Karnataka’s GSDP to grow at 7.4 pc, to outpace national rate: CM Siddaramaiah
Bengaluru: Karnataka Chief Minister Siddaramaiah said on Friday that the Karnataka was poised to achieve a GSDP growth rate of 7.4 per cent, outpacing the national growth rate of 6.4 per cent.
He made the statement while presenting the budget for the financial year 2025-26 in the state legislature.
CM Siddaramaiah, while speaking on State Finances, said, “Karnataka is one of the fastest-growing states in India, contributing 8.4 per cent to the National Gross Domestic Product (GDP). Karnataka has continued its impressive growth trajectory in the year 2024-25 and is poised to achieve a GSDP growth rate of 7.4 per cent, outpacing the national growth rate of 6.4 per cent.”
“Agriculture sector has registered a positive growth of 4 per cent in 2024-25, after clocking a growth rate of negative 4.9 percent in the previous year. It has also outpaced this year’s all India agricultural growth rate of 3.8 per cent. The positive growth rate in 2024-25 is due to the government’s proactive interventions to encourage Kharif sowing, which was aided by a normal monsoon and adequate reservoir levels,” he said.
The state government had allocated Rs 44,000 crore to various departments for farmer welfare schemes last year. In the current year, a total of Rs. 51,339 crore has been allocated for the farming sector, he stated.
The state government has launched a new Industrial Policy 2025-30, aiming to achieve a 12 per cent industrial growth and creation of 20 lakh jobs by 2030. The industrial sector has achieved 5.8 per cent growth in the current year. In order to attract large investments, the government has made a commitment towards financial assistance and subsidies totaling Rs 13,692 crore, CM Siddaramaiah said.
“The service sector is now the dominant component of the economy of Karnataka. The service sector’s share in the economy is 66 per cent in terms of gross value addition. The sector has achieved an impressive growth rate of 8.9 per cent in the year 2024-25, exceeding the national average growth rate of 7.2 per cent,” CM Siddaramaiah stated.