Favourable climate and habitat. Excellent communication facilities and accessibility provided by broad gauge railway,  airport,  national highways and sea ports. Harmonious industrial relations.

Infrastructure
The State Government has created several organisations and Institutions to provide infra- stuctural support to the private sector enterprises. The Directorate of Industries and Commerce co-ordinates all activities required for industrial development. It allots to the entrepreneur, power, land and water besides sanction of incentives. Karnataka Industrial Area Development Board acquires tracts of land for development into industrial sites. The Technical Consultancy Services Organisation of Karnataka offers expert consultancy services to small entrepreneur's at moderate rates. The Karnataka State Finance Corporation, Industrial Investment Development Corporation, Small Scale industries Development Corporation and Karnataka Electronics Corporation provide them finance, equity participation, factory sheds and raw material supplies.

Associations
Karnataka has got 123 associations representing various trade, banking and industrial organisations. Prominent among the manufacturers association are Karnataka State Small Scale Industries Association, Confederation of Electronic Industries of Karnataka and Peenya Industries Association.

All the 123 associations are affiliated to a parent body: Federation of Karnataka Chambers of Commerce and Industries (FKCCI).

Foreign investment approved in Karnataka during 1993-94 brought about 169 foreign investors from Germany, Japan, USA, UK, Switzerland and Sweden. They have invested in computer software, telecommunications equipment's, electronics and electricals, machine tools and engineering products, medical and laboratory equipment's, minerals, ceramics, chemicals, leather products, food processing and tourism.