From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Feb 7: Karnataka’s economy is expected to grow at 5.9 per cent and reach Rs 3,03,444 crore in 2012-13 (GSDP at constant prices 2004-05)) as against 5.5 per cent growth rate recorded in 2011-12, thanks to a 8.9 per cent growth rate in the services sector during the year.

This was the finding of Karnataka’s Economic Survey for the year 2012-13, which was tabled in the State Legislature on Thursday.

The State’s Agriculture sector would register a growth of 1.8 per cent against minus 2.2 per cent in 2011-12 despite drought in 157 taluks, the Survey observed.

The foodgrain production in the State is likely to be 12.5 million tonnes as against the target of 13.65 million tonnes.

The Survey, however, has emphasized that the contribution of the agriculture sector to State’s economy has been declining continuously without commensurate decline in the work force deployed in agriculture.

The industry sector was estimated to register a growth of 2.4 per cent during 2012-13. In 2011-12 also, the industry sector recorded 2.4 per cent. This was largely due to a sharp decline in the manufacturing sector and contraction in the growth rates of mining and quarrying sectors.

The services sector continued to be the major contributor to the state’s economy and is showing encouraging trends, the Survey said pointing out that the services sector is likely to grow by 8.9 per cent as against 9.5 per cent in 2011-12.

The services sector will continue to be the key driver of the 5.9 per cent growth of GSDP in 2012-13. The services sector consisted of real estate, ownership of dwellings and business services and banking and insurance among others.

At the same time, the per capita GSDP at constant prices is expected to increase by 4.9 per cent at Rs 50,254 in 2012-13 against Rs 47,911 in 2011-12.

A marginal decrease is observed in the composition of GSDP with the contribution of agriculture and allied activities and industry sectors changing from 16.1 per cent and 27 per cent in 2011-12 to 15.3 per cent and 25.9 per cent respectively in 2012-13.

However, a marginal increase in the composition of the services sector is seen at 58.8 per cent from 56.9 per cent. During the last few years, the services sector has been the largest component of GSDP in Karnataka.

Other key findings in the Economic Survey are:

The state's revenue resources are showing signs of recovery from 2010-11 (15.28%) and are further expected to increase to 15.64 per cent in 2012-13.

The share of development expenditure in GSDP has significantly increased from 10.51 per cent in 2007-08 to 12.89 per cent in 2012-13.

The share of interest payments has been declined from 1.93 per cent to 1.44 per cent.

The cumulative irrigation potential under major, medium and minor irrigation projects is expected to reach 36.98 lakh hectares in 2012-13 from 35.84 lakh hectares.

Karnataka ranks 11th among Indian states in milk production

The total production of major minerals has been 12130815 MT and the state government has realized revenues of Rs 874.79 crore as against the target of Rs 741.81 crore.

Maintaining as the premier player in the exports of electronics and computer software accounted as 38.76 per cent of india's total exports during 2011-12.

Karnataka stands 4th in Merchandise exports and also leading in exports of products and service sectors.

State's exports amounted to about Rs 218837.39 crore which constituted about 11.71 per cent of the country's exports.

The share of exports in GSDP which was 7.36 per cent in 1993-94 has grown to 47 per cent in 2011-12.

In overall human development, Karnataka stands at 10th position among 19 major states in the country. Among the Southern states, Karnataka is marginally better than Andhra Pradesh however it is way behind Kerala (rank 1), Tamil Nadu (rank 6) with respect all the indicators.

The per capita net income of Karnataka at current prices is estimated at Rs 78049 crore in 2012-13, an increase of 13 per cent.

Urbanization in Karnataka increased from 22 per cent to 39.48 per cent in 2011 and ranks as the fourth most urbanized state in India.