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Services Sector Drives Bengaluru Urban Economy to 420397 Crore Rupees
District profile highlights heavy tilt toward tertiary activities and high urbanisation rate within Karnataka
How we reported this
Bengaluru Urban district recorded a total GDP of 420397 crore rupees at current prices in 2016-17, accounting for 36.4 percent of Karnataka’s overall economy according to the district profile published by Invest India.
The figure matters now because residents and businesses track how the capital district’s output shapes state revenues, job availability and infrastructure spending in the months ahead. Local planners often reference these shares when deciding priorities for transport links and industrial estates inside the four administrative divisions.
Service sector dominance shapes daily work patterns
Within that total, the tertiary sector contributed 271587 crore rupees or 81.2 percent of district output, while secondary activities added 60273 crore rupees. Primary activities remained small at 2623 crore rupees. Workforce participation stood at 44 percent and urbanisation reached 91 percent, leaving only 19 percent of land under cultivation.
Key locations include the Rajajinagar Industrial Estate where a joint venture with Karnataka State Industrial Investment Development Corporation is building an information technology and biotechnology park at a cost of 37 crore rupees. The Anekal division hosts a district agriculture training centre and the proposed Silk City project near the city limits.
Industrial registrations show scale of recent projects
Over the six years to 2018, 24 large and medium scale industries registered under the State High Level Clearance Committee with combined investment of 7629 crore rupees and 89907 jobs. In the five years to 2017-18, 54991 micro and small enterprises registered with investment of 1106186 lakh rupees and 615995 positions. Fourteen special economic zones operate in the district, carrying 7937 crore rupees in investment.
Fourteen of Karnataka’s 35 notified SEZs sit inside Bengaluru Urban. Sunrise sectors listed in the profile cover information technology and biotechnology, aerospace, agri and food processing, engineering, heavy industries, textiles, mechanical and automobile manufacturing, education, research and development, electronics and telecommunication, plus cement.
Businesses planning expansions can review the 14 SEZs and the three MSE-CDP clusters already approved, two in manufacturing and one in services. The profile also notes an existing handloom cluster and the 300-acre integrated machine tool industry park already functioning near the city.