Bengaluru: The southern state of Karnataka attracted nearly a fourth of all technology investments made in India in the last financial year, an industry association said.

Out of ₹ 2.24 lakh crore technology investments in India in 2015-16, Karnataka accounted for ₹ 53,396 crore, or 23.8%, Associated Chambers of Commerce and Industry in India said.

IT investments in Karnataka have grown at a compounded annual growth rate of over 14% in the last one decade, said the IT-sector specific analysis conducted by Assocham Economic Research Bureau (AERB).

Over the same period, IT investments into India has gone up from ₹ 46,200 crore in 2005-06 to over ₹ 2.24 lakh crore in 2015-16, a 17% CAGR increase.

Punjab got the lowest IT investments in 2015-16, attracting ₹ 1,255 crore or 0.6% of the total share.

Assocham said Karnataka should do more to encourage existing industries and attract new investments in the state. “However, the Karnataka government should work towards further improving the infrastructure across the state and promote ease of doing business to lure new investors in large numbers and encourage the existing industries to further expand their base," said D.S. Rawat, secretary general of Assocham.

Gujarat had the highest growth rate of 48% in the last decade as IT investments have increased from ₹ 700 crore in 2005-06 to ₹ 35,300 crore in 2015-16, the report added.

Rawat added states should provide more incentives like tax sops, improve the existing ecosystem, stable law and order conditions and knowledge pool to attract more IT investments.

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