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Economy Of Karnataka

India Karnataka State Economy Information

 

Karnataka is one of the high economic growth states in India with the expected GSDP (Gross State Domestic Product) growth of 8.2% in the fiscal year

2010-2011. The total expected GSDP of Karnataka in 2010-2011 is about Rs. 2719.56 billion. Per capita GSDP during 2008–2009 was US$ 1034.9. Karnataka

recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states.

Karnataka received US$2,026.4 million worth of Foreign Direct Investment for fiscal year 2008-09 placing it at third spot among states in India. At the end of

2004, the unemployment rate of Karnataka was 4.57% compared to a national rate of 5.99%. For the fiscal year 2006-07 the inflation rate of Karnataka was

4.4% which was less than the national average.

Agriculture In Karnataka :

For many rural residents of Karnataka, agriculture is the major occupation. A total of 123,100 km² of land is cultivated in Karnataka constituting 64.6% of the

total geographical area of the state. According to the 2001 census, farmers and agricultural labourers formed 56% of the workforce of Karnataka. Agriculture in

Karnataka is heavily dependent on the southwest monsoon since the extent of arid land in the state is second only to Rajasthan. Only 26.5% of sown area

(30,900 km²) is subjected to irrigation.

The state has three agricultural seasonsKharif (April to September), Rabi (October to December) and Summer (January to March).The main crops grown

here are rice, ragi, jowar, maize, and pulses (Tur and gram) besides oilseeds and number of cash crops. Cashews, coconut, arecanut, cardamom, chillies,

cotton, sugarcane and tobacco are among the other crops produced in the state.

Karnataka is the largest producer of coarse cereals, coffeeand raw silk among the states in India. Horticultural crops are grown in an area of

16,300 km² and the annual production is about 9.58 million tons. The income generated from horticulture constitutes over 40% of income generated from

agriculture and its is about 17% of the state's GDP. In floriculture, Karnataka occupies the second position in India in terms of production and 700 tons of

flowers (worth Rs. 500 million) were produced in 2004-05.

A majority of the 3500 crore silk industry in India is headquartered in Karnataka State, particularly in the North Bangalore regions of Muddenahalli,

Kanivenarayanapura, and Doddaballapura the upcoming sites of a 70 crore "Silk City".

Industries In Karnataka :

Karnataka evolved as the manufacturing hub for some of the largest public sector industries of India after independence. Hindustan Aeronautics Limited

which is dedicated to research and development activities for indigenous fighter aircraft for the Indian Air Force employs over 9,500 employees making it one of

the largest public sector employers in Karnataka. For detailed Info about Industries in karnataka click here

Banking In Karnatka :

Karnataka, particularly the coastal districts of Dakshina Kannada and Udupi got a premier position in banking in India. This is because seven of the country's

leading banks, Canara Bank, Syndicate Bank, Corporation Bank, Vijaya Bank, Karnataka Bank, Vysya Bank and the State Bank of Mysore originated

from thisstate. The first five in the above list of banks were established in the districts of Udupi and Dakshina Kannada. These districts have among the best

distributionsof banks in India—a branch for every 500 persons. Between 1880 and 1935, 22 banks were established in coastal Karnataka, nine of them in the

city ofMangalore.

As of March 2002, Karnataka had 4767 branches of different banks servicing the people of the state The number of people served by each branch was 11,000

which is lesser than the national average of 16,000, thereby indicating better penetration of banking in the state.

Minerals In Karnataka :

Gold, iron ore, quartz, limestone, manganese, kyanite and bauxite are some of the minerals that are found in Karnataka. After the closure of the Kolar

Gold Fields mine in Karnataka, the only company in India that produces gold by mining and extracting it from the ore is Hutti Gold Mines Limited that has

plants at Hutti and Chitradurga in Karnataka. Major mines of manganese and iron ore are located at Sandur in Bellary district.

Visweswaraiah Iron and Steel Ltd. at Bhadravathi and Jindal Vijayanagar Steel Ltd. at Toranagal are engaged in the production of iron and steel. Indian

Aluminium Company Ltd (Hindalco) has an aluminium plant near Belgaum. Mysore Minerals Limited is in the mining and production of chromite in

Hassan district. Rajashree Cements at Adityanagar, Vasavadatta Cements at Sedam and The Associated Cement Company Ltd. at Wadi are engaged in the

production of cement. Uranium deposits have recently been found in Deshnur, a small village near Belgaum.

BioTechnology In Karnataka :

As of June 2006, Karnataka housed 55% of biotechnology related companies in India.Bangalore is also the home of the largest biocluster in India with total

revenues of Rs. 14 billion and having 158 of the 320 companies working on biotechnology in India.Karnataka has a headcount of over 6800 scientists

involved in biotech research and out of 28 biotech companies that were registered in India in the year 2005-06, 27 were located in Karnataka.