Karnataka's IT Exports Poised to Cross Rs 5.5 Lakh Crore Milestone
Karnataka's information technology exports are on track to surpass an impressive Rs 5.5 lakh crore by the end of the current financial year, according to a statement made by IT-BT Minister Priyank Kharge in the state assembly on Wednesday. This projection underscores the robust growth of the sector, which has been steadily expanding over recent years.
Consistent Growth in IT Exports
In response to a query from BJP legislator Vedavyas Kamat, Minister Kharge detailed the consistent upward trajectory of Karnataka's IT exports. He revealed that the cumulative services exported over the past three years, from 2022-23 onwards, have exceeded a staggering Rs 12 lakh crore. Specifically, the figures have shown a remarkable climb: from Rs 3.5 lakh crore in 2022-23, they rose to Rs 4 lakh crore in 2023-24, and further increased to Rs 4.5 lakh crore in 2024-25. "I am 100% confident we will cross Rs 5.5 lakh crore when the current year closes on March 31," Kharge asserted, highlighting the sector's resilience and potential.
Bengaluru's Dominance and Regional Contributions
Despite ongoing efforts to diversify IT growth across Karnataka, Bengaluru continues to be the primary hub, contributing the lion's share of exports. However, other cities are gradually making their mark. Mysuru city contributes approximately Rs 3,000 crore, while Mangaluru and the coastal region add around Rs 3,500 crore. Additionally, Belagavi and Hubballi contribute between Rs 2,000 crore and Rs 2,500 crore. The remainder, which constitutes the bulk, originates from Bengaluru, reinforcing its status as India's Silicon Valley.
Government Initiatives for Regional Diversification
Addressing demands from BJP members to establish IT parks in coastal areas, Minister Kharge confirmed that the government is actively working on such initiatives. He emphasized the need for a "conducive environment" to attract investment, subtly referencing past concerns about the region's communal image, which he had previously described as a deterrent to investors. "Within a week or so, the criteria will be simplified," he announced, indicating proactive steps to streamline processes.
Kharge also highlighted the Beyond Bengaluru Cluster initiative, which includes Manipal, Udupi, and Mangaluru under the Economic Accelerator Programme. A seed fund of Rs 25 crore has been released to boost growth in these areas. Furthermore, the government is exploring an Ocean Farming policy to leverage the coastal region's potential, which Kharge described as "an important cluster not only for the state but for the country."
Addressing Economic Disparities
Minister Kharge pointed out significant regional economic disparities within Karnataka. He noted that Bengaluru's district GDP accounts for nearly 40% of the state's total, followed by Mangaluru at 5.4% and a third region at 3.4%. "Where is 40% and where is 5.4%?" he questioned, underscoring the gap. He expressed optimism that with suitable investment environments, the coastal region could achieve around 3% growth in the next three years, helping to balance economic development across the state.
This comprehensive approach aims to not only sustain Karnataka's leadership in IT exports but also foster inclusive growth, ensuring that prosperity extends beyond Bengaluru to other promising regions.
