Karnataka continues to reinforce its status as India’s innovation and investment hub, posting impressive figures in foreign direct investment (FDI), technology exports, and startup growth in 2023-24. With robust infrastructure, proactive policies, and a thriving tech ecosystem, the state is attracting global investors and boosting its export capabilities across sectors like IT, biotechnology, electronics, and agriculture.
FDI Inflows: Second-Highest in India
Between April and September 2023, Karnataka attracted $2,844 million in FDI equity inflows, accounting for 14% of India’s total. This impressive figure positioned Karnataka second among 26 Indian states in FDI receipts, reflecting strong investor confidence and a globally competitive business environment.
IT & ITES: Driving Investment and Employment
The Information Technology and IT Enabled Services (IT & ITES) sector continues to be a major growth engine:
- Three new investment projects worth ₹596.1 crore were approved from April 2023 to January 2024.
- These projects are expected to generate 2,894 new jobs, adding to the state’s vast tech workforce.
- Karnataka is home to 5,500+ IT/ITES companies, including 750 multinational corporations, generating $58 billion in exports.
- The sector directly employs over 12 lakh professionals and supports over 31 lakh indirect jobs.
Karnataka alone contributes to nearly 40% of India's total software exports, underlining its dominance in the digital economy.
Startups and Innovation: A Thriving Ecosystem
To nurture its vibrant startup landscape, the Karnataka government has launched startup-focused funds with a corpus of $47.3 million. Key highlights include:
- The K-Tech Innovation and Technology Hubs housed 101 teams across 4 centers, with 50 seats occupied by women, promoting inclusivity in tech entrepreneurship.
- Under the Karnataka Electronics System Design and Manufacturing (KESDM) Policy, 76 companies have registered and received incentives totaling ₹17.07 crore, with further concessions to support growth.
This strong support structure is positioning Karnataka as India’s premier startup destination.
Bio-Economy: Rapid Growth in a High-Potential Sector
Karnataka’s bio-economy also witnessed strong momentum:
- The sector grew by 10.7%, with its value increasing from $28 billion in 2022 to $31 billion in 2023.
- This growth is fueled by innovations in biotechnology, healthcare, and agritech.
Exports: Karnataka at the Forefront
Karnataka remains a key contributor to India’s export economy:
- Total exports reached ₹12,67,656 crore in 2022-23, making up 20.5% of India’s total exports.
- The software/services sector leads with a 41% share of national service exports.
- Merchandise exports account for 6.19% of India’s total, showing Karnataka’s growing presence beyond the tech sector.
In particular, electronic goods, computer software, and biotechnology dominate Karnataka’s export portfolio—together forming about 40% of the state's GSDP.
Agricultural Exports Also on the Rise
- Agricultural exports increased significantly from $2,376.87 million in 2020-21 to $2,789.36 million in 2022-23, registering 17% growth.
- This reflects Karnataka’s expanding footprint in global agri-trade markets, despite environmental and logistical challenges.
A National Leader in Tech and Electronics
Karnataka is responsible for more than one-third of India’s electronics and computer software exports, highlighting its central role in the country's digital infrastructure and supply chains. With global tech giants, R&D centers, and a thriving startup scene, Karnataka is spearheading India's transition into a knowledge-based economy.
Conclusion: Karnataka’s Global Growth Story
Karnataka’s investment and export performance in 2023-24 reflects a forward-looking state powered by innovation, strategic policymaking, and economic diversity. From attracting billions in FDI to leading the nation in software exports and fostering a thriving bio-economy, Karnataka is not just participating in India’s growth story—it’s writing a significant chapter of it.
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