Regional Policies, Firm Characteristics, and Exporting in the Indian State of Karnataka

Karnataka is among pioneering Indian states to frame suitable policies aimed at encouraging local firms’ export activities. Promotion and facilitation of firms to look beyond national market was achieved by creating a strong enabling institutional framework, supporting expansion of productive capacity, and helping exporting firms gain access to required physical infrastructure. As a result of such policies, exports from the Indian state of Karnataka have been growing rapidly with contributing over half a quarter of Indian exports of commodities and software. The present study provides an overview of export trends and patterns of Karnataka in the backdrop of the state policy developments. It examines the relevance of various factors pertinent to the exports by Karnataka manufacturing firms and deduces implications for development policy of the state.