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Government of Karnataka Welcomes the Government & Business Fraternity of Israel www.advantagekarnataka.com.

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Presentation on theme: "Government of Karnataka Welcomes the Government & Business Fraternity of Israel www.advantagekarnataka.com."— Presentation transcript:

1 Government of Karnataka Welcomes the Government & Business Fraternity of Israel www.advantagekarnataka.com

2 Advantage Karnataka www.advantagekarnataka.com

3 Page 3

4 Page 4 Advantage Karnataka Globally recognized brand – 3 rd largest FDI inflows in the country Ranked 1 st for a healthy business climate and attracting investments by World Banks Investment Climate Index 700+MNCs, 80+ Fortune 500 companies Comprehensive infrastructure: 58 SEZs, SKDC, 5 airports, 11 ports Ease of doing business: Least time to register a property, less time to export and import Bangalore – Best India City to Live in - 'Quality of Living Survey - Worldwide Rankings, 2011 – Mercer Huge pool of trained professionals adding up to the workforce every year An indicative list of companies

5 Page 5 Quality of Life Leading provider in healthcare with world class facilities and super specialty hospitals Medical tourism enriched with abundant options in Ayurveda, Naturopathy, and Unani Knowledge Hub of Asia with 187 Engineering colleges 114 Medical colleges 22 Universities 13 International Schools Resorts, spas, golf clubs, Derby Wildlife parks Heritage sites and historic temples Adventure sports Modern multiplexes HealthcareEducation Leisure

6 Established Industrial Bases

7 Page 7 Industrial Strength Aerospace Producer of more than a quarter of Indias aircraft and spacecraft Boeing & Airbus have their Research & Technology Center and Engineering Centre located here respectively Karnataka houses Indias first and top R&D centers in Aerospace & Defence such as Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) GoK has earmarked 984 acres of exclusive industrial area and sector specific SEZ for Aerospace industries near Bangalore International Airport Indias first Aerospace SEZ is operational at Belgaum On the anvil : Dedicated Aerospace policy (first in India)

8 Page 8 Industrial Strength Biotechnology and Pharmaceuticals Karnataka is the Biotech Capital of India, with over 60% of all biotechnology companies in India having a base here and driving 50% of the total revenues in the national biotechnology sector. Karnatakas pharmaceutical sector exports 40% of the total pharma produce and accounts for 8% of the countrys total pharma revenue. Karnataka ranks 10th in the number of pharma manufacturing units in the country. Dedicated Biotechnology parks and centres planned such as Nutri/ Nutraceutical and Phyto -Pharmaceutical Park (N2P2) at Mysore, Marine Biotech Park at Mangalore, Agri Biotech Park at Dharwad, Vivarium (Animal House) at Bidar

9 Page 9 Industrial Strength Chemicals & Petrochemicals The Chemicals sector is a growing investment focus area for the Government of Karnataka Mangalore Refinery and Petrochemicals Limited in Dakshina Kannada is the only refinery in India to have two Hydrocrackers producing Premium Diesel and have two Continuous Catalytic Regeneration (CCRs) producing Unleaded Petrol of High Octane Aromatics complex by ONGC Mangalore Petrochemicals Ltd (OMPL) is producing para-xylene and benzene A 1800 acre dedicated Petrochemical Special Economic Zone (SEZ) is located in Mangalore A 1,370 km Dabhol – Bangalore Natural Gas Pipeline with a planned transmission capacity of 16 MMcm/d has opened opportunity for development of Gas based projects in the State

10 Page 10 Textile and Apparel India contributes 4 % share in total world textile exports and textiles & apparels constitute one of the top 10 export items of India. Produces over 20% of the national garment production and 45% of the national raw silk production Bangalore is known as the Garment Capital of India. Sector-specific special economic zones for textiles at Hassan. Largest producer and exporter of Silk & Silk products in India. Contributes 4 % of total exports from the State. Silk exports from Karnataka constitute 24% of the total value of silk goods exported from India Presence of over 100 Skill Development Centres and 240 private training centres Presence of a 48-acre Integrated Textile Park and over 700 powerlooms Industrial Strength

11 Page 11 Industrial Strength Agro & Food Processing Contributes 70% of India's coffee. Major producer of spices, flowers, fruits and vegetables. Food Processing SEZ at Hassan. Produces a variety of Agriculture Crops. Presence of 7 national level Research Institutes in Agriculture & Horticulture sectors. Presence of 4 dedicated Food Parks and 1 Food Processing SEZ. Karnataka contributes 7% of Agricultural production of the country. Agro & Food processing contributes 2.52 % in State total exports.

12 Page 12 Gems & Jewellery: India contributes 16.27% share in total world export. India possesses world's most competitive gems and jewellery market due to its low cost production and availability of skilled labour. India has a large pool of skilled artisans with vast traditional knowledge and expertise in jewellery making. Gems and Jewellery contributes 11% in State total exports. Industrial Strength

13 Page 13 Industry Friendly Policies Industrial Policy 2009-2014 Textile Policy, 2008-13 Solar Policy, 2011-16 Karnataka Tourism Policy, 2009-14 Information & Communication Technology Policy 2011 Infrastructure Policy 2009-14 Semiconductor policy 2010 Millennium Biotech Policy – 2 Renewable Energy Policy 2009-14 Karnataka Animation, Visual Effects, Gaming & Comics Policy 2012

14 Page 14 Pro active State Govt. Policies First State in the country to announce IT Policy First State in the country to announce Millennium Biotech Policy Karnataka Semiconductor Policy –2010 Electronics Hardware Policy - focus on promoting electronic manufacturing Hubs with world class facilities and Creation of Integrated Manufacturing Ecosystem. Karnataka Animation, Visual Effects, Gaming and Comics (KAVGC) Policy with a focus on promoting AVGC Park, Digital Art Centres, Centre of AVGC Excellence etc. Creating New Road Map for ICT -2020 New Focused Policy for Electronics and Manufacturing Policy (ESDM)

15 Page 15 Guiding investors and enabling fruitful investments Karnataka Udyog Mitra (KUM) (A nodal agency of Government of Karnataka ) Single point contact for investors Responsible for attracting and guiding investments into the State Disseminates information on Karnataka, sectoral advantage, district highlights, infrastructure (land, water, power), statutory requirements, building regulations, etc. Provides information on policies and procedures, tax regime, incentives, etc. Coordinates the visit of investors, both national and international to the State Facilitates necessary clearances / approvals from the Government departments / agencies for the projects.

16 Page 16 Information Communication Technology(ICT) Bangalore is the 2nd largest technology cluster in the world. Total Annual ICT Revenues from Karnataka are $ 26 Bn. Karnataka ICT industry contributes to more than 35% of National ICT industry revenues. 400 out of Fortune 500 companies have outsourcing operations in Karnataka. ICT industry provides direct employment to the tune of 800,000 & Indirect employment to the tune of 2,500,000. Around 85 Chip Design houses are located in Karnataka. Largest no of Start-up companies in India. Highest Venture Capital Distribution in India.

17 Page 17 BANGALORE Research and Development Hub Around 50,000 PhDs 194 Engineering Colleges – 80,000 Engineers annually 22 Universities; 20 International Schools 361 R&D Centres (out of 819 in India) R&D Talent Pool – 1,02,000 Scientific environment Basic Research Austro Physics Aeronautical Engineering Aero Space Labs Telecom Bio Technology

18 Page 18 18 Karnataka ICT Roadmap for 202018 Revenue US$ 26 B Direct Employment 800,000 Help to incubate 1000 start-ups Revenue US$ 75 B Direct Employment 2,000,000 Entrepreneurs 1000 20122020

19 Page 19 19 Four Dimensions of Growth for 2020 19 Continuing Industry Growth Innovation & IP Creation Increased Entrepreneurship Eco-Friendly Integrated Infrastructure Emerging ICT cities

20 Page 20 20 Karnataka Stimulating ESDM investment s Proactive Policies to encourage Karnataka ESDM Company as a company which does 30% value addition and employs 50% workforce in Karnataka. Augment the National Electronics Policy 2012 and National telecom Policy 2012 and implement them in Karnataka Provide Capital incentives for both High Tech Manufacturing as well as the developing Electronics Manufacturing Clusters. Provide post-performance fiscal incentives for Karnataka ESDM companies to reduce their bottlenecks and increase their competitiveness Set up Institute of Semiconductor and Embedded Techn ologies

21 Page 21 Annual ICT Flagship Events In Bangalore Bangalore IT. Biz - is scheduled every year in the month of October-November ISA vision Summit is scheduled every year in the month of February Bangalore Nano is scheduled every year in the month of December Global Investors Meet is scheduled every two years in the month of June GIM 2014 on June 2-3 Biennial Flagship Event In Bangalore

22 Page 22 Science and Technology Initiatives Scientific Hub is proposed in 10,000 acres, about 200 kms from Bangalore. Premier Science and Technology Institutions such as IISc, ISRO, DRDO are establishing their campus at the Scientific Hub. Proposed to develop Bangalore as Nano Science and Technology Hub. Science Centres are proposed to portray the growth of science and technology. Proposed to develop Karnataka Geographical Information System. Collaborative programs in the area of Science and Technology with International institutions are proposed

23 Infrastructure

24 Page 24 Robust Infrastructure: Initiatives Special Investment Regions like IT investment region (ITIR) Exclusive sector specific industrial areas for Aerospace, Automotive, Drugs, Chemicals, Engineering and Machine Tools, Textiles, Plastics and related industries, etc. Special Economic Zones Land Bank : Ready to allot land for industrial purpose Karnataka has been at the forefront of industrial and investment facilitation

25 Page 25 IT/ITeS48 Biotech3 Textiles1 Engineering & related industries 1 Food processing1 Precision engineering (auto, aerospace & industrial) 1 Pharmaceutical2 Petrochemicals & petroleum products 1 Airport based SEZ/ Aerospace2 FTWZ1 61 Special Economic Zones provide duty- free enclave for driving FDI and exports Policy incentives and facilities offered to units in SEZs With investments of US$ 6.76-billion, the states operational SEZs have generated 97,313 jobs, and exports of US$ 11.45-billion Bidar Yadgir Gulbarga Belgaum Bellary Chikaball apur Kolar Chikmagalur Hassan Mandya Kodagu Raichur Koppal Bagalkote Bijapur Dharw ad Haveri Gadag Dakshina Kannada Mysore Chamarajanagara Shimoga Davanagere Chitradur ga Uttara Kannada Udupi Tumkur Bengaluru Urban Bengaluru Rural *Separate incentives for SEZ developers Source: www.sezindia.com

26 Page 26 Strong infrastructure base: Airports, Sea Ports, Rail & Road Connectivity Airports 2 international, 3 domestic Ports11 National highways4,396 km; 14 NHs State highways20528 km; 114, SHs Railways3250 km Coastline321 km Metro 42.3 km (33.48 km of elevated and 8.82 km of underground)

27 Page 27 27 To be developed on around 10000 Acres near Bangalore International Airport, Devanahalli An integrated IT Township with world-class facilities, residential / social / educational / health infrastructure Projected Employment: Direct –255,000 Indirect– 857,000 Estimated Investments by 2030 – US $ 20 Billion ICT INFRASTRUCTURE Information Technology Investment Region:

28 Page 28 28 ICT INFRASTRUCTURE IT / ITeS / EHM State promoted IT Parks : Shimoga Gulbarga Mysore Mangalore Belgaum Shimoga Gulbarga Mysore Belgaum Mangalore

29 Page 29 Doing Business in Karnataka Key Highlights of GIM 2012 Presence of over 200 Industry leaders 10,000 delegates 40,000 visitors 30+ countries 15+ Indian states 460 Exhibitors in GIM Expo 500+ B-to-B meetings 14 Technical sessions 7000+ investment interests Valued at 1,30,909 US$ Millions Partner Countries Japan Partner State State of Bavaria, Germany Mexico Strategic Partners METI, Japan ProMexico, Mexico Participating Countries* *Indicative illustration

30 Page 30 Global Investors Meet 2014 2-3 June, 2014 We welcome Israel as Partner country Israel Pavilion - Exhibition space Trade and Investments facilitation BTB/BTG - Networking meetings Delegation from Israel

31 Page 31 We invite you to explore investment opportunities in Karnataka – Come be a part of our growth story! Infrastructure Transport Infrastructure Roads Rail Ports Airports Transport Infrastructure Roads Rail Ports Airports Power Generation Transmissi on Distribution Renewable Energy Power Generation Transmissi on Distribution Renewable Energy Industrial Infrastructure SEZs Industrial Areas Industrial Estates Development Corridors Industrial Infrastructure SEZs Industrial Areas Industrial Estates Development Corridors Services Sector IT/ITES Software Development IT Services IT Hardware KPO/BPO IT/ITES Software Development IT Services IT Hardware KPO/BPO Health Care Multi specialty Hospitals Health city Public health facilities Health Care Multi specialty Hospitals Health city Public health facilities Tourism & Lifestyle Resorts, spas, golf clubs, Derby Heritage sites and historic temples Adventure sports Modern multiplexes International Schools, Colleges & Universities Tourism & Lifestyle Resorts, spas, golf clubs, Derby Heritage sites and historic temples Adventure sports Modern multiplexes International Schools, Colleges & Universities

32 Page 32 Niche Areas Manufacturing & Engineering Engineering Automobile Aerospace Precision Engineering Industrial machinery and machine tools Engineering Automobile Aerospace Precision Engineering Industrial machinery and machine tools Textile Conventional Textiles Technical Textiles Infrastructure Development Textile Conventional Textiles Technical Textiles Infrastructure Development Chemical & Petrochemical Paraxylene based PET/ PTA Petrochemical downstream Chemical & Petrochemical Paraxylene based PET/ PTA Petrochemical downstream Minerals Based Gold Cement Steel Granite Sand mining Minerals Based Gold Cement Steel Granite Sand mining Knowledge Economy Knowledge city R&D centres Polytechnics Knowledge Economy Knowledge city R&D centres Polytechnics Biotechnology and Pharma R&D facilities Biotechnology parks Bioservices Biotechnology and Pharma R&D facilities Biotechnology parks Bioservices We invite you to explore investment opportunities in Karnataka – Come be a part of our growth story!

33 Page 33 Contact persons Principal Secretary to Government of Karnataka Commerce & Industries Department # 106, 1st Floor, Vikasa Soudha Dr. Ambedkar Veedhi, Bangalore 560 001, India. Email : prs_ci@karnataka.gov.in Commissioner for Industrial Development and Director of Industries & Commerce 2nd Floor, Khanija Bhavan No.49, Race Course Road, Bangalore – 560 001 Email : commissioner@karnatakaindustry.gov.in Visit us at : http://www.karnatakaindustry.gov.in Karnataka Udyog Mitra Managing Director, Karnataka Udyog Mitra, 3rd Floor, Khanija Bhavan (South Wing), No.49, Race Course Road, Bangalore – 560 001 Ph : 91-80-2228 2392, 2228 5659; 2238 1232, 2228 6632 Fax : 91-80-2226 6063 Email : md@kumbangalore.com Visit us at : www.kumbangalore.com Principal Secretary to Government Department of Information Technology, Biotechnology and Science & Technology 6th Floor, 5th Stage, MS Building, Ambedkar Veedhi, Bangalore-560001 Phone: 080-2228 0562/ 080-2203 2434 /080-22374314 Fax: 080-2228 8340 e-mail: itbtsec@gmail.comitbtsec@gmail.com Visvesvaraya Industrial Trade Centre, Managing Director, Visvesvaraya Industrial Trade Centre VITC Building, III Floor Kasturba Road, Bangalore – 560 001. Ph: 22864281 / 22860853 / 22861828 Fax:22865202 Email: vitcblr@yahoo.invitcblr@yahoo.in www.vitcblr.org

34 Thank You

35 Page 35 US$(Millions) Sl. No Commodity2009-102010-112011-12 1 Electronics & Computer Software 16497.1919154.6924665.53 2 Readymade Garments 931.821248.311480.47 3 Petroleum & Petroleum products 2007.532654.994257.88 4 Engineering 797.561331.691502.35 5 Iron Ore and Minerals (incl granites) 853.27175.99206.20 6 Silk Products 127.56123.24122.42 7 Coffee Products 258.75397.10576.97 8 Basic Chemicals, Pharamaceuticals and Cosmetics 501.98525.96923.03 9 Agriculture and Processed Food Products 120.47121.87138.72 10 Gem and Jewellery 3165.333617.604314.19 11 Cashew and Cashew Kernals 117.12106.68160.40 12 Handicrafts 46.7853.2348.61 13 Leather Products 35.2736.7658.12 14 Chemicals and Allied Products 56.5961.6087.25 15 Marine Products 74.9695.95109.91 16 Plastic Goods 59.47102.32109.76 17 Spices 69.4181.77127.29 18 Wool & Woollen Products 26.2516.5423.41 19 Miscellaneous and Others 229.33188.80876.12 Total 25976.6230095.1039788.62

36 Page 36 36 Value Rs. US $ Millions YEAR 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

37 Page 37 Export & Flourish 37 POTENTIAL SECTORS FOR TRADE Electronics & Computer Software Readymade Garments Petroleum & Petroleum Products Engineering Iron Ore & Minerals Drugs & Pharma Agro & Food Processin g Gems & Jewellery HandicraftsLeather

38 Page 38 Industrial Strength Leather Products: Top ten foreign exchange earners for the country. Availability of raw materials, skilled manpower, innovative technology, industry compliance to international environmental standards and the dedicated support of the allied industries are major strengths. Trained / Skilled manpower at competitive wage levels. World-class institutional support for Design & Product Development.

39 Page 39 Machine tools & Foundry US $ 10.41-billion foundry industry Industry dependent on state for mining operations (40% of countrys total iron ore) 50% of machine tool industry in the country Largest foundry clusters in Belgaum; Proposed dedicated Machine Tool Park in Vasanthnarsapur, Tumkur Industrial Strength

40 Page 40 Handicrafts: Karnataka is a leader in production of high quality handicrafts. Karnataka has a rich knowledge of exquisite craftsmanship. Major crafts practiced are sandal wood, rose wood furniture, inlay and carvings, bronze statues, bidriware, lacquer ware, batiks and home décors products. Craftsmen endowed with high skill levels entirely devoted to producing quality handicrafts. 13 craft complexes spread across the state provide common facilities centre, design input and marketing support. Industrial Strength

41 Page 41 Driving the way as Industry champion Largest number of R&D centers in India Largest software exporter in the country Largest biotechnology hub in India Largest number of medical institutes and Industrial Training Institutes in the country Leading producer of horticulture products 3 rd largest number of engineering colleges in India Source: Economic Survey of Karnataka, 2010-11 1st Aircraft Manufacturing Unit in the country 1st Space Research Center 1st Institute of Biotech & Bioinformatics in the country 1st International Technology Park in India 1 st State to Introduce Industrial Policy 1 st State to Introduce Sectoral Policies

42 Page 42 Facilitating fast track approvals for key investments Project Approval Committee Investment range Salient features State High Level Clearance Committee (SHLCC) More than $US 9 millions Chaired by the Chief Minister of Karnataka with the concerned Ministers / Officers as members Committee has representatives from all the departments/ authorities concerned State Level Single Window Clearance Committee (SLSWCC) Upto $ US 9 millions Chaired by the Minister for Large & Medium Industries, Govt. of Karnataka Heads of major departments and agencies concerned with industries are represented in this committee. Meeting of SLSWCC takes place generally once in a month

43 Page 43 E Udyami: G2B Online Portal A New Initiative The portal is only accessible for registered Investors Features: Dashboard for investors, Workflow management, escalation matrix, helpdesk, etc. The portal can be accessed online via www.advantagekarnataka.com Consolidated information about the investment process in Karnataka In depth information about the current status of their investment projects. Aids in smooth facilitation and monitoring of investments and provides transparency to investors to monitor the status of their projects

44 Page 44 44 10 Initiatives to Achieve Karnataka ICT Targets for 2020 ESDM(Electronics System Design & Manufacturing) Leveraging the growth in this emerging sector that has national focus Education Talent Development & Job creation Promote Innovation, IP Creation, R & D and Karnataka ICT Innovation Fund Entrepreneurship Development & Mentoring Development of Emerging ICT (EMICT) Centres in Karnataka ICT relationship with other Countries & Focused Marketing Eco-Friendly Integrated Infrastructure Use technology to enhance capabilities Capacity Building Increase Value addition Creating new opportunities and jobs Develop other centers beyond Bangalore Leverage the global eco- system Supporting the growth needs of the industry Highlight Karnataka to be the Global ICT investment destination Branding KIG 2020 GOALS US $ 72.72 B 20,00,000 Direct > 1000 New Startups Employment Revenues Continued emphasis on growth IT/BPO

45 Page 45 45 Karnataka Strengthening the Education Base E-Ready children with improved Quality 1. Create Karnataka Knowledge Network (KKN) a fully wired state with the following: a. Provide Free Wi-Fi in Bangalore b. Set up a Karnataka School Network c. Set up a Karnataka College network connecting all Govt & Private colleges with high speed bandwidth 2. Provide all school children from standard 7 and above with a Tablet with wireless and 3G preloaded bi-lingual teaching material for each class and access to a portal where they can download the latest teaching material 3. Provide all students and faculty of government colleges/University a Tablet/laptop preloaded with content with wireless/3G

46 Page 46 46 Promotion of Innovation, IP Creation, R&D and Fundin g Created US $200 million Karnataka ICT & Innovation fund to take care of financial needs of the ICT industry from startup to growth as debt /working capital. Special program to identify 100 Innovators and Entrepreneurs. Proposed to set up ESDM/VLSI Incubation Centres across the state Facilitate IP development by Indian industry by providing incentives for patent filing and maintenance. Provide 20% R&D Grant subject to a of maximum 2% of annual turnover of Karnataka ESDM companies

47 Page 47 47 Karnataka Development of other ICT Centres The Government needs to develop each ICT Centre, E.g. Mangalore, around the elements depicted in the picture which trigger growth

48 Page 48 Robust Infrastructure: Backbone of Industrial growth Decentralization Industrial Infrastructure Industrial Infrastructure 7the largest urbanised state in the country Karnatakas urban population has grown by 31.3% since 2001 Water supply coverage of 85% to 90% in core city areas 7the largest urbanised state in the country Karnatakas urban population has grown by 31.3% since 2001 Water supply coverage of 85% to 90% in core city areas 61 Special Economic Zones Suvarna Karnataka Development Corridor 61 Special Economic Zones Suvarna Karnataka Development Corridor Extensive infrastructure networks: Road, rail, airport, sea port Power: fueling growth PPP: projects planned and identified Extensive infrastructure networks: Road, rail, airport, sea port Power: fueling growth PPP: projects planned and identified Support Infrastructure Support Infrastructure Urban Infrastructure Urban Infrastructure Fuelling the growth of Industry in Karnataka Fuelling the growth of Industry in Karnataka


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