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Figure 5. Growth of Software Export from Bangalore-Karnataka, 1995-96/2001-2002<br />

Software exports from Karnataka was 72% of<br />

total production amount 74.7 billion rupees (1.6<br />

billion dollars) <strong>in</strong> the fiscal year end<strong>in</strong>g March<br />

2001. Last year, 79 companies with 100%<br />

<strong>for</strong>eign equity registered with an <strong>in</strong>vestment of<br />

Rs. 1,025 Crores. From a mere 13 software units<br />

<strong>in</strong> 1991-92, the units have <strong>in</strong>creased to 938 as of<br />

August 2001. At least three IT companies with<br />

<strong>for</strong>eign equity register <strong>in</strong> Bangalore every<br />

<strong>for</strong>tnight. This is the k<strong>in</strong>d of growth In<strong>for</strong>mation<br />

Technology has experienced <strong>in</strong> Bangalore, which cont<strong>in</strong>ued to the year 2002 and expected to cont<strong>in</strong>ue <strong>for</strong> the<br />

com<strong>in</strong>g years.<br />

The year 2000-01 saw a growth rate of 69.99% <strong>in</strong><br />

software exports and the year 2001-02 experienced<br />

a growth rate of 33%. The Karnataka software<br />

exports value <strong>for</strong> the year 2000-2001 was Rs 7,475<br />

Crores. Infosys and Wipro account <strong>for</strong> over Rs<br />

1,000 Crores each. Around 94-96% of exports were<br />

routed through the SPTI centre <strong>in</strong> Bangalore.<br />

Karnataka software exports reached Rs 9,903<br />

Crores <strong>in</strong> 2001-2002 and expected to reach Rs<br />

17,000 Crores <strong>in</strong> 2002-03.<br />

Figure 6. Major exports dest<strong>in</strong>ations<br />

Figure 7. Growth of Software Technology Parks, 1991-92/2002-03<br />

The Software Technology Park plays a big role<br />

<strong>in</strong> encourag<strong>in</strong>g the IT <strong>in</strong>dustry <strong>in</strong> Karnataka.<br />

With STPI presence, the offshore software<br />

exports from the country dur<strong>in</strong>g 1991-92 has<br />

grown from 20-35% to more than 70%<br />

contribut<strong>in</strong>g to 73% of National software<br />

exports. By the end of March 2001, the<br />

Industry has grown to US $ 5.7 billion <strong>in</strong><br />

software exports with 380 mult<strong>in</strong>ational<br />

companies establish<strong>in</strong>g base <strong>in</strong> Bangalore. All<br />

the Global Leaders <strong>in</strong> Hi-Tech areas like IC<br />

Design, Communication Software and System<br />

Software have set-up a base <strong>for</strong> their operations <strong>in</strong> <strong>India</strong>. The STPI at Bangalore presently has more than<br />

1,050 IT companies. Bangalore STPI accounts <strong>for</strong> 45% of the total STPI revenues <strong>in</strong> <strong>India</strong>.<br />

Electronics Hardware Technology Park Scheme<br />

(EHTP): is a 100% Export Oriented scheme <strong>for</strong><br />

undertak<strong>in</strong>g manufacture of electronic hardware<br />

equipment/components and peripherals. Department<br />

of Electronics, Government of <strong>India</strong> at New Delhi<br />

adm<strong>in</strong>ister the Scheme.<br />

The emerg<strong>in</strong>g Bus<strong>in</strong>ess Process<strong>in</strong>g Outsourc<strong>in</strong>g<br />

(BPO) segment recorded an impressive growth of 275<br />

percent and contributed Rs. 988 Crores to the total<br />

exports with the hardware sector account<strong>in</strong>g <strong>for</strong> Rs. 1,404 Crores. In all, the total exports from software,<br />

hardware and BPO segments, were Rs 13,754 Crores, show<strong>in</strong>g an <strong>in</strong>crease of 28 percent over the year, 2002.<br />

B) Biotechnology<br />

Accord<strong>in</strong>g to a study conducted by the Confederation of <strong>India</strong>n Industry (CII) and Karnataka’s Vision Group<br />

on Biotechnology, <strong>in</strong> 2001-02 there were 72 companies deal<strong>in</strong>g <strong>in</strong> core biotech areas employ<strong>in</strong>g over 5,000<br />

people, of which 3,500 were scientists. The total project <strong>in</strong>vestments were over Rs. 500 Crores (1990-2001)<br />

with a total venture capital fund<strong>in</strong>g of over Rs. 70 Crores <strong>in</strong> the past two years, mak<strong>in</strong>g total revenue of Rs.<br />

700 Crores, of which Rs. 250 Crores came from exports.<br />

The follow<strong>in</strong>g figures <strong>in</strong>dicate the growth of companies:<br />

Figure 8. Exports from EHTP Units<br />

17

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