Introduction

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.

Economy
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.

Karnataka advantages:
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