Karnataka has registered a robust Gross State Domestic Product (GSDP) growth of 10.2% in FY 2023-24, significantly surpassing the national average of 8.2%, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).

Karnataka achieved this despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets, the State Government informed on October 21.

Initial projection versus final numbers

Initially, the National Statistical Estimate (NSE) had projected a modest 4% GSDP growth for Karnataka, but this was revised to 13.1% by the end of the fiscal year, indicating early underestimation of the State’s economic performance.

Karnataka continued to drive economic progress in India, registering a robust Gross State Domestic Product (GSDP) growth of 10.2% in FY 2023-24, significantly surpassing the national average of 8.2%, according to data from the Ministry of Statistics and Programme Implementation (MoSPI). Karnataka achieved this feat despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets.

The State’s agriculture sector faced negative growth due to drought conditions, while its dependence on the IT and hardware sectors — accounting for 28% of its Gross State Value Added (GSVA) — made it vulnerable to global economic downturns. The Indian IT industry’s growth, which slowed from 15.5% in FY 2022 to 8% in FY 2023, reflected global recessionary fears and inflation. “However, Karnataka’s economy remained resilient, thanks to strategic governance and diversified growth drivers,” according to the State Government.

For FY 2024-25, the NSE forecasts Karnataka’s GSDP to grow at 9.4%, slightly below the national average projection of 10.5%. However, the Ministry of Finance projects a more optimistic 14% growth for the State, supported by strong fiscal indicators.

As of September 2024, Karnataka recorded a 10% year-on-year increase in GST collections, and a 24% surge in stamp duty revenue, signalling a healthy economic trajectory.

Per capita GSDP

‘Karnataka’s per capita GSDP remains among the highest in India, on par with Telangana, reflecting the strength of Congress-led governance in both States. 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’, according to the State Government.

The government claimed: “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.”

The government stated: “Karnataka’s leadership in the IT sector and its continued ability to attract investments has made the State a major contributor to India’s digital and economic landscape.”