Karnataka Economy

Karnataka Economy
Karnataka Economy and its main features

Karnataka is one of the most progressive and industrialized states in the country and
is leading States in driving India's economic growth. Economic growth and fast
development of any state depends on Industrial relations.
The state has an illustrious history of successfully introducing several industrial and
technological initiatives. State's pre-eminent position on the industrial and business
map of India is based on several factors
Karnataka is rich in natural resources and known for its salubrious climate. It has a
strong resource base of highly educated people, backed by an extensive educational
infrastructure comprising world-renowned schools, colleges, institutes of higher
learning, research and development centres, and highly skilled labour force,
disciplined and hardworking. And, above all, it has a far-sighted, development-
oriented, investor-friendly government that firmly believes in, and actively
encourages, public – private partnerships. Today, Karnataka is driving domestic
growth and creating wealth through a potent mix of resource-based, skill-based,
technology-based and knowledge-based products and services.
Karnataka is one of the leading states in the field of industrial development both in
the private and public sectors and in the area of computer software, which has
attracted national and international firms to the city of Bangalore. The state capital
was long ago chosen by the central government for the location of a number of
industries like Bharat Electronics Ltd, Bharat Earth movers, Hindustan Machine
Tools (HMT), Bharat Heavy Electricals (BHEL) etc. Bangalore has become one of
the major centres of electronic industry apart from computer software. The state has
a number of traditional cottage and small industries like handlooms, silk weaving etc.
Karnataka has been the leading state for silk rearing and production of Khadi and
village industries. Apart from the numerous factories in engineering, chemicals,
electrical, and electronic goods, there are food processing and processing of
plantation products like tea, coffee, rubber, cashew etc. About 70% of the people live
in the villages and 71% of the total work force is engaged in agriculture. The main
crops are rice, ragi, jowar, maize, and pulses besides oilseeds and number of cash
Pscnotes.com Page 1
Karnataka Economy
crops. Coffee is the principal plantation crop. Cashew, coconut, arecanut,

cardamom, chillies, cotton, sugarcane and tobacco are among the other crops.
Information Technology:
Karnataka is leading IT hub of the country. Bengaluru as the 2nd largest technology
cluster in the world after Silicon Valley.
1. 3500 IT companies contribute over 38% of the IT exports in the country with
Karnataka being the largest software exporter.
2. 33 Billion USD IT exports in the year 2014-15.
3. More than 400 out of Global Fortune 500 companies outsource their IT services
from Bengaluru.
4. More than 85 Chip Design houses and 370+ R & D houses provides direct
employment to over 10 lakhs and indirect employment over to 25 lakhs as on 2014-
15.
5. 50% of the world's SEI CMM Level 5 certified companies located in Bengaluru.
6. Presence of almost all leading IT companies of the world, including Infosys, Wipro,
Tata Consultancy Services, Oracle, Dell, IBM, Microsoft, Accenture, Cognizant, etc.
Bengaluru – Start-up Capital of India:
Bengaluru has emerged as IT Start-up Capital of India with more than 30% of
national share. Start-ups are being supported with integrated package of subsidised
incubation space, fully equipped laboratories, early stage funding and capacity
building, partnerships with NASSCOM 10 K program, IAMAI„s 10X initiative and
DietY, GOI„s IOT initiative. Incubation Centres established and start-ups being
supported in Tier-2 cities to develop them as upcoming ICT destinations over 70
Venture Capital Firms.
Biotechnology
Karnataka placed at the forefront of Biotechnology in the country, is rightly known as

the Biotech Capital of India. Karnataka is home to large array of biotechnology
Pscnotes.com Page 2
Karnataka Economy
educational, R&D institutions and enterprises: large companies, medium-sized ones,

and many promising biotech start-ups.
All of these are integral parts of the ecosystem required to find innovative solutions
and to convert them into products and processes to mitigate challenges such as
hunger, malnutrition, health and wellness, energy deficiency and deterioration of the
environment.
Biotech Sector in Karnataka reflects:
1. 200 plus biotech companies including BIOCON the first one to go public.
2. Rapidly growing number of biotech start-ups
3. Contribution of 26% of India„s biotech revenues including high export revenues

and domestic sales.
4. Highest expenditure for R&D
5. A diverse range of specialized domain training from agriculture to energy to bio-

engineering.
Manufacturing Hub:
Karnataka is the preferred choice for global players in Aerospace research and
development. Extensive experience and inherent competencies in aerospace make
Karnataka the producer of more than a quarter of India's aircraft and spacecraft.
Global giants such as Boeing Research & Technology Centre and Airbus
Engineering Centre have made Karnataka their base. Karnataka has India's first and
top R&D Centres in Aerospace & Defence such as Indian Space Research
Organization (ISRO) and the Defence Research and Development Organization
(DRDO).The Government of Karnataka has earmarked 984 acres of exclusive
industrial area and sector specific SEZ for Aerospace industries near Bangalore
International Airport. India„s first Aerospace SEZ is operational in Belgaum.
Dedicated Aerospace policy (first in India) was drafted by the Government of
Karnataka.
Automotive Manufacturing
Pscnotes.com Page 3
Karnataka Economy
The State is a manufacturing hub for automotive majors such as Toyota Kirloskar,
Volvo, TVS Motors, Tata Marcopolo, L&T Komatsu, Mahindra Reva, BOSCH,
Siemens, and JK Tyres.Bosch India, the world's largest automotive supplier, has
been headquartered in Bangalore since 1953. Honda's largest two wheeler
manufacturing plant in the world is coming up in Narsapur, Kolar District. Three
existing auto clusters, one industrial valve cluster and one auto component cluster
make Karnataka the preferred investment destination for automotive players globally.
Two more manufacturing hubs are coming up in Narsapur and Vemagal Industrial
Areas in Kolar District. The government is in the process of announcing a Dedicated
Automobile Policy
There is a huge potential in automobile manufacturing in Karnataka. The component

industry caters to OEMs (all kinds of automobiles such as trucks, cars, SUVs, LCVs,
buses, two-wheelers, and tractors) and exports.
With major international OEMs having manufacturing facilities in Karnataka, supply

to them from within the country and this region in particular, has given the sector a
huge impetus. Components are also being supplied across India to other OEMs from
Karnataka.
Machine Tools Manufacturing
Huge potential is estimated in machine tools manufacturing in Karnataka. Total

industry size in India in terms of production is INR 3,600 crore. Bangalore alone
produces 60% of the machine tools of India in terms of value, which is estimated at
INR 2,160 crore. India„s first Integrated Machine Tool industry Park (IMTIP) is set to
come up in Karnataka near Bangalore. 100% FDI is allowed in the Machine Tools
industry by the Indian Government.
Electronics & Semiconductor Manufacturing
In 2014-15, the domestic production of electronic hardware in the Karnataka stood

at US$ 42.40 bn whereas the export was US$ 32.18 bn.80 of the 120 companies
engaged in chip designing are located in Karnataka. Bengaluru is a global hub for
R&D activity in the software industry, which will greatly aid the electronic hardware
industry. Karnataka also has the advantage of having maximum skilled/technical
Pscnotes.com Page 4
Karnataka Economy
manpower. Karnataka is setting up the first ESDM cluster development in Electronics

City
Drugs & Pharmaceuticals Manufacturing
Karnataka is home to 221 formulation units and 74 bulk drug units. State„s
Pharmaceutical industry generated Rs 8k crore in revenue contributing 8% of the
country‟s total revenues, ranking 10th in the number of Pharmaceutical
manufacturing. Karnataka exports 40% of its pharma produce. GSK Pharmaceuticals
is establishing one of the world„s largest drug formulation units in Vemgal, Kolar.
Besides there is a huge presence of exclusive Pharma SEZ, Pharma industrial areas
and R&D Centres in Karnataka.
Agro & Food Processing
Karnataka leads in the exports of silk in India accounting for approximately 25% of
the total Indian export market.
Karnataka is the leader in horticultural products and spices, aromatic and medicinal
crops, and tropical fruits. Only Indian State to have all varieties of fruit. It is the
largest producer of coffee and cocoa in the country. It is also the second-largest milk
producing state, and third and fourth largest producer of sugar and sugarcane
respectively. Karnataka has 5 dedicated Food Parks and one Food Processing SEZ.
Chemicals and Petrochemicals:
Karnataka is positioning as major growth centre for chemical industry with presence
of 500 companies with leading players like MRPL, BASF, Mangalore chemicals and
fertilisers, United Phosphorus, attracting large R&D Centres for
Chemicals/Petrochemicals including planned centre of SABIC. Mangalore in
Karnataka is evolving as the epicentre of chemical and petrochemical industries in
the state. Mangalore Refinery and Petrochemicals Limited (MRPL) the state's
leading player, and public sector refinery is undergoing major expansion from current
9 mln tons to 15 mln tons refinery capacity.
Food Security in Karnataka

Pscnotes.com Page 5
Karnataka Economy
Nutrition is major Public Health emergency in India, with about 50% of its
population suffering from it in some form of protein calorie deficit or
micronutrient malnourishment. It causes for 50% of child mortality.
According to World Health Organisation report 2015 :-42% of children
between 0- 5 years of age in India are underweight and 59% are
stunted.
There is wide diversity within India in all kind of social,
educational and economic indicators. Most of littoral states do good in
these indicators while hinterland states are backward.
STATUS OF KARNATAKA IN SOCIAL INDICATOR

Karnataka is one of the most developed state in India in terms of social
and human development indicators. NITI aayog has placed Karnataka
at eighth position in India in terms of human development indicators.
Some comparative statistics of state is
Example:-
1).Literacy rate in Karnataka is 75.6% according to 2011 Census,
marginally higher than national average.
2).Out of 6.1 bilion people in Karnataka; just1.2 million children
between 0-6 years of age are malnourished and underweight.
3). Poverty ratio in Karnataka is 20.91% compared to National
average of 21.92%.
CM Siddaramaiah announced his commitment to eliminate poverty from
state and make Karnataka hunger free state with social governance. To
achieve this objective government has taken various steps to eliminate
poverty and hunger from the state.
Current scheme of Karnataka government for food

security:--
1. PaditharaKhathi:- launch in 2014 for delivery of food grains at Public

Distribution shops.
2.KsheezaBhagga :--under this scheme distribution of 150 ml milk

thrice a week to school children and child care centre will be provided.
Pscnotes.com Page 6
Karnataka Economy
This provision will be in addition to mid day meal scheme of Central

Government .Under KsheeraBhagyascheme; Budget 2017-18 proposes to
increase distribution of milk from existing 3 days to 5 days in a week.
3.Karnataka government launched foodsecurity program in 2013.

Under thisprogramme government will provide 30 kg of rice at 1 rupees
per kg to below poverty line people, this scheme was launched at world
economic forum conference in London. This scheme is expected to
improve socio economic condition of poor people in Karnataka as
people will now have more money to spend onfamily health and
education of their children.
Abovescheme will help to address problem of undernourishment,
malnutrition and hunger in the state.But analysis of this scheme by
MSSwaminathan revealed that food security act will solve caloric
deficiency problem but not Hunger and malnutrition; protein and
micronutrient deficiency problem.
Finally, effective implementation and success of this
scheme will depend on it's execution at ground level; like how much
problem of Hunger and malnutritionwill be solved by this scheme.
4. Anna Bhagya Scheme:-
Under this scheme government is distributing food grains to BPL

familiesin the state free of cost. This scheme has been quite successful
for food security in state as 20 lakh poor families have already been
brought under 'Anna Bhagya' scheme through Public Distribution System
network. To further enhance the outreach underAnnaBhagyascheme an
increase in food grains distribution from current 5 kg to 7 kg per person
proposed in current year budget.
5.Steps to improve Public Distribution system:-
This scheme was launched by “food, civil supplies

and Consumer Affairs department” of Karnataka Government. Recently;
steps have taken to improve performance of the scheme, to eliminate
leakages and reduce corruption.
A.Digitalization of public distribution system process( it is also a good
Pscnotes.com Page 7
Karnataka Economy
example of Internet of things(IoT)).

Example:- Online request for new ration card
-SMS service about food allotment to cardholder.
- Food coupon will be given to consumers through which food
can be purchased from any Public Distribution shop in Taluka.
- Online details of ration cards,Monthly allotment

of food etc.
B. Grievance redressal mechanism related to public distribution
system.
5. MathruPurna Scheme:-
This scheme was launched for pregnant and

lactating women. It aims to provide at least one nutritious meal everyday
to pregnant women particularly those living in rural areas. Under this
scheme, diet will include rice, dal,sambhar, green vegetable, pulses, egg
and groundnuts. This scheme was launched by child and welfare
department, Government of Karnataka.
6. Namma Canteen:-
Chief Minister Siddaramaiah announces 'Namma

Canteen' on the lines of Tamil Nadu's 'Amma Canteen' in budget 2017-
18. Namma Canteen in Bengalurand Saviruchi Mobile Canteens in all 30
districts through ZillaStreeShakthi associations.Namma canteen to serve
breakfast for Rs 5 and lunch for Rs 10 with a budget provision of Rs 100
crore for year 2017-18.
7. Further, Budget 2017-18proposedthat Eggs for Anganwadi

children will be provide for two days a week from June 2017 across state.
Way forward:-
1. improvement in performance of integrated child development

scheme(ICDS) like replacing packed food with better nutrition rich food,
like local cooking food.
Pscnotes.com Page 8
Karnataka Economy
2. Food cooking and distribution with the help of self

helpgroups(SHG) and non - government organisations(NGO).
3. Diversification in procurement i.e. Inclusion of pulses lentils, oil

seeds etc.
Karnataka and Power are associated with each other for more than a century.
Presently about 2 crore installations are connected with the state grid. karnataka
have achieved more than 95% electrification of households and a balance of
about 39 remote villages are to be electrified. The power demand of the state is
constantly increasing along with high expectation of consumers. To increase the
capacity addition for emphasizing power availability, separate generating
company, KPCL was formed during 1970.
The installed capacity, which was 746 MW during 1970, has presently
increased to 6508 MW. The state’s total installed capacity including all sources
is at 15,052 MW during 2014-15. Peak demand of 9549 MW has been met by
the grid. Demand – Supply gap is still prevailing.
The state is mainly dependent on hydel sources for power generation. No fossil
fuels are available for setting up of Thermal Plants. All efforts are being made
to increase power generation through renewable and solar sources. More than
5000 MW capacity has been installed through renewable sources. The state is
committed for solar power generation by establishing a 2000 MW Solar Park
and 20 MW each solar projects in 60 taluks with net capacity of 1200 MW.
Thermal Power plants
Bellary thermal power plant
The power station is located at Kudatini in Bellary district of Karnataka state,

India. The first 500 MW unit was commissioned in 2007,[1] and the second 500
MW unit was commissioned on March 23, 2012. A third unit of 700 MW is
under construction, originally planned for commissioning in 2014, and then
pushed to December 2015.
Unit 3 was commissioned in January 2016.
Pscnotes.com Page 9
Karnataka Economy
Raichur Thermal Power Plant

The plant consists of eight units, commissioned between 1985 and 2010. It was
the first thermal coal plant built in Karnataka. The most recent unit added to the
plant is Unit 8 (250 MW), which was commissioned in June 2010. there is a
proposal for two more units at the plant (Units 9 and 10) of 500MW each.
Yeramarus Thermal Power Station
Yeramarus power station is a 1,600-megawatt (MW) coal plant near Yedlapur

village, Riachur district. Unit 1 was commissioned in March 2016. Unit 2 was
synchronized in July 2016,and is planned for commercial operation in January
2017.
Hydropower
Sir sheshadri Iyer hydroelectric plant
Build in 1902 on Cauvery river known to be as first Hydroelectric plant of

south Asia .It has a installed capacity of 42 MW.
Shravathi generating Station
The River Kabini is one of the major tributaries of the River Cauvery and the
backwaters area about 200km from Bangalore is a noted wildlife refuge. A 29m
dam across the Kabini was built for irrigation near Bidarahalli and
Beechanahalli villages in Heggadevana Kote Taluk, Mysore Dist.
Almatti Dam
power house was built on the toe of an existing dam on the Krishna River in
Bagalkot Dist. The power station was in development for years as part of the
Upper Krishna multipurpose project. The 1,500m long dam was built by
Gammon from 1991-1998, but operation of a hydro project necessitted increase
water storage. It has a capacity of 180 MW.
Ghatprabha
Pscnotes.com Page 10
Karnataka Economy
This dam across the Mahi River, a major tributary of the Krishna River, was
completed for irrigation purposes in 1979. The powerhouse is located on the
right bank of the dam headworks. it has a capacity of 32 MW.
Varahi
In Dec 2006, a consortium of VA TECH companies won a turnkey contract to

install two 115-MW Pelton T/G sets at Varahiat Hosangadi. This was originally
designed for four units and the first stage of 2 x 115 MW units was
commissioned in 1989/90. The extension cost Rs291cr and the units
commissioned in Jan 2009. Varahi has the first underground powerhouse in the
state.
Kodasalli
The Kallada Dam is on the Kalinadi River in Uttara Kannada district. It has a
installed capacity of 80 MW.
Mahatma Ghandi Tail Race
Development and construcio of MGHETRS was managed by Soahm

Reneweable Energy. The project is near Jog Falls, Shimoga, and features a 25m
diversion dam and a 3.2km, 4.5m dia headrace tunnel. It was one of the first
Indian projects commissioned under the Indian Electricity Act 2003 to be
classified as a "Captive Power Project" by Praxair India (P) Ltd and also one of
the first registered as a CDM project. Capacity of 22 MW.
Kabini Dam
The River Kabini is one of the major tributaries of the River Cauvery and the
backwaters area about 200km from Bangalore is a noted wildlife refuge. A 29m
dam across the Kabini was built for irrigation near Bidarahalli and
Beechanahalli villages in Heggadevana Kote Taluk, Mysore Dist. Capacity of
20 MW.
Karnataka Human Development Index
“Karnataka has been a pioneer among Indian States in the matter of paying attention
to human development at the State and District levels. The first State Human
Karnataka Economy
Development Report for Karnataka was published in 1999. Karnataka is also the first
State to bring out individual District Human Development Reports for all its 30
districts.”
Concept of Human Development
The landscape of development theory, practice and policies, and measurement of

development at national, state and district level have undergone far reaching
changes ever since the publication of Human Development Report by the United
Nations Development Programme (UNDP) in 1990. Prior to the emergence of human
development as a key approach to improve the quality of life, the focus of
development paradigm was on materialistic progress, taking growth with equity and
social justice for granted.
The economic growth model based on “trickle-down” mechanism focused on

physical aspects of savings, investment and economic growth until 1970s. A mere
increase in national income or output did not guarantee an improvement in the
quality of people‟s life in general and weaker sections of the society in particular.
Amidst high rates of economic growth, human poverty, social exclusion, vulnerability,
gender discrimination, crimes, etc., continues to be widespread and persistent
among different sections of the society.
Hence, the focus of development shifted from economic growth based on

“trickledown mechanism” to economic development based on “basic needs
approach” in the 1980s and to human development based on “capability approach”
in the early 1990s.
Human development approach, as developed by Amartya Sen and Mahbub

ulHaq, which puts people at the centre of the development, considers economic
growth as a means to development, but not merely an end in itself. Therefore,
human development is definedas a process of enlarging people’s choices as well
as raising the level of wellbeing already achieved. Income earning is one of the
choices but it is not the sum of all choices. Attainment of better education, health,
physical environment and equalization of opportunities to participate in political,
social and economic domains of life, freedom to exercise their rights, personal self-
respect, etc., are also as important as income. These choices can be infinite and can
vary over space and time.
Key Components of Human Development Index
Karnataka Economy
Factors Contributing to Human Development
Human Development is a multivariate phenomenon. It encompasses several aspects

of life. Human development is more than HDI. As depicted above, the HDI includes
only three essential choices, namely a decent standard of living, long and healthy life
and to be able to gain knowledge. There are several factors which contribute to
human development in different ways. Most of the factors that drive human
development are inter-related and reinforcing with each other.
The most important factors that contribute to human development are:
 The livelihood and income earning options;

 reduction in poverty and inequality;
 access to household assets and amenities;
 access to food and nutrition;
 access to health and medical care services;
 education, training and skills;
 migration and urbanisation, good governance and participation;
 environmental conservation; and
 human rights and protection
National-Human Development Report
Following the UNDP‟s methodology, the Planning Commission, Government of India

has published the National Human Development Report (NHDR) for the first time in
2001 and the India Human Development Report (IHDR) in 2011 at the state level in
India. Although the methodology to calculate the HDI and other indices at national
Karnataka Economy
level is similar to UNDP, the indicators identified to estimate the indices at the sub-
regional levels are different depending upon the availability of data.
State Human Development Report
In India, the preparation of HDRs has begun with the publication of the Madhya
Pradesh HDR in 1995. It is the first sub-national HDR in the world and the second
report was published in 1998 and the third in 2002. Karnataka was the second
state to publish the Karnataka Human Development Report (KHDR) first in 1999
and the second in 2005.
Immediately after, other State Governments such as Tamil Nadu, Himachal Pradesh,
Maharashtra, Rajasthan, West Bengal, Punjab, Orissa, Gujarat, etc., have also
initiated the preparation of their State HDRs. These reports attempt to assess intra-
State disparity in progress of human development and provide policy interventions
for further development.
District Human Development Report
The District Human Development Report (DHDR) aims at estimating inter-taluk

disparity in different dimensions of human development and identifying the
developmental gaps to be addressed at the district level and also across different
taluks in the district. Preparation of DHDR provides a sound base for designing and
implementing district plans from the human development point of view and also for
proper allocation of funds.
In this regard, the Idukki district Panchayath in Kerala state was the first to
publish the DHDR of Idukki district in 2000. Following the initiation made by Kerala
state, a good number of districts in India began to prepare a DHDR with the
assistance of the Planning Commission and UNDP. The DHDRs of Bankura (2006),
Malda (2007), Birbhum and many others in West Bengal were also other
comprehensive reports with sub-district level analysis.
The Karnataka state also brought about the DHDRs for four districtsin the first
phase, namely Vijayapura, Kalaburagi, Mysuru and Udupi in 2008. The main
objectives of these reports were to capture variations in the status of human
development at the district level; enable the Government to take a holistic view of the
State‟s development outside the normal governmental functioning and assess the
strengths and weaknesses of existing departmental policies.
The unique features of these DHDRs are the wider coverage of human development
and its related issues, uniform computational methodology, indicators and time
period adopted, issue based small area studies and radar analysis.
Karnataka Economy
Rationale for Human Development Report in Karnataka
Introduction of micro level planning and PRI system and the 73rd and 74th
constitutional amendments mandate the preparation of district level plans. The
premier objectives of the DHDRs are to:
 capture variations in status of human development at the District and Taluk

level;
 enable the local government to take holistic view of the state‟s development
outside the normal governmental functioning;
 integrate human development objectives such as larger inflow of funds to low
human development regions in policy formulation;
 focus on specific local issues of human development such as malnutrition,
and livelihood expansion;
 assess impact of programmes on specific issues of human development at
the District level;
 provide an opportunity for preparing district plans from a human development
perspective;
 assess the strengths and weaknesses of the existing departmental policies
 formulate Special Development Plan (SDP) and comprehensive composite
development index;
 develop awareness among the official and non-official leaders at the district
and below about the Millennium Development Goals and accordingly design
and execute the public policies.
Grama Panchayath Human Development Index Report
The preparation of Grama Panchayath Human Development Index (GPHDI) Report

is an important event which provides guidelines for grassroots level human
development. For the first time in the history of the country the Government of
Karnataka has initiated the process of computing the Grama Panchayath Human
Development Index based on the same set of indicators that were used in the
preparation of District Human Development Report.
Fazit
Economic growth, as defined by GDP per capita, is found to be inadequate to

measure quality of life and human well-being. Human Development approach is
more than economic growth (national income). Human development is the process
of enlarging the people‟s choices. Fundamental to enlarging these choices is building
human capabilities-the range of things that a person can do or be in life. The most
basic capabilities for human development are to lead a long and healthy life, to be
Karnataka Economy
knowledgeable, to have access to the resources needed for a decent standard of

living and to be able to participate in the life of the community and decision affecting
their lives. Without these, many choices are simply not available, and many
opportunities in life remain inaccessible.
Preparation of HDI covering different domains of life and sectors of the economy at
Grama Panchayath level is indeed a unique exercise that the Government of
Karnataka has initiated. It would be an important yardstick to identify the absolute
and relative backwardness in the areas such as education, health, livelihood
expansion, standard of living, child development, gender equality, all of which are
aimed at improving the standard of living in rural areas. It is quite useful, which helps
in designing and implementing the well-conceived plans at the Grama Panchayath
level. The report can also be a base for allocation of funds under different
programmes implemented depending upon the backwardness of Grama
Panchayaths.
This also helps in fine-tuning the existing programmes or introducing the new
innovative schemes for development of a particular domain (health, education or
livelihood opportunities), which is lagging in a particular Grama Panchayath. For the
policy makers and development practitioners, these indices provide handy tools to
give policy direction for further human development.
Karnataka Industrial development

Karnataka is a leading state in terms of industrial growth in India. It is the hub of the IT
industry in the country. The technology cluster in Karnataka ranks as the fourth largest in the
world. The state has 47 IT and ITeS SEZs, several regions dedicated to IT investment, and
three software technology parks.
Apart from the IT industry, the state also has sector-specific SEZs dedicated for other major
industries. Karnataka’s flora and fauna along with a natural coastline of 320 km provide its
tourism industry a major boost.
GDP Contribution of Karnataka Industry
Karnataka occupies its position among the high economic growth states of India. In
the year 2015-16, Karnataka contributed 7.54% to GSDP of India. The state’s GSDP
was 156.23 billion US dollars. During the period between 2004 and 2016, the state’s
GSDP increased at a rate of 13.93% and reached 156.23 US dollars. The NSDP
increased at a compound annual growth rate of 14.19% and reached 142.9 billion US
dollars. The per capita GSDP grew at rate of 12.91% and reached 2557 US dollars.
The growth rates indicated are compound annual growth rate.
Karnataka Economy
Karnataka industry: An Ideal Choice for Investment
Karnataka is a land rich in natural resources. Its policy incentives and infrastructure
play a significant role in attracting investments for the various industrial sectors in
the state. As per the data released by the Department of Industrial Policy and
Promotion (DIPP), Karnataka has attracted FDI equity inflows amounting to 20.24
billion US dollars during the time frame of April 2000 to March 2016.
Karnataka is an ideal choice for investment due to a number of reasons. Some of the
reasons are as follows:
 Superior manpower: Karnataka boasts of trained human resource in the streams

of basic science, engineering, and management.
 Research and development facilities: The state has a number of Central
Government research institutions and laboratories that provide high-quality research
and development facilities
 Favourable climate: The climate of Karnataka is favourable for the growth of
certain industries
 Good communication facilities: The communication facilities in the state are of
the first-rate. The state is connected through airports, national highways, broad
gauge railway, and sea ports.
Initiatives Adopted by the State Government to Strengthen Karnataka Industry
The state government is making huge investments to strengthen industrial segment

and its infrastructure with the objective to further promote industrial development in
the state. By creating industrial clusters, public-private partnership (PPP) projects
and SEZs, the government is trying to give a boost to the industrial infrastructure
scenario existing in the state. According to the Start-up Policy 2016, Karnataka aims
to:
 Stimulate the growth of its technology start-ups

 Create around 6,000 start-ups that focuses on products
 Mobilize funds worth about INR 2,000 crores.
A few of the important initiatives by the Government to promote the state as an

industrial destination are:
 Under the Karnataka Industrial Policy, 2014-19, the state has come up with a number
of fiscal and policy incentives for businesses.
 The state has planned to develop 12 biotechnology schools under the Millennium
Biotech Policy
 The state government has sanctioned an amount of 551.32 million US dollars in the
2016-17 budget for the betterment of the state’s rural roads
 A SEZ around 300 acre has been formed in Belgaum in order to create a precision
engineering and manufacturing supply chain ecosystem. This will be quite beneficial
for the manufacturing industries.
Organization to Provide Infrastructure Support to Karnataka industries
The State Government has created several organizations and Institutions to provide
infrastructural support to the private sector enterprises.
Karnataka Economy
 The Directorate of Industries and Commerce co-ordinates all activities required for
industrial development. It allots to the entrepreneur, power, land and water besides
sanction of fiscal incentives.
 Karnataka Industrial Area Development Board (kiadb.com is not active
anymore) acquires tracts of land for development into industrial sites.
 The Technical Consultancy Services Organisation of Karnataka offers expert
consultancy services to small entrepreneurs at moderate rates.
 The Karnataka State Finance Corporation, Industrial Investment Development
Corporation, Small Scale Industries Development Corporation and Karnataka
Electronics Corporation provide them finance, equity participation, factory sheds and
raw material supplies.
Associations
Karnataka has got 123 associations representing various trade, banking and
industrial organisations. Prominent among the manufacturers association are
Karnataka State Small Scale Industries Association, Confederation of Electronic
Industries of Karnataka and Peenya Industries Association.
All the 123 associations are affiliated to a parent : Federation of

Karnataka Chambers of Commerce and Industries
Foreign Investments
Foreign investment approved in Karnataka is brought about 169 foreign investors

from Germany, Japan, USA, UK, Switzerland and Sweden. They have invested in
computer software, telecommunications equipment, electronics and electrical,
machine tools and engineering products, medical and laboratory equipment,
minerals, ceramics, chemicals, leather products, food processing and tourism.
The Government of Karnataka launched the New Industrial Policy for 2014-2019
with the intention to revive the state’s financial growth and improve employment
prospects.
Let us take a look at the salient features of Karnataka Industrial Policy for
2014-2019.
Karnataka Industrial Policy Objectives
 To establish brand Karnataka in the global market

 To make Karnataka one of the top 3 investment destinations in the
country
 To create a business friendly environment in the state in order to project
Karnataka as a state that promotes and encourages entrepreneurship
 To maintain an industrial growth rate of 12 % per annum
 To increase the manufacturing sector’s contribution to the State GDP to
20% by 2019
 To attract minimum investments worth Rs 5 lakh crore by 2019
Karnataka Economy
 To create additional employment for 15 lakhs people by 2019
Karnataka Industry Policy Highlights
Promote Karnataka as a hub for entrepreneurs: The State

Government wants to promote Karnataka as a hub for entrepreneurs. To fulfil
this objective it has plans for establishment of new industrial areas through
KIADB (Karnataka Industrial Areas Development Board). The policy
highlights the government’s plan to make sufficient land readily available for
business. It plans to make arrangements for adequate availability of power,
water and transportation for industrial areas.
Upgrade existing industrial areas: The government also has plans to

upgrade existing industrial areas and estates by providing
monetary assistance to improve their infrastructure.
Establish new industrial corridors: The policy proposes the

establishment of new industrial corridors within the state to boost industrial
growth. These intra-state industrial corridors will be:
 Bangalore-Mandya-Mysore-Chamrajnagar
 Chitradurga-Bellary-Gulbarga-Bidar
 Dharwad-Koppal-Raichur
 Bangalore-Hassan-Mysore
 Tumkur-Shimoga-Honnavar
 RaichurBagalkot-Belgaum
Karnataka Major cities and tourist

places
Aihole
 It was once capital of the early Chalukyan dynasty. Aihole is a historical town
situated on the banks of Malaprabha River in Bagalkot district.
Badami,
 One of the many historic towns in Karnataka is located at the northern part of the
State.
 Known for vesara style of architecture
Karnataka Economy
Banavasi
 It is one of the most popular tourist destinations of Karnataka state. Banavasi is one
of the oldest towns in the Karnataka.
Belur and Halebid:
 The temples of Belur and Halebid are best known for their south Indian architecture.
Hampi or "The City of Ruins"
 It is an ancient village situated approximately 353 km away from Bangalore. Hampi

has been declared as a UNESCO World Heritage centre.
Pattadakal
 It is well-known for the group of the 8th century monuments.The monuments at

Pattadakal are listed in the UNESCO's list of World Heritage Sites.
Somnathpur
 It is one of the finest examples of Stone architecture. The main attraction of

Somnathpur is temple dedicated to Lord Channakeshava.
Srirangapatnam
 It takes its name from the famous Sri Ranganathaswamy temple, one of the main
attractions of the town.
Divine Karnataka
Ambalapady is famous for 400 year old temples of Lord Janardhana and Goddess Mahakali.
Anegudde is one of the popular Vinayaka temples in Udupi district which attracts large
number of pilgrims.
Bappanadu Durga Parameshwari temple is located at a distance of 30 km north of Mangalore.

It is situated on the banks of River Shambavi in Bappanadu village of Mulki.
Belavadi is a national heritage site and one of the important attractions in Karnataka tourism.
The temple here is built in Hoysala architecture.
Devarayanadurga is surrounded by forests and several temples including the

Yoganarasimha temple and Bhoganarasimha temple are located at the hilltop.
Devarayanadurga is also famous for 'Namada Chilume'.
Dharmasthala, a sacred place, as its name indicates, is a place of the Truth, Faith,
Communal harmony and spiritual experience in the Holy Land. Here, everyone enjoyes the
generous hospitality, irrespective of caste, creed or class whatsoever.
Karnataka Economy
Gokarna is a Hindu pilgrimage centre as well as an important tourist destination. The temple
here is dedicated to Lord Mahabaleshwar, an incarnation of Lord Shiva.
Guddattu Jaladhivasa Maha Ganapathi Temple is located about 15 km from Kundapur in

Udupi district. Guddattu Jaladhivasa Maha Ganapathi Temple is very ancient temple and no
body knows when it came to existence.
Hattiangadi is a village located at a distance of 14 km from Kundapur in Udupi district. The

ancient temple at Hattiangadi is dedicated to Lord Ganesh popularly known as Siddi
Vinayaka.
Horanadu is a place of enchanting natural landscape, ancient temple of the goddess

Annapoorneshwari here has been restored and renamed the Adi - Shaktyatmaka Shree
Annapoorneshwari.
Idagunji: The main attraction of Idagunji is the temple dedicated to Lord Ganapati. The
temple at Idagunji attracts more than 1 million devotees per year. Idagunji is about 14 km
southeast of Honnavar.
ISKCON temple at Bangalore is dedicated to lord Krishna. The ISKCON temple is situated
on a seven-acre hillock, which is also referred as the 'Hare Krishna Hill'.
Kadiyali Mahishamardhini Temple is located at a distance of 3 km from Udupi Sri Krishna

Temple. The temple is one of the oldest temples in Udupi district.
Kadri Manjunatha Temple is one of famous and ancient temples located on Kadri hills in
Mangalore city.
Kalasa is a small town located on the banks of Bhadra River in Mudigere taluk of
Chickmagalur district in Karnataka. The Temple town, Kalasa is home to the Sri
Kalaseshwara Temple.
Kamalashile is surrounded by beautiful mountains and evergreen forests with the river Kubja
flowing by the side of it. Kamalashile is famous for its ancient Brahmi Durgaparameshwari
temple.
Karinjeshwara Temple is situated at a place called Karinja of Kavalamudur village in

Bantwal taluk.
Kateel is a temple town located at a distance of 29 km from Mangalore city in Dakshina

Kannada district. This sacred place is surrounded by panoramic scenes and attractive
greeneries.
Kodyadka Annapoorneshwari temple is situated in Puttige village of Mangalore Taluk. It is

located at a distance of 35 km from Mangalore.
Kollur Mookambika Temple, an important seat of Shakti worship is located 40 km from

Kundapur Town and about 140 kilometers from Mangalore.
Karnataka Economy
Koodalasangama is at the confluence of the Krishna River and the Malaprabha River in very
enchanting surroundings.
Koteshwara is a village located at a distance of 4 km from Kundapur in Udupi district.

Koteshwara is a place of religious importance.
Kudroli Gokarnanatha Temple located just 3 km from heart of Mangalore city. The beautiful
temple at Kudroli id dedicated to Lord Gokarnanatheshwara.
Kudupu Sri Anantha Padmanabha Temple is well-known for serpent worship. Main deity
Lord Anantha Padmanabha is facing towards the west.
Kukke Subrahmanya Temple is situated in the heart of the village. Kukke Subrahmanya
temple is dedicated to lord Subrahmanya, who had manifested with Vasuki.
Omkareshwara Temple is located very near to the heart of the Madikeri. Madikeri is situated
in the beautiful Kodagu district in the Western Ghats.
Mangaladevi Templeis located at Bolara in the city of Mangalore, Karnataka state. The
Mangaladevi temple is situated just about 3km from southwest of Mangalore city centre.
Male Mahadeshwara Hills, a sacred place for Hindus is located around 140 km from Mysore.
It is situated in the eastern parts of Kollegal taluk in Chamarajanagar district.
Mandarthi Durga Parameshwari temple is one of the important and sacred temples of Shakti
worship.
Melkote popular center of pilgrimage center and has two different temples. Melkote is one of
the holy places of Karnataka.
Moodbidri Thousand pillar temple is a large granite temple built in 1430 A.D. The main
entrance of the thousand pillar temple, which faces the east, opens onto a wonderful 15 meter
tall monolithic pillar called Mahastamba in front of the doorway.
Murudeshwar is a picturesque place, and it is situated between Honnavara and Bhatkal.

Bounded by the Arabian Sea and rolling hills of Western Ghats, makes Murudeshwar as a
favorite picnic spot.
Nanjangud Nanjundeshwara Temple is one of the ancient temples of Karnataka. Lord

Nanjundeswara also referred to as Lord Srikanteswara, Vishakanta, Nanjunda.
Narahari Parvatha Sadashiva Temple is located at a distance of 28 km from Mangalore in

Bantwal taluk of Dakshina Kannada district.
Nellitheertha Cave Temple is one of the sacred places in Dakshina Kannada district. Inside,
one can find a beautiful lake and a Shiva Linga.
Padubidri is located in coastal district, Udupi on National Highway 17. Padubidri is also
known as Padubidre or Paddedra in Tulu language.
Karnataka Economy
Pajaka is birthplace of Dwaita philosopher Madhwacharya. The Kunjaragiri Durga temple is

also a charming place to visit. There is also a Parashurama temple nearby.
Polali, an important seat of Shakti worship is located at a distance of 30 km from Mangalore

and situated about 200 yards from the Phalguni River
Puttur Mahalingeshwara Temple is dedicated to Lord Mahalingeshwara an incarnation of

Lord Shiva. This is an ancient temple of said to be constructed in 12th Century.
Sahasralinga is a pilgrim place located at a distance of 17 km from Sirsi in Uttara kannada

district.
Saundatti Yellamma Temple is located in Belgaum district at a distance of 70 km from its

district headquarters.
Savadatti Yellamma Temple or also known as Savadatti Renuka Yellamma Temple is

popular temple in Savadatti, Belgaum district.
Shankaranarayana The uniqueness of Shankaranarayana is that this is one of the rare temples
where we can see the confluence of Shankara (Lord Shiva) and Narayana (Lord Vishnu).
Sharavu Maha Ganapathi Kshetra is one of famous ancient temples located in the heart of
Mangalore city.
Shishileshwara Temple is situated on the banks of Kapila River in Shishila village of

Belthangady Taluk. This place is also referred as Matsya Theertha.
Shraravanabelagola is one of the important Jain pilgrim centers in Karnataka.

Shravanabelagola is popular for its scenic beauty as well as for its religious sanctity.
Somanathapura Chennakeshava Temple, one of the finest master pieces of Hoysala

Architecture is located at Somanathapura. This temple was constructed in 1268 by Soma, a
Dandanayaka under Hoysala king Narasimha III, during the Hoysala Empire was ruling
South India.
Sirsi Marikamba Temple is main attraction and it is one of the important seats of shakti
worship in Karnataka. Sirsi Marikamba temple is temple famous for its Kavi art.
Southadka is a pilgrimage centre located at a distance of 3 km from Kokkada in Belthangadi

Taluk of Dakshina Kannada district.
Sringeri is a picturesque town and pilgrim centre located in the heart of the Malnad with rich
vegetation and pleasant climate.
Talakad was a capital of the Gangas from 350 to 999 AD. Then, it was the capital for several
dynasties that ruled over Karnataka.
Ulavi Channabasaveshwara Temple is located in a picturesque location of Western Ghats in

Uttara Kannada (North Kanara) district. Ulavi is a famous pilgrimage center for
Veerashaivas.
Karnataka Economy
Udupi Krishna Temple is the first among the seven places of pilgrimage. The famous Krishna
temple in Udupi, has a fascinating idol of Lord Krishna, which is richly decorated with
jewels.
Virupaksha Temple s the most important center of pilgrimage in Hampi moreover is

considered one of the most sacred over the centuries.
Temples in South Canara List of Temples in Dakshina Kannada District.
Karnataka Beaches
Gokarna is famous for its beautiful virgin beaches and breathtaking landscapes.
Karwar is a good starting point for the journey to discover the thrills of the sea, sand and sun.
Karwar is one of the perfect holiday destinations.
Kaup Beach is one of the famous beaches of Karnataka where tourists enjoy the beauty of
the environment.
Kurumgad Beach is a tortoise shaped Island and is located about 4 km away from Karwar.
Malpe is a located about 5 km to the west of Udupi. An important port and fishing harbor
along the Karnataka coast.
Marawanthe is a beach located at a distance of 12 km from Kundapur town of Udupi

district. Marawanthe beach is one of the must visit tourist spots of Karnataka.
Karnataka Government Schemes 2017-18

Following schemes are covered in this article-
 Free laptop scheme

 Guru Chetana Scheme:
 Mathru Purna Scheme:
 SankalpadindaSiddi Programme:
 Karnataka Aarogya Bhagya Scheme:
 Yuva Yuga – New Skill Training Scheme:
 Housing Scheme for BPL Families (Upcoming Scheme of Karnataka
Government):
 Home Health Care Services Under National Health Campaign to be Launched
in Karnataka:
Free laptop scheme
Karnataka Economy
The free laptop scheme was announced by the state government in the 2017 annual
budget for all undergraduate students. Karnataka government had allocated Rs. 225
crore for the scheme in its 2017-18 financial budget. But earlier this scheme was
started only to SC/ST students but the government in now planning to include
students from other categories as well.
According to the notification, state government may modify the income limit so that
more students can avail the benefits of the free laptop scheme. The department of
higher education may increase the income limit from 2.5 Lakh to 6 Lakh per annum.
At present, this scheme doesn‟t cover students of B. Ed, Law, Agriculture and
veterinary departments. But student of these courses are also demanding to get the
benefit from this scheme.
The government had an early plan of distributing about 1.5 lakh laptops to the
students but the number may increase by up to 10% after the revision in income limit
and category of beneficiaries.
Once all the make-up of the scheme is finalized, the government would invite
tenders from the laptop manufactures to put an order. The government is also
deciding about the configuration of the laptops. Once the order is finalized, the
government would give two months time period to the company to supply the
laptops.
Guru Chetana Scheme:
The Karnataka government has launched “Guru Chetana Scheme” to improve the
quality of education in the state. This scheme was launched at a function organized
at the District Institute of Training and Education (DIET) by the state govt.
The objective of this scheme is to provide opportunities to the teachers to enhance

their skills, ability to learn and increase the base of knowledge to improve the quality
of education. The officers of the Department of Public Instructions will design the
framework and strive for the successful implementation of Guru Chetana Scheme.
The state government is committed to bring reforms and ensure the quality of
education in all government aided schools across the state. As per the notification,
this scheme contains 29 modules across 8 subjects which includes Science, English,
Social Science and Maths.
In addition to this, teachers can choose a subject in any of these modules of their
interest to receive specialized training. Teachers can take the full benefit of this
scheme and check the performance of their students. This scheme is being launched
simultaneously across the state.
Karnataka Economy
Under this scheme, nearly 50,000 teachers will get selected across the state.
Furthermore, the government has fixed the target to provide training to 1400
teachers at district level.
Also to make this scheme successful, the state government will select some experts
along with teachers as resource persons to implement the scheme successfully
across the state. All persons will get benefited from this scheme.
Mathru Purna Scheme:
The state government of Karnataka is implementing “Mathru Purna Scheme” for

pregnant and lactating poor women across the state. The aim of the scheme is to
provide at least one nutritious meal every day to pregnant women particularly those
living in rural areas of the state.
The objective of this scheme is to improve maternal health that has a direct impact
on the women and child‟s nutrition. Under the scheme, the estimated cost of each
meal could be around Rs. 21 per meal. The meal to pregnant women would be
provided for 15 months that means it starts from the time of pregnancy to up to six
months after delivery. This scheme will help in curb child malnutrition across the
state.
The guideline and framework of Mathru Purna Scheme has been operated by the
department of women and child welfare, government of Karnataka. This scheme
includes rice, dal or sambar, green vegetables, pulses, egg and groundnut-jaggery
chikki to meet the nutritional needs of pregnant and lactating women in rural areas.
In addition, this scheme is providing two kinds of sprouts for those pregnant women
who don‟t eat eggs. The responsibility to implement this scheme is of all the
anganwadis working among rural women across the State.
During 2016-17 financial year, the state government had launched micro nutrients for
pregnant and lactating women who are living in backward taluks at a cost of Rs 42
crore under Mathru Pushtivardhini Scheme, under National Health Mission (NHM).
In 2017-18 financial budget, the government had made an announcement to extend

the scheme to all 30 districts in the state and made a provision in budget and
allocated funds of Rs. 302 crore for effective implementation of this scheme.
Moreover, the workers of anganwadis can change the diet in case the stipulated
items aren‟t easily available in the region and the food preference of beneficiary‟s will
be taken into consideration at time of providing meals.
SankalpadindaSiddi Programme:
Prime Minister NarendraModi has launched “SankalpadindaSiddi programme” in

Karnataka state to empowering farmers throughout the country. This program
Karnataka Economy
organised by the University of Agricultural Sciences at Harobelavadi village in

Dharwadtaluk of Karnataka.
Under Sankalpadindasiddi programme, government will provide many opportunities

like adequate water, quality power supply and link farmers to the market etc. to
double the income of farmers till 2022.
Moreover, government will provide drip irrigation facility, soil testing and providing
micro nutrients in the scheme to rejuvenate the agriculture sector. The government is
also planning to encourage the farmers to adopt online Procurement System will be
undertaken through the food corporation of India (FCI).
According to the official notification, the government will link farmers to the domestic
and international markets so that the farmers will get good price for their produce.
Under the scheme, farmers will be introduced with the advent of information and
technology because the lacking of sufficient knowledge of scientific tools for their
produce.
Karnataka Aarogya Bhagya Scheme:
The Karnataka state government is going to launch a healthcare scheme named

“Aarogya Bhagya Scheme” for providing free medical treatment to poor across the
state. The government has fixed the target to cover around 14 million state
households as a part of universal health coverage (UHC) under the scheme.
The mainstream of the scheme is to provide free healthcare services particularly to

needy households in the state. The targeted people under the Aarogya Bhagya
scheme mainly will be from socially and economically backward classes in the
society.
The main objective of the Aarogya Bhagya health insurance scheme is to provide
healthcare facilities especially to households belonging to socially and economically
backward classes. The scheme will provide cashless treatment facilities at all the
government hospitals across the state and selected empaneled private healthcare
institutions and hospitals.
Below are the main highlights of Karnataka Aarogya Bhagya Scheme
 The Universal health coverage (UHC) scheme will cover around 14 million
households.
 The Aadhar card will be linked with the universal health card to leverage the
healthcare facilities.
 The scheme will start on 1 November at Kannada Rajyotsava day in all
districts of the state.
 The state government will merge seven different existing healthcare schemes
in the Aarogya Bhagya scheme, accordingly to the official notification.
Karnataka Economy
 This scheme will provide benefits to everyone without any discrepancy among
APL and BPL card holders.
 The beneficiary of this scheme can get healthcare treatment in government as
well as private hospitals.
Schemes to be Merged in Aarogya Bhagya
Below is the list of 7 existing healthcare schemes which will be merged into the new
Aarogya Bhagya scheme for the better efficiency and transparency in the whole
implementation of the scheme.
 Rajiv Arogya Bhagya Scheme

 Vajpayee Arogyashree Scheme
 MukhyamantriSantwana Harish scheme
 Yeshasvini Health Insurance Scheme
 JananiShishuSurakshaKaryakram
 RashtriyaSwasthyaBimaYojana
 JyothiSanjeevini Scheme
According to the notification, Aarogya Bhagya scheme the free healthcare facilities
will be provided in two categories for needy households across the state.
In first category, about 10.5 million households will be covered from different
categories including farmers, unorganized workers, Anganwadi (childcare centre)
workers, SC / ST, media professionals, teachers of aided schools, public servants
and even sanitation workers. Though, the beneficiaries of this category will not make
any contribution towards the Aarogya Bhagya Scheme. The remaining three million
households will be covered under the second category.
Insurance Premium of Aarogya Bhagya Scheme
The insurance premium amount of the Aarogya Bhagya Scheme has been decided
and is different for households in rural and urban areas. People who are living in
rural areas have to pay annually Rs. 300 per person and in urban areas Rs. 700 per
person as insurance premium to avail the benefits of this scheme.
Moreover, the state government is also planning to fix the rates for various
secondary and tertiary procedures under the Karnataka Private Medical
Establishments rules which will be paid to the private hospitals.
Additionally, to ensure the services in emergency cases including for both accidents
and medical / surgical emergencies, treatment will be provided at the nearest
hospital whether government or private under Treatment first and Payment Next
program.
The government has taken effective measures to ensure the better health and well-
being of the citizens which are living in the state.
Karnataka Economy
Yuva Yuga – New Skill Training Scheme:
A new skill training scheme named as “Yuva Yuga” has been launched in the
Karnataka state. The Yuva Yuga scheme is aimed at creating about 10 Lakh skilled
jobs in the state by providing new-age technology skill training to the youth. In 2017-
18 alone, under the Yuva Yuga scheme, the Karnataka state government would
training about 1.10 Lakh youth.
Under the Yuva Yuga skill training scheme, youth would be trained to become job
ready for about 328 job roles across industries. Yuva Yuga program was announced
in 2015-16 financial budget but would be implemented from the current year.
Under the Yuva Yuga scheme, skill training centres across the state would be
opened to provide skill training to youth and make them employable. Skill training in
many cutting edge technologies such as artificial intelligence, machine learning, and
others would be provided to the youth with the assistance of Karnataka Department
of IT, Biotech and Science & Technology.
The Yuva Yuga scheme would provide skills in line with the current industry
demands. Skills would be provided to the youth to make them employable for entry
and mid-level job roles. People up to 10 years of experience can join the Yuva Yuga
training programs and enhance their skills for better employment opportunities.
The state in near future to emerge as a leading growth state in other sectors such as
manufacturing, animation, gaming, visual effects, telecom, etc. Therefore, new
skilled talent would be required to meet the increasing demand.
Housing Scheme for BPL Families (Upcoming Scheme of Karnataka

Government):
The state government of Karnataka is planning to introduce a new housing scheme

for BPL families across the state. The intention of state government is to provide
houses for one lakh people who are living under BPL category in Karnataka as per
the official data.
According to the official notification, Housing department of Karnataka will soon get
parcels of land of around 662 acres reclaimed on the outskirts of the city from the
state government. The house will measure 300 square feet with a single bedroom
which will be provided to each beneficiary.
Moreover, state government is continuously talking with banks to provide long term
housing loans (20 years) with an EMI of Rs. 2,000 per month to each beneficiary.
Categories of Beneficiaries
Following are the main categories of the BPL beneficiaries who will be provided
houses under the scheme
Karnataka Economy
 Vegetable Vendors
 Auto Rickshaw Drivers
 Domestic Servants
 Slum Dwellers
 People living in rented homes
Feature of Karnataka Housing Scheme for BPL Families
Below are some of the salient features of the housing scheme for BPL families
 The scheme will provide housing only to people belonging to Below Poverty
Line category.
 Each applicant will have to provide his/her Aadhaar number at time of
registration.
 Eligible applicants will be selected through a lottery system.
 Applicants should have to their domicile in the city for at least five years.
 The handicapped applicants will get a discretionary quota ostensibly.
The detailed information about the BPL housing scheme will be out only after the
scheme is launched.
Home Health Care Services Under National Health Campaign to be Launched

in Karnataka:
The Karnataka health department is introducing Home Health Care Services under
the National Health Campaign with the help of Public Health Foundation of India in
Hyderabad-Karnataka region. Under this scheme, poor families in selected six
districts will get free home health care services. The primary health services will be
provided by the health department at their doorstep.
The aim of the scheme is to eliminate the diseases in the first stage by providing
medicine at home for the welfare of patient. The health department will also
recommend the better hospitals to patients. The campaign would also generate the
awareness about the family planning in the state.
Initially the National health campaign will start the scheme in Bidar, Ballari,
Kalaburgi, Rayachuru and Yadagiri district of Karnataka-Hyderabad region.
Home Health Care Service – Highlights
 The main targets will be the poor families across the state.
 The health department will provide medicines for flu, vomiting, diarrhea
related diseases.
 Many problems related eye, nose, throat, teeth and cancer, free health check-
ups for diabetes, blood pressure, hemiplegia, lung diseases, will be covered
under the scheme.
Karnataka Economy
 The program will also provide healthcare service for pregnant women and
children.
Gradually, this campaign will be implemented in all districts across the state. Under
the scheme, the state health department will provide fund to modify 105 sub-health
centres in Mysuru‟s T Narasipura and Rayachuru‟sLingasugurutalukas. For the
home health care services, the department is hiring 105 BSc nursing graduates as
medicare assistants. The eligible nurse will be trained for 6 months through IGNOU
bridge course.
After completing the course at IGNOU, these Medicare assistants will provide the
requisite service at patient‟s home. The home health care nurses can work alone in
the field with support resources available from the health department. To remove the
difficulties, the home health care services are to assist the patient to remain at home,
avoiding hospitalization or admission.
Karnataka Goods and Services Tax Bill, 2017
The 'Karnataka Goods and Services Tax Bill, 2017' was unanimously passed by the
state assembly. Before Karnataka, as many as 24 states and Union Territories had
passed the State Goods and Services Tax (SGST) bill in their respective legislative
assemblies. As per the GST Constitutional amendment, all states have to pass
SGST bills by September 15, 2017, failing which they will lose their taxation powers.
What is GST?
Good and Services Tax Bill is a new taxation bill passed by RajyaSabha in August
2016 aims at making a single tax system for entire nation, replacing all indirect taxes
imposed by State and Central Government. It is expected as a biggest tax reform in
the history of India, simplifying all the complex indirect tax levying process. GST will
have distinct impact on individual sectors, some will get negative or some will get
positive.
Let‟s have a look at several advantages of new GST Bill for Government and Indian
Nationals:-
1. GST is a win-win situation for the entire country. It brings benefits to all the
stakeholders of industry, government and the consumer. It will lower the cost of
goods and services, give a boost to the economy and make the products and
services globally competitive. GST aims to make India a common market with
common tax rates and procedures and remove the economic barriers, thus paving
the way for an integrated economy at the national level.
By subsuming most of the Central and State taxes into a single tax and by allowing a
set-off of prior-stage taxes for the transactions across the entire value chain, it would
mitigate the ill effects of cascading, improve competitiveness and improve liquidity of
Karnataka Economy
the businesses. GST is a destination-based tax. It follows a multi-stage collection

mechanism. In this, tax is collected at every stage and the credit of tax paid at the
previous stage is available as a set off at the next stage of transaction. This shifts the
tax incidence near to the consumer and benefits the industry through better cash
flows and better working capital management.
2. GST is largely technology driven. It will reduce the human interface to a great
extent and this would lead to speedy decisions.
3. GST will give a major boost to the „Make in India‟ initiative of the Government of
India by making goods and services produced in India competitive in the National as
well as International market. Also all imported goods will be charged integrated tax
(IGST) which is equivalent to Central GST + State GST. This will bring equality with
taxation on local products.
4. Under the GST regime, exports will be zero-rated in entirety unlike the present
system where refund of some taxes may not take place due to fragmented nature of
indirect taxes between the Centre and the States. This will boost Indian exports in
the international market thus improving the balance of payments position. Exporters
with clean track record will be rewarded by getting immediate refund of 90% of their
claims arising on account of exports, within seven days.
5. GST is expected to bring buoyancy to the Government Revenue by widening the

tax base and improving the taxpayer compliance. GST is likely improve India‟s
ranking in the Ease of Doing Business Index and is estimated to increase the GDP
growth by 1.5 to 2%.
6. GST will bring more transparency to indirect tax laws. Since the whole supply
chain will be taxed at every stage with credit of taxes paid at the previous stage
being available for set off at the next stage of supply, the economics and tax value of
supplies will be easily distinguishable. This will help the industry to take credit and
the government to verify the correctness of taxes paid and the consumer to know the
exact amount of taxes paid.
7. The taxpayers would not be required to maintain records and show compliance
with a myriad of indirect tax laws of the Central Government and the State
Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry
Tax, Luxury Tax, Entertainment Tax, etc. They would only need to maintain records
and show compliance in respect of Central Goods and Services Tax Act and State
(or Union Territory) Goods and Services Tax Act for all intra-State supplies (which
are almost identical laws) and with Integrated Goods and Services Tax for all inter-
State supplies (which also has most of its basic features derived from the CGST and
the SGST Act).
DEMONETIZATION AND CASHLESS ECONOMY
What is Demonetization?
Karnataka Economy
 It is a financial step where in a currency unit‟s status as a legal tender is

declared invalid.
 This is usually done when old currency notes are to be replaced with the news
ones.
 The 500 and 1000 rupee notes seized to be a legal tenderfrom 8 November,
2016.
A brief past
 Demonetisation was earlier done in 1978 When the government demonetised
Rs. 1000, Rs. 5000 and Rs. 10000 notes.
 This was done under the High Denomination Bank Note (Demonetisation) Act,
1978.
 The difference between 1978 and 2016 Demonetisation is that the currency in
circulation (of the higher denomination) is higher in 2016 than was in 1978.
 The current demonitization has been done by government under section 26(2)
of the Reserve Bank of India Act.
Implications of Demonetization
 A parallel black economy would collapse.
 Of the Rs 17 lakh crore of total currency in circulation in the country,
black money is estimated at mind-boggling Rs 3 lakh crore.
 Counterfeit currency: Death blow to the counterfeit Indian currency
syndicate operating both inside and outside the country.
 On Employment: a large part of the Indian economy is still outside the banking
system. So, the cash shortage will hurt the informal sector that does most of
its transactions in cash.
 On elections: It will reduce the Vote-for-Note politics making elections more
clean and transparent.
 On Economy:
 First, it will bring more borrowings to the exchequer, improve inflation
outlook and increase India‟s gross domestic product (GDP).
 Second, it will revive investment opportunities and give a fillip to
infrastructure and the manufacturing sector.
 Third, it will help reduce interest rates and lower income tax rate.
 Real estate cleansing: An unexpected dip in land and property prices.
 On Higher Education: will become more reachable as the black money from
„high capitation fees‟ is discouraged.
 On security:
 Terror financing: Terror financing is sourced through counterfeit
currency and hawala transactions.
 Kashmir unrest: The four-month-long unrest in Kashmir valley is on a
backburner
Karnataka Economy
 North-East insurgency and Maoists: Black money is the oxygen for

Maoists collected through donations, levy and extortions. The illicit
money is used to purchase arms and ammunition
Electric Vehicle and Energy Storage Policy 2017:
The Karnataka government on approved „Electric Vehicle and Energy Storage Policy
2017‟ to help the state become a hub for production of alternative fuel vehicles,
reduce dependency on fossil fuels, bring down pollution levels and push the „Make In
Karnataka‟ initiative.
The new policy aims to attract investments worth Rs31,000crore and create around
55,000 employment opportunities.
“The development and formation of this path breaking policy has been a combined
effort of the government and key industry players through roundtables organised by
Carnegie India and a series of workshops.
The state government is looking to set up new EV manufacturing zones, set up

charging stations in public and private spaces including airports, railway stations,
metro stations and encourage start-ups to develop business models focused on
supporting economic applications for EV‟s.
The government is also mooting incentives and concessions for manufacturers in

line with the Industrial Policy 2014-19 throughout the state including Bengaluru
district.
The fifth largest automobile market currently, India is inching towards become the
third largest market by 2020. The union government has also unveiled its vision to
make the country an all-electric vehicle market by 2031 to reduce dependency on
fossil fuels and reduce its carbon footprint.
Karnataka govt announces incentives for manufacturing MSMEs in its Electric

Vehicle Policy 2017:
In the recently approved Electric Vehicle and Energy Storage Policy 2017, the
Karnataka Government has announced a set of incentives and concessions for
different sectors including the Micro, Small and Medium Enterprises (MSMEs).
According to the policy, the government will extend incentives and concessions to
the MSMEs involved in the manufacturing of electric vehicle and its components
including motors power trains, power electronic kits.
The micro level units can avail an investment promotion subsidy of over 25 per cent
of the value of fixed assets, for a maximum amount of 15 lakh rupees.
Karnataka Economy
Accordingly, the Small enterprises will be given an investment promotion subsidy of

over 20 per cent of the value of fixed assets, for a maximum amount of 40 lakh
rupees.
The medium manufacturing enterprises, according to the policy, will be given a

subsidy of 50 lakh rupees on the investments.
Apart from the subsidy, the government also announced exemption from stamp duty
for the MSMEs.
To encourage the involvement in the sector, the government has further announced
concessional registration charges on all loan documents, lease deeds as well as sale
deeds.
Also the MSMEs can avail a capital subsidy up to 50 per cent of the cost of setting
up of Effluent Treatment Plant (ETP), with a cap of 50 lakh rupees. The government
will also be providing 100 per cent exemption on tax on the electricity tariff for the
initial period of five years for the MSMEs.
Karnataka Trade & Commerce

Karnataka is one of the leading states of India for trading. Holding the fifth highest
GDP ranking among all Indian states, Karnataka‟s GDP growth is 17% (2016-17).
This indicates its potential for further trade & industrial growth.
Bangalore, the capital of Karnataka, is the IT hub of India and also the fourth largest
technology cluster in the world. Industrial diversity is evident from the fact that
Bangalore has earned the nickname of „garment capital of India‟. The state has a
total of 47 IT and IT SEZs along with three software parks. Presence of dedicated IT
investment regions is supportive to the fast growth of its IT industry.
The largest software exporting state of India, Karnataka, has robust textile, agro,
aerospace, heavy engineering and automobile industries too. Around 60% of
biotechnology companies have a branch in Karnataka and it generates 50% of the
total revenue earned by the Indian biotechnology industry.
Karnataka‟s flora and fauna along with a natural coastline of 320 km provide its
tourism industry a major boast.
Textile:
Karnataka‟s foray into the textile sector has turned out to be quite a successful
venture. So much so that Bangalore has earned itself the moniker of the „garment
capital of India‟. With the textile industry occupying a key position in the economy of
Karnataka Economy
Karnataka, the state government is working towards leveraging the potential for
growth of the textile sector in the state.
The Karnataka Government is keen to witness the growth of the textile industry in
the state. The government has undertaken many initiatives to motivate textile
entrepreneurs to establish textile enterprises in the state. The new textile policy
named NuthanaJavaliNeethi 2013-18 highlights the government‟s vision and
objectives regarding the development of the textile industry.
Iron & Steel:
Karnataka is a state that is rich in mineral resources. It is also one of the leading
industrialized states of the country. The iron and steel industry of the state plays a
very important role in its growth and development. It is one of the key industries
required for industrial progress.
Various important industries like the construction, power plants, heavy and light
machine, automobile, etc. depend on the iron and steel industry for their growth and
expansion. The mineral resources of Karnataka have helped the iron and steel
industry to flourish in the state. As of 2014-15, India was the largest producer of
sponge iron and the third largest producer of raw steel in the state.
The iron and steel industry in Karnataka is a multi-crore industry. It plays a big role in
the economy of the state. There are a number of steel plants in Karnataka. They
provide employment to a large number of people in the state. The industry also
draws a significant amount of investment for the state. The state government has
come up with various policies and initiatives to help the industry grow bigger and
stronger.
 The government of Karnataka has plans to set up an industrial park for the
iron and steel industry in the state. The government plans to attract huge
investment and create around two lakh jobs through the industrial park. There
is also plan to establish a township linked to the industrial park.
 The state government has planned a steel corridor of 300 km length to boost
the iron and steel industry in the state. This corridor is proposed to be located
around the Hospet-Bellary area in the state. This area is known to be rich in
iron ore. The steel zone will cover districts like Bagalkot, Gadag, Koppal,
Haveri, Raichur, and Bellary.
 The government plans to establish a high-speed train connection, a port, and
a nuclear power plant to develop the steel corridor.
 There are 11 major integrated steel plants that are in different stages of
implementation in the state.
Petrochemical:
Karnataka Economy
Karnataka is one of the top ranking industrialized states in the country. The state has
emerged as a major centre for the petrochemical industry. Based on the production
volume, India occupies 12th position in the global chemical industry. The
petrochemical sector forms a big part of this industry. Karnataka is a key contributor
to the overall petrochemical production in the country.
The state has more than 500 factories driving its chemical industry. Mangalore has
evolved as the hub of Karnataka‟s chemical and petrochemical industries. Mangalore
Refinery and Petrochemicals Limited (MRPL) is the leading name in the state‟s
petrochemical industry. It is also the only public sector refinery in the state.
Cement:
Karnataka is a prominent name in the field of industrial growth in India. The cement
industry in Karnataka is one of its largest and fastest growing industries. India is the
2nd largest cement producing country in the world. Karnataka produces more than
11 million tons of cement annually. It contributes to 6.51% of the total cement
manufactured in India. The state occupies 7th position in the cement production of
the country. Karnataka has more than 16 cement industries. It exports more than
0.01 million tons of cement.
Automobiles:
Karnataka occupies the fourth position in automobile production in India. The state‟s
contribution amounts to 8.5% of the national output in this sector.
The automotive industry in Karnataka is responsible for providing employment to

more than 55000 people in the state. The state has more than 50 automobile
component manufacturers carrying out their operations within its boundaries.
Biotechnology:
Karnataka has emerged as a leading player in the biotechnology revolution of India.

Today Karnataka is considered as the biotech hub of the country. It is the preferred
destination biotech investment in the country. More than 60% of the biotech
companies in the country have a base in Karnataka. The state is responsible for 50%
of the total revenues being generated in the biotech sector in India.
Plantation:
The term plantation refers to the cultivation of crops on an extensive scale for
commercial sale. The plantation industry in Karnataka depends on several high-
value commercial crops such as coffee, tea, rubber, pepper, cardamom, cashew,
coconut, areca nut, etc. The main districts where plantations are carried out in
Karnataka are Chikmagalur, Hassan, Kodagu, DakshinaKanada.
Karnataka Economy
Pharmaceutical
Karnataka is one of the fastest growing states in terms of the pharmaceutical sector
in India. The state occupies the fifth position in the pharmaceutical exports. Around
40% of the state‟s pharma produce is exported overseas.
The state contributes about 10% to the pharmaceutical export revenues of the
country. At present Karnataka is home to more than 230 pharma and biotech
companies.
Aeronautics:
Karnataka is regarded as the hub of aeronautics industry in India. With the

establishment of Hindustan Aeronautics Limited (HAL) in 1940, aerospace activities
in Karnataka started taking flight. The establishment of HAL was followed by the
establishment of defence R& D and public sector undertakings institutions like BHEL,
NAL, GTRE, DRDO, BEML, ISRO, ADA, ADE, etc. All of these organizations and
companies paved the way for Karnataka to become a major hub
Karnataka has a well-developed transport system. Bengaluru city has one of

the busiest airport in india and well connected with domestic and international
flights. It is also the headquarters of the airlines Air Deccan and Kingfisher
Airlines. Roads are the arteries of Karnataka State and many state and National
Highways pass through the State.
In case of Rail transport The headquarters of the South-Western Railway

division of Indian Railways is located at Hubballi .Konkan Railway considerd
as engineering marvel and one of the toughest engineering projects passé
through the State. Buses, cars and trains are the means of transport for moving
across distant places in Karnataka.
Air Transport
Karnataka is the leading state in the aerospace infrastructure. The State has five
operational airports. Bangalore and Mangalore are the International Airports in
the state.
International Airports -2
Defence Airports -2
Domestic Airports -3
Network of regional/ minor airports, airstrips and helipads fuel industrial
growth, connectivity amongst tourist areas, and provide backup for emergency
services. Kalaburagi Airport, Bijapur Airport and Shivamogga Airport, built
Karnataka Economy
under the Public Private Partnership (PPP) model, was opened for commercial
use by July 2013.
Land Acquisition is under progress for Hassan and Bellary Airports. Airports
Authority of India expanding airports in Hubli and Belgaum with investments
of US$ 31-million (INR 155 crore) each.
Railways
 the total length of rail track in Karnataka is 3089 km .
 The South Western Zone, headquartered at Hubballi was created in 2003
thus fulfilling a long-standing demand of the state. Several parts of the
state now come under this zone with the remaining being under Southern
Railways.
 Coastal Karnataka is covered under the Konkan Railway network, a
project that is regarded as one of the feats of Indian engineering.
 PPP-based projects for expansion of railway connectivity planned such as
Bijapur-Shahbad, Hubli-Ankola and Dharwad-Belgaum
 Proposed Rail coach factory at Kolar
 Udupi-Mangalore Mass Rapid System
 High speed train to Bangalore International Airport
Port
 New Mangalore Port: 9th major port in India, with the deepest inner
harbor on the west coast
 10 minor ports; Karwar, Belekeri, Tadri, Honnavara, Bhatkal, Kundapur,
Hangarkatta, Malpe, Padubidri and Old Mangaluru.
 Karnataka has a coastline of 320 KM between Karwar (at the North) and
Mangalore (at the South) flanked by Uttara Kannada, Udupi and
Dakshina Kannada districts, with favorable and strategic port locations
 Adjacent districts are rich with mineral and natural resources and well
connected by National Highways and the Konkan Railway broad-gauge
line, both running parallel to the coastline
 Scope for development of additional ports in next 5 years
Road
 Karnataka is well connected with all the six neighboring states and other
parts of India through 14 NHs, accounting for 6% NH network of India
Karnataka Economy
 Karnataka State Highways Improvement Project (KSHIP) has developed

2,394 Km of road with an expenditure of US$ 474 million
 Road length in Karnataka increased by 43% in the last 10 years
 Karnataka Road Development Corporation Ltd. has undertaken
construction of 853 bridges, of which 613 bridges have been completed
 Road development implemented through PPP models such as Build-
Operate-Transfer‘ (Tumkur-Nelmangala, Elevated Expressway to
Electronic City) and annuity projects (Bengaluru-Maddur)
 Government of India has provided US$ 34.4-million (INR 165 crore) in
Viability Gap Funding grant.
 Government of Karnataka has planned 5 other projects with the total cost
of US$ 19.2-million (INR 92 crore) for PPPbased projects on
development of roads
 National Highway connectivity: US$39.6-million (INR 190 crore) for 83-
km road from NH-63 near Ginigere – Gangavathi.
Logistics
 has nine transshipment centers catering to the imports and exports of the
state. Four of these centers are located in Bangalore
 Development in Karnataka’s logistic infrastructure targeted at paralleling
growth of national logistic in rastructure to harness increasing
opportunities in sector
 Imports / exports from Karnataka mainly take place through the through
the four centers – NMPT, Karwar, BIAL and the dry port Banglore.
 9 transhipment centres
 container Depot Bangalore
 2 Container Freight Stations, Bangalore
 New Mangalore Port, Mangalore
 Karwar Port
 Belekeri Port
 Container Freight Station, Mangalore
 Container Freight Station, Belgaum
Karnataka-Mineral
Karnataka Economy
The state of Karnataka is abundant in mineral resources. It is said to be one of the

most mineral rich states of India. The mineral belt covers an area of 1.92 lakh sq.km
including 29 districts of the state. Karnataka is also endowed with the green stone belt with
valuable mineral resources such as gold, silver, copper, iron-ore, manganese, limestone,
dolomite, asbestos, bauxite, chromite, kaolin and granite rock. .
Gold: The Kolar Gold Fields in Kolar used to be one of the major producers of gold in India,
before it shut down. Presently the gold mines of Hutti and Raichur produce almost 84 per
cent of the country’s gold. The other major centers of gold
mining are Dharwad and Chitradurga. The gold mines produce about 3,000 kg’s of gold per
annum. The district of Raichur is also famous for its silver deposits.
Iron ore: Karnataka has over 9,000 million tonnes of iron ore resources, of which the bulk is
in the magnetite form. The production during the year 2007-08 crossed 47 million tons. The
districts of Bellary and Hospet are the main districts, whereas
Chitradurga, Bagalkot and Tumkur districts are also produce significant amounts of iron ore.
The chunk of the iron ore is exported to be used in steel manufacture and pig iron and
sponge iron plants.
Limestone: It is another important mineral with an estimated 51,000 million tons. Karnataka
has the largest limestone reserve in India. The districts of Gulbarga, Bagalkot,
Belgaum, Shimoga and other Uttara Kannada districts are endowed with extensive high
grade limestone. The present and consistent production of approximately 14 million tonnes
provides for the cement plants in these districts.
Granite: Karnataka has vast resources of granite deposits. These deposits have brought the
state into the international scenario. The district of Mysore is famous for its black granite
and the Bellary and Raichur is famous for its pink version. Pink granite is also quarried at
Uduvagere and Managalli in Magadi taluk of Bangalore district, Deodurg, Mundargi,
Masarkal, Savanthagal in Deodurg taluk and in Bijapur.
Felsite: Karnataka is the only Indian state where felsite is produced. Large occurrences of
Felsite rocks are reported to have been found in Kirangur, Hosahalli and Srirangapatanam
and Mysore. These rocks display either grey or pink colour as well a combination of both
theses colours.
Manganese ore: Karnataka has the largest recoverable reserves of manganese ore in the
country. It is mostly found in the Chitradurga district. Shimoga and North Kanara district as
well as the Bellary and Mysore districts are other places where manganese ore is found.
Other Minerals in Karnataka
Other minerals found scattered across the state are Chromite, Dolomite, and Bauxite.
Chromite is found in altered ultrabasic rocks in the districts of Chikmagalur, Chitradurga,
Karnataka Economy
Hassan, Mysore and Shimoga. Dolomite’s presence has been recorded at a number of
places. There is a possibility of a reserve of 1112 million tonnes of Dolomite deposits in the
regions of Belgaum and Bijapur districts. Bauxite is found in the Chikmagalure district.
Karnataka is among the very few Indian states to formulate a progressive mineral policy as
early as the year 2000. Features such as transparency in granting mineral concessions,
adoption of modern techniques in mining and emphasis on value addition and sustainability
make this policy so progressive.
Karnataka Planned Development
Karnataka is situated in the south western region of India. It is one of the most prosperous
states in India. Karnataka has made tremendous progress in the fields of education, industry,
agriculture, literature and tourism. Bengaluru is the capital of Karnataka. Bengaluru is known
as the Silicon Valley of Asia due to its flourishing Information Technology industry.
Karnataka is the seventh largest state in India in terms of area. It has 30 districts. Karnataka is
bounded by the Arabian Sea and the Laccadive Sea on the west, Goa on the north-west,
Maharashtra on the north, Telangana on the north-east, Andhra Pradesh on the east, Tamil
Nadu on the south-east and Kerala on the south-west.
The major rivers flowing through Karnataka are Cauvery, Kabini, Krishna and Tungabhadra.
There are three distinct geographical regions in Karnataka: the Coastal Plains, the Western
Ghats and the Deccan Plateau. Karnataka covers about 750 km from North to South and
about 400 km from East to West. The coastline of Karnataka stretches for about 320 km.
Karnataka Development Programme (KDP) reviews (including Twenty Point

Programme) :
The performance of the programme is generally reviewed against pre-determined monthly

targets every month at the State, district and taluk levels. At the state level, the division
conducts quarterly reviews chaired by the Chief Secretary and attended by the Additional
Chief Secretaries/ Principal Secretaries/ Secretaries of all departments.
Karnataka Economy
The subjects covered under State level KDP are - Review of progress under Plan schemes
reported in MPIC format by implementing departments, Centrally Sponsored
Schemes/Central Plan Schemes including Flagship programmes, Special Development
Programme, SCSP/TSP, Externally Aided Projects, Status of sanction of ongoing and new
schemes, Result Framework Document (RFD), Decision Support System (online MPIC),
Evaluation Studies and other inter departmental issues.
Monthly Multi-level Reviews of Plan Schemes (MMR):
Under this system, the progress of plan schemes in the State and district sectors is subjected
to monthly review. At the State level, the division coordinates MMR meetings of the
Secretaries of the administrative departments with their heads of departments and
undertakings and nodal officers of the Planning and Finance departments.
Centrally Sponsored and Central Plan Schemes:

Monthly meetings have been conducted to review the progress made under Centrally
Sponsored and Central Plan Schemes, including the release of funds by the Government of
India, implemented by various departments and place the results before the KDP meetings
chaired by the Chief Secretary.
Result Framework Document (RFD):

Government of Karnataka has introduced generic RFD Framework on the lines of PMES
followed by Government of India in order to enable departments to transit from an input
driven approach to results / outcomes orientation with effect from 2011-12. For this purpose
the administrative departments have been classified into 19 groups and for each group one
ATF Expert Group has been formed.
Decision Support System (DSS):

The DSS application (Online MPIC) is being implemented by the Planning Department in
collaboration with Centre for e-Governance. The Decision Support System facilitates the
online entry of monthly programme for each and every scheme of the department and also
online entry of the monthly financial and physical achievement right from the field officer
level to the HOD level.
Monthly Report on Plan Performance
Karnataka Economy
Based on the figures furnished in the MPIC reports, the PMI division is consolidating the
plan expenditure figures, administrative department wise, and releasing Monthly Report on
Plan Performance.
The Karnataka government is drawing up a Rs. 2,100 crore project with loan assistance from
Asian Development Bank, to develop and upgrade eight city clusters around Bangalore to
woo investment and ease the load on the State capital.The city clusters proposed to be
developed are Nelamangala, Magadi, Anekal, Bidadi, Dabaspet, Harohalli, Devanahalli and
Hoskote.
' Karnataka Urban Development and Coastal Environment Management Plan

(KUDCEMP-EAP) '
Description of KUDCEMP
The project will support government's priority investment in the urban sector based on an
urban development sector development strategy that focusses on improving the welfare of
the urban poor and devolution of municipal management responsibility from states to urban
local bodies. This integrated urban development project will help meet basic human needs
by developing urban services for water supply and sanitation, solid waste and wastewater
management, and slum and environmental improvements. The project will also support
street improvements and traffic management, and strengthen other municipal services
required to improve the quality of life in urban areas. The project will provide assistance in
capacity building and community participation at the state and local levels and in Project
implementation.
' Karnataka Urban Water Sector Improvement Project-KWASIP '
Objective
To improve urban water supply services and demonstrate that sustainable, efficient and
commercially oriented service provision. This objective is aimed to be achieved by
implementing the strategy enunciated in the Urban Drinking Water and Sanitation Policy
2003 of the Government of Karnataka in a phased manner. Government of Karnataka and
World Bank have approved the first phase.
Selection of towns
Karnataka Economy
Three towns namely Belgaum, Gulbarga and Hubli-Dharwad are identified in the first
phase. Subsequent phases of the project will improve scaling up to the rest of the areas in
three cities and also to more cities.
' North Karnataka Urban Sector Investment Programme (NKUSIP) '
North Karnataka Urban Sector Investment Programme (NKUSIP) was conceived in the
recommendations of the High Power Committee on Regional Imbalances in a bid to boost
economic growth in a region that has traditionally lagged behind. 25 such towns were
selected for infrastructure provision based on the following criteria:
♦ District Headquarters of newly created districts.
♦ Towns having more than 50,000 population.
♦ Towns with tourism importance.
Seventeen water supply projects with estimated cost of Rs. 711.92 crore have been submitted
to the Central government under UIDSSMT (Urban Infrastructure Development Scheme for
Small and Medium Towns). Rs. 1,760 croreproject has been prepared to provide 24X7 water
supply to the entire corporation area of Belgaum, Gulbarga and Hubli-Dharwad cities on PPP
basis with World Bank assistance.
Karnataka Economy and its main features

Karnataka is one of the most progressive and industrialized states in the country and
is leading States in driving India's economic growth. Economic growth and fast
development of any state depends on Industrial relations.
The state has an illustrious history of successfully introducing several industrial and
technological initiatives. State's pre-eminent position on the industrial and business
map of India is based on several factors
Karnataka is rich in natural resources and known for its salubrious climate. It has a
strong resource base of highly educated people, backed by an extensive educational
infrastructure comprising world-renowned schools, colleges, institutes of higher
learning, research and development centres, and highly skilled labour force,
disciplined and hardworking. And, above all, it has a far-sighted, development-
Karnataka Economy
oriented, investor-friendly government that firmly believes in, and actively

encourages, public – private partnerships. Today, Karnataka is driving domestic
growth and creating wealth through a potent mix of resource-based, skill-based,
technology-based and knowledge-based products and services.
Karnataka is one of the leading states in the field of industrial development both in
the private and public sectors and in the area of computer software, which has
attracted national and international firms to the city of Bangalore. The state capital
was long ago chosen by the central government for the location of a number of
industries like Bharat Electronics Ltd, Bharat Earth movers, Hindustan Machine
Tools (HMT), Bharat Heavy Electricals (BHEL) etc. Bangalore has become one of
the major centres of electronic industry apart from computer software. The state has
a number of traditional cottage and small industries like handlooms, silk weaving etc.
Karnataka has been the leading state for silk rearing and production of Khadi and
village industries. Apart from the numerous factories in engineering, chemicals,
electrical, and electronic goods, there are food processing and processing of
plantation products like tea, coffee, rubber, cashew etc. About 70% of the people live
in the villages and 71% of the total work force is engaged in agriculture. The main
crops are rice, ragi, jowar, maize, and pulses besides oilseeds and number of cash
crops. Coffee is the principal plantation crop. Cashew, coconut, arecanut,
cardamom, chillies, cotton, sugarcane and tobacco are among the other crops.
Information Technology:
Karnataka is leading IT hub of the country. Bengaluru as the 2nd largest technology
cluster in the world after Silicon Valley.
1. 3500 IT companies contribute over 38% of the IT exports in the country with
Karnataka being the largest software exporter.
2. 33 Billion USD IT exports in the year 2014-15.
3. More than 400 out of Global Fortune 500 companies outsource their IT services
from Bengaluru.
Karnataka Economy
4. More than 85 Chip Design houses and 370+ R & D houses provides direct
employment to over 10 lakhs and indirect employment over to 25 lakhs as on 2014-
15.
5. 50% of the world's SEI CMM Level 5 certified companies located in Bengaluru.
6. Presence of almost all leading IT companies of the world, including Infosys, Wipro,
Tata Consultancy Services, Oracle, Dell, IBM, Microsoft, Accenture, Cognizant, etc.
Bengaluru – Start-up Capital of India:
Bengaluru has emerged as IT Start-up Capital of India with more than 30% of
national share. Start-ups are being supported with integrated package of subsidised
incubation space, fully equipped laboratories, early stage funding and capacity
building, partnerships with NASSCOM 10 K program, IAMAI„s 10X initiative and
DietY, GOI„s IOT initiative. Incubation Centres established and start-ups being
supported in Tier-2 cities to develop them as upcoming ICT destinations over 70
Venture Capital Firms.
Biotechnology
Karnataka placed at the forefront of Biotechnology in the country, is rightly known as

the Biotech Capital of India. Karnataka is home to large array of biotechnology
educational, R&D institutions and enterprises: large companies, medium-sized ones,
and many promising biotech start-ups.
All of these are integral parts of the ecosystem required to find innovative solutions
and to convert them into products and processes to mitigate challenges such as
hunger, malnutrition, health and wellness, energy deficiency and deterioration of the
environment.
Biotech Sector in Karnataka reflects:
1. 200 plus biotech companies including BIOCON the first one to go public.
2. Rapidly growing number of biotech start-ups
3. Contribution of 26% of India„s biotech revenues including high export revenues

and domestic sales.
Karnataka Economy
4. Highest expenditure for R&D
5. A diverse range of specialized domain training from agriculture to energy to bio-

engineering.
Manufacturing Hub:
Karnataka is the preferred choice for global players in Aerospace research and
development. Extensive experience and inherent competencies in aerospace make
Karnataka the producer of more than a quarter of India's aircraft and spacecraft.
Global giants such as Boeing Research & Technology Centre and Airbus
Engineering Centre have made Karnataka their base. Karnataka has India's first and
top R&D Centres in Aerospace & Defence such as Indian Space Research
Organization (ISRO) and the Defence Research and Development Organization
(DRDO).The Government of Karnataka has earmarked 984 acres of exclusive
industrial area and sector specific SEZ for Aerospace industries near Bangalore
International Airport. India„s first Aerospace SEZ is operational in Belgaum.
Dedicated Aerospace policy (first in India) was drafted by the Government
ofKarnataka.
Automotive Manufacturing
The State is a manufacturing hub for automotive majors such as Toyota Kirloskar,
Volvo, TVS Motors, Tata Marcopolo, L&T Komatsu, Mahindra Reva, BOSCH,
Siemens, and JK Tyres.Bosch India, the world's largest automotive supplier, has
been headquartered in Bangalore since 1953. Honda's largest two wheeler
manufacturing plant in the world is coming up in Narsapur, Kolar District. Three
existing auto clusters, one industrial valve cluster and one auto component cluster
make Karnataka the preferred investment destination for automotive players globally.
Two more manufacturing hubs are coming up in Narsapur and Vemagal Industrial
Areas in KolarDistrict. The government is inthe process of announcing a Dedicated
Automobile Policy
There is a huge potential in automobile manufacturing in Karnataka. The component

industry caters to OEMs (all kinds of automobiles such as trucks, cars, SUVs, LCVs,
buses, two-wheelers, and tractors) and exports.
Karnataka Economy
With major international OEMs having manufacturing facilities in Karnataka, supply

to them from within the country and this region in particular, has given the sector a
huge impetus. Components are also being supplied across India to other OEMs from
Karnataka.
Machine Tools Manufacturing
Huge potential is estimated in machine tools manufacturing in Karnataka. Total

industry size in India in terms of production is INR 3,600 crore. Bangalore alone
produces 60% of the machine tools of India in terms of value, which is estimated at
INR 2,160 crore. India„s first Integrated Machine Tool industry Park (IMTIP) is set to
come up in Karnataka near Bangalore. 100% FDI is allowed in the Machine Tools
industry by the Indian Government.
Electronics & Semiconductor Manufacturing
In 2014-15, the domestic production of electronic hardware in the Karnataka stood

at US$ 42.40 bn whereas the export was US$ 32.18 bn.80 of the 120 companies
engaged in chip designing are located in Karnataka. Bengaluru is a global hub for
R&D activity in the software industry, which will greatly aid the electronic hardware
industry. Karnataka also has the advantage of having maximum skilled/technical
manpower. Karnataka is setting up the first ESDM cluster development in Electronics
City
Drugs & Pharmaceuticals Manufacturing
Karnataka is home to 221 formulation units and 74 bulk drug units. State„s
Pharmaceutical industry generated Rs 8k crore in revenue contributing 8% of the
country‟s total revenues, ranking 10th in the number of Pharmaceutical
manufacturing. Karnataka exports 40% of its pharma produce. GSK Pharmaceuticals
is establishing one of the world„s largest drug formulation units in Vemgal, Kolar.
Besides there is a huge presence of exclusive Pharma SEZ, Pharma industrial areas
and R&D Centres in Karnataka.
Agro & Food Processing
Karnataka leads in the exports of silk in India accounting for approximately 25% of
the total Indian export market.
Karnataka Economy
Karnataka is the leader in horticultural products and spices, aromatic and medicinal
crops,and tropical fruits. Only Indian State to have all varieties of fruit. It is the largest
producer of coffee and cocoa in the country. It is also the second-largest milk
producing state, and third and fourth largest producer ofsugar and sugarcane
respectively. Karnataka has 5 dedicated Food Parks and one Food Processing SEZ.
Chemicals and Petrochemicals:
Karnataka is positioning as major growth centre for chemical industry with presence
of 500 companies with leading players like MRPL, BASF, Mangalore chemicals and
fertilisers, United Phosphorus, attracting large R&D Centres for
Chemicals/Petrochemicals including planned centre of SABIC. Mangalore in
Karnataka is evolving as the epicentre of chemical and petrochemical industries in
the state. Mangalore Refinery and Petrochemicals Limited (MRPL) the state's
leading player, and public sector refinery is undergoing major expansion from current
9 mln tons to 15 mln tons refinery capacity.
Main Features of budgets of Karnataka:-
The Chief Minister and Finance Minister, Mr. Siddaramaiah presented the Budget for
Karnataka for financial year 2017-18 on March 14, 2017.
Salient highlights of the Budget :

 Huge grants to OBC, SC and ST communities who form the largest chunk of
Karnataka's population. Over Rs 6,000 crore allocated for different programmes,
subsidies and incentives
 Almost equal allocations to rural and urban development. Focus on Bangalore stands
out.
 'Namma’ canteen on the lines of Amma canteen in Tamil Nadu will provide breakfast,
lunch and dinner at affordable price. One canteen would be located in every ward of
Bruhat Bengaluru Mahanagara Palike (BBMP). Similarly, Saviruchi mobile canteens
would be launched in 30 districts
 Free laptops to 1.5 lakh students getting into engineering, medical, polytechnic and
first-grade colleges
Karnataka Economy
 LPG connections to 2 lakh BPL families of SC/ST communities; additional incentives

and LPG connections to about 5 lakh poor families to those not covered by central
schemes
 Up to 10,000 litres of free water supply to urban poor (those living in homes built on
plots less than 600 square feet land)
 Government to work towards 100% reservation to Kannadigas in private sector Group
C and D jobs (clerical or lower jobs) — so all these jobs are to be reserved for
Kannadigas
 Importance of English education getting recognized. Grants for effective English
language teaching from Class I, and IT education in high schools and colleges
 A new program Yuva Yuga will be implemented to train 1.1 lakh persons in IT,
electronics, animation and other sectors by pooling funds from grants of Centre
 Food grains being distributed under Anna Bhagya scheme (PDS distribution at
subsidised rates) will be increased from 5 to 7 kg per person
 Eggs twice a week for children in anganwadis; hot, cooked meals for pregnant and
lactating mothers from July
 In 2017-18, 10 lakes to be developed at cost of Rs 42 crore. Infamous Bellandur and
Varthur lakes known for their contamination and frothing will be developed
 One time incentive of 2 lakh each to students from minority and OBC community
who make it to premier institutes like IIM, IIT, IISc etc
 Grants for renovation of Gurdwaras
 Rs 175 crore to be provided to Christian community for "development" purposes
 Ban on two-stroke autos from April to reduce air and noise pollution. These are to be
replaced with 10,000, 4-stroke LPG-enabled auto rickshaws for which subsidies to be
given to auto owners
 Rs 26,000 crore for second phase of 72 km of Bangalore Metro; phase 1 of 42.3 km to
be completed in April
 To regulate multiplexes by making maximum entry fee at Rs 200
 Tech-based apps for early response to crimes against women and children
Budget Highlights:-
Karnataka Economy
 The Gross State Domestic Product (GSDP) of Karnataka for 2017-18 at current prices
is estimated to be Rs 12,80,465 crore, which is 15% higher than the revised estimates
for 2016-17.
 Total expenditure for 2017-18 is estimated to be Rs 1,86,561 crore, 13.4% higher than
the revised estimates of 2016-17. In 2016-17, there was an increase of Rs 1,060 crore
(0.6%) in the government’s expenditure during the year, over its budget estimate.
 Total receipts (excluding borrowings) for 2017-18 are estimated to be Rs 1,45,027
crore, an increase of 9% over the revised estimates of 2016-17. In 2016-17, total
receipts were higher than the budget target by Rs 2,148 crore.
 Revenue surplus for 2017-18 is targeted at Rs 137 crore, or 0.01% of GSDP. Fiscal
deficit is targeted at Rs 33,359 crore (2.61% of GSDP). Primary deficit is estimated to
be Rs 19,200 crore, which is 1.50% of GSDP.
Policy Highlights:-
 Namma Canteen: Namma canteens will be opened in each of the 198 wards of
Bengaluru Mahanagar Palike. The canteens will serve breakfast for Rs 5, and lunch
and dinner for Rs 10. Rs 100 crore has been allocated for the scheme.
 Housing: Seven lakh houses are proposed to be constructed. Of this, six lakh will be
constructed in rural areas, and one lakh in Bengaluru.
 Tax exemptions: The following items are proposed to be exempted from Value Added
Tax (VAT): Navane, Same, Aaraka, Baragu, coconut husk, and pulses.
 Excise Duty on liquor: Additional Excise Duty on two of the 17 slabs of excise duty
(which is levied on liquor) is proposed to be increased by 6%. On the other 15 slabs, it
is proposed to be increased by 10% and 16%. Further, VAT will be removed from
sale of liquor including beer, fenny and wine.
 Increase in taxes on two-wheelers: The tax on registration of two-wheelers is
proposed to be increased from the current rate of 12% to 18%.
 The highest allocation of Rs 20,008 crore has been made for education, which is 5.7%
lower than the budget estimates of 2016-17. This is followed by Rs 14,433 crore
being allocated for water resources, which is 36% higher than 2016-17. Rs 13,732
crore has been allocated for urban development.
Budget Estimates for 2017-18:-
 The total expenditure in 2017-18 is targeted at Rs 1,86,561 crore. The revised

estimate for the expenditure in 2016-17 is Rs 1,64,479 crore, which is 0.6% (Rs 1,060
crore) more than the budgeted target of 2016-17.
 The expenditure in 2017-18 is proposed to be met through receipts (other than
borrowings) of Rs 1,45,027 crore and borrowings of Rs 37,092 crore. Total receipts
for 2017-18 (other than borrowings) are expected to be 9% higher than the revised
estimates of 2016-17.
Expenditure in 2017-18:-
Karnataka Economy
 Government expenditure can be divided into (a) capital expenditure, which affects the
assets and liabilities of the state, and (b) revenue expenditure, which includes the rest
of the expenses.
 Total capital expenditure of Karnataka is proposed to be Rs 41,806 crore, which is an
increase of 27.9% over the revised estimates of 2016-17. This includes expenditure
which leads to creation of assets, and repayment of loans, among others.
 Total revenue expenditure for 2017-18 is proposed to be Rs 1,44,755 crore, which is
an increase of 9.8% over revised estimates of 2016-17. This expenditure includes
payment of salaries, administration of government programs, etc.
Other announcements:
 Agriculture: Rs 6,505 crore has been allocated for Agriculture and Horticulture,
which is 15% higher than the revised estimates of 2016-17. Rs 845 crore has been
allocated for the Raitha Suraksha Pradhan Mantri Fasal Bima Yojna.
 Health and Family Welfare: Rs 6,728 crore has been allocated for Health and Family
Welfare, which is 3.7% higher than the revised estimates of 2016-17. 200 medical
stores will be started under the Jana Aushadi Generic Medical Stores scheme to
provide generic medicines at lower prices.
 Subsidies: Karnataka is expected to spend Rs 24,232 crore on subsidies in 2017-18.
Of this, the highest allocation of Rs 8,841crore is for power, followed by Rs 3,654
crore for housing.
Deficits, Debts and FRBM Targets for 2017-18:-
The Karnataka Fiscal Responsibility Act, 2002 provides annual targets to progressively
reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.
 Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A

revenue deficit implies that the government needs to borrow in order to finance its
expenses which do not create capital assets. However, the budget estimates a revenue
surplus of Rs 137 crore (or 0.01% of GSDP) in 2017-18. This implies that revenue
receipts are expected to be higher than the revenue expenditure, resulting in a surplus.
The estimate indicates that the state is meeting the target of eliminating revenue
deficit, as prescribed by the 14th Finance Commission.
 Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled
by borrowings by the government, and leads to an increase in total liabilities of the
government. A high fiscal deficit may imply a higher repayment obligation for the
state in the future. In 2017-18, fiscal deficit is estimated to be Rs 33,359 crore, which
is 2.61% of the GSDP.
 Total Liabilities: It is the accumulation of borrowings over the years. In 2017-18, the
total liabilities are expected at 18.93% of GSDP. The Karnataka Fiscal Responsibility
Act, 2002 requires the state to progressively reduce total liabilities to less than 25% of
GSDP.
Karnataka Economy
Major Tourist Places in Karnataka:-
Karnataka is a state in southwest India with Arabian Sea coastlines. The capital, Bengaluru
(formerly Bangalore), is a high-tech hub known for its shopping and nightlife. To the
southwest, Mysore is home to lavish temples including Mysore Palace, former seat of the
region’s maharajas. Hampi, once the medieval Vijayanagara Empire’s capital, contains ruins
of Hindu temples, elephant stables and a stone chariot. Karnataka is a state known for its
ancient sculptured temples,modern cities with shopping and nightlife. Tourist attraction and
places in Karnataka includes palaces, temples, sea beaches and group of monuments at
Hampi,Aihole and Pattadakal.
Karnataka, the eighth largest state in India, has been ranked as the third most popular state in
the country for tourism in 2014. It is home to 507 of the 3600 centrally protected monuments
in India, the largest number after Uttar Pradesh. The State Directorate of Archaeology and
Museums protects an additional 752 monuments and another 25,000 monuments are yet to
receive protection. Tourism centres on the ancient sculptured temples, modern cities, the hill
ranges, forests and beaches. Broadly, tourism in Karnataka can be divided into four
geographical regions:
 North Karnataka
 The Hill Stations
 Coastal Karnataka
 South Karnataka.
The Karnataka Government has recently introduced The Golden Chariot-a train which
connects popular tourist destinations in the state and Goa. More interestingly Karnataka state
transport authority issued a licence to operate bike rentals in the state of Karnataka. Royal
Brothers - Bangalore based Bike Rental startup Offering motorcycles and scooters on rent to
tourists. Royal Brothers has its service in multiple cities such as Bangalore, Manipal, Udupi,
Mangalore and Mysore.
Here are major tourist places:-
Bangalore and Mysore Palace
Bengaluru is the capital of Karnataka and Mysore is one of the most prominent tourist areas
of the state. Tourist attractions in Bangalore and Mysore includes Bangalore palace,Mysore
Palace,Philomena’s Church, Mary Basilica,big Big banyan tree,Wonderla water park and
Shivanasamudra Falls
Karnataka Economy
Hampi and Badami Rocks
Hampi and Badami are the most famous and well-known landmarks in the state of Karnataka
and known for its cave temples, gateways, forts, inscriptions,sculptures and group of
Monuments. The ruins of Hampi and monuments are the most searched historical site in India
and Badami is known for rock sculpture and temple architecture.
Karnataka Economy
Coorg and Chikmagalur Coffee
Coorg and Chikmagalur are famous for coffee plantations and two of the most popular
hill stations in Karnataka. These hill stations are perched on the Western Ghats
mountain range with forests,serene environment, lush green forests, green valleys and
tall mountains.
Aihole and Pattadakal Monuments
Group of monuments at Aihole and Pattadakal are famous for Monuments of the
Chalukyas and are the important tourist centre in the state of Karnataka. Pattadakal
temples and Aihole historic temple complex has the collection of Chalukya
art,inscriptions,sculpture and architecture.
Melukote and Bylakuppe Town
Melukote and Bylakuppe lesser known Town in Karnataka famous for Yoganarasimha
swami temple and Namdroling Monastery. Bylakuppe is about 85km from Mysore and
Melukote is located in Mandya district, these are two of the sacred places in Karnataka
for Hindu and Buddhist temples.
Belur and Halebidu Temples
Belur was the early capital of the Hoysala Empire With Halebidu, these two places are
one of the major tourist destinations in Karnataka. The main attraction in Belur and
Halebidu are Chennakeshva temple and Hoysaleswara temple. some of the finest and
best examples of Hoysala architecture.
Gokarna and Karwar Beach
Beach at Gokarna and sea beach of Karwar are two of the most wonderful beaches in
Karnataka, known for scenic with the rocky mountains and the Arabian Sea. Gokarna
and Karwar sea beaches also famous for its seafood cuisine,temples and festivals.
Haveri and Gadag District
The Haveri and Gadag District are two of the potential tourist hub in Karnataka state.
Few of the major tourist attractions in the districts are Lakkundi Jain
temple,Gajendragad Kalkaleshwara temple,Chaudayyadanapura Mukteshwara
temple,Kudal Sangameswar Temple and Mylara Lingeshwara Temple.
Kudremukh and Mulayyanagiri Peak
Kudremukh is a mountain range and name of a peak located in Chikkamagaluru district

and Mulayyanagiri is the highest peak in Karnataka state also located on the Western
Ghats of Chikkamagaluru. The peaks and ranges are one of the largest wildlife protected
area of the State of Karnataka.
Karnataka Economy
Bidar Fort and Bijapur Tomb
Bidar is a hill-top city well known for its architectural, historical and religious places
and Bijapur city is also famous for its historical monuments of architectural importance.
Both the city has historical forts and tombs known as Bidar Fort and Gol Gumbaz.
Jog and Sivasamudram Waterfall
Jog Falls and Sivasamudram Falls are two of the most famous waterfalls in Karnataka
and Jog Falls is the second- highest plunge waterfall in India. Sivasamudram Falls on the
Kaveri River and Jog Falls is created by the Sharavathi river.
Krishna Raja Sagara and Tungabhadra Dam
Krishna Raja Sagara and Tungabhadra Dam are two of the major dams of Karnataka
state build across Kaveri and Tungabhadra rivers. The dam and reservoir are major
tourist attractions as well as important bird life along with gardens near by.
Lalbagh and Brindavan Gardens
Lalbagh and Brindavan Gardens are located in Bangalore and Mysore,These gardens are
best place for domestic tourist and one of the popular picnic spot. The colorful fountains
of Brindavan Gardens,glass house of Lal Bagh Park and Cubbon Park statues are the
main attractions.
Murudeshwara and Gommateshvara Statue
Murudeshwara and Gommateshvara Statue are home to India’s tallest statue of Lord
Shiva and Gommateshvara Bahubali. The Statue of Lord Shiva and statue of
Gommateshvara Bahubali are two major tourist attractions of the state and one of the
most important tirthas.
Nagarhole and Bandipur National Parks
Nagarhole and Bandipur National Parks are two major wildlife protected area in the
state of Karnataka, known for several species of India’s endangered wildlife. The most
commonly seen birds and animals in Bandipur and Nagarhole are Changeable hawk-
eagle,bee-eater,darter,Gaur,Dholes and tusker.
Karnataka Economy
Main Features of budgets of Karnataka:-
The Chief Minister and Finance Minister, Mr. Siddaramaiah presented the Budget for
Karnataka for financial year 2017-18 on March 14, 2017.
Salient highlights of the Budget :

 Huge grants to OBC, SC and ST communities who form the largest chunk of
Karnataka's population. Over Rs 6,000 crore allocated for different programmes,
subsidies and incentives
 Almost equal allocations to rural and urban development. Focus on Bangalore stands
out.
 'Namma’ canteen on the lines of Amma canteen in Tamil Nadu will provide breakfast,
lunch and dinner at affordable price. One canteen would be located in every ward of
Bruhat Bengaluru Mahanagara Palike (BBMP). Similarly, Saviruchi mobile canteens
would be launched in 30 districts
 Free laptops to 1.5 lakh students getting into engineering, medical, polytechnic and
first-grade colleges
 LPG connections to 2 lakh BPL families of SC/ST communities; additional incentives
and LPG connections to about 5 lakh poor families to those not covered by central
schemes
 Up to 10,000 litres of free water supply to urban poor (those living in homes built on
plots less than 600 square feet land)
 Government to work towards 100% reservation to Kannadigas in private sector Group
C and D jobs (clerical or lower jobs) — so all these jobs are to be reserved for
Kannadigas
 Importance of English education getting recognized. Grants for effective English
language teaching from Class I, and IT education in high schools and colleges
Karnataka Economy
 A new program Yuva Yuga will be implemented to train 1.1 lakh persons in IT,
electronics, animation and other sectors by pooling funds from grants of Centre
 Food grains being distributed under Anna Bhagya scheme (PDS distribution at
subsidised rates) will be increased from 5 to 7 kg per person
 Eggs twice a week for children in anganwadis; hot, cooked meals for pregnant and
lactating mothers from July
 In 2017-18, 10 lakes to be developed at cost of Rs 42 crore. Infamous Bellandur and
Varthur lakes known for their contamination and frothing will be developed
 One time incentive of 2 lakh each to students from minority and OBC community
who make it to premier institutes like IIM, IIT, IISc etc
 Grants for renovation of Gurdwaras
 Rs 175 crore to be provided to Christian community for "development" purposes
 Ban on two-stroke autos from April to reduce air and noise pollution. These are to be
replaced with 10,000, 4-stroke LPG-enabled auto rickshaws for which subsidies to be
given to auto owners
 Rs 26,000 crore for second phase of 72 km of Bangalore Metro; phase 1 of 42.3 km to
be completed in April
 To regulate multiplexes by making maximum entry fee at Rs 200
 Tech-based apps for early response to crimes against women and children
Budget Highlights:-
 The Gross State Domestic Product (GSDP) of Karnataka for 2017-18 at current prices
is estimated to be Rs 12,80,465 crore, which is 15% higher than the revised estimates
for 2016-17.
 Total expenditure for 2017-18 is estimated to be Rs 1,86,561 crore, 13.4% higher than
the revised estimates of 2016-17. In 2016-17, there was an increase of Rs 1,060 crore
(0.6%) in the government’s expenditure during the year, over its budget estimate.
 Total receipts (excluding borrowings) for 2017-18 are estimated to be Rs 1,45,027
crore, an increase of 9% over the revised estimates of 2016-17. In 2016-17, total
receipts were higher than the budget target by Rs 2,148 crore.
 Revenue surplus for 2017-18 is targeted at Rs 137 crore, or 0.01% of GSDP. Fiscal
deficit is targeted at Rs 33,359 crore (2.61% of GSDP). Primary deficit is estimated to
be Rs 19,200 crore, which is 1.50% of GSDP.
Policy Highlights:-
Karnataka Economy
 Namma Canteen: Namma canteens will be opened in each of the 198 wards of
Bengaluru Mahanagar Palike. The canteens will serve breakfast for Rs 5, and lunch
and dinner for Rs 10. Rs 100 crore has been allocated for the scheme.
 Housing: Seven lakh houses are proposed to be constructed. Of this, six lakh will be
constructed in rural areas, and one lakh in Bengaluru.
 Tax exemptions: The following items are proposed to be exempted from Value Added
Tax (VAT): Navane, Same, Aaraka, Baragu, coconut husk, and pulses.
 Excise Duty on liquor: Additional Excise Duty on two of the 17 slabs of excise duty
(which is levied on liquor) is proposed to be increased by 6%. On the other 15 slabs, it
is proposed to be increased by 10% and 16%. Further, VAT will be removed from
sale of liquor including beer, fenny and wine.
 Increase in taxes on two-wheelers: The tax on registration of two-wheelers is
proposed to be increased from the current rate of 12% to 18%.
 The highest allocation of Rs 20,008 crore has been made for education, which is 5.7%
lower than the budget estimates of 2016-17. This is followed by Rs 14,433 crore
being allocated for water resources, which is 36% higher than 2016-17. Rs 13,732
crore has been allocated for urban development.
Budget Estimates for 2017-18:-
 The total expenditure in 2017-18 is targeted at Rs 1,86,561 crore. The revised

estimate for the expenditure in 2016-17 is Rs 1,64,479 crore, which is 0.6% (Rs 1,060
crore) more than the budgeted target of 2016-17.
 The expenditure in 2017-18 is proposed to be met through receipts (other than
borrowings) of Rs 1,45,027 crore and borrowings of Rs 37,092 crore. Total receipts
for 2017-18 (other than borrowings) are expected to be 9% higher than the revised
estimates of 2016-17.
Expenditure in 2017-18:-
 Government expenditure can be divided into (a) capital expenditure, which affects the
assets and liabilities of the state, and (b) revenue expenditure, which includes the rest
of the expenses.
 Total capital expenditure of Karnataka is proposed to be Rs 41,806 crore, which is an
increase of 27.9% over the revised estimates of 2016-17. This includes expenditure
which leads to creation of assets, and repayment of loans, among others.
 Total revenue expenditure for 2017-18 is proposed to be Rs 1,44,755 crore, which is
an increase of 9.8% over revised estimates of 2016-17. This expenditure includes
payment of salaries, administration of government programs, etc.
Other announcements:
 Agriculture: Rs 6,505 crore has been allocated for Agriculture and Horticulture,
which is 15% higher than the revised estimates of 2016-17. Rs 845 crore has been
allocated for the Raitha Suraksha Pradhan Mantri Fasal Bima Yojna.
Karnataka Economy
 Health and Family Welfare: Rs 6,728 crore has been allocated for Health and Family
Welfare, which is 3.7% higher than the revised estimates of 2016-17. 200 medical
stores will be started under the Jana Aushadi Generic Medical Stores scheme to
provide generic medicines at lower prices.
 Subsidies: Karnataka is expected to spend Rs 24,232 crore on subsidies in 2017-18.
Of this, the highest allocation of Rs 8,841crore is for power, followed by Rs 3,654
crore for housing.
Deficits, Debts and FRBM Targets for 2017-18:-
The Karnataka Fiscal Responsibility Act, 2002 provides annual targets to progressively
reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.
 Revenue deficit: It is the excess of revenue expenditure over revenue receipts. A

revenue deficit implies that the government needs to borrow in order to finance its
expenses which do not create capital assets. However, the budget estimates a revenue
surplus of Rs 137 crore (or 0.01% of GSDP) in 2017-18. This implies that revenue
receipts are expected to be higher than the revenue expenditure, resulting in a surplus.
The estimate indicates that the state is meeting the target of eliminating revenue
deficit, as prescribed by the 14th Finance Commission.
 Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled
by borrowings by the government, and leads to an increase in total liabilities of the
government. A high fiscal deficit may imply a higher repayment obligation for the
state in the future. In 2017-18, fiscal deficit is estimated to be Rs 33,359 crore, which
is 2.61% of the GSDP.
 Total Liabilities: It is the accumulation of borrowings over the years. In 2017-18, the
total liabilities are expected at 18.93% of GSDP. The Karnataka Fiscal Responsibility
Act, 2002 requires the state to progressively reduce total liabilities to less than 25% of
GSDP.
Karnataka Trade & Commerce

Karnataka is one of the leading states of India for trading. Holding the fifth highest
GDP ranking among all Indian states, Karnataka‟s GDP growth is 17% (2016-17).
This indicates its potential for further trade & industrial growth.
Bangalore, the capital of Karnataka, is the IT hub of India and also the fourth largest
technology cluster in the world. Industrial diversity is evident from the fact that
Bangalore has earned the nickname of „garment capital of India‟. The state has a
total of 47 IT and IT SEZs along with three software parks. Presence of dedicated IT
investment regions is supportive to the fast growth of its IT industry.
The largest software exporting state of India, Karnataka, has robust textile, agro,
aerospace, heavy engineering and automobile industries too. Around 60% of
Karnataka Economy
biotechnology companies have a branch in Karnataka and it generates 50% of the

total revenue earned by the Indian biotechnology industry.
Karnataka‟s flora and fauna along with a natural coastline of 320 km provide its
tourism industry a major boast.
Textile:
Karnataka‟s foray into the textile sector has turned out to be quite a successful
venture. So much so that Bangalore has earned itself the moniker of the „garment
capital of India‟. With the textile industry occupying a key position in the economy of
Karnataka, the state government is working towards leveraging the potential for
growth of the textile sector in the state.
The Karnataka Government is keen to witness the growth of the textile industry in
the state. The government has undertaken many initiatives to motivate textile
entrepreneurs to establish textile enterprises in the state. The new textile policy
named Nuthana Javali Neethi 2013-18 highlights the government‟s vision and
objectives regarding the development of the textile industry.
Iron & Steel:
Karnataka is a state that is rich in mineral resources. It is also one of the leading
industrialized states of the country. The iron and steel industry of the state plays a
very important role in its growth and development. It is one of the key industries
required for industrial progress.
Various important industries like the construction, power plants, heavy and light
machine, automobile, etc. depend on the iron and steel industry for their growth and
expansion. The mineral resources of Karnataka have helped the iron and steel
industry to flourish in the state. As of 2014-15, India was the largest producer of
sponge iron and the third largest producer of raw steel in the state.
The iron and steel industry in Karnataka is a multi-crore industry. It plays a big role in
the economy of the state. There are a number of steel plants in Karnataka. They
provide employment to a large number of people in the state. The industry also
draws a significant amount of investment for the state. The state government has
come up with various policies and initiatives to help the industry grow bigger and
stronger.
 The government of Karnataka has plans to set up an industrial park for the
iron and steel industry in the state. The government plans to attract huge
investment and create around two lakh jobs through the industrial park. There
is also plan to establish a township linked to the industrial park.
 The state government has planned a steel corridor of 300 km length to boost
the iron and steel industry in the state. This corridor is proposed to be located
around the Hospet-Bellary area in the state. This area is known to be rich in
Karnataka Economy
iron ore. The steel zone will cover districts like Bagalkot, Gadag, Koppal,
Haveri, Raichur, and Bellary.
 The government plans to establish a high-speed train connection, a port, and
a nuclear power plant to develop the steel corridor.
 There are 11 major integrated steel plants that are in different stages of
implementation in the state.
Petrochemical:
Karnataka is one of the top ranking industrialized states in the country. The state has
emerged as a major centre for the petrochemical industry. Based on the production
volume, India occupies 12th position in the global chemical industry. The
petrochemical sector forms a big part of this industry. Karnataka is a key contributor
to the overall petrochemical production in the country.
The state has more than 500 factories driving its chemical industry. Mangalore has
evolved as the hub of Karnataka‟s chemical and petrochemical industries. Mangalore
Refinery and Petrochemicals Limited (MRPL) is the leading name in the state‟s
petrochemical industry. It is also the only public sector refinery in the state.
Cement:
Karnataka is a prominent name in the field of industrial growth in India. The cement
industry in Karnataka is one of its largest and fastest growing industries. India is the
2nd largest cement producing country in the world. Karnataka produces more than
11 million tons of cement annually. It contributes to 6.51% of the total cement
manufactured in India. The state occupies 7th position in the cement production of
the country. Karnataka has more than 16 cement industries. It exports more than
0.01 million tons of cement.
Automobiles:
Karnataka occupies the fourth position in automobile production in India. The state‟s
contribution amounts to 8.5% of the national output in this sector.
The automotive industry in Karnataka is responsible for providing employment to

more than 55000 people in the state. The state has more than 50 automobile
component manufacturers carrying out their operations within its boundaries.
Biotechnology:
Karnataka has emerged as a leading player in the biotechnology revolution of India.

Today Karnataka is considered as the biotech hub of the country. It is the preferred
destination biotech investment in the country. More than 60% of the biotech
companies in the country have a base in Karnataka. The state is responsible for 50%
of the total revenues being generated in the biotech sector in India.
Karnataka Economy
Plantation:
The term plantation refers to the cultivation of crops on an extensive scale for
commercial sale. The plantation industry in Karnataka depends on several high-
value commercial crops such as coffee, tea, rubber, pepper, cardamom, cashew,
coconut, areca nut, etc. The main districts where plantations are carried out in
Karnataka are Chikmagalur, Hassan, Kodagu, Dakshina Kanada.
Pharmaceutical
Karnataka is one of the fastest growing states in terms of the pharmaceutical sector
in India. The state occupies the fifth position in the pharmaceutical exports. Around
40% of the state‟s pharma produce is exported overseas.
The state contributes about 10% to the pharmaceutical export revenues of the
country. At present Karnataka is home to more than 230 pharma and biotech
companies.
Aeronautics:
Karnataka is regarded as the hub of aeronautics industry in India. With the

establishment of Hindustan Aeronautics Limited (HAL) in 1940, aerospace activities
in Karnataka started taking flight. The establishment of HAL was followed by the
establishment of defence R& D and public sector undertakings institutions like BHEL,
NAL, GTRE, DRDO, BEML, ISRO, ADA, ADE, etc. All of these organizations and
companies paved the way for Karnataka to become a major hub
Karnataka Government Schemes 2017-18

Following schemes are covered in this article-
 Free laptop scheme

 Guru Chetana Scheme:
 Mathru Purna Scheme:
 Sankalpadinda Siddi Programme:
 Karnataka Aarogya Bhagya Scheme:
 Yuva Yuga – New Skill Training Scheme:
 Housing Scheme for BPL Families (Upcoming Scheme of Karnataka
Government):
 Home Health Care Services Under National Health Campaign to be Launched
in Karnataka:
Free laptop scheme
Karnataka Economy
The free laptop scheme was announced by the state government in the 2017 annual
budget for all undergraduate students. Karnataka government had allocated Rs. 225
crore for the scheme in its 2017-18 financial budget. But earlier this scheme was
started only to SC/ST students but the government in now planning to include
students from other categories as well.
According to the notification, state government may modify the income limit so that
more students can avail the benefits of the free laptop scheme. The department of
higher education may increase the income limit from 2.5 Lakh to 6 Lakh per annum.
At present, this scheme doesn‟t cover students of B. Ed, Law, Agriculture and
veterinary departments. But student of these courses are also demanding to get the
benefit from this scheme.
The government had an early plan of distributing about 1.5 lakh laptops to the
students but the number may increase by up to 10% after the revision in income limit
and category of beneficiaries.
Once all the make-up of the scheme is finalized, the government would invite
tenders from the laptop manufactures to put an order. The government is also
deciding about the configuration of the laptops. Once the order is finalized, the
government would give two months time period to the company to supply the
laptops.
Guru Chetana Scheme:
The Karnataka government has launched “Guru Chetana Scheme” to improve the
quality of education in the state. This scheme was launched at a function organized
at the District Institute of Training and Education (DIET) by the state govt.
The objective of this scheme is to provide opportunities to the teachers to enhance

their skills, ability to learn and increase the base of knowledge to improve the quality
of education. The officers of the Department of Public Instructions will design the
framework and strive for the successful implementation of Guru Chetana Scheme.
The state government is committed to bring reforms and ensure the quality of
education in all government aided schools across the state. As per the notification,
this scheme contains 29 modules across 8 subjects which includes Science, English,
Social Science and Maths.
In addition to this, teachers can choose a subject in any of these modules of their
interest to receive specialized training. Teachers can take the full benefit of this
scheme and check the performance of their students. This scheme is being launched
simultaneously across the state.
Karnataka Economy
Under this scheme, nearly 50,000 teachers will get selected across the state.
Furthermore, the government has fixed the target to provide training to 1400
teachers at district level.
Also to make this scheme successful, the state government will select some experts
along with teachers as resource persons to implement the scheme successfully
across the state. All persons will get benefited from this scheme.
Mathru Purna Scheme:
The state government of Karnataka is implementing “Mathru Purna Scheme” for

pregnant and lactating poor women across the state. The aim of the scheme is to
provide at least one nutritious meal every day to pregnant women particularly those
living in rural areas of the state.
The objective of this scheme is to improve maternal health that has a direct impact
on the women and child‟s nutrition. Under the scheme, the estimated cost of each
meal could be around Rs. 21 per meal. The meal to pregnant women would be
provided for 15 months that means it starts from the time of pregnancy to up to six
months after delivery. This scheme will help in curb child malnutrition across the
state.
The guideline and framework of Mathru Purna Scheme has been operated by the
department of women and child welfare, government of Karnataka. This scheme
includes rice, dal or sambar, green vegetables, pulses, egg and groundnut-jaggery
chikki to meet the nutritional needs of pregnant and lactating women in rural areas.
In addition, this scheme is providing two kinds of sprouts for those pregnant women
who don‟t eat eggs. The responsibility to implement this scheme is of all the
anganwadis working among rural women across the State.
During 2016-17 financial year, the state government had launched micro nutrients for
pregnant and lactating women who are living in backward taluks at a cost of Rs 42
crore under Mathru Pushtivardhini Scheme, under National Health Mission (NHM).
In 2017-18 financial budget, the government had made an announcement to extend

the scheme to all 30 districts in the state and made a provision in budget and
allocated funds of Rs. 302 crore for effective implementation of this scheme.
Moreover, the workers of anganwadis can change the diet in case the stipulated
items aren‟t easily available in the region and the food preference of beneficiary‟s will
be taken into consideration at time of providing meals.
Sankalpadinda Siddi Programme:
Prime Minister Narendra Modi has launched “Sankalpadinda Siddi programme” in

Karnataka state to empowering farmers throughout the country. This program
Karnataka Economy
organised by the University of Agricultural Sciences at Harobelavadi village in

Dharwad taluk of Karnataka.
Under Sankalpadinda siddi programme, government will provide many opportunities

like adequate water, quality power supply and link farmers to the market etc. to
double the income of farmers till 2022.
Moreover, government will provide drip irrigation facility, soil testing and providing
micro nutrients in the scheme to rejuvenate the agriculture sector. The government is
also planning to encourage the farmers to adopt online Procurement System will be
undertaken through the food corporation of India (FCI).
According to the official notification, the government will link farmers to the domestic
and international markets so that the farmers will get good price for their produce.
Under the scheme, farmers will be introduced with the advent of information and
technology because the lacking of sufficient knowledge of scientific tools for their
produce.
Karnataka Aarogya Bhagya Scheme:
The Karnataka state government is going to launch a healthcare scheme named

“Aarogya Bhagya Scheme” for providing free medical treatment to poor across the
state. The government has fixed the target to cover around 14 million state
households as a part of universal health coverage (UHC) under the scheme.
The mainstream of the scheme is to provide free healthcare services particularly to

needy households in the state. The targeted people under the Aarogya Bhagya
scheme mainly will be from socially and economically backward classes in the
society.
The main objective of the Aarogya Bhagya health insurance scheme is to provide
healthcare facilities especially to households belonging to socially and economically
backward classes. The scheme will provide cashless treatment facilities at all the
government hospitals across the state and selected empaneled private healthcare
institutions and hospitals.
Below are the main highlights of Karnataka Aarogya Bhagya Scheme
 The Universal health coverage (UHC) scheme will cover around 14 million
households.
 The Aadhar card will be linked with the universal health card to leverage the
healthcare facilities.
 The scheme will start on 1 November at Kannada Rajyotsava day in all
districts of the state.
 The state government will merge seven different existing healthcare schemes
in the Aarogya Bhagya scheme, accordingly to the official notification.
Karnataka Economy
 This scheme will provide benefits to everyone without any discrepancy among
APL and BPL card holders.
 The beneficiary of this scheme can get healthcare treatment in government as
well as private hospitals.
Schemes to be Merged in Aarogya Bhagya
Below is the list of 7 existing healthcare schemes which will be merged into the new
Aarogya Bhagya scheme for the better efficiency and transparency in the whole
implementation of the scheme.
 Rajiv Arogya Bhagya Scheme

 Vajpayee Arogyashree Scheme
 Mukhyamantri Santwana Harish scheme
 Yeshasvini Health Insurance Scheme
 Janani Shishu Suraksha Karyakram
 Rashtriya Swasthya Bima Yojana
 Jyothi Sanjeevini Scheme
According to the notification, Aarogya Bhagya scheme the free healthcare facilities
will be provided in two categories for needy households across the state.
In first category, about 10.5 million households will be covered from different
categories including farmers, unorganized workers, Anganwadi (childcare centre)
workers, SC / ST, media professionals, teachers of aided schools, public servants
and even sanitation workers. Though, the beneficiaries of this category will not make
any contribution towards the Aarogya Bhagya Scheme. The remaining three million
households will be covered under the second category.
Insurance Premium of Aarogya Bhagya Scheme
The insurance premium amount of the Aarogya Bhagya Scheme has been decided
and is different for households in rural and urban areas. People who are living in
rural areas have to pay annually Rs. 300 per person and in urban areas Rs. 700 per
person as insurance premium to avail the benefits of this scheme.
Moreover, the state government is also planning to fix the rates for various
secondary and tertiary procedures under the Karnataka Private Medical
Establishments rules which will be paid to the private hospitals.
Additionally, to ensure the services in emergency cases including for both accidents
and medical / surgical emergencies, treatment will be provided at the nearest
hospital whether government or private under Treatment first and Payment Next
program.
The government has taken effective measures to ensure the better health and well-
being of the citizens which are living in the state.
Karnataka Economy
Yuva Yuga – New Skill Training Scheme:
A new skill training scheme named as “Yuva Yuga” has been launched in the
Karnataka state. The Yuva Yuga scheme is aimed at creating about 10 Lakh skilled
jobs in the state by providing new-age technology skill training to the youth. In 2017-
18 alone, under the Yuva Yuga scheme, the Karnataka state government would
training about 1.10 Lakh youth.
Under the Yuva Yuga skill training scheme, youth would be trained to become job
ready for about 328 job roles across industries. Yuva Yuga program was announced
in 2015-16 financial budget but would be implemented from the current year.
Under the Yuva Yuga scheme, skill training centres across the state would be
opened to provide skill training to youth and make them employable. Skill training in
many cutting edge technologies such as artificial intelligence, machine learning, and
others would be provided to the youth with the assistance of Karnataka Department
of IT, Biotech and Science & Technology.
The Yuva Yuga scheme would provide skills in line with the current industry
demands. Skills would be provided to the youth to make them employable for entry
and mid-level job roles. People up to 10 years of experience can join the Yuva Yuga
training programs and enhance their skills for better employment opportunities.
The state in near future to emerge as a leading growth state in other sectors such as
manufacturing, animation, gaming, visual effects, telecom, etc. Therefore, new
skilled talent would be required to meet the increasing demand.
Housing Scheme for BPL Families (Upcoming Scheme of Karnataka

Government):
The state government of Karnataka is planning to introduce a new housing scheme

for BPL families across the state. The intention of state government is to provide
houses for one lakh people who are living under BPL category in Karnataka as per
the official data.
According to the official notification, Housing department of Karnataka will soon get
parcels of land of around 662 acres reclaimed on the outskirts of the city from the
state government. The house will measure 300 square feet with a single bedroom
which will be provided to each beneficiary.
Moreover, state government is continuously talking with banks to provide long term
housing loans (20 years) with an EMI of Rs. 2,000 per month to each beneficiary.
Categories of Beneficiaries
Following are the main categories of the BPL beneficiaries who will be provided
houses under the scheme
Karnataka Economy
 Vegetable Vendors
 Auto Rickshaw Drivers
 Domestic Servants
 Slum Dwellers
 People living in rented homes
Feature of Karnataka Housing Scheme for BPL Families
Below are some of the salient features of the housing scheme for BPL families
 The scheme will provide housing only to people belonging to Below Poverty
Line category.
 Each applicant will have to provide his/her Aadhaar number at time of
registration.
 Eligible applicants will be selected through a lottery system.
 Applicants should have to their domicile in the city for at least five years.
 The handicapped applicants will get a discretionary quota ostensibly.
The detailed information about the BPL housing scheme will be out only after the
scheme is launched.
Home Health Care Services Under National Health Campaign to be Launched

in Karnataka:
The Karnataka health department is introducing Home Health Care Services under
the National Health Campaign with the help of Public Health Foundation of India in
Hyderabad-Karnataka region. Under this scheme, poor families in selected six
districts will get free home health care services. The primary health services will be
provided by the health department at their doorstep.
The aim of the scheme is to eliminate the diseases in the first stage by providing
medicine at home for the welfare of patient. The health department will also
recommend the better hospitals to patients. The campaign would also generate the
awareness about the family planning in the state.
Initially the National health campaign will start the scheme in Bidar, Ballari,
Kalaburgi, Rayachuru and Yadagiri district of Karnataka-Hyderabad region.
Home Health Care Service – Highlights
 The main targets will be the poor families across the state.
 The health department will provide medicines for flu, vomiting, diarrhea
related diseases.
 Many problems related eye, nose, throat, teeth and cancer, free health check-
ups for diabetes, blood pressure, hemiplegia, lung diseases, will be covered
under the scheme.
Karnataka Economy
 The program will also provide healthcare service for pregnant women and
children.
Gradually, this campaign will be implemented in all districts across the state. Under
the scheme, the state health department will provide fund to modify 105 sub-health
centres in Mysuru‟s T Narasipura and Rayachuru‟s Lingasuguru talukas. For the
home health care services, the department is hiring 105 BSc nursing graduates as
medicare assistants. The eligible nurse will be trained for 6 months through IGNOU
bridge course.
After completing the course at IGNOU, these Medicare assistants will provide the
requisite service at patient‟s home. The home health care nurses can work alone in
the field with support resources available from the health department. To remove the
difficulties, the home health care services are to assist the patient to remain at home,
avoiding hospitalization or admission.
Karnataka Goods and Services Tax Bill, 2017
The 'Karnataka Goods and Services Tax Bill, 2017' was unanimously passed by the
state assembly. Before Karnataka, as many as 24 states and Union Territories had
passed the State Goods and Services Tax (SGST) bill in their respective legislative
assemblies. As per the GST Constitutional amendment, all states have to pass
SGST bills by September 15, 2017, failing which they will lose their taxation powers.
What is GST?
Good and Services Tax Bill is a new taxation bill passed by Rajya Sabha in August
2016 aims at making a single tax system for entire nation, replacing all indirect taxes
imposed by State and Central Government. It is expected as a biggest tax reform in
the history of India, simplifying all the complex indirect tax levying process. GST will
have distinct impact on individual sectors, some will get negative or some will get
positive.
Let‟s have a look at several advantages of new GST Bill for Government and Indian
Nationals:-
1. GST is a win-win situation for the entire country. It brings benefits to all the
stakeholders of industry, government and the consumer. It will lower the cost of
goods and services, give a boost to the economy and make the products and
services globally competitive. GST aims to make India a common market with
common tax rates and procedures and remove the economic barriers, thus paving
the way for an integrated economy at the national level.
By subsuming most of the Central and State taxes into a single tax and by allowing a
set-off of prior-stage taxes for the transactions across the entire value chain, it would
mitigate the ill effects of cascading, improve competitiveness and improve liquidity of
Karnataka Economy
the businesses. GST is a destination-based tax. It follows a multi-stage collection

mechanism. In this, tax is collected at every stage and the credit of tax paid at the
previous stage is available as a set off at the next stage of transaction. This shifts the
tax incidence near to the consumer and benefits the industry through better cash
flows and better working capital management.
2. GST is largely technology driven. It will reduce the human interface to a great
extent and this would lead to speedy decisions.
3. GST will give a major boost to the „Make in India‟ initiative of the Government of
India by making goods and services produced in India competitive in the National as
well as International market. Also all imported goods will be charged integrated tax
(IGST) which is equivalent to Central GST + State GST. This will bring equality with
taxation on local products.
4. Under the GST regime, exports will be zero-rated in entirety unlike the present
system where refund of some taxes may not take place due to fragmented nature of
indirect taxes between the Centre and the States. This will boost Indian exports in
the international market thus improving the balance of payments position. Exporters
with clean track record will be rewarded by getting immediate refund of 90% of their
claims arising on account of exports, within seven days.
5. GST is expected to bring buoyancy to the Government Revenue by widening the

tax base and improving the taxpayer compliance. GST is likely improve India‟s
ranking in the Ease of Doing Business Index and is estimated to increase the GDP
growth by 1.5 to 2%.
6. GST will bring more transparency to indirect tax laws. Since the whole supply
chain will be taxed at every stage with credit of taxes paid at the previous stage
being available for set off at the next stage of supply, the economics and tax value of
supplies will be easily distinguishable. This will help the industry to take credit and
the government to verify the correctness of taxes paid and the consumer to know the
exact amount of taxes paid.
7. The taxpayers would not be required to maintain records and show compliance
with a myriad of indirect tax laws of the Central Government and the State
Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry
Tax, Luxury Tax, Entertainment Tax, etc. They would only need to maintain records
and show compliance in respect of Central Goods and Services Tax Act and State
(or Union Territory) Goods and Services Tax Act for all intra-State supplies (which
are almost identical laws) and with Integrated Goods and Services Tax for all inter-
State supplies (which also has most of its basic features derived from the CGST and
the SGST Act).
DEMONETIZATION AND CASHLESS ECONOMY
What is Demonetization?
Karnataka Economy
 It is a financial step where in a currency unit‟s status as a legal tender is

declared invalid.
 This is usually done when old currency notes are to be replaced with the news
ones.
 The 500 and 1000 rupee notes seized to be a legal tender from 8 November,
2016.
A brief past
 Demonetisation was earlier done in 1978 When the government demonetised
Rs. 1000, Rs. 5000 and Rs. 10000 notes.
 This was done under the High Denomination Bank Note (Demonetisation) Act,
1978.
 The difference between 1978 and 2016 Demonetisation is that the currency in
circulation (of the higher denomination) is higher in 2016 than was in 1978.
 The current demonitization has been done by government under section 26(2)
of the Reserve Bank of India Act.
Implications of Demonetization
 A parallel black economy would collapse.
 Of the Rs 17 lakh crore of total currency in circulation in the country,
black money is estimated at mind-boggling Rs 3 lakh crore.
 Counterfeit currency: Death blow to the counterfeit Indian currency
syndicate operating both inside and outside the country.
 On Employment: a large part of the Indian economy is still outside the banking
system. So, the cash shortage will hurt the informal sector that does most of
its transactions in cash.
 On elections: It will reduce the Vote-for-Note politics making elections more
clean and transparent.
 On Economy:
 First, it will bring more borrowings to the exchequer, improve inflation
outlook and increase India‟s gross domestic product (GDP).
 Second, it will revive investment opportunities and give a fillip to
infrastructure and the manufacturing sector.
 Third, it will help reduce interest rates and lower income tax rate.
 Real estate cleansing: An unexpected dip in land and property prices.
 On Higher Education: will become more reachable as the black money from
„high capitation fees‟ is discouraged.
 On security:
 Terror financing: Terror financing is sourced through counterfeit
currency and hawala transactions.
 Kashmir unrest: The four-month-long unrest in Kashmir valley is on a
backburner
Karnataka Economy
 North-East insurgency and Maoists: Black money is the oxygen for

Maoists collected through donations, levy and extortions. The illicit
money is used to purchase arms and ammunition
Electric Vehicle and Energy Storage Policy 2017:
The Karnataka government on approved „Electric Vehicle and Energy Storage Policy
2017‟ to help the state become a hub for production of alternative fuel vehicles,
reduce dependency on fossil fuels, bring down pollution levels and push the „Make In
Karnataka‟ initiative.
The new policy aims to attract investments worth Rs31,000 crore and create around
55,000 employment opportunities.
“The development and formation of this path breaking policy has been a combined
effort of the government and key industry players through roundtables organised by
Carnegie India and a series of workshops.
The state government is looking to set up new EV manufacturing zones, set up

charging stations in public and private spaces including airports, railway stations,
metro stations and encourage start-ups to develop business models focused on
supporting economic applications for EV‟s.
The government is also mooting incentives and concessions for manufacturers in

line with the Industrial Policy 2014-19 throughout the state including Bengaluru
district.
The fifth largest automobile market currently, India is inching towards become the
third largest market by 2020. The union government has also unveiled its vision to
make the country an all-electric vehicle market by 2031 to reduce dependency on
fossil fuels and reduce its carbon footprint.
Karnataka govt announces incentives for manufacturing MSMEs in its Electric

Vehicle Policy 2017:
In the recently approved Electric Vehicle and Energy Storage Policy 2017, the
Karnataka Government has announced a set of incentives and concessions for
different sectors including the Micro, Small and Medium Enterprises (MSMEs).
According to the policy, the government will extend incentives and concessions to
the MSMEs involved in the manufacturing of electric vehicle and its components
including motors power trains, power electronic kits.
The micro level units can avail an investment promotion subsidy of over 25 per cent
of the value of fixed assets, for a maximum amount of 15 lakh rupees.
Karnataka Economy
Accordingly, the Small enterprises will be given an investment promotion subsidy of

over 20 per cent of the value of fixed assets, for a maximum amount of 40 lakh
rupees.
The medium manufacturing enterprises, according to the policy, will be given a

subsidy of 50 lakh rupees on the investments.
Apart from the subsidy, the government also announced exemption from stamp duty
for the MSMEs.
To encourage the involvement in the sector, the government has further announced
concessional registration charges on all loan documents, lease deeds as well as sale
deeds.
Also the MSMEs can avail a capital subsidy up to 50 per cent of the cost of setting
up of Effluent Treatment Plant (ETP), with a cap of 50 lakh rupees. The government
will also be providing 100 per cent exemption on tax on the electricity tariff for the
initial period of five years for the MSMEs.
Karnataka Planned Development
Karnataka is situated in the south western region of India. It is one of the most prosperous
states in India. Karnataka has made tremendous progress in the fields of education, industry,
agriculture, literature and tourism. Bengaluru is the capital of Karnataka. Bengaluru is known
as the Silicon Valley of Asia due to its flourishing Information Technology industry.
Karnataka is the seventh largest state in India in terms of area. It has 30 districts. Karnataka is
bounded by the Arabian Sea and the Laccadive Sea on the west, Goa on the north-west,
Maharashtra on the north, Telangana on the north-east, Andhra Pradesh on the east, Tamil
Nadu on the south-east and Kerala on the south-west.
The major rivers flowing through Karnataka are Cauvery, Kabini, Krishna and Tungabhadra.
There are three distinct geographical regions in Karnataka: the Coastal Plains, the Western
Ghats and the Deccan Plateau. Karnataka covers about 750 km from North to South and
about 400 km from East to West. The coastline of Karnataka stretches for about 320 km.
Karnataka Development Programme (KDP) reviews (including Twenty Point

Programme) :
The performance of the programme is generally reviewed against pre-determined monthly

targets every month at the State, district and taluk levels. At the state level, the division
Karnataka Economy
conducts quarterly reviews chaired by the Chief Secretary and attended by the Additional
Chief Secretaries/ Principal Secretaries/ Secretaries of all departments.
The subjects covered under State level KDP are - Review of progress under Plan schemes
reported in MPIC format by implementing departments, Centrally Sponsored
Schemes/Central Plan Schemes including Flagship programmes, Special Development
Programme, SCSP/TSP, Externally Aided Projects, Status of sanction of ongoing and new
schemes, Result Framework Document (RFD), Decision Support System (online MPIC),
Evaluation Studies and other inter departmental issues.
Monthly Multi-level Reviews of Plan Schemes (MMR):
Under this system, the progress of plan schemes in the State and district sectors is subjected
to monthly review. At the State level, the division coordinates MMR meetings of the
Secretaries of the administrative departments with their heads of departments and
undertakings and nodal officers of the Planning and Finance departments.
Centrally Sponsored and Central Plan Schemes:

Monthly meetings have been conducted to review the progress made under Centrally
Sponsored and Central Plan Schemes, including the release of funds by the Government of
India, implemented by various departments and place the results before the KDP meetings
chaired by the Chief Secretary.
Result Framework Document (RFD):

Government of Karnataka has introduced generic RFD Framework on the lines of PMES
followed by Government of India in order to enable departments to transit from an input
driven approach to results / outcomes orientation with effect from 2011-12. For this purpose
the administrative departments have been classified into 19 groups and for each group one
ATF Expert Group has been formed.
Decision Support System (DSS):

The DSS application (Online MPIC) is being implemented by the Planning Department in
collaboration with Centre for e-Governance. The Decision Support System facilitates the
online entry of monthly programme for each and every scheme of the department and also
Karnataka Economy
online entry of the monthly financial and physical achievement right from the field officer
level to the HOD level.
Monthly Report on Plan Performance

Based on the figures furnished in the MPIC reports, the PMI division is consolidating the
plan expenditure figures, administrative department wise, and releasing Monthly Report on
Plan Performance.
The Karnataka government is drawing up a Rs. 2,100 crore project with loan assistance from
Asian Development Bank, to develop and upgrade eight city clusters around Bangalore to
woo investment and ease the load on the State capital.The city clusters proposed to be
developed are Nelamangala, Magadi, Anekal, Bidadi, Dabaspet, Harohalli, Devanahalli and
Hoskote.
' Karnataka Urban Development and Coastal Environment Management Plan

(KUDCEMP-EAP) '
Description of KUDCEMP
The project will support government's priority investment in the urban sector based on an
urban development sector development strategy that focusses on improving the welfare of
the urban poor and devolution of municipal management responsibility from states to urban
local bodies. This integrated urban development project will help meet basic human needs
by developing urban services for water supply and sanitation, solid waste and wastewater
management, and slum and environmental improvements. The project will also support
street improvements and traffic management, and strengthen other municipal services
required to improve the quality of life in urban areas. The project will provide assistance in
capacity building and community participation at the state and local levels and in Project
implementation.
' Karnataka Urban Water Sector Improvement Project-KWASIP '
Objective
To improve urban water supply services and demonstrate that sustainable, efficient and
commercially oriented service provision. This objective is aimed to be achieved by
implementing the strategy enunciated in the Urban Drinking Water and Sanitation Policy
Karnataka Economy
2003 of the Government of Karnataka in a phased manner. Government of Karnataka and

World Bank have approved the first phase.
Selection of towns
Three towns namely Belgaum, Gulbarga and Hubli-Dharwad are identified in the first
phase. Subsequent phases of the project will improve scaling up to the rest of the areas in
three cities and also to more cities.
' North Karnataka Urban Sector Investment Programme (NKUSIP) '
North Karnataka Urban Sector Investment Programme (NKUSIP) was conceived in the
recommendations of the High Power Committee on Regional Imbalances in a bid to boost
economic growth in a region that has traditionally lagged behind. 25 such towns were
selected for infrastructure provision based on the following criteria:
♦ District Headquarters of newly created districts.
♦ Towns having more than 50,000 population.
♦ Towns with tourism importance.
Seventeen water supply projects with estimated cost of Rs. 711.92 crore have been submitted
to the Central government under UIDSSMT (Urban Infrastructure Development Scheme for
Small and Medium Towns). Rs. 1,760 croreproject has been prepared to provide 24X7 water
supply to the entire corporation area of Belgaum, Gulbarga and Hubli-Dharwad cities on PPP
basis with World Bank assistance.
Food Security in Karnataka
Nutrition is major Public Health emergency in

India, with about 50% of its population suffering from it in some form of
protein calorie deficit or micronutrient malnourishment. It causes for 50%
of child mortality. According to World Health Organisation report 2015 :-
42% of children between 0- 5 years of age in India are underweight and
59% are stunted.
There is wide diversity within India in all kind of social,
Karnataka Economy
educational and economic indicators. Most of littoral states do good in

these indicators while hinterland states are backward.
STATUS OF KARNATAKA IN SOCIAL INDICATOR

Karnataka is one of the most developed state in India in
terms of social and human development indicators. NITI aayog has
placed Karnataka at eighth position in India in terms of human
development indicators. Some comparative statistics of state is
Example:-
1). Literacy rate in Karnataka is 75.6% according to 2011
Census, marginally higher than national average.
2). Out of 6.1 bilion people in Karnataka; just 1.2 million
children between 0-6 years of age are malnourished and underweight.
3). Poverty ratio in Karnataka is 20.91% compared to
National average of 21.92%.
CM Siddaramaiah announced his commitment to
eliminate poverty from state and make Karnataka hunger free state with
social governance. To achieve this objective government has taken
various steps to eliminate poverty and hunger from the state.
Current scheme of Karnataka government for food

security:--
1. Padithara Khathi :- launch in 2014 for delivery of food grains at

Public Distribution shops.
2. Ksheeza Bhagga :-- under this scheme distribution of 150 ml milk

thrice a week to school children and child care centre will be provided.
This provision will be in addition to mid day meal scheme of Central
Government . Under Ksheera Bhagya scheme; Budget 2017-18 proposes
to increase distribution of milk from existing 3 days to 5 days in a week.
3 .Karnataka government launched food security program in 2013.

Under this programme government will provide 30 kg of rice at 1 rupees
per kg to below poverty line people, this scheme was launched at world
economic forum conference in London. This scheme is expected to
Karnataka Economy
improve socio economic condition of poor people in Karnataka as

people will now have more money to spend on family health and
education of their children.
Above scheme will help to address problem of
undernourishment, malnutrition and hunger in the state. But analysis of
this scheme by MS Swaminathan revealed that food security act will
solve caloric deficiency problem but not Hunger and malnutrition;
protein and micronutrient deficiency problem.
Finally, effective implementation and success of
this scheme will depend on it's execution at ground level; like how
much problem of Hunger and malnutrition will be solved by this
scheme.
4. Anna Bhagya Scheme:-
Under this scheme government is distributing food

grains to BPL families in the state free of cost. This scheme has been
quite successful for food security in state as 20 lakh poor families have
already been brought under 'Anna Bhagya' scheme through Public
Distribution System network. To further enhance the outreach under Anna
Bhagya scheme an increase in food grains distribution from current 5 kg to
7 kg per person proposed in current year budget.
5. Steps to improve Public Distribution system:-
This scheme was launched by “food, civil supplies

and Consumer Affairs department” of Karnataka Government. Recently;
steps have taken to improve performance of the scheme, to eliminate
leakages and reduce corruption.
A. Digitalization of public distribution system process( it is
also a good example of Internet of things(IoT)).
Example:- Online request for new ration card
- SMS service about food allotment to cardholder.
- Food coupon will be given to consumers
through which food can be purchased from any Public Distribution shop
in Taluka.
Karnataka Economy
- Online details of ration cards,Monthly allotment

of food etc.
B. Grievance redressal mechanism related to public
distribution system.
5. Mathru Purna Scheme:-
This scheme was launched for pregnant and

lactating women. It aims to provide at least one nutritious meal everyday
to pregnant women particularly those living in rural areas. Under this
scheme, diet will include rice, dal, sambhar, green vegetable, pulses,
egg and groundnuts. This scheme was launched by child and welfare
department, Government of Karnataka.
6. Namma Canteen:-
Chief Minister Siddaramaiah announces 'Namma
Canteen' on the lines of Tamil Nadu's 'Amma Canteen' in budget 2017-
18. Namma Canteen in Bengalur and Saviruchi Mobile Canteens in all
30 districts through Zilla Stree Shakthi associations. Namma canteen to
serve breakfast for Rs 5 and lunch for Rs 10 with a budget provision of Rs
100 crore for year 2017-18.
7. Further, Budget 2017-18 proposed that Eggs for Anganwadi

children will be provide for two days a week from June 2017 across state.
Way forward:-
1. improvement in performance of integrated child development

scheme(ICDS) like replacing packed food with better nutrition rich food,
like local cooking food.
2. Food cooking and distribution with the help of self help

groups(SHG) and non - government organisations(NGO).
3. Diversification in procurement i.e. Inclusion of pulses lentils, oil

seeds etc.
Karnataka Economy
Karnataka Human Development Index
“Karnataka has been a pioneer among Indian States in the matter of paying attention
to human development at the State and District levels. The first State Human
Development Report for Karnataka was published in 1999. Karnataka is also the first
State to bring out individual District Human Development Reports for all its 30
districts.”
Concept of Human Development
The landscape of development theory, practice and policies, and measurement of

development at national, state and district level have undergone far reaching
changes ever since the publication of Human Development Report by the United
Nations Development Programme (UNDP) in 1990. Prior to the emergence of human
development as a key approach to improve the quality of life, the focus of
development paradigm was on materialistic progress, taking growth with equity and
social justice for granted.
The economic growth model based on “trickle-down” mechanism focused on

physical aspects of savings, investment and economic growth until 1970s. A mere
increase in national income or output did not guarantee an improvement in the
quality of people‟s life in general and weaker sections of the society in particular.
Amidst high rates of economic growth, human poverty, social exclusion, vulnerability,
gender discrimination, crimes, etc., continues to be widespread and persistent
among different sections of the society.
Hence, the focus of development shifted from economic growth based on

“trickledown mechanism” to economic development based on “basic needs
approach” in the 1980s and to human development based on “capability approach”
in the early 1990s.
Human development approach, as developed by Amartya Sen and Mahbub ul

Haq, which puts people at the centre of the development, considers economic
growth as a means to development, but not merely an end in itself. Therefore,
human development is defined as a process of enlarging people’s choices as
well as raising the level of wellbeing already achieved. Income earning is one of
the choices but it is not the sum of all choices. Attainment of better education, health,
physical environment and equalization of opportunities to participate in political,
social and economic domains of life, freedom to exercise their rights, personal self-
Karnataka Economy
respect, etc., are also as important as income. These choices can be infinite and can
vary over space and time.
Key Components of Human Development Index
Factors Contributing to Human Development
Human Development is a multivariate phenomenon. It encompasses several aspects

of life. Human development is more than HDI. As depicted above, the HDI includes
only three essential choices, namely a decent standard of living, long and healthy life
and to be able to gain knowledge. There are several factors which contribute to
human development in different ways. Most of the factors that drive human
development are inter-related and reinforcing with each other.
The most important factors that contribute to human development are:
 The livelihood and income earning options;

 reduction in poverty and inequality;
 access to household assets and amenities;
 access to food and nutrition;
 access to health and medical care services;
 education, training and skills;
 migration and urbanisation, good governance and participation;
 environmental conservation; and
 human rights and protection
Karnataka Economy
National-Human Development Report
Following the UNDP‟s methodology, the Planning Commission, Government of India

has published the National Human Development Report (NHDR) for the first time in
2001 and the India Human Development Report (IHDR) in 2011 at the state level in
India. Although the methodology to calculate the HDI and other indices at national
level is similar to UNDP, the indicators identified to estimate the indices at the sub-
regional levels are different depending upon the availability of data.
State Human Development Report
In India, the preparation of HDRs has begun with the publication of the Madhya
Pradesh HDR in 1995. It is the first sub-national HDR in the world and the second
report was published in 1998 and the third in 2002. Karnataka was the second
state to publish the Karnataka Human Development Report (KHDR) first in 1999
and the second in 2005.
Immediately after, other State Governments such as Tamil Nadu, Himachal Pradesh,
Maharashtra, Rajasthan, West Bengal, Punjab, Orissa, Gujarat, etc., have also
initiated the preparation of their State HDRs. These reports attempt to assess intra-
State disparity in progress of human development and provide policy interventions
for further development.
District Human Development Report
The District Human Development Report (DHDR) aims at estimating inter-taluk

disparity in different dimensions of human development and identifying the
developmental gaps to be addressed at the district level and also across different
taluks in the district. Preparation of DHDR provides a sound base for designing and
implementing district plans from the human development point of view and also for
proper allocation of funds.
In this regard, the Idukki district Panchayath in Kerala state was the first to
publish the DHDR of Idukki district in 2000. Following the initiation made by Kerala
state, a good number of districts in India began to prepare a DHDR with the
assistance of the Planning Commission and UNDP. The DHDRs of Bankura (2006),
Malda (2007), Birbhum and many others in West Bengal were also other
comprehensive reports with sub-district level analysis.
The Karnataka state also brought about the DHDRs for four districts in the first
phase, namely Vijayapura, Kalaburagi, Mysuru and Udupi in 2008. The main
objectives of these reports were to capture variations in the status of human
development at the district level; enable the Government to take a holistic view of the
Karnataka Economy
State‟s development outside the normal governmental functioning and assess the
strengths and weaknesses of existing departmental policies.
The unique features of these DHDRs are the wider coverage of human development
and its related issues, uniform computational methodology, indicators and time
period adopted, issue based small area studies and radar analysis.
Rationale for Human Development Report in Karnataka
Introduction of micro level planning and PRI system and the 73rd and 74th
constitutional amendments mandate the preparation of district level plans. The
premier objectives of the DHDRs are to:
 capture variations in status of human development at the District and Taluk

level;
 enable the local government to take holistic view of the state‟s development
outside the normal governmental functioning;
 integrate human development objectives such as larger inflow of funds to low
human development regions in policy formulation;
 focus on specific local issues of human development such as malnutrition,
and livelihood expansion;
 assess impact of programmes on specific issues of human development at
the District level;
 provide an opportunity for preparing district plans from a human development
perspective;
 assess the strengths and weaknesses of the existing departmental policies
 formulate Special Development Plan (SDP) and comprehensive composite
development index;
 develop awareness among the official and non-official leaders at the district
and below about the Millennium Development Goals and accordingly design
and execute the public policies.
Grama Panchayath Human Development Index Report
The preparation of Grama Panchayath Human Development Index (GPHDI) Report

is an important event which provides guidelines for grassroots level human
development. For the first time in the history of the country the Government of
Karnataka has initiated the process of computing the Grama Panchayath Human
Development Index based on the same set of indicators that were used in the
preparation of District Human Development Report.
Fazit
Karnataka Economy
Economic growth, as defined by GDP per capita, is found to be inadequate to

measure quality of life and human well-being. Human Development approach is
more than economic growth (national income). Human development is the process
of enlarging the people‟s choices. Fundamental to enlarging these choices is building
human capabilities-the range of things that a person can do or be in life. The most
basic capabilities for human development are to lead a long and healthy life, to be
knowledgeable, to have access to the resources needed for a decent standard of
living and to be able to participate in the life of the community and decision affecting
their lives. Without these, many choices are simply not available, and many
opportunities in life remain inaccessible.
Preparation of HDI covering different domains of life and sectors of the economy at
Grama Panchayath level is indeed a unique exercise that the Government of
Karnataka has initiated. It would be an important yardstick to identify the absolute
and relative backwardness in the areas such as education, health, livelihood
expansion, standard of living, child development, gender equality, all of which are
aimed at improving the standard of living in rural areas. It is quite useful, which helps
in designing and implementing the well-conceived plans at the Grama Panchayath
level. The report can also be a base for allocation of funds under different
programmes implemented depending upon the backwardness of Grama
Panchayaths.
This also helps in fine-tuning the existing programmes or introducing the new
innovative schemes for development of a particular domain (health, education or
livelihood opportunities), which is lagging in a particular Grama Panchayath. For the
policy makers and development practitioners, these indices provide handy tools to
give policy direction for further human development.

Karnataka Economy

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Karnataka Economy

Uploaded by

Copyright:

Available Formats

Karnataka Economy

Karnataka Economy and its main features

crops. Coffee is the principal plantation crop. Cashew, coconut, arecanut,

2. 33 Billion USD IT exports in the year 2014-15.

Bengaluru – Start-up Capital of India:

Karnataka placed at the forefront of Biotechnology in the country, is rightly known as

educational, R&D institutions and enterprises: large companies, medium-sized ones,

Biotech Sector in Karnataka reflects:

2. Rapidly growing number of biotech start-ups

3. Contribution of 26% of India„s biotech revenues including high export revenues

4. Highest expenditure for R&D

5. A diverse range of specialized domain training from agriculture to energy to bio-

There is a huge potential in automobile manufacturing in Karnataka. The component

With major international OEMs having manufacturing facilities in Karnataka, supply

Machine Tools Manufacturing

Huge potential is estimated in machine tools manufacturing in Karnataka. Total

Electronics & Semiconductor Manufacturing

In 2014-15, the domestic production of electronic hardware in the Karnataka stood

manpower. Karnataka is setting up the first ESDM cluster development in Electronics

Drugs & Pharmaceuticals Manufacturing

Agro & Food Processing

Chemicals and Petrochemicals:

Food Security in Karnataka

STATUS OF KARNATAKA IN SOCIAL INDICATOR

Current scheme of Karnataka government for food

1. PaditharaKhathi:- launch in 2014 for delivery of food grains at Public

2.KsheezaBhagga :--under this scheme distribution of 150 ml milk

This provision will be in addition to mid day meal scheme of Central

3.Karnataka government launched foodsecurity program in 2013.

Under this scheme government is distributing food grains to BPL

5.Steps to improve Public Distribution system:-

This scheme was launched by “food, civil supplies

example of Internet of things(IoT)).

- Online details of ration cards,Monthly allotment

This scheme was launched for pregnant and

Chief Minister Siddaramaiah announces 'Namma

7. Further, Budget 2017-18proposedthat Eggs for Anganwadi

1. improvement in performance of integrated child development

2. Food cooking and distribution with the help of self

3. Diversification in procurement i.e. Inclusion of pulses lentils, oil

Thermal Power plants

Bellary thermal power plant

The power station is located at Kudatini in Bellary district of Karnataka state,

Raichur Thermal Power Plant

Yeramarus Thermal Power Station

Yeramarus power station is a 1,600-megawatt (MW) coal plant near Yedlapur

Sir sheshadri Iyer hydroelectric plant

Build in 1902 on Cauvery river known to be as first Hydroelectric plant of

Shravathi generating Station

In Dec 2006, a consortium of VA TECH companies won a turnkey contract to

Mahatma Ghandi Tail Race

Development and construcio of MGHETRS was managed by Soahm

Karnataka Human Development Index

Concept of Human Development

The landscape of development theory, practice and policies, and measurement of

The economic growth model based on “trickle-down” mechanism focused on

Hence, the focus of development shifted from economic growth based on

Human development approach, as developed by Amartya Sen and Mahbub

Key Components of Human Development Index

Factors Contributing to Human Development

Human Development is a multivariate phenomenon. It encompasses several aspects

The most important factors that contribute to human development are:

 The livelihood and income earning options;