Government of Karnataka Welcomes the Government & Business Fraternity of Israel

1. Government of KarnatakaWelcomes the Government & Business Fraternity of Israel www.advantagekarnataka.com

2. Advantage Karnataka www.advantagekarnataka.com

3. SNAPSHOT

4. Advantage Karnataka • Globally recognized brand – 3rd largest FDI inflows in the country • Ranked 1st for a healthy business climate and attracting investmentsby World Bank’s Investment Climate Index • 700+MNCs, 80+ Fortune 500 companies • Comprehensive infrastructure: 58 SEZs, SKDC, 5 airports, 11 ports • Ease of doing business: Least time to register a property, less time to export and import • Bangalore – Best India City to Live in - 'Quality of Living Survey - Worldwide Rankings, 2011‘ – Mercer • Huge pool of trained professionals adding up to the workforce every year An indicative list of companies

5. Quality of Life Healthcare Education • Knowledge Hub of Asia with • 187 Engineering colleges • 114 Medical colleges • 22 Universities • 13 International Schools • Leading provider in healthcare with world class facilities and super specialty hospitals • Medical tourism enriched with abundant options in Ayurveda, Naturopathy, and Unani Leisure • Resorts, spas, golf clubs, Derby • Wildlife parks • Heritage sites and historic temples • Adventure sports • Modern multiplexes

6. Established Industrial Bases

7. Industrial Strength • Aerospace • Producer of more than a quarter of India’s aircraft and spacecraft • Boeing & Airbus have their Research & Technology Center and Engineering Centre located here respectively • Karnataka houses India’s first and top R&D centers in Aerospace & Defence such as Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) • GoK 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 at Belgaum • On the anvil : Dedicated Aerospace policy (first in India)

8. Industrial Strength • Biotechnology and Pharmaceuticals • Karnataka is the Biotech Capital of India, with over 60% of all biotechnology companies in India having a base here and driving 50% of the total revenues in the national biotechnology sector. • Karnataka’s pharmaceutical sector exports 40% of the total pharma produce and accounts for 8% of the country’s total pharma revenue. • Karnataka ranks 10th in the number of pharma manufacturing units in the country. • Dedicated Biotechnology parks and centres planned such as Nutri/ Nutraceutical and Phyto -Pharmaceutical Park (N2P2) at Mysore, Marine Biotech Park at Mangalore, Agri Biotech Park at Dharwad, Vivarium (Animal House) at Bidar

9. Industrial Strength • Chemicals & Petrochemicals • The Chemicals sector is a growing investment focus area for the Government of Karnataka • Mangalore Refinery and Petrochemicals Limited in Dakshina Kannada is the only refinery in India to have two Hydrocrackers producing Premium Diesel and have two Continuous Catalytic Regeneration (CCRs) producing Unleaded Petrol of High Octane • Aromatics complex by ONGC Mangalore Petrochemicals Ltd (OMPL) is producing para-xylene and benzene • A 1800 acre dedicated Petrochemical Special Economic Zone (SEZ) is located in Mangalore • A 1,370 km Dabhol – Bangalore Natural Gas Pipeline with a planned transmission capacity of 16 MMcm/d has opened opportunity for development of Gas based projects in the State

10. Industrial Strength Textile and Apparel • India contributes 4 % share in total world textile exports and textiles & apparels constitute one of the top 10 export items of India. • Produces over 20% of the national garment production and 45% of the national raw silk production • Bangalore is known as the Garment Capital of India. • Sector-specific special economic zones for textiles at Hassan. • Largest producer and exporter of Silk & Silk products in India. • Contributes 4 % of total exports from the State. • Silk exports from Karnataka constitute 24% of the total value of silk goods exported from India • Presence of over 100 Skill Development Centres and 240 private training centres • Presence of a 48-acre Integrated Textile Park and over 700 powerlooms

11. Industrial Strength • Agro & Food Processing • Contributes 70% of India's coffee. • Major producer of spices, flowers, fruits and vegetables. • Food Processing SEZ at Hassan. • Produces a variety of Agriculture Crops. • Presence of 7 national level Research Institutes in Agriculture & Horticulture sectors. • Presence of 4 dedicated Food Parks and 1 Food Processing SEZ. • Karnataka contributes 7% of Agricultural production of the country. • Agro & Food processing contributes 2.52 % in State total exports.

12. Industrial Strength Gems & Jewellery: • India contributes 16.27% share in total world export. • India possesses world's most competitive gems and jewellery market due to its low cost production and availability of skilled labour. • India has a large pool of skilled artisans with vast traditional knowledge and expertise in jewellery making. • Gems and Jewellery contributes 11% in State total exports.

13. Industry Friendly Policies • Industrial Policy 2009-2014 • Textile Policy, 2008-13 • Solar Policy, 2011-16 • Karnataka Tourism Policy, 2009-14 • Information & Communication Technology Policy 2011 • Infrastructure Policy 2009-14 • Semiconductor policy 2010 • Millennium Biotech Policy – 2 • Renewable Energy Policy 2009-14 • Karnataka Animation, Visual Effects, Gaming & Comics Policy 2012

14. Pro active State Govt. Policies • First State in the country to announce IT Policy • First State in the country to announce Millennium Biotech Policy • Karnataka Semiconductor Policy –2010 • Electronics Hardware Policy - focus on promoting electronic manufacturing Hubs with world class facilities and Creation of Integrated Manufacturing Ecosystem. • Karnataka Animation, Visual Effects, Gaming and Comics (KAVGC) Policy with a focus on promoting AVGC Park, Digital Art Centres, Centre of AVGC Excellence etc. • Creating New Road Map for ICT -2020 • New Focused Policy for “ Electronics and Manufacturing Policy (ESDM)”

15. Guiding investors and enabling fruitful investments Karnataka UdyogMitra (KUM) (A nodal agency of Government of Karnataka ) Single point contact for investors • Responsible for attracting and guiding investments into the State • Disseminates information on Karnataka, sectoral advantage, district highlights, infrastructure (land, water, power), statutory requirements, building regulations, etc. • Provides information on policies and procedures, tax regime, incentives, etc. • Coordinates the visit of investors, both national and international to the State • Facilitates necessary clearances / approvals from the Government departments / agencies for the projects.

16. Information Communication Technology(ICT) • Bangalore is the 2nd largest technology cluster in the world. • Total Annual ICT Revenues from Karnataka are $ 26 Bn. • Karnataka ICT industry contributes to more than 35% of National ICT industry revenues. • 400 out of Fortune 500 companies have outsourcing operations in Karnataka. • ICT industry provides direct employment to the tune of 800,000 & Indirect employment to the tune of 2,500,000. • Around 85 Chip Design houses are located in Karnataka. • Largest no of Start-up companies in India. • Highest Venture Capital Distribution in India.

17. BANGALOREResearch and Development Hub • Around 50,000 PhDs • 194 Engineering Colleges – 80,000 Engineers annually • 22 Universities; 20 International Schools • 361 R&D Centres (out of 819 in India) • R&D Talent Pool – 1,02,000 • Scientific environment • Basic Research • Austro Physics • Aeronautical Engineering • Aero Space Labs • Telecom • Bio Technology

18. Karnataka ICT Roadmap for 2020 2012 2020 Revenue US$ 26 B Revenue US$ 75 B DirectEmployment 800,000 DirectEmployment 2,000,000 Help to incubate 1000 start-ups Entrepreneurs 1000 18

19. Four Dimensions of Growth for 2020 19

20. Karnataka Stimulating “ESDM” investments • Proactive Policies to encourage “Karnataka ESDM Company ” as a company which does 30% value addition and employs 50% workforce in Karnataka. • Augment the National Electronics Policy 2012 and National telecom Policy 2012 and implement them in Karnataka • Provide Capital incentives for both High Tech Manufacturing as well as the developing Electronics Manufacturing Clusters. • Provide “post-performance” fiscal incentives for Karnataka ESDM companies to reduce their bottlenecks and increase their competitiveness • Set up Institute of Semiconductor and Embedded Technologies

21. Annual ICT Flagship Events In Bangalore • Bangalore IT. Biz - is scheduled every year in the month of October-November • ISA vision Summit is scheduled every year in the month of February • Bangalore Nano is scheduled every year in the month of December • Global Investors Meet is scheduled every two years in the month of June • GIM 2014 on June 2-3 Biennial Flagship Event In Bangalore

22. Science and Technology Initiatives • Scientific Hub is proposed in 10,000 acres, about 200 kms from Bangalore. • Premier Science and Technology Institutions such as IISc, ISRO, DRDO are establishing their campus at the Scientific Hub. • Proposed to develop Bangalore as NanoScience and Technology Hub. • Science Centres are proposed to portray the growth of science and technology. • Proposed to develop Karnataka Geographical Information System. • Collaborative programs in the area of Science and Technology with International institutions are proposed

23. Infrastructure

24. Robust Infrastructure: Initiatives • Special Investment Regions like IT investment region (ITIR) • Exclusive sector specific industrial areas for Aerospace, Automotive, Drugs, Chemicals, Engineering and Machine Tools, Textiles, Plastics and related industries, etc. • Special Economic Zones • Land Bank : Ready to allot land for industrial purpose Karnataka has been at the forefront of industrial and investment facilitation

25. 61 Special Economic Zones provide duty-free enclave for driving FDI and exports Bidar Gulbarga Policy incentives and facilities offered to units in SEZs Bijapur Yadgir Belgaum With investments of US$ 6.76-billion, the state’s operational SEZs have generated 97,313 jobs, and exports of US$ 11.45-billion Bagalkote Raichur Koppal Gadag Bellary Dharwad Uttara Kannada Haveri Chitradurga Davanagere Shimoga Tumkur Chikaballapur Udupi Chikmagalur Kolar Hassan Dakshina Kannada Mandya Kodagu Bengaluru Urban Mysore Bengaluru Rural Chamarajanagara *Separate incentives for SEZ developers Source: www.sezindia.com

26. Strong infrastructure base: Airports, Sea Ports, Rail & Road Connectivity

27. To be developed on around 10000 Acres near Bangalore International Airport, Devanahalli An integrated IT Township with world-class facilities, residential / social / educational / health infrastructure Projected Employment: Direct –255,000 Indirect– 857,000 Estimated Investments by 2030 – US $ 20 Billion ICT INFRASTRUCTURE Information Technology Investment Region:

28. Belgaum Gulbarga Mangalore Mysore Shimoga ICT INFRASTRUCTURE • IT / ITeS / EHM • State promoted IT Parks : • Shimoga • Gulbarga • Mysore • Mangalore • Belgaum

29. Doing Business in Karnataka Key Highlights of GIM 2012 Partner Countries Partner State • Presence of over 200 Industry leaders • 10,000 delegates • 40,000 visitors • 30+ countries • 15+ Indian states • 460 Exhibitors in GIM Expo • 500+ B-to-B meetings • 14 Technical sessions • 7000+ investment interests • Valued at 1,30,909 US$ Millions Japan Mexico Strategic Partners METI, Japan ProMexico, Mexico State of Bavaria, Germany Participating Countries* *Indicative illustration

30. Global Investors Meet 20142-3 June, 2014 • We welcome Israel as Partner country • Israel Pavilion - Exhibition space • Trade and Investments facilitation • BTB/BTG - Networking meetings • Delegation from Israel

31. We invite you to explore investment opportunities in Karnataka – Come be a part of our growth story! Infrastructure Services Sector • Transport Infrastructure • Roads • Rail • Ports • Airports • Power • Generation • Transmission • Distribution • Renewable Energy • IT/ITES • Software Development • IT Services • IT Hardware • KPO/BPO • Health Care • Multi specialty Hospitals • Health city • Public health facilities • Industrial Infrastructure • SEZ’s • Industrial Areas • Industrial Estates • Development Corridors • Tourism & Lifestyle • Resorts, spas, golf clubs, Derby • Heritage sites and historic temples • Adventure sports • Modern multiplexes • International Schools, Colleges & Universities

32. We invite you to explore investment opportunities in Karnataka – Come be a part of our growth story! Manufacturing & Engineering Niche Areas • Biotechnology and Pharma • R&D facilities • Biotechnology parks • Bioservices • Knowledge Economy • Knowledge city • R&D centres • Polytechnics • Engineering • Automobile • Aerospace • Precision Engineering • Industrial machinery and machine tools • Textile • Conventional Textiles • Technical Textiles • Infrastructure Development • Minerals Based • Gold • Cement • Steel • Granite • Sand mining • Chemical & Petrochemical • Paraxylene based PET/ PTA • Petrochemical downstream

33. Contact persons • Principal Secretary to Government of Karnataka • Commerce & Industries Department • # 106, 1st Floor, VikasaSoudha • Dr. AmbedkarVeedhi, • Bangalore 560 001, India. • Email : prs_ci@karnataka.gov.in Principal Secretary to Government                                           Department of Information Technology, Biotechnology and Science & Technology 6th Floor, 5th Stage, MS Building, AmbedkarVeedhi, Bangalore-560001 Phone: 080-2228 0562/ 080-2203 2434 /080-22374314Fax: 080-2228 8340 e-mail: itbtsec@gmail.com Commissioner for Industrial Development and Director of Industries & Commerce 2nd Floor, KhanijaBhavan No.49, Race Course Road, Bangalore – 560 001 Email : commissioner@karnatakaindustry.gov.in Visit us at : http://www.karnatakaindustry.gov.in Visvesvaraya Industrial Trade Centre, Managing Director, Visvesvaraya Industrial Trade Centre VITC Building, III Floor Kasturba Road, Bangalore – 560 001. Ph: 22864281 / 22860853 / 22861828 Fax:22865202 Email: vitcblr@yahoo.in www.vitcblr.org Karnataka Udyog Mitra Managing Director, Karnataka Udyog Mitra, 3rd Floor, Khanija Bhavan (South Wing), No.49, Race Course Road, Bangalore – 560 001 Ph : 91-80-2228 2392, 2228 5659; 2238 1232, 2228 6632 Fax : 91-80-2226 6063 Email : md@kumbangalore.com Visit us at : www.kumbangalore.com

34. Thank You

35. EXPORT SCENARIO OF THE STATE US$(Millions)

36. EXPORT PERFORMANCE OF THE STATE Value Rs. US $ Millions 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 YEAR

37. Export & Flourish Potential sectors for TRADE

38. Industrial Strength • Leather Products: • Top ten foreign exchange earners for the country. • Availability of raw materials, skilled manpower, innovative technology, industry compliance to international environmental standards and the dedicated support of the allied industries are major strengths. • Trained / Skilled manpower at competitive wage levels. • World-class institutional support for Design & Product Development.

39. Industrial Strength • Machine tools & Foundry • US $ 10.41-billion foundry industry • Industry dependent on state for mining operations (40% of country’s total iron ore) • 50% of machine tool industry in the country • Largest foundry clusters in Belgaum; Proposed dedicated Machine Tool Park in Vasanthnarsapur, Tumkur

40. Industrial Strength • Handicrafts: • Karnataka is a leader in production of high quality handicrafts. • Karnataka has a rich knowledge of exquisite craftsmanship. • Major crafts practiced are sandal wood, rose wood furniture, inlay and carvings, bronze statues, bidriware, lacquer ware, batiks and home décors products. • Craftsmen endowed with high skill levels entirely devoted to producing quality handicrafts. • 13 craft complexes spread across the state provide common facilities centre, design input and marketing support.

41. Driving the way as Industry champion • 1st Aircraft Manufacturing Unit in the country • 1st Space Research Center • 1st Institute of Biotech & Bioinformatics in the country • 1st International Technology Park in India • 1st State to Introduce Industrial Policy • 1st State to Introduce Sectoral Policies • Largest number of R&D centers in India • Largest software exporter in the country • Largest biotechnology hub in India • Largest number of medical institutes and Industrial Training Institutes in the country • Leading producer of horticulture products • 3rd largest number of engineering collegesin India Source: Economic Survey of Karnataka, 2010-11

42. Facilitating fast track approvals for key investments

43. E Udyami: G2B Online Portal A New Initiative • The portal is only accessible for registered Investors • Features: Dashboard for investors, Workflow management, escalation matrix, helpdesk, etc. • The portal can be accessed online via www.advantagekarnataka.com • Consolidated information about the investment process in Karnataka • In depth information about the current status of their investment projects. • Aids in smooth facilitation and monitoring of investments and provides transparency to investors to monitor the status of their projects

44. 10 Initiatives to Achieve Karnataka ICT Targets for 2020 IT/BPO Continued emphasis on growth KIG 2020 GOALS ESDM(Electronics System Design & Manufacturing) Leveraging the growth in this emerging sector that has national focus Revenues Education Use technology to enhance capabilities US $ 72.72 B Capacity Building Talent Development & Job creation Increase Value addition Promote Innovation, IP Creation, R & D and Karnataka ICT Innovation Fund Employment Entrepreneurship Development & Mentoring Creating new opportunities and jobs 20,00,000 Direct Development of Emerging ICT (EMICT) Centres in Karnataka Develop other centers beyond Bangalore Leverage the global eco-system ICT relationship with other Countries & Focused Marketing New Startups > 1000 Supporting the growth needs of the industry Eco-Friendly Integrated Infrastructure Branding Highlight Karnataka to be the Global ICT investment destination

45. Karnataka Strengthening the Education Base “E-Ready children with improved Quality” • Create “Karnataka Knowledge Network (KKN)” a fully wired state with the following: • Provide Free Wi-Fi in Bangalore • Set up a Karnataka School Network • Set up a Karnataka College network connecting all Govt & Private colleges with high speed bandwidth • Provide all school children from standard 7 and above with a Tablet with wireless and 3G preloaded bi-lingual teaching material for each class and access to a portal where they can download the latest teaching material • Provide all students and faculty of government colleges/University a Tablet/laptop preloaded with content with wireless/3G

46. Promotion of Innovation, IP Creation, R&D and Funding • Created US $200 million Karnataka ICT & Innovation fund to take care of financial needs of the ICT industry from startup to growth as debt /working capital. • Special program to identify 100 Innovators and Entrepreneurs. • Proposed to set up ESDM/VLSI Incubation Centres across the state • Facilitate IP development by Indian industry by providing incentives for patent filing and maintenance. • Provide 20% R&D Grant subject to a of maximum 2% of annual turnover of Karnataka ESDM companies

47. KarnatakaDevelopment of other ICT Centres The Government needs to develop each ICT Centre, E.g. Mangalore, around the elements depicted in the picture which trigger growth

48. Decentralization Industrial Infrastructure • 7the largest urbanised state in the country • Karnataka’s urban population has grown by 31.3% since 2001 • Water supply coverage of 85% to 90% in core city areas Robust Infrastructure: Backbone of Industrial growth Fuelling the growth of Industry in Karnataka Support Infrastructure Urban Infrastructure • Extensive infrastructure networks: Road, rail, airport, sea port • Power: fueling growth • PPP: projects planned and identified • 61 Special Economic Zones • Suvarna Karnataka Development Corridor