BENGALURU: Karnataka registered a robust Gross State Domestic Product (GSDP) growth of 10.2 per cent in FY 2023-24, significantly surpassing the national average of 8.2 per cent.
Citing data from the Ministry of Statistics and Programme Implementation (MoSPI), the state government said Karnataka accomplished this feat despite many challenges, including drought and a slowdown in global IT markets.
A statement from the Chief Minister’s Office said initially, the National Statistical Estimate had projected a modest 4 per cent GSDP growth for Karnataka, but this was revised to 13.1 per cent 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 per cent of its Gross State Value Added (GSVA), made it vulnerable to global economic downturns, the statement said. However, Karnataka’s economy remained resilient.
“For FY 2024-25, the NSE forecasts Karnataka’s GSDP to grow at 9.4 per cent, slightly below the national average projection of 10.5 per cent. However, the Ministry of Finance projects a more optimistic 14 per cent growth for the state, supported by strong fiscal indicators,” the statement said. As of September 2024, Karnataka recorded a 10 per cent year-on-year increase in GST collections and 24 per cent surge in stamp duty revenue, signalling a healthy economic trajectory.
Karnataka’s per capita GSDP remains among the highest in the country. “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,” the statement added. Karnataka’s success demonstrates the synergy between economic growth and social progress, making it a key engine of India’s economy, it said.