Though Karnataka’s economic growth is steady, stable, and resilient, start-up funding in the State has dropped by about 80% and foreign direct investment (FDI ) has reduced by 46% in the first half of the financial year as a result of the slowdown in advanced global economies, according to Mid-Year Review (MYR) of State Finances 2023-24.
The MYR, which was tabled in the State legislature on Thursday, says that start-up funding has dropped by $2.8 billion from $3.4 billion in the first half of the previous year to $0.6 billion in the first half of the current financial year. It says that FDIs in Karnataka have dropped by $2.5 billion from $5.3 billion in the first half of the previous financial year to $2.8 billion in the first half of the present financial year.
Bengaluru, renowned as India’s start-up capital and home to 40% of India’s unicorns, is facing the impact of global challenges, the review notes. Karnataka being the IT hub of India with a majority of global IT companies headquartered in Bengaluru amplifies the impact of such global factors, it adds.
