Karnataka
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Karnataka is a state in Southern India bordered by the Arabian Sea to the west, Goa to the northwest, Maharashtra to the north, Andhra Pradesh to the east, Tamil Nadu to the southeast, and Kerala to the southwest. The state covers an area of 191,976 square kilometres (74,122 sq mi), or 5.83% of the total geographical area of India. It is the eighth largest Indian state by area. With over 61 million inhabitants (2011), Karnataka is the the ninth largest state by population, comprising 30 districts. Kannada is the most widely spoken and official language of the state.

Karnataka Economy

Karnataka is one of the high economic growth states in India with the GSDP (Gross State Domestic Product) at constant prices growth of 8.9% in the fiscal year 2010-2011. Karnataka is the seventh largest GDP producing states in India. The State GSDP is expected to grow at 6.4% in 2011-12 which is slightly less than India’s GDP estimate of 6.9% for the period. Per capita GSDP during 2010–2011 was Rs 47310 at constant prices. Karnataka is best known for its software industry and now biotechnology and the state has recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In the last decade, Karnataka surpassed all other states in India, pushing Karnataka's per capita income in Indian Rupee terms to sixth place.

The contribution of primary, secondary and tertiary sectors to Karnataka's GSDP (at 2004-05 constant prices) in 2010-11 has been 16.06%, 28.48% and 55.35% respectively. The sectoral composition of Karnataka GSDP is comparable with sectoral composition of India’s GDP of 14.4 % (Primary), 27.9% (Secondary) and 57.7 % (Tertiary sector). Between 2005-06 and 2010-11, average growth rate of Karnataka GSDP is 8.6 % which is same as India’s GDP growth during the period. However, in the first three years that is from 2005-06 to 2007-08 the state GSDP has averaged 11.5 % with highest growth rate of 12.9% in 2007—08. But in the last three years from 2008-09 to 2010-11 the growth in GSDP has averaged only 5.7 %.

Karnataka is the manufacturing hub for some of the largest public sector industries in India, including Hindustan Aeronautics Limited, National Aerospace Laboratories, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited and Hindustan Machine Tools, which are based in Bangalore. Many of India's premier science and technology research centers, such as Indian Space Research Organization, Central Power Research Institute, Bharat Electronics Limited and the Central Food Technological Research Institute, are also headquartered in Karnataka. Mangalore Refinery and Petrochemicals Limited is an oil refinery located in Mangalore.

Contribution to economy by sector

Karnataka has natural advantages that serve it well for diversified agricultural production. Agriculture and allied sectors in Karnataka grew in 2009-10 by 3.4 % and 12.9% in 2010-11. In the year 2011-12, the sector is expected to grow at a rate of -3.9% having affected by a severe drought. Karnataka has been credited by the Planning Commission for presenting separate agriculture budget.

Karnataka is the largest producer of coarse cereals, coffee and raw silk among the states in India. The income generated from horticulture constitutes over 40% of income generated from agriculture and its is about 17% of the state's GDP. In floriculture, Karnataka occupies the second position in India in terms of production. Silk industry is concentrated mainly in the North Bangalore regions of Muddenahalli, Kanivenarayanapura, and Doddaballapura.

Gold, iron ore, quartz, limestone, manganese, kyanite and bauxite are some of the minerals that are found in Karnataka. Major mines of manganese and iron ore are located at Sandur in Bellary district.

Karnataka leads the nation in information technology and biotechnology. Bangalore is the home of the largest bio cluster in India with total revenues of over Rs. 14 billion and having 158 of the 320 companies working on biotechnology in India.

Karnataka has a headcount of over 6800 scientists involved in biotech research.
Capital Bangalore is well known as a hub for India's information technology sector. Large number of information technology companies located in the city which contributed 33% of India's Rs. 144,214 crore (US$ 32 billion) IT exports in 2006–07. Infosys and Wipro, India's second and third largest software companies are headquartered in Bangalore

The state is home to some of the premier educational and research institutions of India such as the Indian Institute of Science, the Indian Institute of Management, the National Institute of Technology Karnataka and the National Law School of India University. The State boasts of the largest concentration of higher educational institutions like Medical and Engineering colleges. Apart from Bengaluru places like Belagavi (Belgaum), Mangalore, Mysore, Hubli-Dharwad and Davangere have been producing professionals for IT industry.

Infrastructure

The state is well connected to its six neighboring states and other parts of India through 14 National Highways (NH) and through a railway network of 3,172 km (2007–2008). Its district centers are linked through 114 State Highways (SH). Major ports are New Mangalore Port, Karwar Port. Bengaluru International Airport, Devanahalli is the 4th busiest airport in India. The state has five domestic airports at Bangalore, Mangalore, Hubli, Mysore and Belgaum. Minor airports coming up at Hassan, Bellary and Gulbarga. Metro rail and mono-rail projects are underway in Bangalore. The first phase of the Namma Metro as it is called covers a total of 42.3 km.

In power sector growth rate of installed capacity, Karnataka has managed to outperform other southern states in growth between 2005-06 and 2010-11. Total installed power capacity in Karnataka is 12367 MW in 2011as per data released by Ministry of Power. With teledensity of 90 per 100 people, the state stands sixth highest in the country.

The Government of Karnataka is promoting the development of several SEZs across Karnataka such as Pharma and biotech SEZ, food processing and agro-based industries and textiles SEZ at Hassan and IT, Aerospace SEZ at Devanahalli and Coastal SEZs at Mangalore.

The rapid strides made by Karnataka gave been possible due to sustained and concerted efforts at creating ideal eco-system for investments to thrive and succeed. Karnataka ranks second in FDI from 2008-09 to 2010-11. Besides, the state boasts of a number of policies aiding its industrial and investment promotion which includes New Industrial Policy 2009-14, Infrastructure Policy 2007, Semiconductor Policy 2010, Millennium IT Policy, Millennium Biotech Policy, Renewable Energy Policy, Games and Animation Policy, Aerospace Policy etc.
 
Key Initiatives / Information
 
In the last few months, there has been significant discussion on permitting Foreign Direct Investment (“FDI”) in Multi-Brand Retail Trading. As part of that process, the Department of Industrial Policy and Promotion (“DIPP”) released a discussion paper on “Foreign Direct Investment (FDI) in Multi-Brand Retail Trading” (“Discussion Paper”) and invited views on the same. The Confederation of Indian Industry (“CII”) had responded to the Discussion Paper earlier (attached as Annexure 1 is a copy of the response for your reference). In addition to the views set out in the attached response, this note seeks to outline CII perspective on key issues relating to FDI in retail trading sector based on certain recent press reports on the recommended proposal of the DIPP, while highlighting the need to adopt a different approach for food and non-food sector.
 
Comments on Plastic Waste (Management & Handling)Amendment Rules, 2011. We thank you for this opportunity to provide our suggestions on the Plastic Waste (Management & Handling) Amendment Rules, 2011. On behalf of CII National Committee on Retail and FMCG.
 
Affirmative Action in Southern Region is undergoing a major change and more and more industries are getting sensitized on this to take it up at their level. In order to take the initiatives at the regional level forward, it’s very important to generate awareness on AA and sensitize the member companies on AA at the state level and take their views on this. In this regard, a round table discussion was organized at CII’s Karnataka office to deliberate on the various issues related to AA and factors which are hampering the progress of AA with the industries. It also focused on making AA an inclusive agenda in the business plan of a company. This round table discussion would show the way forward and help us in preparing a road map for AA in the region.
 
Whenever we hear a word ‘Disruption’ – somehow it leads to a negative feeling. After all, as humans we are averse to change and disruption by nature disturbs the normal rhythm of life and forces you the change the course. Now, let’s look at this word from a marketer’s perspective and it becomes even more dreaded! Who wants some tiny David to come and disturb Goliath’s party? But, the CII Brand Summit 2010 was a great success with views from thought leaders around the globe made this word a favorite amongst the participants.
 
The objectives of the Conference are to facilitate knowledge flow by working with international organisations through bi-lateral/multi-lateral cooperation mechanisms, know the effects of high technology on internal security; forging partnerships for collaborative research and product development with Indian industry and interacting with the government to establish policy. The conference shall pave way for collaborative industrial product development, exploring new markets and mutual investment opportunities. The conference could play a vital role in understanding the current security requirements with reference to businesses and other societal requirements.
 
CII established the College Excellence Cluster Programme in Southern Region to enable high frequency, qualitative interaction between academic institutions and industry. This platform aims to bridge the various gaps between academia and create a model through which colleges can work with industry and provide students, teachers and the college community with an exposure to current industry environment and practices. This initiative would allow the colleges to benchmark themselves and engage with industry. This could also provide colleges with an opportunity to involve themselves in projects, research and development with industry thereby strengthening their institution and providing industry with value addition in the form of academic research.
 
The United Nations Industrial Development Organization (UNIDO) established in India an Industrial Subcontracting and Partnership EXchange (SPX) in 2007. SPX is a technical information and matchmaking centre for industrial subcontracting, supply chain management and partnerships between buyers and suppliers, aiming at optimizing the manufacturing capacities and capabilities of the affiliated enterprises.
 
CII is partnering with UNIDO’s Consolidated Project for SME Development in India. It is an Italian Funded Project implemented by UNIDO in partnership with the Ministry of Micro Small and Medium Enterprises (MSME). The project in Southern Region on Investment and Technology Promotion focuses on three sectors: Auto components, Leather and Footwear.
 
Consulting / Advisory Services
 
CII assist member companies towards preparation of Project Proposals using the Company Project Profile (CPP) Software developed by UNIDO for associations. It covers all the critical parameters that are required in a project proposal that are sought by the evaluators. It is a tool standardized by UNIDO after long years of experience in the international market.
 
CII offers Feasibility Analysis and Reporting Services for MSMEs to enable MSMEs to prepare proposals for funding or Joint Ventures. This service is being provided using a Computer model for Feasibility Analysis and Reporting (COMFAR) software developed by UNDO. This software permits the user to simulate the short- and long-term financial and economic situation of investment projects. The software facilitates the analysis of industrial as well as non-industrial projects, whether new investments, rehabilitations, expansions, joint venture or privatization projects.
 
CII News Update
 
CII Southern Region would focus on the theme - “Accelerating Growth - Conscious Competitiveness” for the year 2013-14 said, Mr B Santhanam, Chairman, CII – Southern Region while addressing his maiden Press Conference in Chennai on 2 May 2013. Mr Santhanam said that CII-Southern Region’s agenda.....
 
MR B SANTHANAM, CHAIRMAN MR NAVAS MEERAN, DEPUTY CHAIRMAN Hyderabad, March 23, 2013. Mr B Santhanam, Managing Director, Saint-Gobain Glass India Ltd, Chennai has been elected as the Chairman of CII – Southern Region for the year 2013 -14. His name was announced at the first meeting of the r.....
 
Hindustan Aeronautics Limited (HAL), a “Navaratna PSU”, is one of the Asia''''s largest aerospace companies has signed a Technology Cooperation Initiative to enhance Quality and Competitiveness for HAL of its Products and Services. This is the first ever cooperation initiative signed between the l.....
 
President of Ukraine Rolls Out the Red Carpet for Indian Industry Ukraine Could be The Preferred Choice for Space Research, Aircraft, Ship Building, Pharmaceuticals, Metallurgy and Tourism Confederation of Indian Industries hosted a business meeting with the President of Ukraine, His Excellency, Mr.....
 
Global macro economic conditions to continue to be challenging: RBI, Deputy Governor The global economic conditions are likely to be challenging for some time to come, said Dr. Subir Gokaran, Deputy Governor RBI, during the interactive session organized by CII with the members of CII Southern Counc.....
 
Poverty Came Down Due To Liberalisation High Prevalence Of Poverty Among SCs, STs Remains Unchanged Bangalore: Rising per capita income of India and growth have reduced poverty in all classes including socially disadvantaged classes. Though there are skeptics who argue that growth has bypassed the .....
 
CII’s Young Indians Bangalore Chapter Annual Day was held on 30 March 2012 in Bangalore. The theme for the Annual Day was “Importance of Healthy Living: Understanding and Tackling Effects of Mental Health on Productivity”. Depression is increasingly prevalent in our workforce. This impacts the indi.....
 
Implementation Focus Makes Karnataka More Competitive: CII Bangalore: Vision to think big in terms of planning and time bound implementation mechanism and consensus among industry, political leaders and bureaucrats can make Karnataka more competitive and makeover its image. CII Karnataka Annual Mem.....
 
CII Mysore Zone Annual Members Day was held on Friday, 9 March 2011 at Hotel Sandesh the Prince, Mysore As a part of the Annual Members Day, CII Mysore Zone organized a public Session on Infrastructure at 9 March 2012 at Hotel Sandesh the Prince, Mysore. The keynote address was Mr. Maheshwa.....
 
The Roundtable Discussion on Karnataka Higher Education System, was hosted by the Confederation of Indian Industries at CII Office, Indiranagar, Bangalore on 29 February 2012. The objective of the session was to deliberate on the Future of Higher Education in Karnataka and is aimed at building a co.....
 
CII Awards & Recognitions
 
The Leadership and Excellence Award in Environment Health & Safety (EHS) Award was instituted in the year 2002. The aim is to recognize, motivate and facilitate corporates to adopt innovative practices in EHS.
 
CII and Export Import Bank of India have, in 1994, jointly established the CII-EXIM Bank Award for Business Excellence, with the aim of enhancing the Competitiveness of India Inc. The Award is based on the internationally recognized EFQM Excellence Model.
 
The Confederation of Indian Industry (SR) through its Education Sub-Committee, launched the first edition of Innovator 2009 on 12th February 2010 at Hotel Le Royal Meridien, Chennai. The Sub Committee initiated this unique event this year under the Chairmanship of Dr R Mahadevan, Group Technology Director, India Pistons Ltd. Innovator is a competition aimed at identifying and showcasing the innovative ideas of college students from Technical, Business and Social streams in the Southern Region. It is a three stage project centric contest designed to test the technical/business and social concepts, presentation and creative skills of the participants.
 
Confederation of Indian Industry (Southern Region) has launched the Eighth edition of the "Leadership and Excellence Award in Environment Health & Safety (EHS) for the year 2009" in cooperation with SHRIRAM EPC Limited. The EHS Award was instituted in the year 2002 and it has been grand success every year and has received tremendous response from the industries in the Southern Region.
 
Indian industry is implementing kaizens for becoming competitive in the global scenario. From, CII - TPM Club India we would like to bring out the best kaizens implemented so that it benefits the Indian Industry as a whole. The excellent work done inside companies is otherwise hidden if not given a good exposure. To achieve the above objective, Kaizen Conference has been designed not only for achieving the purpose of spreading the good work done by companies but also to recognize the best of the competing kaizens with Kaizen Trophy. This competition is very severe and intense with more than 50 kaizens participating in each edition. A total of 5 winners are selected from different categories to carry the best kaizen award in the form of a trophy.
 
Normally 2 Kaizen Conferences are conducted every year. The winners of these conferences compete again for the “Best of the Best” for the year. There is a platform created for them to compete at the TPM National Conference and the top 3 companies are awarded the Sona Kaizen Cash Award along with the Kaizen Champion Trophy.
 
In the year 2007, CII established a National Award on Six Sigma to recognize organizations which have successfully adopted and implemented the Six Sigma techniques resulting in improvement in processes. The CII-Six Sigma Awards are given in an annual conference organized by the CII Institute of Quality (CII-IQ). Every year, CII-IQ organizes the National Six Sigma Competition, annually, and invites organizations to participate in the same and present successful case studies. An eminent Jury evaluates the presentation with respect to pre-determined criteria and identifies the Award Winners.
 
QC Circles play a very important role in involving a wide cross section of employees for improving quality within an organization through participation. In an effort to spread the awareness of the need to Total Quality Management among membership in the Southern Region, CII has been conducting the Quality Circle Convention in the southern region for the last 22 years. The Regional Convention, which is an annual feature, is a build-up of the State Conventions that take place throughout the year as part of CII’s continuous thrust towards strengthening the quality movement in India. The convention provides a unique opportunity to motivate Workers to form Quality Circles within the organization and facilitates the exchange of ideas and sharing of experiences on various approaches to problem solving through Quality Circles. Each team participating at the convention would be make presentations of their QC Stories to the jury. The first three winners at the Regional Competitions would participate in the CII National QC Circle Convention.
 
5S is a five-step technique for creating and maintaining a good housekeeping at workplace, which makes it free of clutter, well-organized and clean. Once fully implemented, the 5S process can increase morale, create positive impressions on customers and increase efficiency and organization. The effect of 5S on continuous improvement can lead to less waste, better quality and faster lead times. All of which make an organization more profitable and competitive in the market place.
 
Kaizen (Japanese for "improvement" or "change for the better") is a philosophy or set of practices that focus on continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. The Kaizen concept stimulates productivity improvement as an ongoing process in companies. The Kaizen Competition of CII Southern Region is organized every year to recognize and encourage member companies which give importance to continuous improvements through Kaizens. The competition is conducted for operators and supervisors of member companies from manufacturing and service sectors. In order to encourage competitiveness through Kaizens among small scale industries, a special recognition is given for the best small scale organization which participates in the competition. The competition awards member companies who have adopted Kaizens not only at the shop floor but also from the office area, scrap yard, stores etc.
 
CII Contacts
 
Ramesh K
[Director]
Confederation of Indian Industry
Karnataka
No. .1086, 12th Main
HAL 2nd Stage
Indiranagar
Bengaluru-560008
Karnataka
India
Phone : +91-80-25276544 / 545 / 706 / 707
Fax :+91-80-25276709
Email : ramesh.k@cii.in