Karnataka continues to cement its position as one of India’s economic powerhouses, registering robust growth in Gross State Domestic Product (GSDP), per capita income, and industrial output for the fiscal year 2023-24. Despite challenges in the agriculture sector due to adverse weather conditions, the state has demonstrated resilience and growth through its services and industrial sectors.
GSDP Growth: A Solid Performance
In 2023-24, Karnataka’s GSDP grew to ₹25.01 lakh crore at current prices, up from ₹22.70 lakh crore in 2022-23—a strong increase of 10.2%. At constant prices, the GSDP rose from ₹13.35 lakh crore to ₹14.23 lakh crore, reflecting a 6.6% growth rate. While slightly below India’s GDP growth rate of 7.3% at constant prices, Karnataka's steady performance ensures its continued relevance in the national economy.
Notably, the state’s share in the national GDP rose to 8.4% in 2023-24, up from 8.3% in the previous year, reaffirming its growing economic importance.
Per Capita Income: Leading the Nation
Karnataka’s per capita income reached ₹3,32,926 in 2023-24—a remarkable 79% higher than the national average of ₹1,85,854. This reflects a 9.3% increase from ₹3,04,474 in 2022-23 at current prices. Even at constant prices, the growth is significant—rising 5.8% from ₹1,75,895 to ₹1,86,038.
The growth in per capita income indicates improved living standards and higher economic productivity per individual, positioning Karnataka as a top performer in income metrics across the country.
Sectoral Analysis: Services and Industry Drive Growth
Agriculture Sector: Setback Due to Drought
Unfortunately, the agriculture sector witnessed a contraction, with a -1.8% growth rate in 2023-24, compared to a 2.8% growth in 2022-23. The fisheries sector also declined by -4.6%, mainly due to severe drought conditions and inadequate rainfall, affecting 48 lakh hectares of land.
Industrial Sector: A Steady Rebound
On the brighter side, Karnataka’s industrial sector displayed a strong recovery, growing by 7.5% in 2023-24—up from 3.8% the previous year. Key contributors include:
- Construction: 8.2% growth
- Manufacturing: 7.4% growth
This rebound points to continued infrastructure development and a revival in manufacturing activities following pandemic disruptions.
Services Sector: Karnataka’s Economic Backbone
The services sector remains the largest contributor to the state’s economy, accounting for 67% of the Gross State Value Added (GSVA). Though the overall growth rate slightly dipped to 8.7% in 2023-24 from 9.9% in the previous year, IT services posted a significant boost—from 9.2% to 12.6%.
Other major contributors in the services sector include:
- Public Administration: 10.5%
- Other Services: 8.2%
- Hotels and Restaurants: 6.5%
The strength of Karnataka’s services sector, particularly driven by its tech ecosystem, continues to power the state’s economic momentum.
District-wise Economic Snapshot
Top Performers: Urban and Coastal Powerhouses
- Bangalore Urban leads by a wide margin, contributing ₹8.59 lakh crore (37.8%) to the state’s GSDP.
- Dakshina Kannada and Belagavi follow with 5.5% and 4.0% contributions respectively.
In terms of per capita income for 2022-23:
- Bangalore Urban: ₹7,60,362 (highest in the state)
- Dakshina Kannada: ₹4,92,074
- Udupi: ₹4,14,274
- Chikkamagaluru: ₹3,77,968
All these districts outperformed the state average of ₹3,04,474 in 2022-23.
Regions Needing Focus
- Kalaburgi Revenue Region had the lowest per capita income at ₹1,66,797.
- Belagavi and Mysore regions also fell below the state average with ₹1,81,911 and ₹3,02,060 respectively.
These disparities highlight the need for targeted regional development policies to ensure inclusive growth across the state.
Conclusion: A Promising Outlook with Regional Challenges
Karnataka’s economic story for 2023-24 is one of overall progress marked by impressive income growth, industrial recovery, and a booming services sector. However, it also underscores critical areas that require policy attention—particularly agriculture and regional disparities in income and economic contribution.
With continued focus on innovation, infrastructure, and equitable development, Karnataka is well-poised to further strengthen its leadership among Indian states in the years ahead.
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