Economic Survey: Karnataka’s GSDP to grow by 9.5% this fiscal

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Karnatakas gross state domestic product (GSDP), which had shrunk for the first time in at least a decade during 2020-21, is estimated to grow by 9. 5% (by over Rs 1-lakh-crore) to Rs 12. 5-lakhcrore for 2021-22, the Economic Survey released on Friday shows.

While advanced estimates for 2020-21 had pegged the GSDP to shrink by 2. 6% and touch Rs 11. 1-lakh-crore, revised estimates show that the economy actually shrunk by only 0. 5% and had touched Rs 11. 4-lakh-crore.

Also, in 2021-22 all sectors have shown Growth compared to the previous year that saw the industries and Services-sector”>services sector record a dip. The survey projects the Agriculture-notes-for-state-psc-exams”>Agriculture sector to grow by 2. 2% while growth rate for the industries and ser- vices sectors are pegged at 7. 4% and 9. 2% respectively.

The growth rate of the agricultural sector (2. 2%) has dipped compared to a much higher figure of 15. 1% last year as reported by

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the latest survey, and 6. 4% as per the survey released in March 2021. In fact, the overall GSDP and sectoral figures for the past four years 2020-21 to 2017-18 are different in the recent survey compared to the document released in March 2021.

The contraction in agriculture sector is attributed to a lower growth rate of crop sector to -0. 3% in 2021-22 compared to 13. 8% in 2020-21, which in turn was caused by failure of food grain production caused by the floods that affected nearly 15 lakh hectares across Karnataka.
The sector is anticipated to grow showing gradual recovery in industries, which was -5. 5% during the previous year. And, the services sector is expected to grow on account of growth in IT-related services (23% of the GSDP), which was 1. 5% during the previous year.

At current prices, ad- vanced estimates of the GSDP in nominal terms is pegged at Rs 20. 5-lakh-crore, up from Rs 17. 3-lakh-crore during the previous year. In FY 22, Karnataka is estimated to grow at a robust growth rate of 18. 4%, the survey reads.