Bangalore: It is a crucial day for Karnataka Chief Minister Jagadish Shettar who will present his maiden budget in the assembly on Friday. The state goes to polls in April-May 2013 and the BJP has been putting up a brave front despite losing 14 of its MLAs to the BS Yeddyurappa camp. The ruling party still holds a wafer-thin majority in the house.
Karnataka's economy is expected to grow at 5.9 per cent this fiscal on strong growth in the services sector, according to the state's Economic Survey released on Thursday. The survey estimates that the state's economy is showing encouraging trends due to a strong service sector which grew by 8.9 per cent in 2012-13.
"The state's economy is expected to grow at 5.9 per cent and reach Rs 3,03,444 crore during 2012-13 as against Rs 2,86,410 crore in 2011-12," the report, which was tabled in the assembly on Thursday, said. It stated that the service sector is the largest component of Gross State Domestic Product (GSDP) in Karnataka.
Exports of electronic and computer software accounted for 38.76 per cent of India's total exports, it said. The survey said the state's revenue resources are showing signs of recovery from 15.28 per cent in 2010-11 to an expected increase of 15.64 per cent in 2012-13.
Tax revenues increased from Rs 2,598 crore in 2007-08 to Rs 51,821 crore during 2012-13 at a Compound Annual Growth Rate (CAGR) of 14.8 per cent, it said. There has been a significant increase in the state plan outlay from Rs 38,150 crore in 2011-12 to Rs 42,030 crore in 2012-13, the survey said.
FDI of $ 10.62 billion attracted by the state during the period of April 2000 to August 2012 which is 5.82 per cent of FDI attracted across India, the survey said. During the 11th five year plan state attracted 5.70 per cent of FDI in the country, it added. Karnataka's exports constituted about 11.71 per cent of the total in India as a percentage of GSDP exports have increased significantly overtime.
"It was 7.36 per cent in 1993-94 and has grown to 47 per cent in 2011-12," the survey said. Per capita net income at current prices is estimated at Rs 78,049 in 2012-13, an increase of 13 per cent as against Rs 69,051 in 2011-12. In the overall human development index, Karnataka stands at 10th spot among 19 major states and is marginally better than Andhra Pradesh among the southern states, it said. Foodgrain production is likely to be 125 lakh tonnes as against the target of 136.55 lakh tonnes last year, it said. The general index of industrial production of Karnataka covering mining, manufacturing and electricity sector for 2011-12 stood at 157.75 per cent, the survey said.
(With additional information from PTI)