Karnataka Economy

Economy: At a Glance

Karnataka’ economy largely depends on agriculture. A sizeable 71% population of the state is engaged in farming. The state is the largest producer of coffee, raw silk and sandalwood in the country and also adding considerably to the horticulture production of the country. The cottage and mineral based industries also add a good percentage of revenues to the state.

Karnataka has become one of the country’s global economic players owing to its various industries in the field of electronics, software, biotechnology and other small and medium scale industries. The capital city Bangalore (now called Bengaluru) is the silicon valley of India. Most of the global IT companies have their branches in Bangalore. Bangalore, the IT capital of India accounts for approximately 38% of India's software exports which amounted to revenues of about $9 billion in 2006. The software industry is expected to generate US $20 billion by 2010.