Karnataka Trade and Commerce

Karnataka Trade and Commerce

Karnataka is one of the leading states of India for trading. Holding the fifth highest GDP ranking among all Indian states, Karnataka’s GDP growth is 17% (2016-17). This indicates its potential for further trade & industrial growth.

Bangalore, the capital of Karnataka, is the IT hub of India and also the fourth largest technology cluster in the world. Industrial diversity is evident from the fact that Bangalore has earned the nickname of ‘garment capital of India’. The state has a total of 47 IT and IT SEZs along with three software parks. Presence of dedicated IT investment regions is supportive to the fast growth of its IT industry.

The largest software exporting state of India, Karnataka, has robust textile, agro, aerospace, heavy engineering and automobile industries too. Around 60% of biotechnology companies have a branch in Karnataka and it generates 50% of the total revenue earned by the Indian biotechnology industry.Karnataka Trade and Commerce

Karnataka’s flora and fauna along with a natural coastline of 320 km provide its tourism industry a major boast.

Textile:

Karnataka’s foray into the textile sector has turned out to be quite a successful venture. So much so that Bangalore has earned itself the moniker of the ‘garment capital of India’. With the textile industry occupying a key position in the economy of Karnataka, the state government is working towards leveraging the potential for growth of the textile sector in the state.

The Karnataka Government is keen to witness the growth of the textile industry in the state. The government has undertaken many initiatives to motivate textile entrepreneurs to establish textile enterprises in the state. The new textile policy named NuthanaJavaliNeethi 2013-18 highlights the government’s vision and objectives regarding the development of the textile industry.

Iron & Steel:

Karnataka is a state that is rich in mineral resources. It is also one of the leading industrialized states of the country. The iron and steel industry of the state plays a very important role in its growth and development. It is one of the key industries required for industrial progress.

Various important industries like the construction, power plants, heavy and light machine, automobile, etc. depend on the iron and steel industry for their growth and expansion. The mineral resources of Karnataka have helped the iron and steel industry to flourish in the state. As of 2014-15, India was the largest producer of sponge iron and the third largest producer of raw steel in the state.

The iron and steel industry in Karnataka is a multi-crore industry. It plays a big role in the economy of the state. There are a number of steel plants in Karnataka. They provide employment to a large number of people in the state. The industry also draws a significant amount of investment for the state. The state government has come up with various policies and initiatives to help the industry grow bigger and stronger.

  • The government of Karnataka has plans to set up an industrial park for the iron and steel industry in the state. The government plans to attract huge investment and create around two lakh jobs through the industrial park. There is also plan to establish a township linked to the industrial park.
  • The state government has planned a steel corridor of 300 km length to boost the iron and steel industry in the state. This corridor is proposed to be located around the Hospet-Bellary area in the state. This area is known to be rich in iron ore. The steel zone will cover districts like Bagalkot, Gadag, Koppal, Haveri, Raichur, and Bellary.
  • The government plans to establish a high-speed train connection, a port, and a nuclear power plant to develop the steel corridor.
  • There are 11 major integrated steel plants that are in different stages of implementation in the state.

Petrochemical:

Karnataka is one of the top ranking industrialized states in the country. The state has emerged as a major centre for the petrochemical industry. Based on the production volume, India occupies 12th position in the global chemical industry. The petrochemical sector forms a big part of this industry. Karnataka is a key contributor to the overall petrochemical production in the country.

The state has more than 500 factories driving its chemical industry. Mangalore has evolved as the hub of Karnataka’s chemical and petrochemical industries. Mangalore Refinery and Petrochemicals Limited (MRPL) is the leading name in the state’s petrochemical industry. It is also the only public sector refinery in the state.

Cement:

Karnataka is a prominent name in the field of industrial growth in India. The cement industry in Karnataka is one of its largest and fastest growing industries. India is the 2nd largest cement producing country in the world. Karnataka produces more than 11 million tons of cement annually. It contributes to 6.51% of the total cement manufactured in India. The state occupies 7th position in the cement production of the country. Karnataka has more than 16 cement industries. It exports more than 0.01 million tons of cement.

 

Automobiles:

Karnataka occupies the fourth position in automobile production in India. The state’s contribution amounts to 8.5% of the national output in this sector.

The automotive industry in Karnataka is responsible for providing employment to more than 55000 people in the state. The state has more than 50 automobile component manufacturers carrying out their operations within its boundaries.

Biotechnology:

Karnataka has emerged as a leading player in the biotechnology revolution of India. Today Karnataka is considered as the biotech hub of the country. It is the preferred destination biotech investment in the country. More than 60% of the biotech companies in the country have a base in Karnataka. The state is responsible for 50% of the total revenues being generated in the biotech sector in India.

Plantation:

The term plantation refers to the cultivation of crops on an extensive scale for commercial sale. The plantation industry in Karnataka depends on several high-value commercial crops such as coffee, tea, rubber, pepper, cardamom, cashew, coconut, areca nut, etc. The main districts where plantations are carried out in Karnataka are Chikmagalur, Hassan, Kodagu, DakshinaKanada.

Pharmaceutical

Karnataka is one of the fastest growing states in terms of the pharmaceutical sector in India. The state occupies the fifth position in the pharmaceutical exports. Around 40% of the state’s pharma produce is exported overseas.

The state contributes about 10% to the pharmaceutical export revenues of the country. At present Karnataka is home to more than 230 pharma and biotech companies.

Aeronautics:

Karnataka is regarded as the hub of aeronautics industry in India. With the establishment of Hindustan Aeronautics Limited (HAL) in 1940, aerospace activities in Karnataka started taking flight. The establishment of HAL was followed by the establishment of defence R& D and public sector undertakings institutions like BHEL, NAL, GTRE, DRDO, BEML, ISRO, ADA, ADE, etc. All of these organizations and companies paved the way for Karnataka to become a major hub

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