Karnataka Surpasses National Growth with 10.2% GSDP Increase Amid Economic Challenges

Bengaluru, Oct 22 (KNN) Karnataka is defying economic expectations, outpacing the national economy with a remarkable Gross State Domestic Product (GSDP) growth of 10.2 per cent for the fiscal year 2023-24, according to a statement from Chief Minister Siddaramaiah’s office on Monday.

This performance highlights the state's resilience and effective governance amid various economic challenges.

The Chief Minister’s office asserted that “far from being a case of economic mismanagement,” Karnataka's growth trajectory is supported by strategic investments, innovative policies, and a business-friendly environment. The state is positioned as a critical engine in driving India’s overall economic performance.

An initial projection from the National Stock Exchange (NSE) anticipated a modest growth rate of just 4 percent for Karnataka, a figure that was later revised to a robust 13.1 percent.

The CMO noted this drastic revision as indicative of an early measurement error, underscoring the underestimated potential of Karnataka’s economy.

With the final GSDP growth of 10.2 percent, Karnataka has not only surpassed the national average growth rate of 8.2 percent but also set the stage for a promising outlook.

For the next fiscal year, the NSE forecasts a GSDP growth rate of 9.4 percent for Karnataka, while the Ministry of Finance has provided an even more optimistic projection of 14 percent.

Further supporting this growth narrative are strong economic indicators, including a year-on-year growth of 10 percent in Goods and Services Tax (GST) collections and a notable 24 percent increase in stamp duty revenue as of September 2024. These figures reinforce the perception of Karnataka as a state in dynamic economic expansion.

Karnataka's GSDP per capita remains among the highest in India, aligning closely with Telangana, both states led by Congress and showcasing robust economic performances.

The CMO emphasised that Karnataka’s pro-people policies, including various welfare guarantees, ensure that the benefits of economic growth are distributed equitably among its citizens, promoting inclusive development.

Despite these achievements, Karnataka faces significant challenges. The state has endured its worst drought in a decade, severely affecting agricultural productivity and contributing to negative growth in that sector.

Additionally, Karnataka’s reliance on the IT and hardware sectors, which account for 28 percent of its Gross State Value Added (GSVA), has exposed it to the impacts of a global economic slowdown.

In conclusion, Karnataka’s impressive GSDP growth is not only a testament to its economic strategy but also a beacon of resilience amid adversity, positioning the state as a vital player in India's economic landscape.

(KNN Bureau)