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Karnataka - Economy

Software exports increased to INR 70,375 crore in 2008-09 from INR 59,500 crore in 2007-08. Exports from business process outsourcing companies increased to INR 15,014 crore in 2008-09 from INR 7,600 crore in 2007-08. Over the last decade, Karnataka’s biggest success story is the growth of the information technology-led sector, which today accounts for about 40 percent of India’s software exports. This growth has primarily occurred in Bangalore city and its environs though the industry has now begun moving towards other centers such as Mysore, Mangalore and Hubli-Dharwad. Another growth area that the government is promoting aggressively is biotechnology.

Bangalore was rated the most dynamic city in the world, two spots ahead of California's Silicon Valley — which isn't a city but was ranked as one — by the JLL City Momentum Index for 2017. Gone are the days of a city dominated by call centers and American visa seekers. A wide variety of dining options, nightlife and other activities has blossomed alongside the tech industry in "India's Silicon Valley." Call centers and outsourced IT workers still make up a part of Bangalore, but a vibrant crowd of modern, enthusiastic, tech-minded people has grown to dominate the city — and for most of them, the promise of "a better life" abroad is not on their radar.

The number of startups in Bangalore rivals those in the top tech cities around the world. In 2015, San Francisco research firm Compass rated Bangalore as the second fastest-growing startup ecosystem in the world, and it was the only Asian city besides Singapore to place in the top 20 startup ecosystems.

Agriculture is the main economic activity of the state. About 69 percent of the population live in the villages and 71 percent of the working population engaged in it. The main crops are rice, ragi, jowar, bajra, maize, wheat and pulses. The state occupied 7th position in the production of oil seeds in India. The important cash crops of this state are coffee (60% of the country's output comes from this state), tobacco, cashew, coconut, arecanut, cardamom, chilly, sunflower and sugarcane. Karnataka also has a considerable horticulture production.There are 21 wild life sanctuaries to conserve wildlife in general and endangered species. The state stands second in total income from forests. Sandalwood, teakwood, rubber, bamboo, rosewood, etc. are the major forest products.

Farmers and agricultural laborers account for nearly 57% of the Karnataka’s work-force. The state has ten agro-climatic zones and observes three growing seasons. Among these kharif, the monsoon season lasting from July to October, accounts for 70% of the annual food grain and oilseed production. An overall increase in production and yield of major corps has been observed over the last decade. Yet the introduction of high yield-ing varieties has progressively reduced the cultivation of traditional varieties in the state. The loss of agricultural biodiversity is a serious concern. Droughts affect agricul-tural production in the state to a great extent, so do floods, to which especially kharif crops are prone.

From the industrial point of view Karnataka is one of the leading industrial states. It produced about 4% of the total national industrial output and accounts for about 20% of the income. Karnataka stands first in the production of electronic equipment and raw silk. Bharat Earth Movers, Bharat Electronics, Bharat Heavy Electricals, Hindustan Aeronautics Limited, Hindustan Machine Tools, Indian Telephone Industries, Wheel and Axle, New Government Electric Factory and Mangalore Chemicals and Fertiliser are among the major public sector undertakings. There are number of factories under joint sector, private sector and also small-scale industries. Industrial out put from the state aircraft, rail coaches, telephone instruments, electronic and telecom instruments, glass, batteries, spark plugs, electric motors, textiles, silk sandal oil, electrical goods, porcelain, sugar, caustic soda, paper, newsprint, capacitors, mining metal tools, cement, motor cycles, fertilizer etc.

The mineral base of this state is very rich. There are very high quality iron ore reserves in the state. Besides this, there are copper ore, manganese, chromite, china clay, limestone and magnesite. The country's main gold production comes from this state. Kolar is a very old gold mine in this state. It is the sole producer of Felsite and leading producer of moulding sand and fuchsite quartizite. There are enough granite reserve in this state.

Karnataka has an installed power generation capacity of 9,700 MW not including central power plants and captive generation. In that hydropower accounts for 44%, thermal power for 30% and wind power for 17%. Though wind power constitutes a proud 17% of the state’s installed capacity, its contribution to electricity generation is only about 5-6%. Karnataka Power Corporation Limited has 7,800 MW of generation capacity additions on the anvil, 45% of which is gas-based. This is commendable since gas power is less CO2 intensive than coal or oil-based power and therefore considered an appropriate mid-term option while renewables are scaled up.

The state has a well-knit infrastructure of roads, air and waterways. The total length of motorable roads comes to about 1,67,378 km. In addition, the state has a rail network of 3,172 km, which includes broad gauge, meter gauge and narrow gauge. The four important airports of the state are located at Bangalore, Belgaum, Mangalore and Hubli. There is also an all-weather sea-port at Mangalore, which mainly handles cargo vessels. One of Asia’s biggest naval bases (INS Kadamba) is located at Karwar in Uttara Kannada district.

Hyderabad Karnataka: or northeast Karnataka, initially comprised the three districts of Bidar, Gulbarga and Raichur, which formed part of the princely state of Hyderabad. The Gazetteer of India gives a vivid account of the famines and scarcity conditions that prevailed in this region from the 17th century. Drought and great famines devastated vast areas in this region on a continual basis. Large-scale deaths by starvation occurred frequently. In recent times, the most severe occurrence of drought was in 1970-71. Scarcity conditions prevailed in the 1980s and again affected the region from 2002-03 onwards when the entire state experienced severe drought.

According to the 2001 Census estimates, 31.7 percent of all households in Karnataka had access to drinking water within their premises, 46.4 percent outside the premises, and a substantially lower number (21.8 percent) had access away from the premises. Disaggregated data shows that urban Karnataka is doing better in terms of facilities; in rural Karnataka, only 18.5 percent of households had access to drinking water within the premises compared with a high 56.5 per cent for urban Karnataka. In the last few years, the groundwater level is being depleted very quickly in most districts, resulting in a large number of bore-wells drying up. Strategically, drilling new bore-wells is now seen to be less effi cient than deepening existing bore-wells to improve water yields.

Urban water supply is inefficiently managed with massive investments being wasted. Most of water squandering takes place because of the under-pricing of water. In addition, excessive use of water also causes severe water pollution, groundwater depletion and soil degradation. Moreover, water is distributed very unevenly (with the southern parts of Karnataka at an advantage over the relatively drier northern counterparts)3 in the state and many villages and towns currently face critical water shortages that undermine human health and economic development.

While 79.1 percent urban households had a bathroom in the premises, the proportion for rural areas was 48.1 percent. While a high 82.5 percent of rural households had no latrines in the premises, only 24.7 percent urban households did not have latrines. As many as 44.9 percent urban households had water closets. Compared to the progress in rural water supply in Karnataka, the progress in rural sanitation has not been very satisfactory. While there has been a sustained attempt to improve the provisioning of safe drinking water since the 1980s, no such parallel effort or investment was evident in rural sanitation. It was only in the 1990s that this area became the focus of policy interventions with the launch of special schemes to provide toilets and sanitary facilities in villages.

The management of Karnataka’s 9,000 tons solid waste per day across 218 urban local bodies (ULBs) has seen frantic activities and tangible improvements. Plans adopted at ULB level are in the process of being completed. While some have achieved compliance with legislation, prerequisite land acquisitions are subject to court proceedings in other cases and timelines are thus difficult to define. Illegal dumping and uncontrolled burning of waste continues to elude efforts.

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Page last modified: 16-04-2018 18:45:31 ZULU