Karnataka is in the top spot in terms of attracting investment plans for 2017, according to data provided by Union Ministry of Commerce and Industry. A whopping 44.3% of the country’s total investment plans for this year is diverted to Karnataka! It has beaten the fancied Gujarat and Maharashtra that are in the second and third spot respectively. To be more explicit, the second positioned Gujarat is distantly behind Karnataka. While Karnataka’s figures between January and September is Rs 1, 47,625 crore, Gujarat could only secure Rs 65,741crore. This is consolidation for the state and a repeat of its performance from 2016 by holding on to the top most position. In 2016, this state bagged 37% of investment intentions. The last two years have very profitable for the state as in 2015; the state was behind Gujarat, Chhattisgarh and Maharashtra with 10% investment outlay.
The reason cited for this stupendous success by Industries minister, RV Deshpande is the rich demographics that make Karnataka an attractive investment destination. “I don’t want to claim this has happened only because of me or my government. Various stakeholders, especially the IT sector, have played a big role. We have collectively become No. 1 and the government is only claiming credit for being the catalyst and supporting industries with some progressive policies,” he said. The IT sector, according to industry ministry officials, accounts for the lion’s share of investment proposals, followed by the energy sector, R&D, engineering and tourism. Among major projects approved in the past few months are Oracle’s special economic zone (SEZ) with an investment of Rs 2,348 crore, and L&T Construction Equipment’s investment of Rs 2,080 crore to set up two IT/ITeS SEZ projects.
With the assumption that most of the investment has come into Bangalore or because of Bangalore, it is meteoric rise for a place which is still not considered as metropolitan city. In terms of investment, it is has not only beaten the other big cities of South India, such as Chennai and Hyderabad, but also Mumbai and Delhi. Maharashtra with Rs. 25,018 crore investment proposal is far behind Karnataka. However, to sustain this growth rate Karnataka has to pull up socks in terms of developing its infrastructure. The power and electricity supply of the state is appalling with more than few hours of power outage everyday in Bangalore. The roads and traffic also has room for improvement. And, the public transport is still not up to the mark compared to the metropolitan cities. However, kudos for now to the state government for such brilliant performance in the economic front for the state.