Karnataka has registered a robust Gross State Domestic Product (GSDP) growth of 10.2% for the fiscal year 2023-24, surpassing the national average of 8.2%, the state government announced on Monday.

The National Statistical Estimate initially projected a modest 4% growth for Karnataka, which was later revised to 13.1%, highlighting an early underestimation of the state’s economic performance, it said, citing data from the Ministry of Statistics and Programme Implementation (MoSPI).

The government noted that this growth occurred despite significant challenges, including the worst drought in a decade and a slowdown in global IT markets. While the agriculture sector experienced negative growth due to drought, Karnataka’s reliance on IT and hardware—accounting for 28% of its Gross State Value Added (GSVA)—left it vulnerable to global economic downturns.

The Indian IT industry saw its growth slow from 15.5% in FY 2022 to 8% in FY 2023 amid global recessionary fears and inflation. For FY 2024-25, the National Statistical Estimate forecasts Karnataka’s GSDP growth at 9.4%, slightly below the national average projection of 10.5%. However, the Ministry of Finance is more optimistic, predicting a 14% growth for the state.

As of September 2024, Karnataka reported a 10% year-on-year increase in GST collections and a 24% rise in stamp duty revenue. 

The government attributed its economic success to pro-people policies, including its five guarantees, ensuring that the benefits of growth reach all sections of society.

“Karnataka’s per capita GSDP is the highest in the country. Many popular schemes of the state government, including guarantees, have ensured that the fruits of development reach all sections. This demonstrates the success of Karnataka’s economic model of combining economic development and social progress,” CM Siddaramaiah said in a post on X.
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Karnataka registers 10.2% GSDP growth for FY24, govt says optimistic of 14% growth in FY25