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Karnataka’s new, yet daunting, journey to development

In this article we have discussed the dimensions of growth and development of Karnataka

Why in News?

After the long standing unstability, finally a stable government has formed in Karnataka, which opened the gates of development and growth in the state.

What is the goal of Karnataka government for development?

Karnataka sets its goal to become a trillion-dollar economy by 2032. To achieve this goal, Karnataka needs a 18% Compound Annual Growth Rate in its Gross State Domestic Product (GSDP). The current CAGR of Karnataka is 13%. During the period of 2022-23, Karnataka’s per capita GSDP was somewhere $4,000. This is almost twice that of India’s per capita GDP.

What is the GDP number of Karnataka?

The GDP of Karnataka is around $250 billion, but the major drawback with it, is not even distribution. The bulk of contribution in the GDP from the services sector lies. There is also many regional disparities as well, like roughly $60 billion digital economy is largely centered in and around Bengaluru and nearby region.

Is there any Knowledge Center?

The state capital has almost two million knowledge professionals. If we make a back of the envelope calculation, then we found that the staggering number of buses which run the workforce in and around, almost bring these places to a virtual halt.

What is the current position of Finance in the State?

The outstanding performence of IAS officers in finance has helped Karnataka on almost all fronts. They consistantly keep Karnataka fiscally sane. The Karnataka state falls in top 10 states in terms of tiny revenue surplus and this is a percentage of the GSDP is around 0.07%. In between these, Karnataka showed significant upstands. Like the ratio of capital expenditure to the total expenditure is stands at 17% at average. This figure brings Karnataka at top position in the country.

What is the position in terms of committed expenditure to revenue receipt?

The Karnataka falls lowest in the country, if we talk about the ratio of committed expenditure to revenue receipt, which stands 39 %. It is lowest as compare to other states such as Kerala and Punjab. Also, outstanding liabilities as a percentage of GSDP is at lowest, means at 20%, lowest of all states in the country.

What is the scope of Skilling and Reforms in Karnataka?

To enhance the scope of infrastructure and industry, we need to concentrate on skilling which should be relevant. Among many states, Telangana offers a good model of skilling by stablishing Skill and Knowledge Academy (TASK). The institute so far has trained and deployed an over 1,80,000 skilled workforce in the electronics industry.

Karnataka needs to focus on electronics and Software industries, to place itself as a leading player.