New Delhi, Feb 9 (KNN) India EXIM Bank expects exports from Karnataka will strengthen by the financial year 2025. 

Karnataka’s merchandise exports are expected to touch USD 35.3 billion by FY 2025 from USD 16.6 billion in FY 2020. 

The state’s software and services exports are expected to reach USD 150 billion by 2024-25, up from USD 83.9 billion in 2019-20, as has been set by the Karnataka Government.

As per the study ‘Strengthening Exports from Karnataka’, merchandise exports from Karnataka in 2019-20 were valued at USD 16.6 billion, and registered an average annual growth rate of 4.8 per cent, during 2010-11 to 2019-20. 

Some of the major items exported by Karnataka include petroleum products, RMG cotton, iron and steel, electronic instruments, and electronic components. 

With regards to foreign trade, in the last two decades, Karnataka has emerged as a key player in the export of electronic and computer software, engineering goods, readymade garments, petrochemicals, gems and jewellery, agro and food processing products and chemicals, apart from its traditional exports of coffee, silk, spices and handicrafts.

The State has a well-diversified export basket vis-a-vis the States such as Maharashtra and Tamil Nadu and has a huge potential. 

Karnataka has emerged as a technology, services, and knowledge hub of the country drawing a niche for itself. This largely gets explained by the plethora of job opportunities in the State, leading to migration of labour from across the country to Karnataka.

Over the last few decades, the State of Karnataka has been on the forefront of India’s economic growth, transitioning from a primarily agrarian state to emerge as the Silicon Valley of India. 

India EXIM Bank also analysed the status of trade enabling infrastructure in Karnataka and recommended strategies for plugging the existing gaps, including development of ICDs, focusing on urban city planning, leveraging the Trade Infrastructure for Export Scheme (TIES). 

With a share of 8 per cent in 2018- 19, Karnataka was the fifth highest contributor to India’s GDP of Rs 140.9 trillion, after Maharashtra (14.5 percent), Tamil Nadu (8.6 percent), Uttar Pradesh (8.4 percent) and Gujarat (8.1 percent). 

Remarkably, the per capita income in Karnataka has not only risen, but has also exceeded the national average during the period 2011-12 to 2019-20, said the study.

The study highlights that Karnataka attracted FDI inflows worth USD 8.9 billion in 2019-20, which was 17.9 per cent of the total FDI inflows in India during the year, and Karnataka was the second highest recipient of FDI inflows in India next to Maharashtra which received FDI of USD 10.8 billion. (KNN Bureau)