S E C T O R P R O F I L E : A E R O S PA C E

Welcome to Karnataka - The Knowledge Hub of Asia


Karnatakas capital Bangalore is a brand the world identifies
India with. It is also the single biggest reason why India has
become such a hot investment destination.
Manmohan Singh
Prime Minister of India
SRI B. S. YEDDYURAPPA
Hon'ble Chief Minister
MESSAGE
Welcome to Karnataka, the Knowledge Hub of Asia. It gives me immense pleasure and pride to
showcase Karnatakas potential at the Global Investors Meet 2010. The States entrepreneurial spirit in
innovations and R&D has given us recognition world over. Our rich natural resources, proactive
Government policies, talented workforce and a strong economy have propelled the State to become a
preferred investment destination.
I have a dream, a vision for this one State with many opportunities. Vision 2020 for Karnataka seeks to
propel a holistic growth by promoting equitable development of sectors and districts, by providing
employment to all sections of people and regions of the State. It will also focus on ensuring excellent
infrastructure, quality education, decent living conditions and life security for all our citizens. This vision,
combined with our passion for excellence will drive the economy to greater heights.
Karnataka is a State of action. We have witnessed rapid and unparalleled growth across our
knowledge-based sectors. Each of our 30 districts is unique in its own right, offering investment
potential like no other State in the country. Over 700 MNCs are already reaping the advantages of
making Karnataka their home. One new global company moves into our State every week and a new
industrial unit is approved every day. Supported by rich natural resources and progressive policies, the
State presents its investors with the right blend of strengths and opportunities.
We would like to assure all investors that the State Government would extend the fullest cooperation
and support for the timely implementation of their projects.
I would like to congratulate the investors for choosing our State and wish them grand success
in their ventures.
With best wishes,
B. S. Yeddyurappa
Chief Minister of Karnataka
 CONTENTS

KARNATAKA: LAND OF PLENTY

Snapshot 06

Economic Growth 07

SRI MURUGESH R. NIRANI

Agriculture 07
Hon'ble Minister for
Large & Medium Industries Manufacturing 08

MESSAGE Services 08
On behalf of the Government of Karnataka, I welcome you to The Global Investors Meet 2010. This meet brings
Karnatakas contribution to Indias economy 08
together leading entrepreneurs, investors and experts to showcase the potential of Karnataka. Our Honble
Chief Minister desires that this mega event results in doubling of investments and employment opportunities Infrastructure and resources 09
with accelerated industrialisation across the State in the next few years. This will get us a step closer to fulfilling
the States Vision 2020 for holistic growth. Skilled manpower 11

Karnataka Policies: Calling investors 12

I would like to take this opportunity to share with you some of the salient features of the aerospace sector that
AEROSPACE: ON A HIGH
would further accelerate growth in the State. Karnataka has over 60 years of experience in this Sector and
attributes to more than a quarter of Indias aircraft - and - spacecraft manufacturing. Bangalore has been the The global scenario 14
home of aviation and aerospace manufacturing, and cutting edge R&D in India.
The Indian scenario 16

Karnataka has over 100 R&D institutes, including Defence Research and Development Organisation and Indian Advantage Karnataka 18
Space Research Organisation, Indian Institute of Science, National Aeronautics Limited, Hindustan Aeronautics
Limited, which lends it a coveted space in the sector in the country. Investments in aerospace 21

Strengths and Opportunities 24

By providing for the countrys first Aerospace SEZ, the government has shown its clear intent in supporting the The high-fliers 26
growth of this industry. Availability of highly skilled and technically qualified human resource has been the key
force driving the Aerospace manufacturing segment in the State LAND BANK 29

APPENDIX 30
I invite all of you to explore opportunities of mutual growth and invest in our State. Come lets join hands and
build a prosperous Karnataka. Contact us 30

Websites 31

With best wishes, References 31

MURUGESH R. NIRANI
Minister for Large & Medium Industries
 Karnataka: Land of Plenty

Industrialise or perish Gold and Renewable Energy. The entrepreneurs here have
already ventured into these sectors, the result of which has seen
60000 Per Capita Income (Rs.) at Current Prices
50974
Sir M Visvesvaraya, 50000
Karnataka
46731
the emergence of Karnataka as the Knowledge Hub of Asia. India 42749
Karnatakas world-famous engineer 41902

Further, salubrious climate, vast natural resources, proactive and 40000 36327
33684
37969
32825
growth-intensive Government policies lend the State an edge. 30000
29678
Industrial Revolution alone can spur economic growth of India.
This, in turn, will impact literacy rate, lifestyle and income 20000
Eighth-largest State in the Union of India.
levels for our future generatrion. The Government of Located in the South-Western part of the country; shoreline 10000
Karnataka, therefore, has organised the Global Investors Meet along the Arabian Sea.
0
in Bangalore on June 3-4, 2010, showcasing the investment Situated on the convergence of the Western and Eastern 2005-06 2006-07 2007-08 2008-09 2009-10

opportunities in the State. Ghat ranges, between 74 E and 78 E longitudes, and 11 N Source: CSO Directorate of Economics and Statistics, Bangalore

and 18 N latitudes.
Kar nataka is one of Indias fastest-growing States, with a vast and Area: 191,976 km2.
diversified industrial base. Apart from nurturing the globally 5.8% of Indias land area and is home to 5.1% of the
recognised Silicon Valley of India Bangalore the State has population (around 52 million).
emerged a prized destination for not only Information Borders Goa (N-W), Maharashtra (North), Andhra Pradesh
Technology, but also Aerospace, Biotechnology, Heavy Construction (East), Tamil Nadu (S-E) and Kerala (S-W).
Machinery and Equipment, Sericulture and Floriculture.
Economic growth
Karnataka: Snapshot One of Indias fastest-growing States, Karnataka has a strong
Capital Bangalore industrial base and a vibrant service sector.
Software is States star performer; software exports form 35%
Area 191,791 sq. km.
plus of countrys software exports.
Population (Census 2001) 52,850,562
Secondary sector contributes more than a quarter of GSDP
Population density (per sq. km.) 276 State contributes 5% of national income.
Per capita income Rs. 40,309 Since 2003-04, the State growth has pushed the levels of per
Percentage of urban population 35% capita income higher than the national average.
Literacy rate 66.6%
Agriculture
Number of districts 30
Sustains about 63% of the population.
Number of towns 270 The State is pushing to diversify agricultural activity;
Number of villages 27,028 horticulture and agro-processing are important activities being
Prominent cities Ankola, Bangalore, Bagalkot, encouraged by State Government.
Belgaum, Bidar, Bijapur, Karnataka is one of the countrys largest producers of fruits
Chikmagalur, Chitradurga, and vegetables and No. 2 in floriculture.
Dandeli, Hubli-Dharwad,
Karnataka is the second-largest producer of milk in India.
Davangere, Gadad-Betageri,
Gulbarga, Harihar, Kolar, Mandya, The State has the largest sericulture in the country.
Mangalore, Mysore, Raichur,
Shimoga, Tumkur and Udupi
Prominent airports Bangalore, Mangalore
Prominent ports New Mangalore, Karwar

06 07
 Manufacturing Second in area and third in production of plantation crops in
It is well-diversified. the country.
Main industries are engineering, chemicals, electrical, Second-largest producer of tobacco in the country.
automobilie, textile, aeronautics and food processing. Largest producer of spices, aromatic and medicinal crops.
Industrial growth up from 6.2% in the Nineties to 8.9% per Fourth among States in foreign technology transfer approvals. Karnataka: Third Highest FDI Inflows
annum since 2000. Third-highest FDI inflows among States in India with 6.5% of (in USD million)
5369.62
all FDI inflows into the country.
Services
Sectoral Composition Of Income Capital Bangalore is the worlds fourth-largest technology cluster. 6397.63
The engine of growth in the State.
Popular tourist destination, has second-largest number of
38% Bangalore, the State Capital, the powerhouse of IT in 6850.95

56% the country. protected monuments in India.

22101.96
State was the first in India to set up a Software Technology
25%
1993-1994 Park in 1991. Infrastructure and resources 38476.33
28% 2008-2009
Karnataka is the first State to bring the private sector into Its the goal of State to double investment from the present 4.5%
36% higher education. of GSDP in infrastructure to meet the needs of a fast growing
Source: DIPP (inflow from April 2000 to February 2010)
16% State has the highest number of medical colleges in the economy. Private sector partnership actively sought by an
country and is a hub of medical tourism. investor-friendly Government more than 88 projects worth
Karnataka leads in biotechnology and nanotechnology. Rs. 87,000 crore are in various stages of implementation.
Source: CSO

The Karnataka Governments Vision 2020 seeks to remove the Status of Infrastructure Projects (as on May 2010)
sectoral and regional disparities by encouraging diversified Sector Number Value
economic activity in all regions of the State, and by raising of Projects (Rs. Cr)
upgrading skills in the labour force through vocational training.
Transport logistics 52 35,432
Urban and Municipal Infrastructure 6 253
States contribution to Indias economy
Tourism 8 1,224
No. 1 Investment Destination.
Energy 4 8,400
One of Indias most progressive states.
Contributes 8% to Indias industrial income. Industrial Infrastructure 10 41,231
Contributes 9.8% of Indias product exports. Agri-Infrastructure 8 854
More than a third of Indias software exports from State.
Total 88 87,394
State has the second-largest iron ore reserves in India.
Share Of Employment
More than half of Indias biotech companies in State. Source: IDD, Govt. of Karnataka
23%
1993-1994
States Hutti mines are the only primary-gold producing
26.3% 2006-2007 source in the country. Power
Third-largest producer of steel in the country. Karnatakas three areas of concentration are: Energy Sufficiency;
10.6%

17.9%
Seventh-largest producer of cement in the country, 6.5 % of Energy Efficiency; Green and Clean Power. The first hydel power
Indias production. station in India was set up in Sivasamudram in 1902 and the
66% Third-largest producer of fruits and fifth-largest producer of longest transmission line at the then highest voltage in the world,
55.9% vegetables in the country, produces 12% of fruits and 8% of
was constructed to meet the needs of Kolar Gold Fields. With a
vegetables grown in India.
Contributes 70% of Indias coffee production. transmission network of 36,542 CKMs and 1205 stations, the
Source: NSSO
Largest area under horticulture, third-largest production in State distributes power to 1.7 crore consumers. As the demand
the country. for power rises with the groth of the economy, Karnataka intends
to meet the projected demand and make the State power-surplus
by 2014 through a rapid expansion of power schemes.

08 09
 Water
Karnataka is well connected with rest of the world; while the Seven river systems Krishna, Godavari, Cauvery and their
existing air, road, rail and sea connections already cater to high tributaries, North Pennar, South Pennar, Palar and the West
volumes of traffic in passengers and freight, they are in the flowing rivers in the Western Ghats: Kali, Gangavali (Bedthi),
process of expansion and upgradation. Aganashini, Sharavathy & Netravati.
River systems together yield on an average 3475 TMC.
Air traffic About 50% of this water is available to the State.
International airports at Bangalore and Mangalore. Hydel constitutes one-third power generation of the State.
Bangalore International Airport Limited can handle 3,000
passengers per hour and is the first private airport in the country. Mineral resources
Airports at Hubli and Belgaum cater to North Karnataka. Geological setting for the State from Precambrian to recent
Mysore airport has been upgraded for commercial traffic. formations provide 40,000 sq.km. of green stone belts.
Hubli, Belgaum and Mangalore airports being upgraded. Minerals found: Gold, silver, copper, iron, manganese, limestone,
Airports planned at Hassan, Shimoga, Bellary, Bijapur & Gulbarga. dolomite, chromite, magnesite, granite etc.
Karwar and Bidar defence airports being opened for civil traffic. 174 mining leases have been issued by the Government for
A helipad each is planed for all 30 districts. iron ore covering 18,670 hectares.
A progressive State with a forward-looking mineral policy since
Shipping 2000, which was later revamped in 2008.
Long shoreline of 300 km. Policy emphasis on modern technology, transparency in
Major port in New Mangalore handled more than 36.02 MT. granting mineral concessions, emphasis on value addition,
traffic in 2007-08 or 7% of the countrys total traffic in major ports. sustainable development in eco-sensitive areas, like the
10 minor ports in Karwar, Belekeri, Tadri, Honnavar, Bhatkal, Western Ghats.
Kundapur, Hangarkatta, Malpe, Padubidri and Old Mangalore;
handled 8,893.64 MT of cargo in 2007-08 or 4% of Indias Skilled manpower
traffic in minor ports. Third-largest pool of engineering graduates; Karnatakas share
Tadadi and Haldipur ports set for expansion on PPP basis. of engineering degree and diploma holders is 10% in the
country after Andhra Pradesh and Maharashtra.
Roadways Globally recognised higher-education centres.
More than 150,000 km road network in State. Leading hub of research and development institutes.
Targetted to add another 10,000 km.
Low-cost skilled manpower makes value-added manufacturing
96 projects, under various stages of implementation.
almost 60% cheaper than in Western Europe and the USA.
Monorail projects in Bangalore.
Educational atmosphere in the State enhanced by institutes like
the only 100-year-old Indian Institute of Science (IISc) and the
Railways
Indian Space Research Organisation (ISRO).
3,300 km railway line across State.
With 1,162 ITIs, Karnataka has 15% or the largest number of
Konkan Railway links Mangalore with Financial Capital of India,
such institutes in the country.
Mumbai, and Northern States.
High-speed rail link to the Bangalore airport on the cards.
Karnataka Technical Skill Development
Two mono rail projects in State Capital to decongest city traffic. Karnataka Non-Technical Skill Development
Number of
institutions Number of
Communication institutions
Engineering Colleges 172
27.7 million wireless subscribers in the State, adds more than a Universities 22
million new subscribers each year. Medical, Dental, Ayurvedic
114
and Unani Colleges National Institutes 25
State possesses the fourth largest Internet subscriber base in
Polytechnics 273 International Schools 13
the country.
Mobile towers in the State will go up from 3,000 to 6,000 Pharmacy Colleges 69 Law Colleges 83
towers by September. Industrial Training Institutes 1162 Foreign Language Training 9
3G services mean greater convergence between mobile and R&D Centres 103 Nursing Schools/ Colleges 350
Internet services in the future, ushering mobile TV, online gaming,
video call, movie on demand, faster downloads and other services.

10 11
 KARNATAKA POLICIES: CALLING INVESTORS
The Government has targeted a balanced regional growth by
creating development corridors in the State, linking major industrial
areas by national highways and rail links, and matching natural
resource capabilities. Every part of the State is set to be supported
with infrastructure projects to boost growth and employment.
Steel Zone: Bellary, Koppal, Bagalkot, Haveri, Gadag & Raichur
Cement Zone: Gulbarga, Bagalkot, Chitradurga, Belgaum & Others
Food Processing Zone: Bangalore Rural, Kolar, Belgaum, Gadag,
Koppal, Shimoga, Bagalkot, Bijapur, Davangere, Mandya & Dharwad
IT/BT Zone: Mysore, Mangalore, Hubli-Dharwad, Belgaum,
Shimoga, Gulbarga, Kolar & Mandya
Automobile Zone: Ramanagara, Shimoga, Dharwad & Kolar
Readymade Garments Zone: Bangalore Rural, Tumkur, Kolar,
Mandya, Belgaum, Bidar, Dharwad & Others
Sugar and Co-gen, Power Zone: Bidar, Belgaum, Bagalkot,
Shimoga & Mandya
Pharmaceutical/BT Zone: Bangalore, Mysore & Hassan
Power Generation Zone: Raichur, Bellary, Bijapur & Chitradurga
Media & Entertainment Zone: Bangalore Rural & Ramanagara
Karnataka State Government Policy 2009-14
Karnatakas investor-friendly and responsive administration has
worked towards easing administrative procedures and implementing
policy measures for faster and smoother industrial growth.
An investor-friendly responsive administration includes the
Karnataka Udyog Mitra, set up more than a decade ago.
KUM is a single contact point for all investors from receiving
a proposal to ensuring its implementation.
The State-level Single Window Clearance Committee and the
State High Level Clearance Committee facilitate clearance of
proposals in a speedy manner.
Karnataka State Industrial Policy 2009-14 enhance all such
previous policies for a comprehensive, investor-friendly
approach.
Land Bank More than 3,000 acres in each district acquired by
the Karnataka Industries Areas Development Board (KIADB)
for industrial development, ironing out difficulties in creating the
basic infrastructure before operationalising production facilities.
Suvarna Karnataka Development Corridor programme
connects most of the Tier II cities through a network of
highways, with cluster development in designated zones.
Under the SKDC programme, 25 km on both sides of the
corridor will be developed for industrial clusters, townships,
satellite towns and sector-specific industrial zones.
12
The planned four major industrial corridors, connected by
eight-lane roads, are:
* Bidar-Bangalore via Chitradurga
* Tumkur-Honnavar via Shimoga
* Chitradurga-Mangalore via Shimoga-Udupi
* Bangalore-Belgaum along National Highway 4
* Bidar-Gulbarga-Bellary-Hiriyur
* Chitradurga-Hospet-Bagalkot-Bijapur Yadgir
Sector-specific industrial zones and SEZs that match the natural
resources and capabilities of a region with the industry
requirements.
Special focus on skill development to enhance generation of
technical manpower.
Creation of world-class ready-to-use infrastructure through
investments in power, roads, water, warehouse and logistic
facilities, connectivity through rails and ports etc.
The State Governments packages of incentives and
concessions for new industrial investments, include:
- 75% to 100% stamp duty exemption on land sale deeds
and loan documents registration.
- Land-conversion fine reimbursement of 75% to 100% for
converting agricultural land to industrial use.
- 100% exemption on entry tax on plant and machineries for
3 years during implementation of the project.
- 100% 5-year exemption on entry tax on raw materials,
inputs, components etc. during operation period.
- 50% limited to Rs.1 crore subsidy for effluent treatment plants.
- Interest-free loan to an extent of 50% of the value of fixed
assets at 25% of the assessed gross VAT for a period of
7 years extendable to 12 years.
- A State Policy for Special Economic Zones formulated as
per Central SEZ Act 2005 & Rules 2006, with a view to
provide a hassle-free environment for export production
and to attract FDI. The objectives of this policy are to set
up a single-point clearance to SEZ developers and units, to
facilitate and expedite establishing of SEZs, to delegate the
powers of the Labour Commissioner to the Development
Commissioner of SEZs and to extend incentives as below:
Exemption from State Taxes for all purchases from
Domestic Tariff Area
Exemption from Stamp Duty
Exemption from Electricity Duty
Capital subsidy for common effluent treatment plant
(maximum Rs. 1crore per SEZ)
13
 Aerospace: On a high
The Global Scenario
Global Aerospace Market Global aerospace industry enjoys high growth as military
1% expenditures continue to rise and emerging economies take the
5% lead in the civil aviation industry. While dominant players are
based in Western Europe and the US, Asia Pacific, including India
is set to gain from outsourcing of manufacturing as well as MRO
12% 53%
activity.
29%
The global aerospace industry has come a long way since the first
flight was undertaken in 1903; market size of commercial and
Source: PwC, 2009 defence aircraft was estimated at US$ 97 billion in 2007 .
Defence sales account for more than 80% of the total market
typically dominated by the Government and public sector, while
the growing private sector civil aviation has led to a broad-based
expansion of the industry across the world. In addition there is
sizeable MRO activity -- Maintenance, Repair and Overhaul --
which is a major component of operating aircraft. On an average,
the aerospace industry spends more annually on MRO than on
manufacturing or development.
Regionwise Demand In 2027 The global aerospace market has five main components, each with
Number Of Commercial Airplanes
distinct market structures and drivers military aircraft and light
combat aircraft make up the bulk of the market, while jets and
Total Market Size: $ 3.2 trillion
helicopters account for less than 20% share. In the past decade,
military expenditure has been rising with the international war on
terrorism, while civil traffic has seen a spurt due to robust
economic growth, rising incomes, globalisation and falling air fares.
Changing landscape in civil aviation: Though the recession in
Source: PwC
2008 in advanced countries has been a setback for the civil sector,
emerging economies have taken charge of leading global growth
by recovering faster China, India and the Middle East are the
most promising drivers of the civil aviation market. According to
research by Boeing, the fastest growing economies in Asia will
lead change in the market space, with Asia-Pacific set to be the
largest air transport market in the world with 45% share of air
travel. Commercial airplane market is estimated to be a huge
$ 3.2 trillion by 2027, with Asia-Pacific accounting for 37% of the
total market.
Moreover, while presently the industry is dominated by US and
EU based companies, there has been an increasing trend in
outsourcing as firms look out for low cost manufacturing
locations. MRO outsourcing is set to rise from 52% in 2006 to
65% by 2016. Here again, the Asia-Pacific is set to gain with its
efficiency, expertise and labour cost advantages. Demand for
14
military aircraft is also on the rise, with increased military
expenditure across the world.
Space Industry: There has also been considerable rise in the
global space industry, estimated currently at US$ 250 billion, that
comprises satellite manufacturing and launching, to imaging,
navigation and telecommunications. For many years, government
expenditure on space and satellite programmes was the sole
driver of the space industry. However, with rise in commercial
applications that touch consumer homes directly through GPS
receivers and satellite television, there has been a surge in the
market size as technology works to change the way the common
man accesses information and makes his decisions.
Total revenue for space products and services was estimated at
US$ 91 billion in 2008, up 10.4% from the previous year. The
highest revenue earner within the commercial satellite service
sector was the direct-to-home television, which generated
US$ 69.6 billion. Fixed satellite services were the second highest
earner at US$ 16.8 billion, showing a strong growth rate of 31%
over the previous year. Commercial space infrastructure, including
launch vehicles, satellites, ground stations, in-space platforms etc.
yielded an estimated revenue of US$ 83.1 billion, with 69 orbital
launches, of which 28 carried commercial payloads. The United
States and Russia continue to dominate the launch space, while
China has been rising in importance with record domestic
launches. India ranks amongst the top ten players in the space
industry with its significant achievements in satellite launches,
moon mission etc.
Prominent Global Companies:
Boeing USA
EADS Netherlands
Lockheed Martin USA
Northrop Grumman USA
BAE Systems UK
General Dynamics
Raytheon
United Technologies
General Electric
Finmeccanica
Among the largest users of aerospace technology are the
Department of Defense (USA), National Aeronautics and Space
Administration (NASA), European Space Agency (ESA), Ariane
France and others.
15
 The Indian Scenario
The Indian aerospace industry is one of the fastest growing
aerospace markets in the world. With a long history spanning six
decades, the country has an excellent pool of resources matching
global standards. Indias liberalised economy offers sound
opportunities for international companies look to outsource
manufacturing and MRO activities.
Globally, Indias position in civil aviation improved from tenth to ninth
position in 2007. Air traffic has been growing at almost 25% annually.
The country has been upgrading its airports to international
standards, catering to heavier cargo and passenger traffic.
It is in the space industry that India has made even more significant
strides it is one of the six countries in the world that undertakes
space launches with commendable work put in by Indian Space
Research Organisation (ISRO) through its commercial arm,
Antrix.
The genesis of research and development capabilities of the
country lie in the establishment of the institutes like Defence
Research and Development Organisation (DRDO)
Indian Institute of Science in Bangalore and Council for
Scientific Industrial Research (CSIR) offer opportunities in
research and training for aeronautical graduates
The Aeronautical Society of India formed a platform where
engineers, industrialists and professionals could work together for
the industry
ISRO has successfully operationalised two major satellite systems
namely Indian National Satellites (INSAT) for communication
services and Indian Remote Sensing (IRS) satellites for
management of natural resources. Polar Satellite Launch Vehicle
(PSLV) for launching IRS type of satellites and Geostationary
Satellite Launch Vehicle (GSLV) for launching INSAT type of
satellites are some of the Indian space programmes notable
successes.
Private airlines now account for 75% of domestic aerospace market.
Opening up the skies led to a boom in air traffic, both passenger and
freight, which was reversed in 2008 with the global slowdown.
However, as the graph below shows, recovery has begun and the
aviation sector is set to continue on its high growth trajectory.
The Future: Going ahead, growth in air traffic is expected to
outperform the global average till 2025. In military aviation, India is
expected to spend about $35 billion over the next 20 years as it
replaces its existing fleet.
16
Indian MRO segment has been growing at 11 percent and has not
been affected significantly by the slowdown.This market is expected
to grow at an average of 10% and reach $ 2.6 billion by 2020.
The Government recognises the need for massive investment to
meet these growing needs:
The Ministry of Civil Aviation estimates investment of
$ 200-300 billion over the next 25 years, till 2034.
The Airports Authority of India has planned investment of
$ 3.04 billion to upgrade airports across the country, even as the
sector is open for public-private partnerships (PPPs).
According to Boeing, India needs 856 airplanes worth
$ 72.6 billion over the next 20 years to meet the surging
demand.
Investments in the Indian Space Programme to the tune of
Rs. 39,750 crores during the period 2007-2012, under the
Governments Planning Commission programmes.
Policy initiatives: The Indian Government has liberalised the
framework for operating in the aerospace industry considerably:
Manufacturing and R&D activity is allowed 100% Foreign
Direct Investment on automatic route in all areas, except air
traffic services.
While 100% domestic private investment is allowed in the
defence sector, there is a limit of 26% FDI in the manufacture of
defence equipment, which is also subject to licensing
requirements.
100% FDI permitted under automatic route for MRO, flying
training institutes and technical training institutes.
100% tax exemption for airport projects for a period of 10 years.
Defence Offset Policy, effective from September 2008 has a
mandatory offset requirement of a minimum of 30% for
procurement of defence equipment in excess of Rs. 3 billion, only
direct offsets are allowed, banking of direct offset credits
permitted for up to two years, transfer of technology not
counted towards offset calculation and vendor is free to choose
Indian offset partner.
Tax incentives are given for investing in Special Economic Zones.
17
 ADVANTAGE KARNATAKA
Karnataka produces more than a quarter of Indias aircraft and
spacecraft, it is the base for all global players in this industry.
Excellent support from the government has come through in the
form of centres, including Hindustan Aeronautics Limited (HAL),
National Aerospace Laboratories (NAL), Aeronautical Develop-
ment Agency (ADA) and Gas Turbine Research Establishment
(GTRE). The State continues to draw huge investments in this
Sector as it gears up to meet the rising global demand.
The history and background of Indias aerospace industry owes
much to the state of Karnataka; home to Indias aerospace
industry, the state is all set to reap dividends of the potential in
this sector. Starting from 1940, when Indias first private aircraft
factory Hindustan Aircraft Ltd. began its operations in Bangalore,
the state has created a conducive environment that has nurtured
the growth of the aerospace industry. The hub of manufacturing,
research and development, the state produces more than a
quarter of the countrys aircraft and spacecraft.
HAL, has 19 production units and 9 research and development
centres in 7 locations across India, of which, 8 production units
and 4 R&D centres are located in Bangalore. Ranked 40th in
Flight International's list of the Worlds Top 100 aerospace
companies in 2008, HAL has a total turnover of Rs. 10,400 crore.
It has manufactured 12 types of aircraft with in-house R&D and
14 types under licence. While it has built more than 3,550 aircraft
and 3,600 engines, over 8150 aircraft and 27,300 engines have
been overhauled at its facilities.
Bharat Electronics Ltd. is another public sector firm working in
this industry, which has entered into MOUs with international
companies like Lockheed Martin, Boeing, EADs etc.
NAL was set up in 1959 under CSIR in Bangalore. The
aeronautical lab consolidated its position as a major player with
the approval of Indias Light Combat Aircraft project in 1983.
NAL, the only civilian aerospace laboratory in the country, is a
leader in civil aviation design.
Though in the public sector, these aerospace centres have grown
in stature, registering international standards of technical
excellence and capabilities. They work with many firms in the
private sector to raise technological skills, technical and
managerial processes etc. Private sector suppliers to the defence
sector and the public sector firms were exposed to high
standards, raising their capabilities as well. While industrial
18
liberalisation has been underway since 1991, reforms have been
gradually spreading through to all sectors and the defence sector
was opened to the private sector in 2001. For instance, Air
Works India Engineering Private Ltd, established in 1951, became
the first DGCA-approved independent Airline MRO in
November 2008 for its facility near Bangalore.
Private firms registering a major presence in the industry include:
QuEST Global, the engineering company, set up base in
Bangalore in 1998 and moved into the aerospace manufacturing
in 2006, having entered into a 10-year strategic relationship with
Magellan Aerospace. In 2007, the firm set up the countrys first
special processing facility for aerospace manufacturing, delivered
the first set of A-380 components to SABCA and achieved
Airbus and AS 9100 certification. The very next year, it became
the first Indian private sector player qualified to offer end-to-end
solutions to European Aeronautic Defence and Space Company
N.V. (EADS), and set up a dedicated sheet metal fabrication
facility for aerospace.
In 2009, QuEST established Indias first aerospace SEZ in Belgaum,
300 acres dedicated to offering an aerospace customer all
from design to manufacture of components and systems in one
place. QuEST Global has a manufacturing facility in Bangalore that
does precision machining. Capabilities have been enhanced in the
Belgaum SEZ to include additional precision machining
capabilities, sheet metal work, and aerospace special processing
(through a JV with Magellan Aerospace).
The company has signed MoUs with 3 major players in the
aerospace manufacturing space:
SABCA, Belgium: Airbus A-350XWB Flap track mechanism
metallic parts manufacturing and assembly work from SABCA
Magellan Aerospace: to evaluate setting up an aero-engine
focused manufacturing facility with annual revenues of $50m
Farinia SA: MOU to evaluate the establishing of an aerospace
forging facility
19
 Gensar Aerospace & IT Pvt Ltd set up a decade ago by
aerospace experts providing high-end aeronautical design
services (in association with Aeroconseil of France and
Bertarandt of Germany), and manufacturing services, including
supporting OEMs in their manufacturing outsourcing, contract
manufacturing, operational consultancy and strategic consulting,
and aviation services that include consulting, global procurement
and product support.
Dynamatic Aerospace, which has the largest infrastructure in the
private sector for manufacturing exacting Air Frame Structures
and Precision Aerospace Components
Taneja Aerospace and Aviation Ltd., the only private sector
company manufacturing entire aircraft in India.Ltd., concentrating
on three divisions Aerostructures, Airfield and MRO division
and Aircraft Sales and Services division.
Karnataka is also headquarters of Indias Space programme -
ISRO is located at Antariksha Bhavan in Bangalore.
There are excellent backward linkages with suppliers coming in
from a wide base of more than 2000 SMEs in the auto
components manufacturing industry. With exposure to global
auto majors in the state, these firms are well geared to meet the
exacting needs of the aerospace industry.
The Society of Indian Aerospace Industries and Technologies
(SIATI) was formed in 1991 and is located in Bangalore.
The society has about 300 small and medium scale industries
as its members and enjoys the patronage of leading aerospace
organisations, including of those in R&D. SIATI conducts seminars
and workshops of topical interest in aerospace technologies.
R&D management strategies, production, quality and also leads
delegations to participate in national and international airshows,
exhibitions and interactive workshops with overseas aerospace
organisations and societies. SIATI also encourages entrepreneurs
for joint ventures, co-development and co-production in the
sector.
DRDO aeronautic centres in Bangalore:
Aeronautical Development Agency (ADA)
Centre for Air Borne Systems (CABS)
Gas Turbine Research Establishment (GTRE)
Defence Avionics Research Establishment (DARE)
Centre for Military Airworthiness and Certification
(CEMILAC)
20
Investments in Aerospace
While QuEST Global set up the countrys first aerospace SEZ in
Belgaum in November 2009, the State Government has also
planned an Aerospace SEZ in 250 acres of land at Devanahalli,
near Bangalore International Airport, both these have attracted
significant interest. Udyog Mitra, the governments single window
agency for industrial projects and the apex body for SEZ projects,
has given clearances to majors like US civil and military aviation
companies and the European Aeronautics and Defence Systems
or EADS (Rs. 11,700 crore investment); Sobha Nadathur
Aerospace Pvt Ltd (Rs 200 crore) and hydraulic equipment
manufacturer Dynamatic Technologies (Rs 466 crore). Five
proposals worth Rs. 135.98 crores were cleared by the State
Level Single Window Clearance Committee (SLSWCC) in June
2009: Systems Controls, G.L. Polyurethane Company Private Ltd.,
Micron Engineers, Priyaraj Electronics Limited and Pacific Natura
Biotech Private Limited are ready to invest in aerospace
component units in the aerospace SEZ at Devanahalli.
HALs proposal to set up a Rs. 2,095 crore unit in Devanahalli
to manufacture aero-engines and provide MRO facilities was
approved by the SLSWCC. In January 2010, British engine maker
Rolls-Royce Group Plc announced that it is setting up its first joint
venture (JV) firm in India in a tie-up with HAL to make civil aero
engine components and sub-systems locally for export. The firms
will initially invest $4 million (Rs.18.4 crore) each in a unit in
Bangalore, through which Rolls-Royce will step up sourcing of
components and systems for most of the engines it makes.
New aerospace projects approved by Karnataka Government
Hindustan Aeronautics TPE 331 engine and Devanhalli, Bangalore
Limited engine components, ring
rolling, fan cases, welded
structural assemblies,
maintenance and repair
Dynamatic Technologies Aerospace components KIADB Industrial Area
Devanhalli Taluk
BEML Limited Manufacturers of aircraft SEZ, near Bangalore
components/assemblies International Airport,
and MRO activites related Devanhalli
to aersopace applications
21
 Several new ventures have been set up recently in this space:
Airbus Industries has located its Airbus Engineering Centre in
India at Bangalore
The first public private JV in aircraft design was signed
between Mahindra and Mahindra, NAL and the Government
of India in 2007.
In 2008 Boeing signed a collaboration with IISC, Wipro and
HCL to develop wireless and other network technologies for
aero space related applications.
Air Works India Engineering Pvt. Ltd. set up in 2009 a MRO
facility at Hosur with an investment of $25 million, to carry
out C checks for various aircraft. In February 2010, it
announced the acquisition of a 85% stake in the British
company, Air Livery. Air Works aims to utilise the technical
know-how of Air Livery to help airlines bring down their
maintenance costs.
Other prominent MNCs operating in this sector in Karnataka
include GE, Rolls Royce, BAE, Turbo Meca, EADS etc.
Many global and large private companies are now building on the
base that public sector units like HAL and NAL have laid in
Karnataka, most notably in the area of design services, but
increasingly also in manufacturing. The state has emerged as a
major global design centre, with international majors like Airbus,
Boeing etc. having set up their India operations and outsourcing
their engineering design requirements either to in-house centres or
to third party engineering services partners like Quest, Infosys etc.
Air Traffic and Airports in Karnataka
1200
960 While liberalisation in the aviation sector, private sector airlines
began operations in the country in the nineties and Bangalore was
720 a natural hub for the southern region, given its high prominence in
480 the IT and Auto sectors in the country. Infrastructure is being
upgraded and expanded across the state to meet the growing
240
demand of air travel. Mangalore and Bangalore are the two
0 international airports in the State. The Bangalore International
Airport Limited, the first private airport in the country, has the
capacity to handle 3,000 passengers per hour. There are also two
domestic airports catering to the northern part of the State at
Hubli and Belgaum and the airport at Mysore is in the process of
being upgraded, while new airports have been proposed at
22
Hassan, Shimoga, Bellary, Bijapur and Gulbarga. The government
plans to add 12 airstrips in the State, has opened Karwar and
12000
Bidar Defence Airports for civil traffic and is in the process of
11000
setting up 20 helipads to provide easy access to all districts and
10000
give the necessary infrastructure boost to helitourism.
9000
8000
The State Infrastructure Policy aims to provide a fair and
7000
transparent policy framework for the facilitation of the process
6000
of economic growth and encouragement of PPP in the
5000
infrastructure sector in the State. Apart from duty exemptions,
assistance in land acquisition etc. for the aviation sector specifically,
the government has given a tax concession on aviation fuel, at 4%,
for the first three years of operation to district headquarters.
Air traffic was hit by the global slowdown in 2008, though the
subsequent year saw a revival in Asia, trends are still not very
strong for the Western countries. Bangalore and Mangalore
followed these trends in traffic, which have now picked up to
pre-crisis levels once again.
AeroIndia
It is an International Aerospace and Defence Exhibition
organised by Ministry of Defence biennially at Bangalore.
Seventh event of Aeroindia was held during 2009, in which, 600
exhibitors including 300 exhibitors from 25 countries were
participated. Exhibitors from India and overseas had 54 chalets
for high-profile meeting with various dignitaries.
Aircraft manufacturers from India and other countries has 46
aircrafts, participating in the static and flying displays in addition
to IAF aircrafts.
The aircrafts included, the Cessna, Eurofighter, F16, F18 Hawker
Beechcraft, Legacy 600, Super Hornets, MIG 35, etc., in addition
to the Hawk, Tejas and Dhruv from India.
Official delegation from 50 countries participated in the event.
In addition, there was B2B meetings, HR workshops, etc.
23
 Strengths and Opportunities
Karnataka, the home of Indias aerospace industry, has a strong
framework providing all requisite resources for this industry
research and development capabilities, leading information
technology and engineering services, manufacturing expertise
with global firms located in the state and a huge pool of skilled
manpower. While Bangalore is the natural destination for all
players in the aerospace industry, the countrys first aerospace
SEZ has been set up in Belgaum in November, 2009.
There is a proposal to set up an Aerospace SEZ in a 250-acre
space in Devanahalli, near the new airport in Bangalore. There
is also a proposal to set up a Defence Manufacturing Hub over
500 acres in Chellakere Taluk in Chitradurga district, adjacent
to the HALs 200 acre component manufacturing site.
Further, with the IT giants like Wipro, Infosys and Voit of
Germany getting into software and intelligent applications
related to the Sector, theres more opportunities waiting to be
harnessed.
As the home of the aerospace industry in India, Karnataka scores
high on every part of the ecosystem of the aerospace and defence
industry. This is amply demonstrated by the fact that the state hosts
the first aerospace SEZ in the country and is set to leverage its
strengths to become the aerospace hub of the region.
At the basic level of raw materials needed, Karnataka is an
important producer of aluminium, a critical raw material input for
the aerospace industry. The Belgaum unit of Hindalco houses an
alumina plant, a world-class research centre for alumina, and a
carbon paste and block plant. The alumina plant started operating
in 1969 with an initial capacity of 75,000 tpa of alumina hydrate. It
currently produces around 380,000 tpa. Since the 1990s the plant
has become predominantly an export-oriented unit of metallurgical
alumina, while producing several grades of special aluminas and
hydrates for non-metallurgical applications, like refractories,
ceramics, polishing, fire retardant plastics, alum, zeolite, etc. Over the
years, the plant has expanded its capacity of speciality products to
around 138,000 tpa, with approximately 120 different grades,
serving more than 600 customers across 35 countries.
It is also the third-largest producer of steel in the country,
providing location advantage to the auto and engineering industry
in the state. There is a concerted effort by the state to raise the
capacity of power generation in the state to cater to the growing
demand of industry. In last 4 years, 16 power projects are
approved in the State which would add 10,760 MW power to
24
the State grid in near future. Solar power projects are also been
planned in Belgaum and Raichur districts. At the same time,
connectivity is being improved upon by expanding airports, road
and rail network and upgrading ports on the coast.
With experience for more than six decades, the state has built up
considerable resources and talent pool that is available to all
companies working in the aerospace sector. At the very base of
the aerospace industry lies research and development and
engineering design, capabilities that are well developed in the
state through its pool of skilled technical manpower, backed by
presence of internationally renowned institutions HAL, DRDO,
ISRO, NAL, IISC all based in Bangalore. More global
manufacturers are comfortable outsourcing to India, particularly
Karnataka, because of the presence of electronic and technical
skills and fluency in the English language.
Add to this the fact that Bangalore, as the IT capital of the
country, brings with it a concentration of the best IT capabilities
Karnataka has the highest number of CMM Level 5 certified
software companies providing solutions to the aerospace industry.
The IT industry brings to aerospace the high technology
capabilities that are vital for cost reduction. As explained by
Infosys, older aircraft in general suffer from a problem of
over-design, done to meet safety and other regulations that result
in extra metal weight, higher fuel consumption etc. Software and
engineering expertise works to innovate to create new tools and
solutions that obviate such over-design and yet ensure the same
levels of safety. Such design changes have been effected by Infosys
for almost all recent commercial aircraft programmes, including
business jets, and all parts of an aircraft, including landing gear,
fuselage, wings, avionics, inflight systems, and electrical systems
(an exception being the engine).
Further, Karnataka is the manufacturing base for all major auto
firms and auto component manufacturers. High end technical
support and suppliers experienced to handle complex orders
matching global standards are therefore easily available in the state.
QuEST Global, the company which has set up the countrys first
aerospace SEZ in Belgaum, points out its capabilities in the
aerospace sector in the flowchart below, characteristics that are
replicated in other firms operating out of the state.
25
 Creating an enabling environment is the goal of the states investor
friendly and responsive government, which has put in place policies
to assist investors at every step upgrading infrastructure,
providing easy availability of land through its Land Bank, setting up
the countrys aerospace SEZ etc. There are many challenges
ahead ensuring a steady stream of manpower to meet the
growing requirements, ready availability of raw materials, complex
tax system which the government is working towards mitigating.
The high fliers
The Aerospace Sector in Karnataka abounds with examples of
PPP. By providing for the countrys first aerospace SEZ, the
government has shown its clear intent in supporting the growth
of this industry in the state.
While there are a slew of success stories in the aerospace sector in
Karnataka, the most striking example is that of Hindustan
Aeronautics Ltd., which began operations as a private company in
1940 as Hindustan Aircraft Limited in Bangalore. With a string of
achievements to its credit, the company which has been supplying
for Boeing successfully since 1991, is set to produce flaperons for
Boeings 777 series of commercial jetliners. This represents a
significant leap forward in technological capability - the 777 flaperon
is a highly complex composite assembly, referred to a control
surface working both as an aileron to control roll and as a flap to
control lift. With a JV announced with Rolls Royce in January 2010,
the company has taken another step forward. HAL supplies
components to several global engine companies and has nine
JVs six of them formed in the past three years with companies
such as Canadas aircraft simulator maker CAE Inc., Israels Elbit
Systems Ltd and Safran unit Snecma SA.
Airbus set to transfer majority of engineering work to India
LiveMint, October 9th 2009
There is a big push at the top level to grow business in
India in the next three to four years, Eugen Welte, head of
operations at Airbus Engineering Centre India Pvt. Ltd., said
at an aerospace symposium in Bangalore on Saturday.
Around 60% will be done internally, 40% local outsourcing.
26
Another global major Airbus SAS is set to move 20% of its
engineering design activities to low cost countries, most of it to
India, to be better able to compete with its main rival, Boeing Co.
Currently, it has located its 120 people engineering centre in
Bangalore, which will be expanded to more than 400 employees
by 2012. It outsources work to around 20 Indian IT and
engineering service providers including Infosys Technologies Ltd.,
Quest, HCK Technologies etc . Its Bangalore engineering centre is
the only one outside Europe that does what is called `non-specific
work. These are works that are not specific to an aircraft part, but
involve issues related to aerodynamics, aerothermics (temperature,
ventilation), aeroelastics (effect on structure, such as vibration etc),
and simulation of flight management, developed new tools to
create better aircraft and speed up aircraft development.
Interestingly, in 2005, Airbuss top supplier auto engine maker
Snecma SA set up a subsidiary in collaboration with HAL in
Bangalore.
QuEST Global that has set up the countrys first aerospace SEZ in
Belgaum in November 2009 is in fact a prime example of the fast
track that industry works at and achieves in the state. The Belgaum
SEZ is expected to yield aerospace-related business worth around
Rs 2,500 crore in 10 years and could be the next big bet in this
sector outside Bangalore. The SEZ is expecte to create more than
7,000 jobs for local talent and infuse $ 500 million (in)to the
economy in ten years. Belgaum has many location advantages:
hundreds of foundries and low-cost engineering talent,
well-connected with Bangalore, Hyderabad, coastal Mumbai and
Goa, and is already a source for auto components for the auto
industry in Bangalore, Pune and Hyderabad. Quest, a company
begun by two engineering graduates from Karnataka, is in the
supply chain for Airbus A80 and A350 that is due in 2013; provides
landing gear shackles for Boeing 777, 787 and 737 aircraft
programmes through its partner, Magellan a Boeing and Airbus
supplier. EADS, Rolls-Royce, GE Aviation, Toshiba and UTC are
among its clients. In November 2009, it entered into a contract
with Airbus vendor SABCA of Belgium to supply flap track
mechanism metallic parts from out of the SEZ for the prestigious
A350 programme.
27
 STATUS OF LAND BANKS IN KARNATAKA
In the March 29th 2010 meeting of the State High Level (as on 15th May 2010)
Clearance Committee. 34 investment proposals worth ABSTRACT
Land notified u/s 3(1),1(3) & 28(1) : 46,734 Acres.
Rs. 94000 crore were cleared. These included the proposal for a Land notified u/s 28(4) : 12,379 Acres.
BIDAR BIDAR

250-acre SEZ in Devanahalli Aerospace Industrial Area. The SEZ Land to be submitted for
Government approval : 41,748 Acres.
is an effort to provide all solutions related to avionics in a Total :100,861 Acres
concentrated manner, from a comprehensive range of GULBARGA
2439
technologically advanced precision milling machines, to GULBARGA

productivity enhancing software and engineering solutions,

engineering and process optimisation projects and a wide range
of special tools for customers in the aerospace sector. BIJAPUR

BASAVANABAGEVADI YADGIR
7969
Clearly, India is one of the worlds most sought after markets; BILGI
with all its inherent strengths and opportunities, Karnataka is the HUKKERI
BAGALKOTE RAICHUR
4873
destination for all global players in the aerospace industry. BELGAUM RAICHUR
BELGAUM
1351
BAILHONGAL Legend
670 District boundary
Bangalore: Meeting ground for space & air industry KHANAPUR
KOPPAL
SIRUGUPPA
DHARWAR Taluk boundary
HUBLI 2862 GADAG
DHARWAR KOPPAL NH
751
Indias first space exhibition, Bangalore Space Expo 2008 MUNDARGI BELLARY STATE_RAIL
was organised by ISRO, CII and Antrix Corporation Ltd. SHIGGAON 4995
BELLARY Land bank status
274 HAVERI
The exhibition saw huge participation from domestic and 407 Lands notified under sec 3(1),1(3),28(1)
Lands notified under sec 28(4)
foreign companies Hindustan Aeronauticals Ltd. UTTARA KANNADA
HAVERI HARPANAHALLI
Lands to be submitted to Govt approval
Arianespace (France), Infinisat (USA), European Space RANIBENNURU
200
CHALLAKERE
Agency, Israeli Space Agency etc. Bangalore also hosts 671 500
DAVANGERE
Indias international aerospace and defence exhibition, DODDABALLAPUR
HONNALI
AeroIndia, which witnessed unprecedented participation in 201
HOLALKERE
CHITRADURGA 736
SHIMOGA
2009 592 exhibitors including 303 from 25 countries SHIMOGA
600 HIRIYUR
1072
showcased their potential in technologies, products, 3104
KADUR HOSADURGA SIRA
GAURIBIDANUR
496
BAGEPALLI
3853 810
innovation and aircrafts. Aircraft manufacturers had 46 1589
CHIKBALLAPUR
GUBBI TUMKUR
aircrafts participating in static and flying displays; the UDUPI
CHIKMAGALUR 863 3146
CHINTHAMANI
TUMKUR 1385 DEVANHALLI
exhibition attracted more than 50,000 business visitors ARASIKERE
KOLAR918
238 NELAMANGALA BANGALORE RURAL 686
and 2 lakh general visitors. The Indian Air Force also HASSAN 1574 BANGALORE NORTH
1058 TIPTUR
organised a workshop on aerospace sector and aviation to MANGALORE
HASSAN
212
1898
BANGALORE URBAN
MULABAGAL
KUNIGAL 1559
students from nearly 200 schools. DAKSHINA KANNADA
290 MAGADI
HOSKOTE
RAMANAGARAM BANGALORE SOUTH
KRISHNARAJPET MANDYA
MANDYA
424
MADDUR
SRIRANGAPATNA RAMANAGARAM
HUNSUR
COORG
722
KANAKAPURA
MYSORE
1367

HEGGADADEVANAKOTE CHAMARAJA NAGAR

990

CHAMARAJA NAGAR
1362

28 29
 Appendix

Websites

Karnataka Udyog Mitra http://www.kumBengaluru.com/

Karnataka Industries Area Development Board http://www.kiadb.in/
IBEF http://ibef.org/industry/aviation.aspx
Karnataka Tourism http://karnatakatourism.org/sites/abt_karnataka.html
Government of Karnataka http://www.karunadu.gov.in/informationdepartment/Pages/People-place.aspx
Government of Karnataka Water Resources Department http://waterresources.kar.nic.in/index.asp
Karnataka Power Transmission Corporation Ltd. http://www.kptcl.com/kptclhistory.htm
Karnataka State Horticulture Department http://www.horticulture.kar.nic.in/
Indian Space Research Organisation http://www.isro.org/index.aspx
Hindustan Aeronautics Ltd. http://www.hal-india.com/
Gensar Aerospace & IT Pvt. Ltd. http://www.genser.com/home.html
CONTACT US Taneja Aerospace and Aviation Ltd. http://www.taal.co.in/

The Principal Secretary to Government References

Commerce & Industries Department
Government of Karnataka Economic growth data from Central Statistical Organisation, Government of India
Vikasa Soudha, Bangalore 560 001, Karnataka, India Changing Dynamics: Indias Aerospace Industry, PricewaterhouseCoopers, 2009
Ph: +91 80 2225 2443 / 22203 4340 The Space Report 2009, Space Foundation, available at http://www.thespacereport.org/
E-mail: prsofci@gmail.com Karnataka A Global Aerospace Hub, CII 2007
Newspapers quoted: Hindu, Machinist, Hndu Business Line, Financial Express
Commissioner for Industrial Development and Communique March 2009, Journal of CII
Director of Industries & Commerce Planning Commission, Government of India, Eleventh Five Year Plan documents
2nd Floor, Khanija Bhavan GTRE Bangalore
No.49, Race Course Road http://www.prdomain.com/mediaroom/aeroindia/Registered_companies/DRDO/presentations/GTRE_BENGALURU/GTRE.pdf
Bangalore 560 001
Changing Dynamics:Indias Aerospace Industry, PricewaterhouseCoopers, 2009.
Karnataka Udyog Mitra All revenue projections for global space industry from The Space Report 2009, Space Foundation, available at
Managing Director http://www.thespacereport.org/
Karnataka Udyog Mitra http://www.thehindu.com/2009/06/02/stories/2009060253990400.htm
3rd Floor, Khanija Bhavan (South Wing) http://machinist.in/index.php?option=com_content&task=view&id=1782&Itemid=2
No.49, Race Course Road, Bangalore 560 001 http://www.livemint.com/2010/01/07213247/RollsRoyce-HAL-plan-JV-for-e.html
http://www.thehindubusinessline.com/2009/02/13/stories/2009021350531700.htm
Other agencies supporting investors in Karnataka http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Aviation-opportunities-in-the-air-
Karnataka State Industrial Investment Development Corporation http://www.ksiidc.com/ in-Bangalore-Hyderabad/articleshow/5649207.cms
Karnataka Industrial Areas Development Board http://www.kiadb.kar.nic.in/ http://www.business-standard.com/india/news/karnataka-set-to-push-aerospace-parks/385442/
Karnataka Small Scale Industries Development Corporation http://www.kssidc.kar.nic.in/index.asp
Technical Consultancy Services Organisation of Karnataka http://www.tecsok.com/ ILO, Project on Youth Employment and Social Dialogue in Southern India, December 2008.
http://detkarnataka.com/ilp/jsp/homepage/training/schemes/mes.jsp
http://dget.nic.in/mes/index.htm
http://www.quest-global.com/Engineering_new_flight.html

Boeing India President, quoted in the Financial Express, October 23rd 2009.
http://www.financialexpress.com/news/hal-to-make-crucial-boeing-parts-in-Bangalore/531973/
http://www.livemint.com/2009/10/11223910/Airbus-set-to-transfer-majorit.html?h=A4
http://www.thehindubusinessline.com/2009/11/16/stories/2009111650501300.htm
http://www.starragheckert.com/sh/index.php/en/unternehmen/business-unit-2/wmw-india
http://machinist.in/index.php?option=com_content&task=view&id=1804&Itemid=2

30 31
DEPARTMENT OF INDUSTRIES & COMMERCE KARNATAKA UDYOG MITRA Associate partners:
Government of Karnataka (A Government of Karnataka Organisation)
E-mail: commissioner@karnatakaindustry.gov.in E-mail: kum@kumbangalore.com
Website: www.karnatakaindustry.gov.in Website: www.kumbangalore.com