Chennai:
Though Karnataka ranks high amongst other Indian states on its investment
climate, the industry is constrained by corruption, regulation and limited
infrastructure, according to a Word Bank and Confederation of Indian Industry
(CII) survey amongst 200 firms in the state. Research
by the World Bank and others shows that private sector performance in India
continues to be constrained by a range of bottlenecks. According
to the World Bank-CII study Karnataka's performance on investment climate
indicators is by and large good, though particularly in terms of infrastructure
there is scope for considerable improvement. Overall on most indicators
it ranks high relative to other states and is generally amongst the top
4-5 states. In several indicators Karnataka sets the benchmark for the rest
of the states in the country. The
survey respondents ranked regulation, corruption and infrastructure as the
top constraints affecting productivity and growth. The composite cost of
power and loss of output due to power
outages or surge in grid supply is amongst the highest for firms in Karnataka,
which has serious implications for competitiveness and hence investment..
The survey was carried out across Bangalore, Mangalore, Mysore, Hubli-Dharwad.
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