Karnataka's GSDP Expected to Surge by 7.4%, Surpassing National Average: CM Siddaramaiah
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Synopsis
Karnataka's Chief Minister Siddaramaiah announced the state's GSDP growth is set to reach 7.4%, outstripping the national average of 6.4%. The agriculture and service sectors are driving this growth, with significant government investment in farming and industrial initiatives.
Key Takeaways
- Karnataka's GSDP growth rate is 7.4%
- Outpaces national growth rate of 6.4%
- Agriculture sector growth at 4%
- New Industrial Policy aims for 12% industrial growth
- Service sector growth at 8.9%
Bengaluru, March 7 (NationPress) The Chief Minister of Karnataka, Siddaramaiah, announced on Friday that the state is set to achieve a GSDP growth rate of 7.4%, exceeding the national growth rate of 6.4%. This declaration was made during the budget presentation for the financial year 2025-26 in the state assembly.
While discussing the state’s finances, CM Siddaramaiah remarked, “Karnataka is among the fastest-growing states in India, contributing 8.4% to the National Gross Domestic Product (GDP). The state has maintained a strong growth trajectory in 2024-25 and is on track to achieve a GSDP growth rate of 7.4%, surpassing the national rate of 6.4%.”
He highlighted that the Agriculture sector has shown promising growth of 4% in 2024-25, rebounding from a negative 4.9% growth rate in the previous year. Furthermore, it has outperformed the all-India agricultural growth rate of 3.8% for the current year. This positive shift is credited to the government’s proactive measures to boost Kharif sowing, supported by normal monsoon conditions and sufficient reservoir levels,” he noted.
Last year, the state government allocated Rs 44,000 crore to various departments for farmer welfare initiatives. This year, a total of Rs 51,339 crore has been dedicated to the agricultural sector, as stated by CM Siddaramaiah.
The state government has introduced a new Industrial Policy for 2025-30, aiming for a 12% industrial growth rate and the creation of 2 million jobs by 2030. The industrial sector has recorded a growth of 5.8% in the current year. To attract significant investments, the government has pledged financial assistance and subsidies amounting to Rs 13,692 crore, as mentioned by CM Siddaramaiah.
“The service sector has become the dominant part of Karnataka's economy, contributing 66% in terms of gross value addition. This sector has achieved an outstanding growth rate of 8.9% for the year 2024-25, surpassing the national average growth rate of 7.2%,” CM Siddaramaiah stated.
