Karnataka Economy


The Karnataka Economy is one of the leading economies among all the states in the country in terms of economic development. It is the eighth largest state in terms of:

  • Geographical area (1.92 lakh km)
  • Population (5.27 crore - 2001 census)

The state's GDP at constant prices (2002-03) at Rs.72,399 crore, accounted for 5.5% of the national GDP. Karnataka Economy has witnessed a healthy 6.5% CARG in the GSDP for the ten year period 1994-2003, being the highest among the leading states in the country

Karnataka economy is largely service oriented and income from the sector contributes half the state's GDP with the agricultural and the industrial sector contributing to nearly 25% each. The major manufacturing oriented industries in the state include:

  • Sugar
  • Paper
  • Cement

Among the service oriented sectors, Karnataka leads the Indian biotechnology industry. IT/ITeS is another thriving industry in the state, concentrated in and around Bangalore - the silicon valley of India.


The state has a strong infrastructure. There are 20 ports across Karnataka, the two major ones being the Mangalore port and the Karwar port. A number of national and state highways facilitate inter-city and town communication. Karnataka also has a strong railway and airport network. Karnataka is a preferred destination for investments. The Karnataka Udyog Mitra is a single contact point for all investors who wish to invest in the state.
The Monthly Review of the Karnataka Economy gives an updated and analytical view of the state's economy. The review encompasses detailed sectoral statistics and analysis. The sectors broadly covered in the review include:

  • Agriculture allied sectors
  • Infrastructure
  • Industry
  • Labour and employment
  • Investments
  • Corporate developments
  • State public finance
  • Banking
  • Small savings
  • Social sector