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Home › Karnataka › Karnataka Industry

Karnataka Industry

Bengaluru has the headquarters of HAL, ISRO and many aerospace and electronics companies, alongside software firms. Toyota makes cars at Bidadi, JSW Steel has a large plant at Toranagallu near Ballari, and Mysuru is known for silk and sandalwood. Biotechnology and machine tools are other strengths.

The Karnataka Industrial Areas Development Board (KIADB) develops the state's industrial areas.

Key industries

  • IT and software
  • Aerospace and defence
  • Biotechnology
  • Electronics
  • Automobiles
  • Steel
  • Silk

Specialties of Karnataka

Coffee

Karnataka grows most of India's coffee, in the shade of forest trees on the Western Ghats in Kodagu, Chikkamagaluru and Hassan districts. Coffee came to India here: by tradition Baba Budan brought seven coffee seeds from Yemen and planted them in the Baba Budan hills near Chikkamagaluru. The beans are picked from November to February. The Coffee Board of India is in Bengaluru.

Mysuru silk

Karnataka is India's largest producer of mulberry silk, with silkworms reared in Ramanagara, Chikkaballapur, Kolar and Mandya districts. The state-owned Karnataka Silk Industries Corporation weaves Mysore silk saris in its Mysuru factory, set up by the Maharaja of Mysore in 1912, using pure silk and real gold zari.

Help for entrepreneurs and local industries

Every district has a District Industries Centre (DIC), run by the state's industries department. It is the first place to go to register a unit, to apply for the state's incentives and subsidies, and for help with central schemes such as PMEGP.

From the Karnataka government

From the Government of India

  • Udyam Registration: free online registration for micro, small and medium enterprises, with an Aadhaar number; the Udyam certificate is needed for most MSME schemes and for priority-sector bank loans
  • Prime Minister's Employment Generation Programme (PMEGP): loans to start a new micro enterprise, with a government subsidy of 15 to 35 per cent of the project cost (higher in rural areas and for women, SC/ST and other special categories); apply through the District Industries Centre or the Khadi and Village Industries Commission
  • Pradhan Mantri MUDRA Yojana: loans without collateral from banks, small finance banks and microfinance institutions: Shishu up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh for those who have repaid a Tarun loan
  • Stand-Up India: bank loans of Rs 10 lakh to Rs 1 crore to set up a new enterprise, for women and for Scheduled Caste and Scheduled Tribe entrepreneurs
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): guarantees bank loans to micro and small enterprises, so they can borrow without collateral or a third-party guarantee
  • Startup India: recognition by the Department for Promotion of Industry and Internal Trade, which brings tax and patent benefits, the Startup India Seed Fund and mentoring
  • PM Vishwakarma: for artisans and craftspeople in 18 traditional trades: recognition, skill training with a stipend, a toolkit grant and low-interest loans without collateral
  • PM Formalisation of Micro Food Processing Enterprises (PMFME): for small food-processing units: a 35 per cent credit-linked subsidy (up to Rs 10 lakh a unit), seed capital for self-help groups, and help with branding and marketing
  • Government e-Marketplace (GeM): sell goods and services online to government departments and public sector companies
  • MSME Samadhaan: file a case when a buyer has not paid a micro or small enterprise within 45 days
  • MSME Champions: the Ministry of MSME's help desk for complaints and problems with finance, approvals and markets
  • MSME Development and Facilitation Offices: the Ministry of MSME's offices in every state: advice, training, testing and the ministry's schemes
  • Small Industries Development Bank of India (SIDBI): the bank for small industries: loans, and refinance through other lenders
  • National Single Window System: one place to apply for central approvals and licences, and for many states' approvals
  • One District One Product: promotes a chosen product of each district, with help to find buyers and export
  • NIESBUD: the national institute for entrepreneurship training, under the Ministry of Skill Development and Entrepreneurship
  • myScheme: search central and state government schemes by state, occupation and other details

Schemes, limits and subsidies change with each budget: check the official site before applying.

Sources

Summarised from the state's industrial policy and the official profiles linked below. Specialties: Coffee (Geographical Indication: Coorg Arabica Coffee, Chikmagalur Arabica Coffee, Bababudangiris Arabica Coffee; One District One Product: Kodagu and Chikkamagaluru); Mysuru silk (Geographical Indication: Mysore Silk).

Reference links