[Mysore]]

==Notes==
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{{Karnataka topics}}
{{Economy of India topics}}

{{DEFAULTSORT:Economy Of Karnataka}}
[[Category:Economy of Karnataka| ]]

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Economy of Karnataka