One of the key investment destinations in the country, the state scored second on the Social Progress Index 2017, ranked only after Delhi. The index, released by the Institute for Competitiveness, considered three broad categories of social progress – basic human needs, foundations of wellbeing and opportunity to capture what matters to society and people.
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The report takes a deep dive into Karnataka’s current state of the economy as well as its future and has taken into consideration all key parameters to evaluate performance of its economy, including total inflow of Foreign Direct Investment between 2016-17 to 2017-18.
The first state to enact the Industrial Facilitation Act to help investors, Karnataka in 2017-18 accounted for 19.2% of the total FDI inflows into India – second only to Maharashtra. As a result, the state's investments have almost quadrupled in 2017-18, as compared with 2016-17.
“Karnataka has always been a front runner in India’s economic progress and its real estate sectors has played a key role in this. Due to the forward-looking policies implemented by the state, sectors such as real estate have also attracted significant investments over the past couple of years,” said Abhinav Joshi, Head of Research, CBRE India. According to the report, Karnataka has various upcoming or planned infrastructure initiatives to boost industrial production under the ‘Make in India’ campaign; key among them are the Chennai-Bengaluru Industrial Corridor (CBIC), Bengaluru-Mumbai Economic Corridor (BMEC) and Kochi-Bengaluru Industrial Corridor (KBIC).
The report further states that Karnataka was among the first few Indian states to implement power sector reforms and has been taking various initiatives to implement projects to improve installed capacities for power generation in the public and private domains. With a capacity of more than 7,400 MW, it is one of the leading states contributing to India’s renewable energy supply.