Due to the Covid-19 outbreak, most of the economic activities that needed physical travel, face-to-face interaction in India came to a standstill. But, several Information Technology companies at least in Karnataka were quick to improvise their strategy by going virtual thanks to improvement in telecommunication technology.
Most of the companies across the world including the ones in Bengaluru offered flexible work-from-home options to employees. While some have extended till June 2021 or return to the office whenever a proper vaccine is ready for the coronavirus.
Bengaluru, which is home to millions of talented migrants, chose to go back to native places and work online. Despite the constraints, Karnataka-based IT & ITes companies were able to beat the expectations and made Rs 1.16 lakh crore plus worth in exports during the middle (March-October 2020) of the pandemic, said Deputy Chief Minister Dr. CN Ashwath Narayan, who also holds the IT/BT portfolio.
Impressed by the numbers, the Karnataka government is looking to effectively leverage and access the talent and skill available across the state, with a focus on cities outside Bengaluru.
Currently, out of total IT exports, 95% is from Bengaluru alone and the other Karnataka cities contribute just 5%.
With an aim to resolve skewed IT exports, the government has chosen several tier-11 cities including Mysuru, Chikkaballapura Mangaluru, Hubballi-Dharwad, Shivamogga, Kalaburagi, and Belagavi, as the new destination for the new and existing companies to expand their base in Karnataka.
As part of the new Information Technology Policy 2020-25, the government promises to offer tax incentives such as 75% exemption on stamp duty for land purchase, concessional power tariff, and more, Dr. CN Ashwath Narayana noted.
It has set up Common Instrumentation Facilities (CIFs) and Technology Business Incubators have set -up in academic institutions to help students improve their skill sets and be job-ready. Over time, the government believes, will help draw companies to set-up innovation and R& D centres.
The government has also identified Electronic System Design Manufacturing (ESDM) clusters and is being promoted to encourage industry to set up operations in the cities of Mysuru, Hubballi, Chikkaballapura, Chitradurga, and others.
Furthermore, the Karnataka government has finalised five Memorandum of Understanding (MoUs) with four Global Innovation Alliances (GIA) partner countries to set up Center of Excellence for Data Science & Artificial Intelligence (with Finland), Cybersecurity and Agri-Innovation (with the Netherlands), Machine Learning & Robotics (with Germany) and Electric Vehicles & Medical Devices/Healthcare (with the USA), noted Dr. CN Ashwath Narayan.
More MoUs are expected to sign at the upcoming Bengaluru Tech Summit (November 19-21). All the signed MoUs are for five years. Karnataka government aims to improve the GSDP from the current $230 billion to $1 trillion by the end of 2025.
Also, with the new IT Policy 2020-25, it wants to see ITes business growth to hit $300 billion in five years from $52 billion (as of March 2020).
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