Karnataka’s vast and diversified resource base has emerged as a reputed investment destination for investors worldwide. The State was the first to enact the Industrial Facilitation Act to help investors. Karnataka has a single window which acts as a one-stop-shop for investments in the State.
Karnataka has a long tradition of overseas trade. Historically, Karnataka has been a major exporter of commodities like coffee, spices, silk, cashew nuts, handicrafts and agarbathies. In the last two decades, the State has emerged as a major player in the export of electronic and computer software, engineering goods, readymade garments, petrochemicals, gems and jewellery, agro and food processing products, chemicals, minerals and ores, marine products, etc. Karnataka has carved out a niche for itself in the global marketplace as the knowledge and technology capital of the Country. The State has made rapid and spectacular strides in the new economy. Information technology, biotechnology and research and development institutions have enhanced Karnataka’s achievements at national and global levels. Karnataka accounts for more than one third of electronics and computer software exports from the country. It is also a leader in exports of readymade garments, petrochemicals and engineering commodities from Southern Region.
Karnataka exports as a percentage of GSDP has a fairly large share and has also increased significantly over the period. The share of exports in GSDP which was 7.36% in 1993-94, has grown to 28.90 during 2018-19. Karnataka’s exports amounted to about Rs.659425.33 crore in 2018-19 which constituted about 17.04% of the Country’s exports in that year. The share of merchandise exports in the National exports constitutes around 5.30% and software / service exports around 39% for the year 2018-19.
Karnataka ranks 1st in software / service exports and stands 4th in merchandise exports in the national export basket. Visvesvaraya Trade Promotion Centre (VTPC) under the aegis of Department of Industries and Commerce of the Government of Karnataka is the official institution for compilation and publication of the export data by 19 commodities from Director General of Commercial Intelligence and Statistics, Kolkata.