Bengaluru: Karnataka has registered a strong 10.2 per cent increase in GSDP growth in 2023-24 the state government announced on Monday. According to a statement, data from MoSPI shows that the state has exceeded the national average of 8.2 percent by a significant margin. At first, the National Statistical Estimate (NSE) predicted a small 4 per cent growth in GSDP for Karnataka, but this was later increased to 13.1 per cent by the end of the fiscal year, showing that the state's economic performance was underestimated early on.
Karnataka's Economic Growth Amid Drought and IT Slowdown
Despite facing the worst drought in ten years and a slowdown in global IT markets, the government highlighted that this accomplishment was still achieved. Drought conditions caused a decline in the agriculture sector of the state, while Karnataka's heavy reliance on the IT and hardware industries, which contribute 28 percent to its Gross State Value Added (GSVA), exposed it to global economic downturns, as per the report. The slowdown in the Indian IT industry's growth, dropping from 15.5 percent in FY 2022 to 8 percent in FY 2023, was a result of concerns over global recession and inflation.
According to the statement NSE predicts Karnataka's GSDP to increase by 9.4 percent in FY 2024-25, which is slightly lower than the national average estimate of 10.5 percent. Nevertheless, the Ministry of Finance expects a more positive 14 pc increase for the state, with backing from solid fiscal markers.
In September 2024, Karnataka saw a 10 per cent rise in GST collections and a 24 per cent growth in stamp duty revenue, indicating a positive economic trend. The per capita GSDP of Karnataka still ranks high, similar to Telangana, showcasing the effectiveness of Congress-led governance in both states, according to the statement.
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