MANGALORE: Karnataka is one of the most attractive destinations for both domestic and foreign investors. The state which is a pioneer in the field of industrialization in India has been spearheading growth of Indian industry particularly in terms of high-technology industries such as electrical/electronics industries, ICT/BT industries and recently in terms of nano-technology industries, Union minister for corporate affairs M Veerappa Moily said.
Inaugurating 'Karnataka: Export Vision 2020', an exporters' convention organized by Federation of Indian Export Organisations on Monday, Moily said the total exports from Karnataka have grown from Rs 20,144 crore in 2001-02 to Rs 1,65,523 crore in 2010-11 at a compound annual growth rate (CAGR) of 35%. Electronics and computer software exports have grown at a CAGR of 37% with total exports reaching Rs 105350.77 crore in 2010-11.
"This sector (IT) constituted 53% of total Indian exports from Karnataka," Moily said, adding 35% of the total Indian exports in this sector were from Karnataka, establishing Karnataka's leadership in software exports.
"However, Karnataka has performed outside IT sector with petroleum and petro product exports of Rs 14620.4 crore, and gems and jewellery exports of Rs 19,896.82 crore for the state saw high growth rates," Moily added.
Other major exports from the state in 2010-12 were iron ore and minerals (Rs 967.97 crore), readymade garments (Rs 6,865.70 crore), and engineering goods (Rs 7324.29 crore).
To reach the state's ambitious target and vision, where India is targeting share of 4% of global trade in 2020 projected at US$ 62 trillion, Moily said it would require massive capacity building exercise which includes infrastructure and human resources.
"The relative development of infrastructure for the state is the lowest among southern states and is a major cause for concern," he said.
"Agro-sector is the engine for growth in Karnataka and if given proper attention will generate huge employment opportunities in rural areas. Lack of long-term policy for agricultural sector is hampering the growth of this sector and denying better price to the farmers," he said, seeking state intervention.
Trade Deficit A Concern
M Rafeeque Ahmed, president, FIEO, referring to global trade scenario said sovereign debt concerns in Euro Zone pose a major challenge to overall export growth.
Tightening of belt in Euro Zone is in the offing which will have its effect on world trade. With the cooling of commodity/metal prices and lowering of demand, many African and Latin American countries, witnessing an export boom will face challenges in meeting the trade deficit.
During April-January 2011-12, India's export increased by 23.5% to $242.8 billion. Imports grew by 29.4% to $391.5 billion during the 10-month period. This trade deficit stood at $148.7 billion for the period. This may touch $170 billion in view of crude prices moving northward and growing imports of gold and silver, he said, adding it is likely to swell the import bills in rupee having adverse effect on inflation.
The Member of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Member of Parliament Local Area Development Scheme (MPLADS). Under the scheme, each MP has the choice to suggest to the District Collector for, works to the tune of Rs.2 Crores per annum to be taken up in his/her constituency.