The gross state domestic product (GSDP) of Karnataka is estimated to grow about 8.2 per cent at Rs 2,71,956 crore during the present fiscal (2010-11) as against 5.2 per cent during the last fiscal (2009-10), the state’s economic survey for 2010-11 revealed on Thursday.
However, the state’s rate of growth, which was always higher than the national average growth rate till 2007-08, is well below the national GDP growth rate of 8.6 per cent this year. For the last three consecutive years, the GSDP rates have been recorded to be below the national growth rates.
The growth this year is mainly attributed to the higher growth of primary and tertiary sectors, which are likely to grow 5.9 per cent and 9.7 per cent respectively in 2010-11 compared to 4.3 per cent and 3.7 per cent respectively in 2009-10. The GSDP from agriculture is marginally higher than the national level of 5.4 per cent. This increase is attributed to good monsoon and higher production of foodgrains especially pulses (31.63 per cent), oilseeds (32.14 per cent) and sugarcane (6.63 per cent).
The secondary sector made a remarkable recovery, into positive territory with a growth of 9.3 per cent in 2009-10 and is projected to be at 7 per cent in 2010-11. The tertiary sector continues to dominate the economy making up 55.17 per cent of the GSDP at constant prices compared to the primary sector (16.22 per cent) and secondary sector (28.61 per cent).
According to the survey report, released on the eve of the state budget for 2011-12, during 2010-11 foodgrain production in the state increased at a very fast rate of over 14 per cent over the last year’s production and this increase was mainly led by the rise in yield as the area increase during the year was only 2.9 per cent. The production of foodgrains increased from less than 11 million tonnes in 2009-10 to above 12.5 million tonnes during the present year.
The cumulative irrigation potential under major, medium and minor irrigation (surface water) is anticipated to go up to 3.51 million hectares (excluding ground water) in 2010-11 from 3.44 million hectares in 2009-10.
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Overall, the growth performance of Karnataka is competitive as compared to other states and at the national level, mainly contributed by tertiary and services sectors.
“The per capital net income (per capita NSDP at factor cost), at current prices, is estimated at Rs 60,000 for 2010-11 as against Rs 51,858 for 2009-10. The growth rate in per capita net income is estimated at 15.7 per cent during 2010-11, as against 12 per cent during the previous year,” the economic survey report said.
The net state domestic product at current prices is estimated at Rs 3,55,019 crore in 2010-11, higher by 16.9 per cent than in 2009-10.
During the present fiscal from April to December, the state’s own tax revenues have recorded a growth of 30 per cent as compared to the corresponding period of last year.
The tax revenues includes mainly taxes on income and expenditure, entry tax, property and capital transactions, VAT, sale of goods, commodities and services, state excise, motor vehicle taxes and the state’s share in central taxes. The budgeted tax revenue is anticipated at Rs 45,288.40 crore in 2010-11 as against Rs 36,338.70 crore in the previous year.
Revenues from the state excise is expected to increase 10.24 per cent and the share in central taxes is expected to increase by Rs 2,060.09 crore or 29.43 per cent, the survey detailed.