Karnataka got $1.4 bn investment from IT sector during FY14

As many as 175 new IT firms have set up shop during 2013-14

Karnataka has attracted $1.4 billion of investment from 175 new units in the information technology sector in 2013-14. These companies have generated employment for 55,000 people, according to chief minister Siddaramaiah.

Speaking at the inauguration of the new development centre of Capgemini, French IT services and consulting company, here today, he promised the IT industry that his government will not lag in providing the necessary infrastructure facilities for growth and expansion of IT industry in Karnataka.

“The state’s IT sector, which contributes over a third of IT exports of the country, has given jobs to over 1 million and is instrumental in creating about 3 million indirect jobs, and will continue to thrive in the state of Karnataka. I will always be available for solving any issues that the industry may have with the state government,” he said.

Siddaramaiah reiterated that the state government was serious about promoting industrial growth in the state. “We recently announced a new industrial policy which is expected to give a big thrust to the manufacturing sector. While we are keen that the industry expands to other parts of the state, we are also looking to provide the necessary facilities for expansion of industry, particularly IT and bio-technology, around Bengaluru,” he said.

Ever since Karnataka took an early lead by announcing several proactive industry initiatives such as an exclusive IT Policy and setting up of the first Electronics City in the country, on about 400 acres of land, it has emerged as the leader in the country.

The Electronics City has become a major hub for the information technology and electronics industries with about 200 companies employing over 200,000 professionals. Similarly, Whitefield has also emerged as an important information technology hub in the city, he said.

Further, the government has taken steps to develop an Information Technology Investment Region (ITIR) at Devanahalli, he said. The Karnataka Industrial Areas Development Board (KIADB) would complete the acquisition process for the first phase of 2,072 acres for the project immediately, if necessary, by raising loan from Hudco for payment of compensation to the land owners.

Minister for IT, BT and Science and Technology S R Patil said, the Startups Warehouse set up by the state government in association with Nasscom has attracted 170 startups. The government has tied up with Nasscom for setting up the second Startups Warehouse, he said.