Survey projects Karnataka’s growth at 8.2 percent

February 23rd, 2011 - 10:45 pm ICT by IANS  

Bangalore, Feb 23 (IANS) Karnataka’s gross state domestic product (GSDP) is estimated to grow 8.2 percent this fiscal (2010-11) as against 5.2 percent in the last fiscal (2009-10), according to the state’s economic survey released Wednesday.”The GSDP of the state is projected to be 8.2 percent at Rs.271,956 crore by end of this fiscal owing to the primary sector registering 5.9 percent growth and tertiary sector 9.7 percent growth, respectively,” the survey report said on the eve of the state’s budget presentation Thursday by state Chief Minister B.S. Yeddyurappa, who also holds the finance portfolio.

As a fallout of global recession and economic slow down in the country, the state’s GSDP slumped to 5.2 percent last fiscal, as the primary sector grew 4.3 percent and tertiary sector 3.7 percent.

“The state’s agriculture sector is projected to grow 5.5 percent mainly due to above normal monsoon and foodgrains’ production increasing 14 percent year-on-year (YoY), with pulses and oilseeds registering a record 32 percent growth, while sugarcane output grew 6.6 percent.

Foodgrains’ production is expected to be 12.5 million tonnes this fiscal as against 10 million tonnes last fiscal.

The state’s growth rate, however, will be lower than the country’s estimated GDP growth rate of 8.6 percent this fiscal.

The survey noted that the secondary sector recovered remarkably to grow 9.3 percent in 2009-10 and is estimated to grow at seven percent in this fiscal.

“The tertiary sector continues to dominate the state’s economy accounting for 55.17 percent of the state’s GSDP at constant prices as against 16.22 percent by the primary sector and 28.61 percent by the secondary sector,” the survey pointed out.

The combined irrigation potential under major, medium and minor irrigation is anticipated to go up to 3.51 million hectares this fiscal from 3.44 million hectares last fiscal.

“Overall, the growth performance of Karnataka is competitive compared to other states due to healthy contribution by tertiary and services sectors,” the report noted.

The per capita income in the state is projected at Rs.60,000 in 2010-11 as against Rs.51,858 in 2009-10.

“The per capita growth rate is estimated to be 15.7 per cent this fiscal as against 12 per cent last fiscal,” the report said.

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