File photo of Chief Minister Siddaramaiah.
Credit: DH Photo/S K Dinesh
Bengaluru: Karnataka is outperforming the national economy, Chief Minister Siddaramaiah’s office said on Monday, pointing out that the state registered a “robust” GSDP growth of 10.2 per cent in the 2023-24 fiscal.
"...far from being a case of economic mismanagement, Karnataka is outperforming the national economy, driven by strategic investments, innovative policies, and a business-friendly environment. The state continues to be a leading engine of India’s economy," the Chief Minister's office (CMO) said in a statement.
In a statement, the government said the NSE (National Stock Exchange in its State of States report) initially projected a “meagre” 4 percent growth for Karnataka “only to revise it drastically” to 13.1 per cent. "Such a significant discrepancy points to an error in early measurement and underestimation of economic performance," the CMO said.
“In reality, Karnataka’s GSDP growth in FY 2023-24 stood at 10.2 per cent, far exceeding the national average growth rate of 8.2 per cent," the statement pointed out.
For 2024-25, the NSE has projected a GSDP growth rate of 9.4 per cent for Karnataka and a national average of 10.5 per cent, the CMO said.
"However, the Ministry of Finance, Government of India, has projected a more realistic 14 per cent GSDP growth rate for Karnataka. Strong economic indicators, such as a 10 per cent year-on-year growth in GST collections and a 24 per cent year-on-year growth in stamp duty revenue as of September 2024, further reinforce the view that Karnataka’s economy is growing at a very healthy pace," the CMO said.
"Importantly, Karnataka’s GSDP per capita remains among the highest in the country, on par with Telangana. Both Congress-led states are demonstrating strong economic performances. Karnataka’s pro-people policies, such as the guarantees, are ensuring that the benefits of development reach every citizen, fostering inclusive and equitable growth," the CMO argued.
Karnataka's growth at 10.2 per cent is "particularly significant" in the "backdrop of challenges" the state faces, the CMO said. "Karnataka endured the worst drought in a decade, which severely impacted agricultural output, contributing to negative growth in that sector. Moreover, as a state heavily reliant on the IT and hardware sectors, which contribute 28 per cent of its GSVA, Karnataka was further affected by a global economic slowdown," it said.