Karnataka got a quarter of all IT investments in India during 2015-16: Assocham

The state’s CAGR has grown at 14%, from Rs 14,337 cr in FY05 to Rs 53,396 cr in FY2015.

The Dollar Business Bureau

Assocham in its recent report stated that Karnataka attracted Rs 53,396 crore investments in the IT sector i.e., nearly  a quarter of all the IT investments made in the country.

Nearly 25% of the total Rs 2.2 lakh crore invested were from both public and private sectors that preferred Karnataka as their number one destination for all their IT needs. The state’s compounded annual growth rate has grown at 14% since 2005 i.e., from Rs 14,337 crore in 2005-06 to Rs 53,396 crore in 2015-16.

Investments in India specifically in the IT sector showed an increase from over Rs 46,200 crore in 2005-06 to over Rs 2.2 lakh crore in 2015-16, with a CAGR of over 17% during this period, ASSOCHAM revealed in its analysis.

Rankings by the ASSOCHAM report show that Gujarat ranked 2nd in terms of investments in the IT sector, showing an increase from Rs 700 crore in 2005-06 to a whopping Rs 35,300 crore in 2015-16 with a CAGR of 48% during this period.

Kerala ranked 3rd with a CAGR of 13%, AP 4th with 12%, Tamilnadu 5th with 7%, while Haryana, Maharashtra, West Bengal, Telengana, Odisha, UP and MP attracted significant IT investment shares in the country.

Stating reasons for Karnataka bagging most of the investments, Assocham Secy Genl, D.S. Rawat said, "With a vibrant and productive industrial ecosystem, Karnataka has emerged as the most preferred investment destination in the country as it houses multiple firms in robotics, semi-conductor chip design, nano technology and advanced materials.” Karnataka has been at the forefront with an abundance of skill, talented human resource coupled with a friendly industry making its mark as the most preferred destination of Digital India.

Rawat however cautioned that the Karnataka government to work towards providing tax sops, incentives, improve infrastructure and promote ease of doing business to continue to attract more investments into the State.

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The Dollar Business Bureau - Aug 17, 2016 12:00 IST