The services sector in Karnataka has weathered the global meltdown and slowdown in the country, to mitigate the slower growth in industrial and agriculture sectors, the state’s economic survey for 2009-10 revealed.
The service sector continues to dominate the state’s economy by contributing 54 per cent to the gross state domestic product (GSDP) as compared to other sectors, the survey report, which was tabled in the legislative assembly on Thursday, said. The contribution of secondary sector and primary sector are 29 per cent and 17 per cent respectively.
The quick estimates of GSDP for 2008-09 shows a 4.5 per cent growth during the year. Advance estimates of GSDP or state income is expected to grow by about 5.5 per cent in real terms during the year 2009-10. The growth in GSDP of primary, secondary and tertiary sectors is anticipated to be 0.1 per cent, 7.5 per cent and 6.2 per cent respectively.
The net state domestic product at factor cost in 2008-09 was Rs 1,59,452 crore as against Rs 1,52,027 crore in 2007-08, registering a growth of 4.9 per cent.
The agriculture, forestry and fishing sector is likely to show a decline of 0.4 per cent in its GSDP during 2009-10.
The per capita GSDP or per capita income in real terms is likely to reach Rs 32, 411 during 2009-10 as against Rs 31,041 in 2008-09. The rate of inflation as reflected by the movement in wholesale price index has increased to 7.31 per cent in December 2009 as compared to 6.15 per cent, a year ago.
“The dismal performance of the farm sector will result in foodgrain production falling short by 10 per cent or 12 tonnes to 106.53 tonnes during 2009-10 against the target of 118.35 tonnes. The production of oilseeds is anticipated to be 1.10 million tonnes against the target of 1.6 million tonnes,” the survey pointed out.
The cumulative irrigation potential is likely to be created by the end of 2009-10 is 3.48 million hectares from all three categories of irrigation projects.
The survey noted that the index of industrial production of Karnataka increased from 158.98 in 2007-08 to 166.85 in 2008-09. During the year 10,081 micro, small and medium enterprises were registered involving an investment of Rs 705.50 crore and employment to 67,162 per sons.
In the information technology sector, software exports have risen to Rs 70,375 crore in 2008-09 from Rs 59,500 crore, a growth of 18.2 per cent year on year. The exports from business process outsourcing companies has increased to Rs 15,014 crore in 2008-09 from Rs 7,600 crore in the previous year, registering a growth of 97.5 per cent year on year.
