Karnataka, the country’s eighth largest state in terms of area and ninth largest state in terms of population has been considered one of the most progressive industrialized states of the country. The State has an illustrious history of having successfully introduced several industrial and technological initiatives and has acquired a tag of being ‘the most technology-savvy’ state in India.
Karnataka has made rapid and spectacular strides in the new economy. Research and developments in Information technology, Biotechnology, and many other fields have enhanced the state’s achievements at the national and global levels. Karnataka accounts for more than one third of electronics and computer software exports from the country.
The spectacular IT growth story of India is led by Karnataka, thanks to the availability of highly skilled professionals, dynamic entrepreneurs, a vibrant eco-system, and industry-friendly policies of the State. In other words, Karnataka’s vast and diversified resource base has emerged as a reputed investment destination for investment worldwide. Consequently Karnataka is contributing to over 30% of the IT exports of the country.
Karnataka tops in IT jobs
The recent rankings by the Assocham, showing Karnataka’s position in the country’s job market has been undoubtedly a new feather on the state’s cap. Karnataka has been ranked as country’s top job creator with over 24 per cent share during the fourth quarter of the financial year 2015-16. Maharashtra (23%) and Tamil Nadu (10.5%) have got the next consecutive places.
According to the report, IT sector created about 57% of about 9 lakh job openings recorded between January and March, 2016, followed by services (19%) and manufacturing (11%), which is a clear indication of the share of the IT industry in the job market. Apart from this, within Karnataka, ITES accounted for over 65% share in job openings across the state followed by services (16%), manufacturing (8%).
Karnataka had recorded 2.16 lakh job openings in the first quarter of the last fiscal followed by Maharashtra, Tamil Nadu, Andhra Pradesh and Telangana. Sector-wise, Karnataka leads in terms of job openings in ITES sector with 28% share in over five lakh jobs created by the sector.
IT-friendly state
As mentioned earlier, the secret of Karnataka’s rapid growth in IT sector lies in its congenial atmosphere, supported by its IT-friendly policies. The government has been keen on retaining Bengaluru’s title as the Silicon Valley of India, trying to take the fruits of its IT prosperity to the various parts of the State.
'Karnataka i-4' policy (IT, ITES, Innovation and Incentives Policy) announced by the government last year, is one such novel initiative which was aimed at giving a thrust to the growth of the IT sector in the tier-two and tier-three cities across the state. The policy has empowered the Dept. of IT, BT and S&T to act as a Single Window Agency for clearance of IT, IT-enabled services, startups, animation, gaming, computer graphics, telecom, BPO, KPO, and other knowledge-based industries. The policy has features such as employment linked incentivisation of land allotment outside Bengaluru, stamp duty exemption of 75% in Mysore and Mangalore, exemption of such industries from the applicability of Karnataka industrial employment rules, inclusion of such industries in the essential services and so on.
Startup Policy
Karnataka has emerged the first Indian state to launch a startup policy of its own, which has further boosted the prosperity of IT industry. The objective of the policy is to create a world class startup hub, in order to stimulate growth of 20,000 technology startups and to create 6,000 product startups in Karnataka alone. It is aimed to mobilize Rs. 2,000-crore funds and to facilitate generation of at least 25 innovative technology solutions with social impact. In order to support R &D, the government will support Technology Business Incubators (TBIs) in institutions of higher learning for a period of three years.
In addition to these policies, Karnataka has recently unveiled the idea of establishing India's first Information Technology Investment Region (ITIR) on the outskirts of Bengaluru, which will attract $20 billion investment and create millions of jobs in the future. When developed completely, the project is expected to overtake Silicon Valley of the US in revenue and size.
Support in the Budget
IT, BT and Science & Technology have got special provisions in the state’s new budget as a step towards implementing its i4 and startup policies. The government has announced setting up of 10 new incubators in post-graduate and professional institutions across the State under the New Age Incubation Network. The budget has proposed to support the setting-up of four technology business incubators in potential areas of Internet of Things, ESDM, etc. across the State. The budget also proposes incubators and common instrumentation facilities in Bengaluru and in the IT Parks of Shivamogga, Bagalakote and Kalaburagi by KEONICS and new IT Parks-incubator in Belagavi, Bidar and Vijayapura.
