Karnataka registered robust 10.2% GSDP growth in 2023-24

Bengaluru: Karnataka has registered a robust GSDP growth of 10.2 per cent in 2023-24, the state government said on Monday.

Citing a data from the Ministry of Statistics and Programme Implementation (MoSPI), the government said in a statement that the state has significantly surpassed the national average of 8.2 per cent.

"Initially, the National Statistical Estimate (NSE) had projected a modest 4 per cent GSDP growth for Karnataka, but this was revised to 13.1 per cent by the end of the fiscal year, indicating early underestimation of the state’s economic performance," the statement read.

The government pointed out that this feat was achieved despite severe challenges, including the worst drought in a decade and a slowdown in global IT markets.

The state’s agriculture sector faced negative growth due to drought conditions, while Karnataka’s dependence on the IT and hardware sectors—accounting for 28 per cent of its Gross State Value Added (GSVA)—made it vulnerable to global economic downturns, according to the statement.

The Indian IT industry’s growth, which slowed from 15.5 per cent in FY 2022 to 8 per cent in FY 2023, reflected global recessionary fears and inflation.

For FY 2024-25, the NSE forecasts Karnataka’s GSDP to grow at 9.4 per cent, slightly below the national average projection of 10.5 per cent, the statement said.

However, the Ministry of Finance projects a more optimistic 14 per cent growth for the state, supported by strong fiscal indicators, it added.

"As of September 2024, Karnataka recorded a 10 per cent year-on-year increase in GST collections and a 24 per cent surge in stamp duty revenue, signaling a healthy economic trajectory," the government said.

Karnataka’s per capita GSDP remains among the highest in the country, on par with Telangana, reflecting the strength of Congress-led governance in both states, the statement said.

The state government gave credit to its pro-people policies, including its five guarantees, saying they have ensured that the benefits of growth reach all sections of society.