Karnataka economy likely to grow at 5.9% in FY'13:State survey

Karnataka's economy is expected to grow at 5.9 per cent this fiscal on strong growth in the services sector, according to the state's Economic Survey released today.

The survey estimates that the state's economy is showing encouraging trends due to a strong service sector which grew by 8.9 per cent in 2012-13.

"The state's economy is expected to grow at 5.9 per cent and reach Rs 3,03,444 crore during 2012-13 as against Rs 2,86,410 crore in 2011-12," the report, which was tabled in the assembly today, said.

It stated that the service sector is the largest component of Gross State Domestic Product (GSDP) in Karnataka.

Exports of electronic and computer software accounted for 38.76 per cent of India's total exports, it said.

The survey said the state's revenue resources are showing signs of recovery from 15.28 per cent in 2010-11 to an expected increase of 15.64 per cent in 2012-13.

Tax revenues increased from Rs 2,598 crore in 2007-08 to Rs 51,821 crore during 2012-13 at a Compound Annual Growth Rate (CAGR) of 14.8 per cent, it said.

There has been a significant increase in the state plan outlay from Rs 38,150 crore in 2011-12 to Rs 42,030 crore in 2012-13, the survey said.

FDI of USD 10.62 billion attracted by the state during the period of April 2000 to August 2012 which is 5.82 per cent of FDI attracted across India, the survey said.

During the 11th five year plan state attracted 5.70 per cent of FDI in the country, it added. Karnataka's exports constituted about 11.71 per cent of the total in India as a percentage of GSDP exports have increased significantly overtime.

"It was 7.36 per cent in 1993-94 and has grown to 47 per cent in 2011-12," the survey said.

Per capita net income at current prices is estimated at Rs 78,049 in 2012-13, an increase of 13 per cent as against Rs 69,051 in 2011-12.

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