60% of Karnataka's IT Investments Are Non-Starters

60% of IT investments in State are non-starters

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) estimates that Karnataka accounts for 25% of IT investments across India which has clocked a compounded annual growth rate (CAGR) over 50% over 5 yr period ended 2013.
Karnataka is branded as “non-starters” because 60% ( Rs. 65,000 crore) of the total IT investments is outstanding (as of Dec 2013) and a substantial Rs. 39,000 crore did not take off. The projects remain in limbo even as investments over 5 yrs continued to grow & investments by the State jumped to Rs. 65,000 crore from Rs. 43,300 crore.
At 27%, Karnataka finishes ahead of Gujarat-10% behind Karnataka at Rs. 39,690 crore . Kerala (12%), Odisha (8%), Tamil Nadu (7%), & Madhya Pradesh (2%) are other States with significant share in total outstanding investments attracted by government, private (both domestic and foreign) sources in the IT sector.
Karnataka can be compared with Madhya Pradesh having about 98% of investments in the IT sector in limbo followed by Maharashtra (90%), Uttar Pradesh (89%), Haryana (89%) and Kerala (88%). Punjab contributes 8% of India’s gross domestic product and employs 30 lakh professionals directly as it has negative growth of over 39 per cent negative investments in It sector.

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