K'taka’s economy outpaces national growth despite global headwinds: CM Siddaramaiah

Karnataka continues to drive India’s economic progress, registering a robust GSDP growth of 10.2 per cent in FY 2023-24, significantly surpassing the national average of 8.2 per cent, the Chief Minister's Office said in a statement on Monday.

The CMO's media release quoted data from the Union Ministry of Statistics and Programme Implementation (MoSPI).

The state achieved this feat despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets, the report 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. 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 reads.

The Indian IT industry’s growth, which slowed from 15.5 per cent in FY 2022 to 8 per cent in FY 2023, reflected global recessionary fears and inflation. However, Karnataka’s economy remained resilient, thanks to strategic governance and diversified growth drivers.

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. As of September 2024, Karnataka recorded a 10 per cent year-on-year increase in GST collections and a 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, on par with Telangana, reflecting the strength of Congress-led governance in both states, the report mentioned. 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.

"Karnataka’s success demonstrates the synergy between economic growth and social progress, making it a key engine of India’s economy. With its innovative policies, business-friendly environment, and ability to adapt to challenges, Karnataka stands as a model for sustainable development," said CM Siddaramaiah.

Industry experts note that Karnataka’s leadership in the IT sector and its continued ability to attract investments underscore its role as a major contributor to India’s digital and economic landscape, he said.