Karnataka
Karnataka's net state domestic product of $47 billion. Between 1992-2002, Karnataka attracted the fourth highest total Foreign Direct Investment approvals in India, to the tune of Rs. 21,566 million. Karnataka accounts for one third of India's Information technology exports. For the year 2006, the state is expected to bring in 37% of all IT revenues amounting to 37,000 crores ($8.2 billion). Nearly 35% of IT companies and 40% of bio-technology companies are based here. Agriculture in Karnataka, like most of India, employs 80% of the population. Agriculture and its allied activities account for 49% of the state's income. The coastal plains of Karnataka, which include Uttara Kanara and Dakshina Kanara are cultivated with rice and sugarcane. Coffee and Tea are also grown on the slopes of the Western Ghats in the district of Kodagu, Chikmagalur and Hassan. Karnataka produces 70% of India's coffee, of which about 50% is exported. The black soil in the northwest of the state, is hospitable for the growth of cotton, onion, course cereal, sunflower and peanuts.
The forests of the Malnad region produce timber, bamboo and sandalwood. Karnataka is the only exporter of sandalwood in the country. Most of the world's sandalwood oil is produced in Karnataka.
All of India's gold comes from the Kolar district of Karnataka. Karnataka is also rich in minerals which form the bulk of the raw materials for iron and steel industries in the state such as the one at Bhadravati. All of India's Iron ore comes from the Malnad region.
The first power station in Asia was set up in Karnataka at Shivanasamudra in 1902 to produce hydroelectric power. Karnataka has 18 power stations which generate annually 16,513 million units. The state, however generates insufficient power and is forced to buy electricity from neighboring states.
Bangalore, the capital of Karnataka, is home to several public sector undertaking aircraft companies, such as Hindustan Aeronautics Limited (HAL), HMT Hindustan Machine Tools, Bharat Heavy Electronics Limited (BHEL), National Aeronautics Limited and also Indian Space Research Organization (ISRO). Bangalore, often referred to as the Silicon Valley of India has the largest number of international and local Information Technology and business process outsourcing (BPO) companies in the country. A number of "IT Parks" have been set up by the Karnataka State Electronics Development Corporation Limited (KEONICS) including Bangalore's "Electronics City" and IT parks in Mysore, Mangalore and Hubli. Bangalore is also home to prestigious higher institutes of learning such as the Indian Institute of Science (IISc) and the Indian Institute of Management (IIM Bangalore).
Mysore is the second largest and most important city in Karnataka after Bangalore. Reputed as a planned city with salubrious climate and robust tourism growth it is projected as the best destination for investment in the State next to Bangalore. Being tagged as ‘the Heritage City’, tourism is a major economic driver and while it is among the top tourist attractions in India, it is said to rank next only to Madame Tussauds in London in the list of most-visited tourist attractions receiving more than 3 million tourists per year. On the IT front, Infosys has developed the world's largest corporate training centre in the city. Mysore is the second largest exporter of IT in the state and it houses nearly 60 major and minor IT players registered with the Software Technology Park of India, Mysore and this includes Infosys, WIPRO Technologies, IBM software, Paradigms India, WIFI Net, Logrosoft, Excel soft and L & T Infotech, Theorem etc. Mysore figured high in the vibrancy index survey of Morgan Stanley India last year. Mysore & Bangalore account for more than 60% of the incense stick manufacture & export.
One of the largest SEZ's in India, the ONGC SEZ is coming up at Mangalore, which is currently the second fastest growing non metro in the south following Coimbatore .The total investment in the ONGC SEZ is expected to cross 100,000 crores. At least three IT SEZ'S are coming up in Mangalore with companies like TCS,Wipro, Lotus and others investing up to more than 3000 crores and creating 67,000 jobs in Mangalore over the next three years. in 2 or 3 years 11 shopping malls will be seen in Mangalore including the current 3 malls. Mangalore is also attracting investment in the Hospitality sectors with companies like the Maurya and Leela Group investing in the region. Udupi the temple city is contributing towards the higher education with large number of professional colleges in Manipal. It is also the home of the famous software company Robosoft Technologies.
Read more about this topic: Economy Of South India