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Karnataka Leads India's Aerospace and Defense, Faces Stiff Competition
8 Aug
Summary
- Karnataka accounts for 65% of India's aerospace and defense output
- Over half of India's machine tools and 60% of biotech exports come from Karnataka
- Efforts to spread growth across districts amid competition from neighboring states
In August 2025, Karnataka remains a powerhouse of industrial growth in India, driving 65% of the country's aerospace and defense output, over half of its machine tools, and 60% of its biotech exports. This industrial dominance is largely concentrated in and around the state's capital, Bengaluru.
The state's industrial legacy dates back to the investments made by the Wadiyar dynasty in education, as well as the establishment of Asia's first hydroelectric power plant in Mysore and the installation of Bengaluru's streetlights in 1905. However, Karnataka's current industrial ambitions face challenges from neighboring states.
Andhra Pradesh, in particular, has been snapping at Karnataka's heels, offering faster land clearances and aggressive pitches to attract investments. This has put pressure on Karnataka to spread its industrial growth more evenly across its districts, beyond the Bengaluru region. The state's new industrial policy and the Invest Karnataka Forum aim to address this issue, but the competition from other states remains fierce.
