Growth Oriented Development of Karnataka Economy: An Analysis

Transcription

1 Growth Oriented Development of Karnataka Economy: An Analysis Vidya K 1, Ravindranath N. Kadam 2 1 Dept. of P.G.Studies and Research in Economics, Sahyadri Arts College (A constituent College of Kuvempu University), Shivamogga, Karnataka, India 2 Professor, Dept. of P.G.Studies and Research in Economics, Kuvempu University, Shankaraghatta, Dist: Shivamogga, Karnataka, India ABSTRACT Development is dream of every country, state, province, region, village, etc.,., India got momentum of development after independence. The growth rate of economic development of India is increasing. This is a mirror of the progress and development of the various states. Karnataka is one of the fast growing states of India. Karnataka a southern state and third developed state in India. Karnataka state is the knowledge, research and innovation hub of Asia. The income of Karnataka economy is contributed by all the three sectors viz., Agriculture, Industry and Service sector, Tourism, etc.,. 1. To know the importance of the Karnataka in Indian economy, 2. To study the contribution made by the three sectors of the economy to State Income 3. To analyze the trends and growth in the contribution of the three sectors 4. To highlight the important fields of Karnataka economy are the objectives of the article. For the preparation of this article, only secondary data is used and presented in the form of tables and graphs. Decade wise trend and growth are analyzed with percentage. This article contains Introduction, Objectives, Methodology, Important highlights of Karnataka Economy, Primary Sector, Secondary Sector, Tertiary Sector of Karnataka Economy, Contribution of Different Sectors to Karnataka Economy, Future of Karnataka Economy and Conclusion. Keywords:contribution, development, economy, growth, preparation I. INTRODUCTION Development is dream of every country, state, province, region, village, etc.,. India got momentum of development after independence. The growth rate of economic development of India is increasing. This is a mirror of the progress and development of the various states. Karnataka is one of the fast growing states of India. Karnataka a southern state is third developed state in India. Karnataka state is the knowledge, research and innovation hub of Asia. The income of Karnataka economy is contributed by all the three sectors viz., Agriculture, Industry and Service sector, Tourism, etc. Page No:923

2 II. OBJECTIVES Following are the objectives of the paper 1. To know the importance of the Karnataka in Indian economy 2. To study the contribution made by the three sectors of the economy to State Income 3. To analyze the trends and growth in the contribution of the three sectors 4. To highlight the important fields of Karnataka economy. III. METHODOLOGY Data Base: For the preparation of this article, only secondary data is used and presented in the form of tables and graphs. Decade wise trend and growth are analyzed with percentage. IV. IMPORTANT HIGHLIGHTS OF KARNATAKA ECONOMY The Karnataka economy ranks 4 th in India with GSDP of 189 billion US dollars, 2 nd highest PCI among large states, in attracting of FDI ranks 2 nd and the total exports valued at 82 billion USD. The following points will highlight the height of Karnataka economy top in manufacturing excellence in India has two industrial corridors (it is only state in India) has more than 400 research and development firms stood 1st in IT and ITes Exports consists 160 industrial areas 4th in skilled workforce stood 1st in attracting investment intentions in 2017 is one of the 15 start-up ecosystems of the world created lakh jobs in last four years flourishing industrial scenario and 22 percent contribution to the economy in consists 26 operational SEZs Eighty percent of Fortune 500 companies are having their outsourcing operations in Karnataka as on November 2017, Bengaluru ranks First in Digital City in the World and ranked 19 th among world's 25 hi-tech cities, 4 th largest technology cluster in the world and topped the list of 22 high-tech affordable cities of the world Karnataka state is the knowledge, research and innovation hub of Asia Karnataka emerged as information technology hub of India V. PRIMARY SECTOR OF KARNATAKA ECONOMY Agriculture is the main occupation of the rural people and around 25.3 percent of geographical area i.e., 123,100 km 2 land is cultivated and. About km 2 (26.5 percent) is sown and irrigated. Kharif (April - September), Rabi (October- December) and Summer (January - March) are the agricultural seasons of Karnataka. Rice, Page No:924

3 Ragi,, Maize, Jowar, Pulses, Chillies, Cotton, Sugarcane, Coconut, Arecanut, Coffee, Cashew, Cardamom, Tobaco are the important crops grown in Karnataka. She is largest producer of coarse cereals, coffee, tomato and raw silk. In India, Karnataka is second largest in floriculture. VI. SECONDARY SECTOR OF KARNATAKA ECONOMY Industrial sector of Karnataka is also a major contributor to the economic development the state as well as nation. As India aimed to achieve self-sufficiency in industrial production started giving importance for the development of industries both in public and private sector and gave support through five-year plans. Hindustan Aeronautics Limited, Hindustan Machine Tools National Laboratories, Bharat Electronics Limited, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited (BEML), and Indian subsidiaries of Volvo and Toyota, Indian Space Research Organization (ISRO), etc., are located at Bengaluru.Tata Motors at Dharwad, TVS Motorcycle manufacturing plant at Mysuru, Kirloskar, ABB, Kavika, Larsen and Toubro, Textile processing factories, multinational manufacturing companies, Sugar factories, steel factories, pharmaceutical factories, etc., are contributing to the income of state economy. Karnataka gets income from mining also. Gold, iron ore, quartz, limestone, manganese, kyanite and bauxite, etc., are the important minerals found in Karnataka. Hutti Gold Mines, Limited is the only gold producer in India. VII. TERTIARY SECTOR OF KARNATAKA ECONOMY Karnataka state has well connected to neighbor states and rest of India. In India, Karnataka consists of 6 percent of National Highway network includes 14 National Highways and connected with other parts of India. Karnataka has 114 State Highways and connect different district centers. The total of about 2,07,379 km of road network in Karnataka. It includes 4,396 kms of National Highways, 28,311 kms of State Highways and 19,801 kms of District Roads. The sea transport service is provided through New Mangalore Port and Karwar Port. Karnataka has domestic airports at Belagavi, Mysore and Hubli and international airports at Devanahalli, Mangalore. Karnataka has railway network of 3,172 kms and Namma Metro at Bengaluru are providing transport services. Karnataka Power Corporation Limited and Independent Power Producers like GMR, JIndal, Bhoruka are generating electricity. The responsibility of supplying electricity has been given to ESCOMS such as Bangalore Electricity Supply Company (BESCOM), Chamundeshwari Elecricity Supply Company (CESC),Hubli Electricity Supply Company (HESCOM), Gulbarga Electricity Supply Company (GESCOM), Mangalore Electricity Supply Company (MESCOM). Both the public as well as private companies such as BSNL, VSNL, Bharati, TATA Tele Services Reliance and are providing telecommunication services Karnataka. Higher Educationalinstitutions including Medical, Engineering are concentrated in cities like Bengaluru, Dharwad, Belagavi, Mysuru, Mangalur, Davanagere, Vishveshvaraya Institute of Advanced Technology (Devanahalli), Sri. Satya Sai Baba University and College of Medicine (Muddenahalli), Devanahalli Business Park consists Aerospace Education Special Economic Zones near Bengaluru, etc., are expanding educational and job opportunities and contributing for the development of Karnataka economy. Page No:925

4 VIII. CONTRIBUTION OF DIFFERENT SECTORS TO KARNATAKA ECONOMY The Primary, Secondary and Tertiary Sectors contribute to the Karnataka economy and made fourth developed state in India. The contribution of primary sector to the Karnataka income was percent in the decade increased to 52.72percent and percent and decade respectively. The contribution started decreasing after The contribution reached the lowest level of percent in The total contribution of the primary sector stood at Rs. 1,31,567 crore against the total income Rs. 12,68,881 crore in The contribution of secondary sector to the state income was Rs.122 crore (16.24 percent) in shown increasing trend till and reached Rs. 4,734 core (23.03 percent), decreased to percent in increased to percent and again decreased to percent in The total contribution made by the secondary sector stood at Rs. 2,46,249 crore in the year The contribution of Tertiary sector was percent in and shown increasing trend continuously in the decades of 70s, 80s, 90s, 2000s 2011s by 26.53percent, percent, percent, percent percent respectively and increased to percent in the year The contribution of the sector to the economy stood at Rs 7,54,233 crore in The total income and Per Capita Income of the Karnataka economy are increasing since The income was Rs. 751 core and PCI was Rs.321 in increased to Rs.12,68,881 crore and Rs. 1,74,551 in The following table gives details about the contribution made by the different sectors and annual growth of income and PCI. Table 1. Decade and Sector wise contribution to Karnataka Economy (at current prices) Year Income Primary Sector (In Rs. Crore) Secondary Sector (In Rs. Crore) Tertiary Sector (In Rs. Crore) State ncome (In Rs. Crore) 432 (57.52) 122 (16.24) 197 (26.23) 1063 (52.72) 418 (20.73) 535 (26.53) 2573 (55.87) 1160 (20.87) 1854 (33.18) 7626 (37.10) 4734 (23.03) 8191 (39.85) (32.66) (19.39) (47.94) (13.20) (26.12) (51.79) (10.36) (19.40) (59.44) Annual Growth of Income Per capita Income (in Rupees) Annual Growth of PCI Source: Karnataka Survey Figures in parenthesis are percentage to total Page No:926

5 Figure 2. Decade and sector wise growth in contribution Figure 2. Decade and Sector wise growth income and PCI of Karnataka IX. FUTURE PROSPECTUS OF KARNATAKA ECONOMY The future prospectus of Karnataka is so bright. In India Karnataka is the pioneer state with an Aerospace Policy. It has been identified that it has an investment potential of 12.5 billion US Dollar in the sector during The plan of developing aerospace clusters in different regions of Karnataka state. In the state, the Department of the Information Technology, Electronics and Communication has established a new policy ofinternet of Things (IoT) with the intention of attaining a substantialmarket share in India's IT market by The government of Karnataka has decided to allocate Rs. 459 crore to Tourism Department in the state budget The state has potential of many things. The Page No:927

6 government of Karnataka is supportive for the development of all the potential sectors, which will lead to increase the speed of economic development directly and contribute to the development of Indian economy. The development of IT sector, Industrial Sector and service sector in the state will lead to attract the nation and the entire world. X. CONCLUSION Karnataka state is the knowledge, research and innovation hub of Asia. The income of Karnataka economy is contributed by all the three sectors viz., Agriculture, Industry and Service sector. Karnataka ranked 4 th in India and contributing to the national economy. It has become home for many MNCs, SEZs, etc., The contribution made by the different sectors is increasing. The importance of agriculture in terms of contribution to the state economy is declining. The service sector dominates in the contribution. The potentiality of service sector is if properly utilized it will bring boon in the national economy. REFERENCES [1] Shanthamoorthy, R. and Sivarajadhanavel.2007.Karnataka Economy; Performance, Challenges and opportunities [2] Garani.,Krishnamurthy.N., Indian Economy and Karnataka Economy. [3] Karnataka Economic Survey, (Hand written Abridged Version of Karnataka Economic Survey- English). [4] Profile of Agriculture Statistics, Karnataka state, Published by Dept. of Agriculture, GOK [5] Vastard, J.V and Naik S.D Cost Comparison of readymade and tailor-made garments, Karnataka, Journal of Agricultural Science 8(4); [6] Anil kumar Vaddiraju, Satyanarayan Sangitha, Kala Seetharam Sridhar. Urban Governance in Karnataka and Bangalore (Global change and local Impacts) [7] [8] web pages Page No:928