In 2023–2024, Karnataka’s gross state product grew by a healthy 10.2%, the state administration announced Monday. In a statement, the government cited data from the Ministry of Statistics and Programme Implementation (MoSPI) to claim that the state has greatly outperformed the 8.2% national average.

The statement said, “Initially, the National Statistical Estimate (NSE) 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.”

Despite significant obstacles, such as the worst drought in ten years and a slump in the global IT markets, the government noted that this accomplishment was accomplished. 

Drought circumstances caused the state’s agriculture sector to expand negatively, and Karnataka’s reliance on the IT and hardware industries, which accounted for 28% of its Gross State Value Added (GSVA), left it susceptible to downturns in the world economy, the statement said.

The growth of the Indian IT sector slowed from 15.5% in FY 2022 to 8% in FY 2023, reflecting inflation and concerns about a worldwide recession. According to the statement, the NSE projects Karnataka’s GSDP to expand by 9.4% in FY 2024–2025, which is a little below the national average of 10.5%.

Nonetheless, the Ministry of Finance, bolstered by robust fiscal indicators, anticipates a more optimistic 14% growth for the state, it added.”As of September 2024, Karnataka recorded a 10% year-on-year increase in GST collections and a 24% surge in stamp duty revenue, signaling a healthy economic trajectory,” the government said.

According to the statement, Karnataka’s per capita GSDP is still among the highest in the nation, comparable to Telangana’s, demonstrating the effectiveness of Congress-led governance in both states. The state government praised its pro-people measures, such as its five guarantees, claiming that they have made sure that everyone in society benefits from growth.

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