Software industry in Karnataka

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The software industry in Karnataka state in India has become one of the main pillars of the state's economy. Karnataka stands first among all the states of India in terms of revenue generated from software exports, accounting for 42% share of all software exports from the country during the financial year of 2022-2023. [1] [2] [3] The total exports of Karnataka was Rs 3.28 lakh crore ($65 billion). Karnataka's capital city Bangalore has the sobriquet of Silicon Valley of India , [4] with total IT exports worth US$ 53 billion during the financial year 2021–22, [5] [6] employing 1 000 000 people directly and 3 000 000 lakh indirectly. [7] Though most software companies are located in Bangalore, some have settled in other cities like Mysore, Mangalore, Belgaum and Hubli in Karnataka. [8] The infrastructure required for setting up software industries in Karnataka is provided by STPI. The software industry in Karnataka includes companies dealing with various fields like telecommunication, banking software, avionics, database, automotive, networking, semiconductors, mobile handsets, internet applications and business process outsourcing. Currently, out of total IT exports, 95% is from Bengaluru alone and the other Karnataka cities contribute just 5%. [9]

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The Nandi Hills area on the outskirts of Devanahalli is the site of the upcoming $22 billion, 12,000-acre (49 km2) BIAL IT Investment Region, one of the largest infrastructure projects in the history of Karnataka. [10] This project is expected to create over four million jobs by the year 2030.

Origin

Starting in the 1980s, Karnataka emerged as the information technology capital of the country. [11] A total of 1973 companies in Karnataka are involved in Information Technology related business [8] including big firms [12] like Infosys and Wipro who have their headquarters in Bangalore. The origin of the growth of the software industry in Karnataka seems to have been the entry of Texas Instruments which was the first multinational to set up base in Sona Tower, Millers Road, Bangalore in 1985. [13] Texas Instrumentswas searching for a location to set up their overseas development centre in India in the early 1980s. They first looked at the states of Maharashtra and Tamil Nadu but when both states refused permission, Karnataka was approached with a condition that land allotted must be near an airport. The then chief minister of Karnataka Gundu Rao agreed to their terms and granted land near the HAL Airport in Bangalore. Texas Instruments currently has a big facility in Bagmane Tech Park in Bangalore near the airport.

There were many factors conducive to the development of the software industry in Karnataka state. One factor is the presence of large numbers of top grade science and engineering institutions like IISc, NITK, B.M.S. College of Engineering, BVB, Malnad College of Engineering MSRIT, NIE, SJCE, RVCE, PESIT, SDMCET and around 200 engineering colleges. The software industry requires large numbers of skilled engineers which are regularly churned out of the engineering colleges in Karnataka. [14] The presence of Public sector undertakings like BEL, HAL, BHEL, ITI and BEML gave ready access to manpower as well as trial opportunities of newly developed software. There were many advanced laboratories like NAL and ISRO in and around Bangalore which provided necessary basic knowledge required for software development. The successive state governments have been proactive in providing necessary facilities for growth of the industry. The salubrious climate of Bangalore also helps in the growth of the software industry there.

Effects

There has been both positive and negative effects of software industry's tremendous growth. The per capita income of state has risen. Cars once considered a luxury has become a commodity, often leading to traffic jams and unavailability of space for parking. More people are traveling abroad for work as well as for tourism. Growth in income has had an effect on the real estate prices with the land rates skyrocketing. [15] Land prices have shot much beyond rate of inflation and in some places rate of land doubles every two years. Agriculture has slowed down as people find it more lucrative to sell the land rather than use it for agriculture. The surge in income of software professionals has led to increased interest among youth opting for computer science and information technology courses in college. The basic science, arts and commerce fields have felt a shortage of quality manpower.

See also

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<span class="mw-page-title-main">Bangalore Rural district</span> District of Karnataka in India

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<span class="mw-page-title-main">Devanahalli</span> Town in Karnataka, India

Devanahalli, also called "Devandahalli", "Dyaavandalli", Devanadoddi, and Devanapura, is a town and Town Municipal Council in Bengaluru Rural district in the state of Karnataka in India. The town is located 40 kilometres (25 mi) to the north-east of Bengaluru. Devanahalli is the site of Kempegowda International Airport. A multibillion-dollar Devanahalli Business Park with two IT Parks are coming up on nearly 400 acres (1.6 km2) adjoining the airport. An Aerospace Park, Science Park and a ₹10 billion (US$130 million) Financial City are also coming up. A new satellite ring road will connect the city with Doddaballapur. Devanahalli is situated near the upcoming ₹1,500 billion (US$19 billion), 12,000-acre (49 km2) BIAL IT Investment Region, to be the largest IT region in India.

<span class="mw-page-title-main">Software industry in Telangana</span> Overview of the software industry in the Indian state of Telangana

The Indian state of Telangana has a 31% share of software export in India. While the majority of the industry is concentrated in Hyderabad, other cities are also becoming significant IT destinations in the state. Hyderabad houses the largest campuses of tech giants like Google, Facebook, Microsoft, Amazon, and Apple outside of the US. In Hyderabad, the central region of the business happens in Financial District, HITECH City, the Madhapur suburb, Kokapet SEZ (Neopolis) and Salarpuria Sattva Knowledge City. As of 2023, Hyderabad has 9,05,715 employees in the IT/ITES sector, working in more than 1500 companies. The number of startups in Telangana had increased from 400 in 2016 to 2,000 in 2022. Hyderabad added two companies in unicorn startup list in first two months of 2022.

<span class="mw-page-title-main">Economy of Bangalore</span>

The economy of Bengaluru contributes over 43.65% to the economy of the State of Karnataka, accounting for 98% of the Software Exports of the State.

<span class="mw-page-title-main">Kempegowda International Airport</span> International airport in Bangalore, India

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<span class="mw-page-title-main">Software Technology Parks of India</span> Technology Park

Software Technology Parks of India (STPI) is an S&T autonomous society under Ministry of Electronics and Information Technology (MeitY) engaged in promoting IT/ ITES Industry, Innovation, R&D, Start-ups, Product/ IP creation in the field of emerging technologies like Internet of Things (IoT), Blockchain, Artificial Intelligence (AI), Machine Learning (ML), Computer Vision, Robotics, Augmented & Virtual Reality, Animation & Visual effect (AVGC), Data Science & Analytics for various domains like FinTech, Agritech, MedTech, Autonomous Connected Electric & Shared(ACES) Mobility, ESDM, Cyber Security, Gaming, Industry 4.0, Drone, Efficiency Augmentation, etc. STPI was established in 1991 by the Indian Ministry of Electronics and Information Technology (MeitY) with the objective of encouraging, promoting and boosting the export of software from India. STPI Headquarters is located in New Delhi with over 60+ Centres spread across the country.

<span class="mw-page-title-main">Economy of Karnataka</span>

Karnataka is one of the highest economic growth states in India with an expected GSDP growth of 9.5% in the 2021–22 fiscal year. The total expected GSDP of Karnataka in 2022–2023 is about $240 billion. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the tertiary sector contributed the most to GSDP, followed by the secondary sector, and the primary sector.

<span class="mw-page-title-main">Kris Gopalakrishnan</span> Indian billionaire

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The information technology industry in India comprises information technology services and business process outsourcing. The share of the IT-BPM sector in the GDP of India is 7.4% in FY 2022. The IT and BPM industries' revenue is estimated at US$ 245 billion in FY 2023. The domestic revenue of the IT industry is estimated at $51 billion, and export revenue is estimated at $194 billion in FY 2023. The IT–BPM sector overall employs 5.4 million people as of March 2023. In December 2022, Union Minister of State for Electronics and IT Rajeev Chandrasekhar, in a written reply to a question in Rajya Sabha informed that IT units registered with state-run Software Technology Parks of India (STPI) and Special Economic Zones have exported software worth Rs 11.59 lakh crore in 2021-22.

<span class="mw-page-title-main">Economy of Andhra Pradesh</span>

The Economy of Andhra Pradesh is primarily dependent on agriculture, which directly and indirectly employs 62% of the population. GSDP as per the first revised estimate, for the year 2022-23 is ₹13,17,728 crore. The state is ranked 1st in the country for the year 2021-22 in terms of the Gross State Domestic Product (GSDP) growth at constant prices with growth rate of 11.43%.

<span class="mw-page-title-main">Bengaluru Commuter Rail</span> Planned suburban rail network in Bangalore, India

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<span class="mw-page-title-main">Software industry in Chennai</span> Third largest software exporter in India

Chennai is the third largest software exporter in India, next only to Bangalore and Hyderabad. India's largest IT park is housed at Chennai. Software exports from Tamil Nadu during 2017–2018 rose 8.6% per cent to touch 1,11,179 crore, involving a workforce of 780,000, and the city is the hub for deep tech startup companies. Many software and software services companies have development centres in Chennai, which contributed 14 percent of India's total software exports of ₹ 14,42,140 lakh during 2006–07, making it the third largest Indian city software exporter following Bangalore, Hyderabad and the city is the home for 7 top rated IT companies out of 15 in India. The Tidel Park in Chennai was billed as Asia's largest IT park when it was built. Major software companies have their offices set up here, with some of them making Chennai their largest base. Chennai is the largest hub for e-publishing, as there are 67 e-publishing units registered with the STPI and many Rs.8300-Cr data centers, digital hubs are in the process of development. A major reason for the growth of the Software industry are the top engineering colleges in Tamil Nadu, of which Chennai is a major contributor, have been a major recruiting hub for the IT firms. According to estimates, these engineering colleges and universities consistently generate about 50 per cent of the human resource requirements for the IT and ITES industry was being sourced from the state, particularly from Chennai. The total employment in the Tamil Nadu’s technology sector crossed the one million mark in the quarter ended June 2022.

The economy of Hyderabad, the capital of Telangana, India, is based on traditional manufacturing, the knowledge sector and tourism. Starting in the 1990s, the economic pattern of the city changed from a primary service hub to a more diversified economy, but the service industry still remains a major contributor. As of 2006, the largest employers of Hyderabad are the governments of Andhra Pradesh and India, with 113,000 and 85,000 employees, respectively.

<span class="mw-page-title-main">Bangalore</span> Capital of Karnataka, India

Bangalore, officially Bengaluru, is the capital and largest city of the southern Indian state of Karnataka. It has a population of more than 8 million and a metropolitan population of around 11 million, making it India's third most populous city and fifth most populous urban agglomeration, as well as South India's second-largest urban agglomeration, after Chennai and the 27th largest city in the world. Located on the Deccan Plateau, at a height of over 900 m (3,000 ft) above sea level, Bangalore has a pleasant climate throughout the year, with its parks and green spaces earning it the reputation of India's "Garden City". Its elevation is the highest among India's major cities.

The Indian electronics industry saw growth in the early years of the 21st century, encouraged both by government policies and incentives and by international investment. Its key and most resource-intensive segment, the semiconductor industry, was benefitted from domestic demand growing briskly. Semiconductors were required by a large number of industries, including telecommunications, information technology, industrial machinery and automation, medical electronics, automobile, engineering, power and solar photovoltaic, defence and aerospace, consumer electronics, and appliances. As of 2015, however, the skill gap in the Indian industry threatened progress, with 65 to 70 percent of the market relying on imports.

References

  1. ↑ "Karnataka's IT exports crossed ₹3 lakh crore in FY 2023: Priyank Kharge". The Times of India . 16 November 2021.
  2. ↑ "'Hyderabad is no competition for Bengaluru & its talent base'". The Times of India . Retrieved 11 March 2023.
  3. ↑ "Karnataka's IT export targets to be lowered amid downturn".
  4. ↑ "Becoming silicon valley". James Heitzman. Seminar - Web edition. Retrieved 19 June 2007.
  5. ↑ "Karnataka IT exports to touch $150 billion by 2026: Minister CN Ashwath Narayan".
  6. ↑ "Karnataka aims to generate $150 bn in IT export revenues in next 5 years".
  7. ↑ "'Bangalore will become the world's largest IT cluster by 2020'". Business Line. Retrieved 27 May 2021.
  8. 1 2 "About Karnataka: Information on Tourism Industry, Exports, Economy & Geography". India Brand equity foundation. Retrieved 15 August 2019.
  9. ↑ "Karnataka IT firms made Rs 1.16 lakh crore in exports during the Covid-19 pandemic".
  10. ↑ "State Cabinet approves IT park near Devanahalli airport". The Hindu . Chennai, India. 29 January 2010. Archived from the original on 1 February 2010.
  11. ↑ "India in Business". Ministry of External affairs. Government of India. Retrieved 19 June 2007.
  12. ↑ "TCS topples Infosys as m-cap leader in IT space". The Economic Times. 14 July 2006. Retrieved 19 June 2007.
  13. ↑ Habib Beary (3 October 2002). "American IT giant expands in Bangalore". Online webpage of the BBC, dated 2002-10-03. Retrieved 19 June 2007.
  14. ↑ "The industry-varsity disconnect". The Hindu . Chennai, India. 4 September 2006. Archived from the original on 9 May 2007. Retrieved 19 June 2007.
  15. ↑ Anjali Prayag. "Bangalored". Business Line. Retrieved 19 June 2007.
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