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Karnataka's economy influenced by national slowdown: CM

Siddaramaiah says govt and RBI will take necessary steps for economic and financial stability

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Press Trust of India Bangalore
Last Updated : Feb 14 2014 | 7:39 PM IST
Karnataka Chief Minister Siddaramaiah today said the state's economy grew by five per cent in 2013-14 and it was influenced by the slowdown in national economy and slow global recovery.

Presenting the 2014-15 state budget in the Assembly, he said that due to the slowdown, industrial sector growth was estimated AT 1.2 per cent.

"The growth in services sector that contributes 60 per cent TO the State Domestic Product (SDP) IS estimated at 7.2 per cent."

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Agriculture sector has staged noticeable recovery, he said.

He asserted that his government would put the state economy on a high growth path, by formulating and implementing growth promoting policies.

Explaining the overall economic position, he said: "We need to be cautious about the growing inflation, which can slow down investments and growth. We believe that Government of India and the Reserve Bank of India will take necessary steps for economic and financial stability in the background of uncertain external environment."

"....The growth in investment rate and in GSDP of the State will be dependent on progressive improvement in economic policy environment, removal of barriers to investment, fiscal deficit and control & stabilisation of inflation." he added.

Commenting on the state's Plan Performance in 2013-14, Siddaramaih said "....The revised estimates indicate that the State plan during 2013-14 has largely been implemented.

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First Published: Feb 14 2014 | 7:35 PM IST

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