The Confederation of Indian Industry (CII) on Wednesday said emerging sectors including semiconductor, aerospace, electric mobility, healthcare, and agri-tech, including those spread beyond Bengaluru, have huge potential to contribute to Karnataka’s economy and generate millions of jobs.
The industry-led non-profit organisation unveiled “Beyond Bengaluru” initiative to support Tier-2 and Tier-3 cities, improve ease of doing business, skilling programmes, and energy efficiency. During a press event in Bengaluru, CII said it will work to enable strategic collaborations with stakeholders, academia, startups, and international consulates to elevate the role of locations beyond the Karnataka’s capital.
According to the District Domestic Product (DDP) 2021-22, Bengaluru Urban, Dakshina Kannada, Belagavi, Tumkur, and Mysore were the leading contributors to Karnataka’s Gross State Domestic Product (GSDP). Meanwhile, Koppal, Chamarajanagar, Gadag, Yadgir, and Kodagu registered the lowest contributions to the state’s economic output.
During the event, BW Businessworld asked CII whether discussions about the economy outside Bengaluru had diminished following a surge in post-pandemic days. “It’s not accurate to say that development is declining. While it may be true that not all progress is visible on newspapers, significant efforts are underway, especially in places like Yadgir where the government is actively working on industrial clusters,” replied N Venu, Chairman of CII Karnataka & MD & CEO - India & South Asia, Hitachi Energy.
“Yes, Bengaluru remains a preferred destination for investment due to its established ecosystem, including skilled workforce, infrastructure, and accessibility, but there’s also notable momentum beyond Bengaluru. The government is facilitating this by addressing challenges like land availability and enhancing skill development outside the capital,” he added.
Karnataka ranks among India’s wealthiest states, accounting for 8.2 per cent of the nation’s GDP. Going by FY23 numbers, the state has a significantly high per capita income of Rs 3.02 lakh, which is 77 per cent above the national average of Rs 1.71 lakh. The state’s economy has grown at a CAGR of 11.5 per cent between 2015-16 and 2022-23 and is responsible for 19 per cent of India’s total exports.
Moving forward, industrial clusters further away from the central hub of Bengaluru are expected to drive the next phase of growth.
Speaking with BW Businessworld, Rabindra Srikantan, Vice Chairman of CII Karnataka and Founder and Managing Director of ASM Technologies, highlighted the rapid growth of sunrise sectors in Karnataka, particularly in the Electronic System Design and Manufacturing (ESDM) industry. He said that this sector is expected to create hundreds of thousands of jobs, especially benefiting women in manufacturing roles.
“I think this is going to have a massive impact both for the economy and socially,” Srikantan added.
Further, he mentioned the expansion of ESDM clusters beyond Bengaluru, including Mysore, which has become more accessible due to improved transportation links in recent times.
“It is a boom time for Karnataka. The sunrise sectors are expected to grow hugely – it is already happening. But it is just going to start scaling even more,” Srikantan concluded.
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