Report says agro-processing, textile are emerging sectors
State found to be scoring well on social infrastructure
Report to be presented to the State government
Bangalore: In its quest to diversify its investment character beyond Information Technology, the Karnataka government has to make a mammoth effort to improve overall infrastructure, particularly in Tier-II cities, to provide competitive investment opportunities with a sound eco-system.
A report titled “Investing Karnataka – Towards Faster and Inclusive Growth (2009),” jointly prepared by the Bangalore Chamber of Commerce and Industry and the global consulting company, KPMG, has identified agro-processing and textiles sectors emerging with a competitive advantage after IT and biotechnology.
The report is to be presented to the State government, which is preparing to hold the second Global Investors Meet in June.
“Over the years, Karnataka has created a distinct identity for itself through a well thought-out approach and investor-friendly policies. Given these, the State is now gradually moving towards becoming one of the most preferred investment destinations for investors the world over. The State has successfully created for itself an image of being the IT powerhouse of India and is now advancing its knowledge power to other industries like biotechnology, agro-processing, textile and aeronautical engineering,” said the report.
It found the State to be scoring well on social infrastructure and with a competitive advantage in IT and Bio-Technology sectors. Respondents from 20 companies from IT, automotive, education, real estate and engineering, while acknowledging successful efforts in attracting major international companies in several sectors apart from IT, however felt that more power should be made available to attract investments.
Respondents also wanted more clarity in the State’s policy on infrastructure, improvement in social infrastructure such as education and health, and improvement in roads to make the investment climate more sustainable than before.
The respondents gave the maximum ranking to Karnataka for being an attractive investment destination, which was supported by easy availability of resources like raw materials.