Bengaluru: The economic slowdown in the country had a cascading effect on Karnataka, as its growth rate for outgoing fiscal 2019-20 is projected to be 6.8 percent against 7.8 percent in the last fiscal (2018-19), a senior official said on Saturday.
“The Gross State Domestic Product (GSDP) is estimated to be 1 percent less at 6.8 percent for this fiscal from 7.8 percent in the last fiscal due to slowdown in manufacturing (industry) and services sectors,” an official of the state finance department said.
Though the agriculture sector has revived from 1.6 per dent in the drought-hit last fiscal (2018-19) to register 3.9 percent this fiscal, growth rates of industries and services will be 4.8 percent and 7.9 percent for 2019-20 against 5.6 percent and 9.8 percent respectively in 2018-19.
“The GSDP is projected to grow at 6.3 percent in the ensuing fiscal of 2020-21 due to continued slowdown in the national economy,” the official hinted.
According to the state’s economic survey for 2019-20, the farm sector grew more than double to 3.9 percent from 1.6 percent a year ago due to an increase in the production of foodgrains, dairy products, and fish catch.
Foodgrain production across the state rose to 136 lakh tonnes from 128 lakh tonnes a year ago, the survey revealed.
“In line with the national Gross Domestic Product (GDP) growth rate decline, Karnataka’s GSDP has declined from a high of 13.3 per cent in 2016-17 to a low of 6.8 percent in 2019-20.
“The GSDP has declined from the double-digit growth of 10.8 percent in 2017-18 to 7.8 percent in 2018-19 and 6.8 per cent in 2019-20,” the survey pointed out.
The survey has adopted the all-India growth rate for the services sector growth in the state, which reflects the impact of the slowdown in the key sector.
At current prices, the southern state’s GSDP is expected to be Rs 16,99,115 crore (budget estimates) with a 10 percent growth rate in the next fiscal (2020-21).
“Real estate, professional services and ownership of dwellings contributed 35.31 per cent to the GSDP in 2019-20, followed by manufacturing with 15.32 per cent, trade, and repair services 9.51 per cent and crops 7.44 per cent,” said the survey findings.
Per capital income in the state at current prices is estimated to be Rs 2,31,246 in 2019-20, an increase of 8.8 percent from Rs 2,12,477 in 2018-19.
“The per capita income in the state is 58.4 percent more than that of the all-India rate at Rs 1,35,050 in this fiscal,” the survey added.