Last reviewed 4 Nov 2026 · Facts as of 4 Nov 2026 · 3 min read
Growth rates, GSDP and budget size change every year — read the latest Economic Survey of Karnataka and state budget before the exam. This note covers the stable structure.
1. Structure of the economy
| Sector | Picture |
|---|---|
| Services | The largest share of state income — IT and IT-enabled services, finance, trade, transport, tourism |
| Industry | Steel, aerospace, machine tools, automobiles, biotech, garments, sugar, cement |
| Agriculture | Smaller share of income but employs a large part of the workforce; largely rain-fed |
- Karnataka is India's leading exporter of software and IT services; Bengaluru is called the "Silicon Valley of India".
- Karnataka issued one of the country's first state IT policies in the 1990s; Electronics City dates from 1978 (KEONICS).
- Bengaluru is also a hub of aerospace (HAL), biotechnology, start-ups and global capability centres.
2. Industrial institutions
| Body | Role |
|---|---|
| Karnataka Udyog Mitra | Single-window agency guiding investors through approvals |
| KIADB | Industrial areas and land for industry |
| KSSIDC | Small industries and industrial estates |
| KSIIDC | Industrial finance and infrastructure |
| Invest Karnataka / Global Investors Meet | Investment promotion |