Karnataka outperforms other States in per capita income

Karnataka is the third largest State economy in the country with a staggering growth rate. The surveys show that the State received massive investments and growth in the last one decade. For instance, from 2011-12 to 2017-18, the GSDP of the state grew at a CAGR of 13.11%.

New Delhi, Jan 24: Poll-bound Karnataka has emerged as an economic powerhouse as it performs better than the national average. The recent economic surveys show that the State has the highest per capita income among all the large States across the country. With Rs 2.49 lakh per head income, it has outperformed other States by more than 160% as the national average is pegged at Rs 1.51 lakh per person.

Moreover, Karnataka is the third largest State economy in the country with a staggering growth rate. The surveys show that the State received massive investments and growth in the last one decade. For instance, from 2011-12 to 2017-18, the GSDP of the State grew at a CAGR of 13.11%.

The 'Karnataka Report 2022' released last year claims that per-capita GSDP of the State is Rs 3.05 lakh and it is growing at the rate of 17.4% over Rs 2.6 lakh in FY21.

Karnataka, a $1 trillion economy

Venture capitalist T.V. Mohandas Pai, considered as one of the best brains in India, in a joint effort with Nisha Holla, Research Fellow at 3one4, drafted the 'Karnataka: A $1 Trillion GDP Vision' document where they talk about the potential of the State to become a one-trillion-dollar economy. They are of the view that the State has the capability to accelerate its growth to GDP of $500 billion by 2026 and GDP of $1 trillion by 2032.

Even as Prime Minister Narendra Modi talks about India's mission to become a 5-trillion-dollar economy by 2026 and 10-trillion-dollar one by 2032, it could not happen without Karnataka's contribution. The Pai-Holla study report also claims that Karnataka could be the vanguard for India's dream to become the second largest economy of the world.

Overdependency on Services sector

Karnataka is among the best performing economies, especially in the Services sector. For instance, the sectoral growth is at a CAGR of 14.3% which is second only to Telangana that has a CAGR of 14.9%. The Pai-Holla document makes it clear that Karnataka stands out when it comes to outperforming India in Services sector growth.

Needless to say, Karnataka has the highest share of services at 66.1% of GSVA in FY22, thanks to its robust IT services industry and other technology-driven areas. Bengaluru is still the 'Startup capital of India' and with the investment and innovation flowing in consistently, India's 'Silicon Valley' will definitely make Karnataka '$1 trillion economy'.