Services sector props Karnataka amid slowdownFebruary 20th, 2009 - 2:58 pm ICT by IANS
Bangalore, Feb 20 (IANS) The services sector in IT-savvy Karnataka has weathered the onslaught of global meltdown and slowdown in the country to stem the impact of negative growth in industrial and agriculture sectors, the state’s economic survey for the 2008-09 financial year said.
“The services sector continues to dominate the state’s economy and is projected to grow by 9.2 percent year-on-year (YoY) this fiscal though less by 1.5 percent from 10.7 percent last fiscal (2007-08),” the survey report, which was tabled in the state legislative assembly late Thursday, said.
As part of the tertiary sector, services will contribute 56 percent to Karnataka’s gross state domestic product (GSDP) as against 27 percent by the secondary sector and 17 percent by the primary sector.
As India’s IT hub and a preferred destination for global investments in the knowledge sector, Bangalore accounts for one-third of the country’s software exports and houses about 1,400 tech firms, including 650 multinationals.
In stark contrast, agriculture is set to post a negative growth of 5.7 percent and the industrial sector by 5.8 percent, dragging the state’s overall economic growth rate (GSDP) to 5.5 percent this fiscal from 11 percent in the last fiscal.
“The dismal performance of the farm sector will result in foodgrain production falling short by 13 percent or 16 MT to 109 MT as against the targetted 125 MT. Poor rainfall during the first two years of the plan period has led to low agriculture growth,” the report said.
It also attributed the poor performance of the primary sector to lower growth in the mining sector.
According to the survey, the per capita output in real terms is expected to be Rs.30,151 as against Rs.28,887 last fiscal, an increase of 4 percent year-on-year.
“The state’s GSDP grew at 7.2 percent as against the national average of 7.8 percent during the 10th plan. Similarly, agriculture grew by a mere 1.1 percent while the national average was 2.5 percent. Even in the services sector, the output grew by 8.9 percent compared to the national average of 9.4 percent,” the report said.
The survey also noted that Karnataka has the highest malnourished child population among the four southern states. Of these children, 38 percent suffer stunted growth.
Anaemia among pregnant women is also one of the highest among the southern states at 59.5 percent and higher than the all-India average of 57.9 percent.