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Bengaluru: Karnataka's GSDP growth rate falls to 6.9%, below national average

Fiscal deficit narrows down to 2.12% from 2.79% in 2015-16

Bengaluru, Mar 16 (DHNS): The state is expected to show a Gross State Domestic Product (GSDP) growth of 6.9% for fiscal year 2016-17 as against 7.3% during 2015-16, less than nationally expected average of 7%, as per the Economic Survey of Karnataka for 2016-17. The cause for the drop in the growth is attributed to decline in the growth rate of industry and services sectors.

While the manufacturing sector is expected to grow at 2.2% compared with 4.9% during the previous year, the service sector is expected to grow at 8.5% as against 10.5% in the previous year.

“Advance estimates show that Karnataka’s GSDP at constant (2011-12) prices is expected to grow at 6.9% and reach Rs 8,71,995 crore in 2016-17,” the survey said. “The advance estimates of all-India GDP at constant (2011-12) prices is expected to grow at 7%,” it added.

There has been marginal decrease in the composition of GSDP of agriculture and allied activities and industrial sector from 11.77% and 24.7% in 2015-16 to 11.68% and 23.68% in 2016-17, respectively. However, there has been a marginal increase in the composition of the services sector from 63.53% to 64.64%.

The per capita income of Karnataka at current prices is estimated to be Rs 1,59,893 during 2016-17 as against Rs 1,46,416 for 2016-17, according to the survey. For the fiscal under consideration, the state has estimated a fiscal deficit of 2.12%, declining marginally from 2.79% in 2015-16. The revenue receipts saw a growth of 11.06%, to Rs 1,30758 crore in 2016-17, as compared with Rs 1,17,731 crore in 2015-16.

The state also saw the inflow of foreign direct investment worth $1,697 million for the first nine months of the current fiscal year, which amounted to 4.73% of the total FDI inflow into India. From April 2000 to December 2016, Karnataka attracted a total of $21,938 million of investment, constituting 6.76% of FDI inflow into India.

“The major adversaries for the investors are bureaucratic hassles, infrastructural deficiencies and power shortages,” the survey showed. “The government has taken several steps to address them,” it added.

In a positive development, unemployment showed a southward trend in the state. The number of job seekers as per the live register of employment exchanges was 3.34 lakh in December 2016, as against 3.41 lakh in March 2016, down 1.9%.

The state, famous for its IT prowess, contributed 38% to the software and services exports from India for the fiscal year 2015-16, according to the survey.

The exports from software/services for the fiscal under consideration stood at a whopping Rs 1,99,822 crore, while the total exports from the state stood at Rs 3,25,414 crore.

Comment on this article

  • maheshchandra, baikampady

    Fri, Mar 17 2017

    bcoz demonitization in know and gsdp fallendown unemployment,no business no profit only bankruptcy share market gone down only liquidity only inflation and tax?no benifit.

    DisAgree Agree Reply Report Abuse

  • Shahid, Mangalore

    Fri, Mar 17 2017

    It's only because of Demonetization.

    DisAgree [1] Agree Reply Report Abuse

  • vishnu bhat, bangalore

    Thu, Mar 16 2017

    but GSDP of the Karnataka political class will exceed India's!

    DisAgree Agree Reply Report Abuse

  • Sachidanand Shetty, Mundkur/Dubai

    Thu, Mar 16 2017

    This is one more Crown in CONGiss Kitty in Karnataka....after downgrade of Bangalore recently!

    Yet people are there to support this Dongiss...

    DisAgree [5] Agree [5] Reply Report Abuse

  • Alan, mangalore

    Thu, Mar 16 2017

    It is crystal clear that Presstitutes are at play here. On a positive note Karnataka has contributed well & empoyment has increased.

    DisAgree Agree Reply Report Abuse

  • jl, mumbai

    Thu, Mar 16 2017

    cannot help if overall India's GDP is down. results of acche din

    DisAgree Agree Reply Report Abuse

  • Dinesh, Dubai

    Thu, Mar 16 2017

    how its inreaseing CM doing investment towards highcommand in his budget completly neglected industries ,agreeculture and science sector only considered cast ,religious and region wise will it help for development..? 100 % no.. DK kannada youth please apply visit visa to Dubai this govt gives only liquer bottle to youths hand.

    DisAgree [13] Agree [8] Reply Report Abuse

  • Johny Johny yes papa, Kudla

    Thu, Mar 16 2017

    Please hire Modiji's GDP experts asap and change your GSDP growth rate to 8.9 or 99.9% however you want.. No one allowed to question them anyway..

    DisAgree [9] Agree [16] Reply Report Abuse

  • David Pais, Mangalore

    Thu, Mar 16 2017

    gsdp downward figure ought to appear all over india due to demonetisation. da karnatka figure is manufactured in nagpur. demonetisation sucked the cash like vacuum cleaner

    DisAgree [10] Agree [15] Reply Report Abuse

  • ravi, mangalore

    Thu, Mar 16 2017

    This all effect of central Govt, this effect all the state not only Karnataka.

    DisAgree [9] Agree [15] Reply Report Abuse

  • Anand, Karkala

    Thu, Mar 16 2017

    The decrease in GSDP all of which are due to changes in the domestic price. When aggregate demand curve slopes downward, rise in interest rates, rise of Imports and a fall in purchasing power are the main reasons to decrease in nominal GSDP.

    DisAgree [6] Agree [5] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Thu, Mar 16 2017

    Mismanagement of funds on sops and appeasement rather than development will do result in negative growth

    DisAgree [18] Agree [14] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 16 2017

    National GDP figures are all ...

    DisAgree [15] Agree [14] Reply Report Abuse

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Title : Bengaluru: Karnataka's GSDP growth rate falls to 6.9%, below national average


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