To create 280,000 jobs; Rs 4,000 cr to flow to smaller cities.
In a single stroke, Karnataka, the largest exporter of software services, has succeeded in attracting IT investments over four times the IT investments the state sees in a year during normal times. During the two-day global investors meet in Bangalore, the state has signed over 68 MoUs with major IT players and IT infrastructure development firms who will bring in a cumulative investment of Rs 45,055 crore.
Once complete, the projects will create around 280,000 jobs, according to the government. In normal times, the state attracts IT investments of about Rs 10,000 crore. This figure, however, fell significantly during calendar 2009-10 when most companies had put a stop to their capacity expansion plans in the wake of the global economic downturn.
Among the IT and ITeS firms who have signed MoUs with the state government to either expand their operations in Karnataka or set up their operations, include Infosys, Wipro, L&T, Cambridge Integrated Solutions (which is now part of Xchanging of UK) and Manyata Developers, said IT Secretary Ashok Kumar Manoli. He said of the total investment, about Rs 4,000 crore would go to tier-II and tier-III cities like Hubli, Dharward, Belgaum, Mangalore and Mysore. “The move has now started. Though it’s a humble beginning, this shows the future direction,” Manoli told Business Standard referring to the IT investments happening in tier-II and tier-III cities in Karnataka.
Among the major investors, Infosys Technologies has signed MoUs with Karnataka to set up two software development centres — one located in Sarjapur Road and other near the international airport near Devanahalli. The company has proposed an investment of close to Rs 3,000 crore. Xchanging Cambridge Solutions has agreed to become an anchor investor at the IT SEZ in Shimoga by setting up a centre on 25 acres of land. Manoli said, “IT investment into the state started looking up in the last quarter after the encouraging financial results by most of the IT firms. The jump (Rs 45,055 crore of investment) in the state is incredible,” he added.
Karnataka’s software exports has grown up by more than eight per cent during the last 10 years. The software exports from the state is expected to touch $17 billion in 2010 from $2 billion in 2001, according to the STPI Karnataka. As per the vision 2020, the state has set a software target of $50-120 billion, as against the national opportunities of $150-$350 billion, director of STPI, Bangalore Rajalakshmi said.
The proposed ITIR (Information Technology Investment Regions) in Devanahalli by Karanataka has already got the cleared by the government. So far, 55 companies have registered to set up their development centre in the ITIR.
