Wed Oct 30 18:01:57 UTC 2024: ## Karnataka’s Economy Outpaces National Average, Records 10.2% Growth

**Bengaluru, India** – The Karnataka state government has announced that its Gross State Product (GSDP) grew by a robust 10.2% in the fiscal year 2023-2024, surpassing the national average of 8.2%. This achievement comes despite significant challenges including a severe drought and a slowdown in the global IT market.

The government cited data from the Ministry of Statistics and Programme Implementation (MoSPI) to highlight the state’s impressive performance. Initially, the National Statistical Estimate (NSE) projected a modest 4% GSDP growth for Karnataka, but this was revised to 13.1% by the end of the fiscal year, indicating a substantial underestimation of the state’s economic strength.

Karnataka’s reliance on the IT and hardware industries, which contribute 28% of its Gross State Value Added (GSVA), made it vulnerable to global economic downturns. The growth of the Indian IT sector slowed down from 15.5% in FY 2022 to 8% in FY 2023, reflecting inflationary pressures and concerns about a global recession.

Despite these headwinds, Karnataka managed to achieve strong growth. The government attributes this success to its pro-people initiatives, including its five guarantees, which aim to benefit all segments of society.

The state government is optimistic about the future, with the NSE projecting a 9.4% GSDP growth in FY 2024-2025, slightly below the national average of 10.5%. However, the Ministry of Finance anticipates a more optimistic 14% growth for Karnataka, bolstered by strong fiscal indicators.

Karnataka’s economic health is also reflected in its robust revenue collection. As of September 2024, the state recorded a 10% year-on-year increase in GST collections and a 24% surge in stamp duty revenue.

The government highlighted that Karnataka’s per capita GSDP remains among the highest in India, comparable to Telangana’s, demonstrating the effectiveness of Congress-led governance in both states.

This news showcases Karnataka’s resilience and its ability to navigate challenging economic conditions. The state government’s commitment to pro-people policies and its strong economic fundamentals position it well for sustained growth in the coming years.

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