Karnataka continues to drive India’s economic progress, registering a robust GSDP growth of 10.2% in Financial Year 2023-24, significantly surpassing the national average of 8.2%, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).
The State achieved this feat despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets.
Initially, the National Statistical Estimate (NSE) had projected a modest 4% GSDP growth for Karnataka. But this was revised to 13.1% by the end of the fiscal year, indicating early underestimation of the state’s economic performance.
The state’s agriculture sector faced negative growth due to drought conditions, while Karnataka’s dependence on the IT and hardware sectors—accounting for 28% of its Gross State Value Added (GSVA)—made it vulnerable to global economic downturns.
The Indian IT industry’s growth, which slowed from 15.5% in FY 2022 to 8% in FY 2023, reflected global recessionary fears and inflation. However, Karnataka’s economy remained resilient, thanks to strategic governance and diversified growth drivers.
For FY 2024-25, the NSE forecasts Karnataka’s GSDP to grow at 9.4%, slightly below the national average projection of 10.5%.
However, the Ministry of Finance projects a more optimistic 14% growth for the state, supported by strong fiscal indicators.
As of September 2024, Karnataka recorded a 10% year-on-year increase in GST collections and a 24% surge in stamp duty revenue, signalling a healthy economic trajectory.
Karnataka’s per capita GSDP remains among the highest in the country, on par with Telangana, reflecting the strength of Congress-led governance in both states.
The state government’s pro-people policies, including its Guarantees, have ensured that the benefits of growth reach all sections of society, fostering inclusive and equitable development.
Karnataka’s success demonstrates the synergy between economic growth and social progress, making it a key engine of India’s economy. With its innovative policies, business-friendly environment, and ability to adapt to challenges, Karnataka stands as a model for sustainable development.
Industry experts note that Karnataka’s leadership in the IT sector and its continued ability to attract investments underscore its role as a major contributor to India’s digital and economic landscape.
source/content: daijiworld.com (headline edited)