Economy of Karnataka

Economy of Karnataka
Bengaluru, The capital city of Karnataka
1 April – 31 March
Statistics
GDP₹28.09 lakh crore (US$340 billion) (2024–25 est.)[1]
GDP rank3rd
GDP growth
9.4% (2024–25 est.)[1]
GDP per capita
₹332,926 (US$3,989) (2024–25)[1]
GDP per capita rank
5th (2023-24 est.)
GDP by sector
Agriculture 15%
Industry 19%
Services 66% (2021–22)[1]
Population below poverty line
Positive decrease 13.2% in poverty (2020–21)[2]
Increase 0.706 high (2022) (15th)
UnemploymentPositive decrease 10.65% (March 2024)[3]
Public finances
27.49% of GSDP (2022–23 est.)[1]
₹−61,564 crore (US$−7.4 billion) 3.26% of GSDP (2022–23 est.)
Revenues₹1.90 lakh crore (US$23 billion) (2022–23 est.)[1]
Expenses₹2.52 lakh crore (US$30 billion) (2022–23 est.)[1]
All values, unless otherwise stated, are in US dollars.

Karnataka is one of the highest economic growth states in India with an expected GSDP (Gross State Domestic Product) growth of 9.5% in the 2021–22 fiscal year.[4][5] The total expected GSDP of Karnataka in 2022–2023 is about $240 billion.[5] Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the tertiary sector contributed the most to GSDP (US$31.6 billion─55 percent), followed by the secondary sector ($17 billion─29 percent), and the primary sector (US$9.5 billion─16 percent).[6]

With an overall GDP growth of 56.2% and a per capita GDP growth of 43.9% in the last decade, Karnataka surpassed all other states in India, pushing Karnataka's per capita income in Indian Rupee terms to sixth place.[7] Karnataka received US$2,026.4 million worth of Foreign Direct Investment for the fiscal year 2008–09, placing it at the third spot among states in India.[8] At the end of 2004, the unemployment rate of Karnataka was 4.57% compared to a national rate of 5.99%.[9] For the fiscal year 2006–07 the inflation rate of Karnataka was 4.4%, which was less than the national average.[10]

Between 2011-12 and 2017-18, the GSDP of the state grew at a Compound Annual Growth Rate (CAGR) of 13.11 per cent to reach ₹ 12.69 trillion (US$196.88 billion) and the net state domestic product (NSDP) grew at a CAGR of 12.83 per cent to reach ₹ 11.45 trillion (US$177.68 billion).[11]

A fiscal year in Karnataka begins on 1 April of the previous calendar year and ends on 31 March of the year with which it is numbered.

After Bengaluru Urban, Dakshina Kannada (Mangaluru) Hubli-Dharwad and Belagavi districts contribute the highest revenue to the state respectively.

  1. ^ a b c d e f g "Karnataka Budget Analysis 2023-24". PRS Legislative Research. 7 July 2023.
  2. ^ "SDGs India Index". NITI Aayog. 31 December 2019.
  3. ^ "Unemployment Rate in India". Centre for Monitoring Indian Economy. p. 1. Retrieved 3 March 2024.
  4. ^ "State's economic growth poised at 8.2 per cent". The Hindu. Chennai, India. 24 February 2011. Archived from the original on 3 March 2011. Retrieved 6 April 2011.
  5. ^ a b "Karnataka" (PDF). Online webpage of the India Brand Equity Foundation. Ministry of Commerce with the Confederation of Indian Industry. Retrieved 6 April 2011.
  6. ^ "State Economy and Socio-Economic Profile – Karnataka" (PDF). Department of Commerce & Industry. India Brand Equity Foundation. Retrieved 30 September 2009.
  7. ^ "In terms of per capita GDP – Karnataka, Bengal fastest growing States". The Hindu. 9 June 2005. Retrieved 11 June 2007.
  8. ^ "Karnataka stands 3rd for FDI inflows in India after Maharashtra, Gujarat". Deccan Herald. Bangalore, India. 24 December 2010. Retrieved 6 April 2011.
  9. ^ Government of India. "Employment and Unemployment" (PDF). Online webpage of Indian budget. Archived from the original (PDF) on 24 December 2010. Retrieved 19 June 2007.
  10. ^ "Budget 2006–2007". Online webpage of the Finance Department. Government of Karnataka. Archived from the original on 22 August 2006. Retrieved 19 June 2007.
  11. ^ "GSDP of Karnataka, Manufacturing Industries in Karnataka". ibef.org. Retrieved 25 June 2018.