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The CII Vision Document – Karnataka Model State @ 2025 has recommended the state government to address key issues of developing tier-II towns as IT hubs, incentivise domestic market, and encourage MSMEs to maintain growth.
“CII Vision Document, I believe that time is ripe to outline an approach to achieve this outcome. Now that Global Investors Meet (GIM) is at our door step, there is no better of kick-starting progress on some of these recommendations,” said Mr G.V. Sanjay Reddy, Chairman, CII-Southern Region.
Although Karnataka is a model state for the IT/ITeS industry in the country, deficiencies exist.
To a large extent, Karnataka's continued dominance over this sector depends on how these gaps are closed.
The key need is to develop tier-II towns as IT hubs.
The state reigns over other states in the aerospace sector.
Key drivers of future growth in the sector include extension of ‘Offset Policy', timely incentives and a Karnataka Aerospace Policy, developing MRO capability will give the much needed fillip to the sector. Bangalore is the hub for precision manufacturing industry, the state being the highest contributor to this industry today.
The further growth in the sector requires a cluster development approach, setting up of specialised training institutes in the clusters, industry -academia integration and incentivises investments from foreign players, high growth in manufacturing.
The automotive industry has the potential to drive economic growth and employment through its powerful backward and forward linkages.
Karnataka possess immense opportunity in the sector due to its raw materials, research ecosystem, and vendor ecosystem.
Challenges faced by the sector include skill availability; unevenly spread supporting institutions, inadequate infrastructure Karnataka
Food processing is another important emerging sector in the state where Karnataka has got immense potential.
Karnataka has many accomplishments in horticulture to its credit, availability of manpower, cold-chain/food-chain storage facilities, and backward integration.
However, Karnataka needs to improve its rural road density for efficient market access.
In electronics, the growth depends upon close linkages with IT, availability of manpower and R&D.
In order to realise the full potential of this industry, it is imperative the state develops strengths in the complete value chain.
A cluster development approach with co-location of players focused on different processes across the value chain starting from silicon feedstock to wafer manufacturing to research and development is recommended.
Finally, Karnataka is a tourist hotspot. With the picturesque Western Ghats spanning across the west coast, Karnataka is endowed with rich natural beauty.
In addition, the state also has a wealth of historical monuments owing to its long and fascinating history.
“We recommend undertaking infrastructure development projects based on Karnataka's tourism belts.
Investments in PPP format can give a tremendous boost to economic activity and employment in backward taluks such as Kolar, HD Kote, Chitradurga, Davangere, Bagepalli which have potential for tourism,” the document said.
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