Despite slowing growth of the services sector, Karnataka’s economy is expected to grow at 5.9 per cent and reach Rs. 3,03,444 crore in 2012-13 (GSDP at constant prices 2004-05)) as against 5.5 per cent growth rate recorded in 2011-12.
According to Economic Survey of Karnataka 2012-13, which was tabled in the State Legislative Assembly on Thursday, despite the drought in 157 taluks, the agricultural sector is likely to register a growth of 1.8 per cent against –(minus) 2.2 per cent in 2011-12. The foodgrain production is likely to be 12.5 million tonnes as against the target of 13.65 million tonnes.
The survey cautioned that the contribution of the agriculture sector to the economy has been declining continuously without commensurate decline in the work force deployed in agriculture.
The industry sector is estimated to register a growth of 2.4 per cent during 2012-13. In 2011-12 also, the industry sector recorded 2.4 per cent. This was largely due to a sharp decline in the manufacturing sector and contraction in the growth rates of mining and quarrying sectors.
The services sector continued to be the major contributor to the State’s economy and is showing encouraging trends. The services sector is likely to grow by 8.9 per cent as against 9.5 per cent in 2011-12 and continues to be the key driver of the 5.9 per cent growth of GSDP in 2012-13. The services sector consisted of real estate, ownership of dwellings and business services and banking and insurance among others.
At the same time, the per capita GSDP at constant prices is expected to increase by 4.9 per cent at Rs. 50,254 in 2012-13 against Rs. 47,911 in 2011-12.
A marginal decrease is observed in the composition of GSDP with the contribution of agriculture and allied activities and industry sectors changing from 16.1 per cent and 27 per cent in 2011-12 to 15.3 per cent and 25.9 per cent respectively in 2012-13. However, a marginal increase in the composition of the services sector is seen at 58.8 per cent from 56.9 per cent. During the last few years, the services sector has been the largest component of GSDP in Karnataka.
Per capita net income (i.e. per capita NSDP) of Karnataka, at current prices, is estimated at Rs. 78,049 in 2012-13, an increase of 13 per cent as against Rs. 69,051 in 2011-12. During 2012-13, the per capita income at constant prices is estimated at Rs. 44,389 as compared to Rs. 42,218 achieved in 2011-12.
In overall human development, Karnataka ranked 10th among 19 major States in the country. Karnataka is way behind Kerala (number 1) and Tamil Nadu (sixth).
Urbanisation in Karnataka increased from 22 per cent in 1951 to 39.48 per cent in 2011. This trend declares Karnataka as the fifth most urbanised State and estimated to maintain the position by 2030.