Election atmosphere has been created in Karnataka. Voting will be held on 10 May and results will come on 13 May. BJP, Congress and JDS are trying to gain power in all the three states. Today the question about Karnataka is different from politics and after all, what is the reason that Karnataka has become everyone’s favorite? The answer to this is none other than the economy here. There is no dearth of industry in Karnataka. Bangalore, the capital of Karnataka, is not considered less than the Silicon Valley. The GST figures that came recently surprised everyone.
After Maharashtra, Karnataka was the highest earning state from GST. The per capita income here is more than the average per capita income of the country. Apart from this, there are more jobs here than any other state. Because of which Karnataka has become a favorite spot for the youth of the country. Today, before the Karnataka elections, there is a need to turn those economic pages of the state and it is also necessary to know why Karnataka has become an important state for the country along with political parties.
More than 8.5 lakh MSMEs in the state
- There are more than 8.5 lakh MSMEs in Karnataka, which provide employment to more than 55 lakh people.
- The state has invested around Rs 4 lakh crore in the last 5 years.
- There are over 3,500 MSMEs in the Peenya Industrial Area of Bengaluru.
- For this reason, Peenya is also considered as the largest industrial area in Asia.
Karnataka is called IT Hub
- Bangalore, the capital of Karnataka, is also known as the Silicon Valley of India.
- During the financial year 2021-22, the IT export of the state was 58 billion dollars.
- The IT sector of the state provides direct jobs to more than 1.5 lakh people and indirect jobs to about 40 lakhs.
- There are more than 4,000 IT companies in the state, including tech companies like Microsoft, IBM and Oracle, which provide jobs to more than 4 lakh people.
- In the year 2022, more than 20 percent contribution of IT sector was seen in the state economy.
- Karnataka is the auto innovation hub of India, where global auto companies like Mercedes, Bosch, Toyota, Volvo, Scania are present.
- It is also the fourth largest automobile producer in India, accounting for 8.5 per cent of the national automobile output.
- The country’s first indigenous electric car Reva Mahindra was prepared in Karnataka.
- There are also more than 45 EV innovation start-ups in the state.
- Karnataka also produces automotive components, spare parts and supporting accessories for a wide range of vehicles including motorcycles, trucks and buses.
biggest business of silk
- The production of cotton and silk in Karnataka is the highest in the country.
- An investment of Rs 15,000 crore has been talked about under the Karnataka Textile and Apparel Policy.
- Under this policy, employment was also to be given to 5,00,000 people during five years i.e. from 2018 to 2023.
- The country’s oldest spinning mills are also established in the state, which shows how old the textile business is in Karnataka.
After talking about the major industry of the state, it is also very important to turn the pages of the economic statistics of the state. About which it is said that this state has seen the fastest economic growth during the last five years. Looking at the figures of the Reserve Bank of India, Karnataka’s budget and economic survey, it is known that Karnataka’s economy has grown by 68 percent in the last five years from 2018 to 2023. Meanwhile, the country’s nominal GDP has seen an increase of 59 percent, due to which it has reached Rs 272 lakh crore, which was Rs 171 lakh crore in the financial year 2018. Inflation and fiscal deficit in the state have also been less than the national average. While per capita income in Karnataka has grown faster than the national average. Let’s go through the documents and try to understand the economy of the state:
GDP of Karnataka
- Karnataka is the third largest state economy in India
- At present, Karnataka’s GDP has 8.2 percent contribution in the country’s growth.
- In the last five years, it has grown by 68 per cent to Rs 22.4 lakh crore in FY23.
- The GSDP of Karnataka was Rs 13.33 lakh crore in FY18.
- According to budget estimates, its GSDP will reach Rs 23.34 lakh crore by FY24.
- Maharashtra is at the forefront with GSDP of 35.27 lakh crores.
- Tamil Nadu with a GSDP of Rs 24.85 lakh crore is on the second position.
per capita income
- Karnataka has the highest per capita income as compared to other states of the country.
- In the last five years, the per capita income in the state has increased by 62 per cent to Rs 3.02 lakh in FY23.
- In FY18, the per capita income of the state was seen at Rs 1.86 lakh.
- At the same time, the per capita income of the country has increased by 48 percent to Rs 1.71 lakh during this period.
- In the financial year 2024, the per capita income of Karnataka is estimated to be Rs 3.32 lakh.
Karnataka’s gross fiscal deficit is set to increase by 98 per cent to Rs 61,564 crore in FY2023 (Budget Estimates), from Rs 31,101 crore in FY18. In the budget of FY 2024, the fiscal deficit has been estimated at Rs 60,581 crore, which is 2.60 percent of GSDP. At the same time, India’s deficit is estimated to be 5.9 percent against GDP in this financial year.
Karnataka’s total debt to increase by 88 per cent to Rs 5.18 lakh crore in FY23 from Rs 2.46 lakh crore in FY18. In the state budget, the total debt has been estimated at Rs 5.65 lakh crore in the financial year 2024, which is 24.20 percent of the state GDP.
How much is inflation in Karnataka
Karnataka has also done better in fighting inflation in FY23. Consumer price inflation in March stood at 5.58 per cent, which is below the national average of 5.66 per cent. In Karnataka, inflation in FY23 saw a minimum of 4.19 per cent and a maximum of 6.39 per cent. In the financial year 2023, every month inflation in Karnataka has been seen less than the national average inflation of India.