Investing in Karnataka

Karnataka, a state in the southern part of India, is the eighth-largest state in terms of both area and population. It is one of the most progressive industrialized states in India, with a celebrated history of successfully applying various technological and industrial initiatives.


Karnataka is the only Indian state to have recorded a growth rate of over 8 pcpa during the second half of the 1990s. Karnataka also attracts the largest infrastructure investment in India.


Karnataka hosts more than 1,300 reputed software companies, including over 70 venture capital firms and more than 50% of the world's SEI CMM Level 5 companies. Leading international firms, such as Monsanto, Astra Zeneca, Intel, GE, and Lucent, have put up research facilities in the state. Karnataka also has Electronics cities, sprawling information technology parks, agro and food processing parks, and other such facilities. 


For a potential investor, there's a wide scope of opportunities awaiting in sectors, such as information technology and software development, electronics, electronic hardware, pharmaceuticals, automobiles, seaports, airports, highways, industrial parks, and information technology and software development. An agency named Karnataka Udyog Mitra (KUM) promotes and develops foreign investment in the state. It also acts as an escort agency for the investors and furnishes them with all the essential information.

Investor-Friendly State

Today, Karnataka is one of the largest and fastest-growing markets in India and is considered to be investor-friendly. Some prominent features of Karnataka that make it a hub for investors are:


  • Karnataka has a favorable climate, rich culture, congenial environment, good infrastructure, excellent education and healthcare facilities, and cosmopolitan lifestyle.


  • Besides having a stable government, Karnataka has an abundant and a highly skilled manpower base with a negligible number of cases associated with labor unrest.


  • It has good connectivity and logistic support for investments.


  • Karnataka has a very congenial environment and a good law and order system, which facilitates the normal business activities.


  • It has an excellent telecommunication system with optical fiber connectivity throughout the state.


  • Karnataka has investor-friendly, government-simplified procedures and transparent administration. It also encourages Fast Track approvals through a single-window mechanism.

Prominent Contributor: Bengaluru

Bengaluru, popularly known as the Silicon Valley of India, is the capital city of Karnataka. It boasts a flourishing IT sector. With its state-of-the-art facility, Bengaluru provides the companies with a one-stop solution for their operations. The city hosts more than 300,000 software professionals and has emerged as a talent bank for both the software sector and outsourcing industry. The United Nations Development Program (UNDP) has placed Bengaluru among the topmost technological clusters of the world. The UN has ranked Bengaluru fourth in the world as a “Global hub of technological innovation”. Also, per the research paper by Jonas Lang Lasalle, an esteemed Chicago-based investment management firm, Bengaluru is among the top 24 cities worldwide, which are projected to power the “Asian Century”. Bengaluru also has the highest number of engineering colleges of all the cities across the world. Due to these reasons, it has emerged as a hot destination for investors and professionals alike.


Overview of Foreign Investments in Karnataka:


Foreign investment cleared in Karnataka during 1993–1994 and attracted approximately 169 foreign investors from countries, such as UK, USA, Japan, Switzerland, Germany, and Sweden. From 1991–1997, the Karnataka government approved more than 469 foreign proposals with a total worth of US $1,863.43 million.

Company profiles

Bharat Hotels Limited is known as India’s largest privately owned hotel company and also the fastest growing hospitality group. 

Headquartered in New Delhi, the company started...