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Economy of Karnataka

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UB City, Bangalore
Ramakrishna.hd · Public domain

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With an overall GDP growth of 56.2% and a per capita GDP growth of 43.9% in the last decade, Karnataka surpassed many other states in India, pushing Karnataka's per capita income in Indian Rupee terms to sixth place. Karnataka received US$2,026.4 million worth of Foreign Direct Investment for the fiscal year 2008–09, placing it at the third spot among states in India. At the end of 2004, the unemployment rate of Karnataka was 4.57% compared to a national rate of 5.99%. For the fiscal year 2006–07 the inflation rate of Karnataka was 4.4%, which was less than the national average.

Between 2011-12 and 2017-18, the GSDP of the state grew at a Compound Annual Growth Rate (CAGR) of 13.11 per cent to reach ₹ 12.69 trillion (US$196.88 billion) and the net state domestic product (NSDP) grew at a CAGR of 12.83 per cent to reach ₹ 11.45 trillion (US$177.68 billion).

A fiscal year in Karnataka begins on 1 April of the previous calendar year and ends on 31 March of the year with which it is numbered.

Following Bengaluru Urban, the Dakshina Kannada (Mangaluru), Hubli-Dharwad, and Belagavi districts contribute the highest revenue to the state, respectively.

Agriculture and Livestock

Agriculture is the primary occupation of most of Karnataka's rural people. A total of 123,100 km2 of land is cultivated in Karnataka, constituting 64.60% of the total geographical area of the state. According to the 2001 census, farmers and agricultural labourers formed 56% of the workforce of Karnataka. Agriculture in Karnataka is heavily dependent on the southwest monsoon since the extent of arid land in the state is second only to Rajasthan. Only 26.5% of sown area (30,900 km2) is subjected to irrigation. The state has three agricultural seasons – Kharif (April to September), Rabi (October to December) and Summer (January to March).

Given below is a table of 2015 national output share of select agricultural crops and allied segments in Karnataka based on 2011 prices.

Primary Crops grown in Karnataka

The main crops grown are rice, ragi, jowar (sorghum), maize, and pulses (tur and gram) in addition to oilseeds and a number of other cash crops. Cashews, coconut, arecanut, cardamom, chili peppers, cotton, sugarcane and tobacco are also produced. Karnataka is the largest producer of coarse cereals, coffee, raw silk and tomatoes among the states in India. Horticultural crops are grown in an area of 16,300 km2 and the annual production is about 9.58 million tons. The income generated from horticulture constitutes over 40% of income generated from agriculture and it is about 17% of the state's GDP. In floriculture, Karnataka occupies the second position in India in terms of production; 700 tons of flowers (worth ₹ 500 million) were produced in 2004–05.

A majority of the thirty-five billion rupee silk industry in India is headquartered in Karnataka State, primarily in Mysore and North Bengaluru regions of Doddaballapura, the site of a planned 700 million "Silk City".

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