Karnataka's GSDP grew by 10.2% for 2023-24, exceeding the nation's average of 8.2%, as announced by Chief Minister Siddaramaiah. Despite challenges like drought, strong IT sectors, effective governance, and government schemes contributed to economic stability and the highest per capita GSDP in India.
Karnataka has achieved remarkable economic progress, boasting a Gross State Domestic Product (GSDP) growth rate of 10.2% for the financial year 2023-24. Chief Minister Siddaramaiah announced that this figure is notably 2% higher than the national average of 8.2%.
In a press statement, Siddaramaiah referenced statistics from the Ministry of Statistics and Planning, highlighting that despite facing a severe drought last year and setbacks in the global IT market, Karnataka has outperformed the national economic average.
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Initially, the National Statistical Commission (NSC) estimated Karnataka's GSDP growth at a mere 4%. However, the final development rate stands at an impressive 13.1%, demonstrating that the state's economic potential was underestimated. The CM explained that while drought conditions hindered agricultural development, the strength of Karnataka’s economy has been supported by its strong IT and hardware sectors. These sectors contribute 28% to the state's Gross State Value Added (GSVA), although they have recently experienced challenges due to a global economic downturn. While India's IT sector grew by 15.5% in FY2022, it fell to 8% in FY2023.
Siddaramaiah attributed the state's stability to effective governance and a commitment to multi-sector development. Looking ahead, the NSC has projected a GSDP growth of 9.4% for Karnataka in the 2024-25 financial year, slightly below the national average of 10.5%. In contrast, the Ministry of Finance anticipates a GSDP rate of 14% for Karnataka, considering various ongoing economic activities.
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In a positive sign for the state's economy, Karnataka reported a year-on-year increase of 10% in Goods and Services Tax (GST) collection and a remarkable 24% rise in stamp duty collection in September 2024.
Notably, Karnataka also boasts the highest per capita GSDP in the country, reinforcing its status as a successful economic model. Siddaramaiah credited numerous government schemes, including guarantees, for ensuring that the benefits of development reach all segments of society. He emphasized that this success reflects Karnataka’s effective integration of economic growth with social progress.