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Time of India
6 days ago
- Business
- Time of India
CII summit flags need for better regional connectivity to boost devpt
Mangaluru: The issue of lack of connectivity posing a major hurdle in Mangaluru's march towards the Silicon Beach and Beyond Bengaluru initiatives took centre stage at the Infrastructure & Logistics Summit organised by Confederation of Indian Industry (CII) Mangaluru here on Thursday. Delivering the keynote address, New Mangalore Port Authority (NMPA) chairman Venkata Ramana Akkaraju said even after 75 years of Independence, connectivity from the rest of Karnataka to the west of the state has not improved, hindering the progress of the coastal districts. "Infrastructure, connectivity, and GDP growth are complementary to each other. Udupi and Dakshina Kannada contribute Rs 1.2 lakh crore of to the GDP of Karnataka, with per capita income being around Rs 4.92 lakh. Yet, we have to accept that coastal Karnataka is still missing the bus," he said. Within the state itself, there have been connectivity issues. Mangaluru-Bengaluru NH 75 and NH 275 to Mysuru were a work-in-progress for several years, often closed during heavy rains. The Mangaluru-Hassan rail connectivity, too, often gets affected due to heavy showers. Given such a situation, Mangaluru-Bengaluru airfares have shot up to Rs 10,000. In spite of the many challenges, NMPA has increased its cargo handling from 34 million tonnes to 46 million tonnes in the past five years, with profit after tax rising from Rs 110 crore to Rs 550 crore. The port could have handled more than 65 million tonnes of cargo, increasing its profit by an additional Rs 150 crore, had there been adequate connectivity, Akkaraju claimed. S Selvakumar, the principal secretary in the commerce and industries department, said: "Karnataka ranks No. 1 in per capita gross state domestic product (GSDP) in the country, and No. 2 in foreign direct investment as well as GST contribution." He added that the state's Industrial Policy 2025-30 is focused on developing world-class infrastructure. '92% willing to return home' Suyog Shetty, the CEO of Niveus Solutions, said 92% of the talent that migrated from the coastal region of Karnataka are willing to return home if there are meaningful alternatives. Speaking on 'Mangaluru as the Next Tech Destination: Leveraging Cloud, Talent, and Innovation' at the CII summit on Thursday, Shetty highlighted the need to engage local talent in the state's development journey. "If you offer the right opportunity and adequate salary, people will return to Mangaluru," he said. He said the Karnataka govt's policy, availability of land, and proximity to power sources are very favourable for anyone to set up data centres in Mangaluru. According to G Sundararaman, the chief scientist and head of Wipro Research, India is in an absolute tech decade with vast opportunities in the semiconductor industry. The cascading effect could be felt in Mangaluru as well, he added. Underscoring the cost benefits of acquiring office and residential spaces in Mangaluru, Rohith Bhat, the founder of Robosoft, said: "The region has a good ecosystem, with companies referred to as 'talent capitals'. There are several engineering and other colleges around. This massive talent pool allows firms to acquire the best brains from within the region itself." Suvin Narayan, representing the Karnataka Digital Economy Mission, spoke on 'accelerating digital infrastructure in Tier-II cities: KEDM's Vision for Mangaluru'.

The Hindu
6 days ago
- Business
- The Hindu
Inability to solve connectivity problem of coastal Karnataka for decades reflects poorly on State: NMPA Chairman
New Mangalore Port Authority (NMPA) Chairman A. V. Ramana on July 24 dwelt on the long-pending connectivity problems between the rest of Karnataka and the 'west of Karnataka', thereby hindering development in the coastal region. Delivering the keynote address at the CII Mangaluru Infrastructure and Logistics Summit organised by Confederation of Indian Industry, Mangaluru district, in Mangaluru, he said, 'Every year, we are discussing [about the connectivity issue]. Is there any progress?' Issue within Karnataka Stating that Karnataka has good connectivity with neighbouring States — Maharashtra, Goa, Telangana, Andhra Pradesh, Tamil Nadu, and Kerala, Mr. Ramana lamented that the connectivity problem lies within the State. Mangaluru-Bengaluru National Highway 75, and Mani (Mangaluru) - Mysuru NH 275 have been in various stages of development for the past many years. These highways often are closed during heavy rains. The Mangaluru-Hassan rail connectivity too gets disturbed during heavy rains. In such a situation, air fares between Mangaluru and Bengaluru shoot up, going up to ₹10,000 per person. 'How do you expect a common man to travel?' Maintaining that infrastructure has to be developed in a systematic manner, Mr. Ramana denounced the practice of piecemeal infrastructure development. 'I would not say there is no development. However, proper connectivity to the coast would have ensured accelerated development,' the Chairman said. Development of Mangaluru port Maintaining that infrastructure development would not help just the port, but a cross section of the population, Mr. Ramana said, amid several constraints, the NMPA could enhance cargo handling from 34 million tonnes to 46 million tonnes in the past five years. Its profit after tax rose from ₹110 crore to ₹550 crore. Had there been adequate connectivity, the port could have handled over 65 million tonnes of cargo with additional PAT of at least ₹150 crore, he said. Karnataka is No. 1 in GSDP Without delving into the specific infrastructure and logistics issues of the region, Principal Secretary to Industries and Commerce Department of Karnataka S. Selva Kumar said the State has a lot to do in the manufacturing and logistics sectors. Stating that the government is promoting industrial and infrastructure growth in a sustained manner, he maintained that the government is following inclusive growth through the 'Beyond Bengaluru' initiative. 'We are No. 1 in per capita gross State domestic product (GSDP), and No. 2 in attracting foreign direct investment,' Mr. Kumar said. Dakshina Kannada Deputy Commissioner H. V. Darshan and CII Mangaluru Chairman Nataraj Hegde also addressed the gathering.


Indian Express
19-07-2025
- Business
- Indian Express
I sent India's first email, and that excitement has not faded: BV Naidu, Chairman, Karnataka Digital Economy Mission
BV Naidu is the Chairman of the Karnataka Digital Economy Mission (KDEM), an organisation working as a knowledge bridge between the Karnataka Government, IT industry, and tech sector in the state. One of KDEM's initiatives is the 'Beyond Bengaluru' programme, which aims to tap into the potential of emerging cities outside the state capital. By nurturing growth and attracting investments, it drives the tech economy in these emerging clusters. He is also the founder of StartupXseed Ventures, funding deeptech, B2B, early-stage startups, and the founder of The GAIN, a non-profit accelerator focused on innovation. A former director of the Software Technology Parks of India (STPI), an organisation under the Government of India, established to promote software exports from the country, BV Naidu has been a pivotal figure in the growth of the IT industry in Bengaluru. BV Naidu spoke to on his journey through the IT industry in India, the challenges incubators and startups face, and the role of governments in promoting tech clusters in Tier 2 and Tier 3 cities. Edited excerpts: Venkatesh Kannaiah: What were some highlights of your journey in India's IT industry? BV Naidu: My career began in 1987 when I joined the then Department of Electronics, now the Ministry of Electronics and Information Technology. One of my proudest moments was sending India's first email from my PC, an achievement marking the start of digital communications in the country. I was part of the founding team of ERNET (Education and Research Network of India), which connected universities and research institutions, laying the foundation for India's internet infrastructure. The project was supported by the United Nations Development Programme (UNDP). One unforgettable moment was demonstrating the working of an email to then Prime Minister Chandra Shekhar. It is possible he was the first Indian prime minister to engage with this technology, and I still recall the excitement as we showcased this new tool. In 1992, I moved to Bengaluru as part of the Software Technology Parks of India (STPI) to tackle the software industry's biggest bottlenecks. At the time, companies faced delays of up to a year to secure a 64 kbps line, essential for global connectivity. Companies like IBM and Wipro needed reliable communication to compete internationally. I helped establish India's first commercial internet service in Bangalore's Electronic City and provided instant connectivity to small and medium-sized companies. I also broke the monopoly of the then Videsh Sanchar Nigam Limited (VSNL) by setting up an international satellite gateway in Bengaluru's Electronics City to connect Bengaluru directly to the US, bypassing traditional barriers, and also established a multi-access radio network to link software firms' offices in the city to this infrastructure. This helped them communicate seamlessly with overseas markets. In 1993, I facilitated India's first video conferencing, connecting Bengaluru with WorldCom's CEO in New York. These early initiatives were about building trust in India's capabilities. Venkatesh Kannaiah: You have been with Software Technology Parks of India for 15 years. Can you tell us the changes you brought about and their impact? BV Naidu: As the head of STPI Bangalore, I saw an opportunity to redefine the organisation's role. STPI was tasked with promoting software exports and monitoring compliance. But I had a vision of it as a proactive enabler, removing barriers to industry growth. One of my key interventions was helping streamline customs processes. Software companies needed duty-free imports, but delays and inefficiencies were common. I took responsibility for bonding and debonding imported goods, ensuring my team handled these processes efficiently. This shielded companies from customs-related hassles, allowing them to focus on the core business of software exports. From 1998-2001, I expanded STPI's reach beyond Bengaluru, establishing centres in Mysore, Mangalore, and Hubli. From 2004-2006, I expanded the footprint of STPI to Tirupati, Vijayawada, Visakhapatnam, and Kakinada. These centres provided communication infrastructure, regulatory support, and incubation facilities. Beyond infrastructure, I helped draft Karnataka's first IT policy in 1998 and launched in 1998, an event that showcased the city's tech capabilities. As a founding trustee of the International Institute of Information Technology, Bangalore (IIIT-B), I helped establish a model for industry-academia collaboration. These initiatives transformed Bengaluru into a global tech hub and set a precedent for other cities. Venkatesh Kannaiah: What are your thoughts on the effectiveness of different incubation models? BV Naidu: Over the years, I have closely observed the strengths and weaknesses of incubation models in India. They are of three types: academic-led, government-supported, and corporate, each with different challenges. Academic incubators, hosted by institutions like IITs and IIMs, struggle to translate research into market-friendly products. Professors, while brilliant in their fields, often lack a commercial outlook needed to guide startups to scale. Despite significant government funding, the return on investment is low. There are exceptions like IIM Ahmedabad, IIT Chennai, and IISc Bangalore, but overall, academic incubators fall short of their potential. There is a certain disconnect between theoretical research and practical applications. Government-supported incubators and some backed by industry organisations have substantial budgets and infrastructure. However, many turn into co-working spaces or event management hubs, losing sight of their core mission to nurture startups. They offer good facilities, but the focus often shifts to branding rather than fostering entrepreneurial success. This dilution of purpose limits their impact. Corporate incubators run by multinational firms have deep pockets and brand recognition. But some of these incubators are partly corporate branding initiatives, and there may not be sufficient commitment to innovation. While some corporate incubators perform well, many prioritise their parent company's image over tangible outcomes. We need more and more tech practitioner/entrepreneur-driven incubators for passion to take centre-stage and make a difference. Venkatesh Kannaiah: Tell us about your accelerator, The GAIN, and how it is different? BV Naidu: Our approach at The GAIN, which was started in 2019, has been different. We ran a cohort programme with the Government of India, supporting 29 companies without taking equity, a rarity in the incubation space. Our acceleration support outperformed larger, better-funded programmes, earning recognition from the Startup India Seed Fund. We also pioneered cross-border acceleration, bringing Korean and Israeli startups to Bengaluru. These startups, often tech-savvy but lacking market access, found joint venture partners in India. I believe the key to effective incubation lies in passion and professionalism, unlike academic or corporate models, where external priorities often dominate. Venkatesh Kannaiah: As the Chairman of the Karnataka Digital Economy Mission, what is your focus? BV Naidu: You must understand the logic behind the founding of the Karnataka Digital Economy Mission (KDEM). Technology moves at a breakneck speed, and government officials often struggle to keep pace with the changes. Moreover, their job roles keep changing. KDEM is a unique industry initiative with the participation of various industry associations working with the support of the government. This has attracted corporate talent to work alongside the government, bridging the gap between industry needs and support policy implementation. It is like a knowledge bridge, and the goal is to sustain Karnataka's leadership in the digital economy. KDEM drives innovation across three verticals: IT/Global Capability Centres (GCCs), Electronic System Design and Manufacturing (ESDM), and startups and innovation. We also focus on two horizontals: talent development and the mission of 'Beyond Bengaluru'. Startups in regions like Mysore, Mangalore, and Hubli often feel that they are not up to the mark. To change this perception, we identified over 400 startups in these clusters and launched initiatives to energise them. Through the Karnataka Accelerator Network, we established a mother accelerator in Bengaluru that supports regional accelerators in smaller cities. This network has been a game-changer, with over 40% of participants in the Elevate programme — a government-backed startup initiative — coming from Beyond Bengaluru clusters. We also organise tech shows to showcase these startups, much like the events, which began in 1998 and have now transformed into the Bangalore Tech Summit, a large global event. These events at these clusters put regional startups in the spotlight, attracting investors and partners. We also promote global tech centres, similar to Bengaluru's ITPL, to draw anchor companies to these regions. For instance, we helped IBM establish a presence in Mysore, where they now employ 600 people, with plans to scale to 2,000 by next year. This creates a snowball effect, encouraging other companies to follow suit. We are helping create a cluster seed fund under KITVEN (Karnataka IT fund). This fund combines government contributions with investments from local industry leaders, ensuring that regional startups have the capital and mentorship needed to compete. By focusing on these emerging tech clusters, we are democratising and decentralising innovation. Our approach is industry-driven, with senior corporate leaders guiding each vertical. This ensures that our initiatives are grounded in real-world needs. Venkatesh Kannaiah: Should the development of tech clusters at Tier-2 and Tier-3 cities be left to market forces, or should the government play a role? BV Naidu: I firmly believe that markets alone cannot drive the development of emerging tech clusters, what others call Tier-2 and Tier-3 cities. The government must act as an enabler, creating the conditions for growth. I have stopped using the terms Tier-2 and Tier-3 because they demean these regions. Instead, I call them emerging tech clusters, emphasising their potential. Take Mysore as an example. We attracted IBM by crafting a value proposition of lower operational costs, reduced attrition rates, and access to talent. My team at KDEM worked closely with IBM to demonstrate the return on investment. This sparked a ripple effect, drawing other companies to the region. The government is also creating a two-lakh square feet Global Tech Centre in Mysore, and it has generated a lot of interest in the industry. The Mysore cluster is also bringing in US companies to the Chamarajanagar district of Karnataka, which is generally considered a backward district. In Mangalore, we have encouraged local entrepreneurs to build high-quality co-working spaces. These outcomes do not happen by chance. Governments must show the path by providing infrastructure, attracting anchor companies, and fostering talent. In Hubli and Belagavi, we are replicating this model, creating global tech centres and co-working spaces to drive growth. Small incentives like rental reimbursement, reimbursement of PF, power tariff concession, and stamp duty exemptions on land are helpful, but companies do not come for incentives alone. They look at long-term ROI — lower costs, stable talent, and market access. Without government intervention to seed these ecosystems, progress would be slow. Venkatesh Kannaiah: How do you see Bengaluru's tech ecosystem evolving over the next 10 years? BV Naidu: I am optimistic about Bengaluru's future as a tech hub. The city contributes over 35-40% of India's tech output, and despite infrastructure challenges, like any other growing city, its talent pool and growing domestic market will sustain its growth. Initiatives in emerging fields like quantum computing and robotics, such as the ARTPARK at IISc, are positioning Bengaluru at the forefront of innovation. Beyond Bengaluru, clusters like Mysore, Mangalore, and Hubli are adding to this momentum. Together, Karnataka will maintain its leadership in India's tech landscape. Venkatesh Kannaiah: What are your thoughts on AI and its impact on jobs? BV Naidu: When it comes to AI and jobs, I am not concerned. I have seen the industry navigate disruptions like Y2K in 2000, the Dotcom bust in 2001-2002, and the Lehman Brothers crash in 2008. Each time, people feared the end of tech jobs. Each time, new opportunities emerged. AI will follow a similar path, creating new roles and skills if we embrace change. Moreover, it provides a bigger platform for our startups to perform. I am of the school of thought that sees AI as a catalyst for innovation, not a threat. Some worry about job losses, but I believe reskilling is the key. By equipping our workforce with AI-related skills, we can turn this disruption into an opportunity. Venkatesh Kannaiah: How has the government-industry-academia relationship evolved, and what makes Karnataka unique? BV Naidu: In Karnataka, the government-industry-academia relationship is a model for others. I've been part of this transformation, starting with my time at STPI, when we requested Narayana Murthy in 1997 to be the chairman of the STPI Executive Board. We had ensured that industry voices shaped our strategies. Now, all the vision groups of the Government of Karnataka are driven by industry leaders, and initiatives like KDEM have cemented this collaboration. Unlike other states, where government, industry, and academia often operate in silos, in Karnataka, it is a tight-knit partnership. Other states like Uttar Pradesh and Maharashtra are looking to replicate KDEM's model, showing that we are doing things right.


Deccan Herald
07-07-2025
- Business
- Deccan Herald
KDEM envisages $10 billion digital economy in Mysuru by 2030
Mysuru stands at the forefront of Karnataka's Beyond Bengaluru initiative, evolving into a Tier-2 technology and innovation hub with strategic focus on IT/ITeS, electronics system design and manufacturing (ESDM), global capability centres (GCCs), and startups, KDEM said in a vision document released last week.


Time of India
06-07-2025
- Business
- Time of India
K'taka services exports nearly doubles in 6yrs, breach $150bn mark
Bengaluru: Karnataka's services-sector exports — spanning information technology, business process management, fintech, biotech, engineering design and other knowledge-based services — reached $159 billion in 2024-25, a 13.7% increase over the previous year. In 2018-19, Karnataka exported $77.8 billion worth of software and services. After a slight dip to $79.2 billion in 2020-21 due to the pandemic, the sector rebounded to $101.8 billion the following year. Exports grew to $130.3 billion in 2022-23, $139.9 billion in 2023-24, and crossed the $150-billion mark this year — nearly doubling in six years. The state continues to hold the top spot in the country for total services exports (see table), according to data from the Visvesvaraya Trade Promotion Centre (VTPC). While VTPC didn't have a break-up for IT/ITeS immediately, officials said that a majority of the services exports are from the sector. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Karnataka IT/BT secretary Ekroop Caur told TOI: "From FY2015 to FY2024, Karnataka's services sector grew at a CAGR of 8.3%, outperforming the national average of 6.3%. The 13.7% rise last year isn't a one-off — Bengaluru alone accounts for nearly 40% of India's IT/ITeS exports." Pointing out that over 40% of India's 1,750+ GCCs are in Bengaluru, employing more than 8 lakh professionals, she said these centres are evolving into global R&D and innovation engines. "Beyond IT/ITeS, we're also seeing contributions from fintech, biotech, product development and chip design. Skilling initiatives like Nipuna Karnataka are helping align our workforce with modern industry needs, particularly in AI, machine learning, cybersecurity and blockchain," she added. TV Mohandas Pai, chairman of Aarin Capital, reiterating that Bengaluru remains the heart of Karnataka's services story, said 28 lakh people work here, across 65,000 companies and 20,000 startups. "Each year, 100-200 new tech startups are born. Bengaluru has one of the world's largest concentrations of tech. But our biggest failure is infrastructure. There is no significant investment happening in the city or in smaller towns. Governments make big announcements — Rs 1 lakh crore, for instance — but the actual allocations are meagre," he added. FKCCI president Balakrishna MG said the growth is driven by government efforts like the Karnataka Digital Economy Mission and the Beyond Bengaluru strategy. "Our reputation, global links, and steady FDI inflows have positioned us well. But to sustain this, we need more IT parks in Tier-II cities, fewer regulatory hurdles for smaller firms, and large-scale upskilling to meet demand in AI, Web3, and cloud-based technologies. Karnataka must reposition itself globally not just as an IT hub, but as a centre for broader knowledge and innovation services," Balakrishna said. PV Rai, managing director, Pixel Softek, cautioned against attributing the growth solely to government action. "It's the industry and the manpower, and the spurt in global capability centres (GCCs), that have propelled this. But the city's infrastructure is a serious concern. We lack proper roads, a clear masterplan, and IT-ready layouts. Without long-term, planned solutions, we risk losing momentum," he said. ------ For Graphic: Year Wise Service Exports From K'taka: Year Exports in Billion USD 2018-2019 77.8 2019-2020 83.8 2020-2021 79.2 2021-2022 101.8 2022-2023 130.3 2023-2024 139.9 2024-2025 159.1 Service Exports: Top 6 States & All India for 2024-2025: State Exports in in Billion USD Karnataka 159.1 Maharashtra 62.1 Tamil Nadu 48.4 Uttar Pradesh 18.9 Andhra Pradesh 4.2 Gujarat 3.8 All India 387.8 Source: Visvesvaraya Trade Promotion Centre