The correct answer is: C) Income inequality.
Karnataka is a state in India with a population of over 60 million people. It is the third most populous state in India and the ninth most populous state in the world. The state has a diverse economy, with a strong focus on agriculture, manufacturing, and information technology.
However, Karnataka also faces a number of challenges, including income inequality. The state has one of the highest levels of income inequality in India, with the top 10% of earners accounting for over 50% of the state’s income. This inequality is a major obstacle to economic growth and development, as it limits the opportunities available to the poor and marginalized.
There are a number of factors that contribute to income inequality in Karnataka. One factor is the state’s education system. The state has a high dropout rate, and many students do not complete their secondary education. This lack of education limits their opportunities for employment and earning potential.
Another factor that contributes to income inequality is the state’s labor market. The state has a large informal sector, where workers are often paid low wages and have few benefits. This informal sector is a major source of employment for the poor, but it also contributes to their low levels of income.
The state government has taken a number of steps to address income inequality, including investing in education and healthcare, providing subsidies to the poor, and creating jobs in the formal sector. However, these efforts have not been enough to reduce income inequality significantly.
Income inequality is a major challenge faced by Karnataka’s economy. It limits the opportunities available to the poor and marginalized, and it can lead to social unrest. The state government needs to take further steps to address this challenge, including investing in education and healthcare, providing subsidies to the poor, and creating jobs in the formal sector.
The other options are incorrect for the following reasons:
- Option A: Low literacy rates are a challenge faced by many states in India, but they are not a major challenge faced by Karnataka’s economy. The state has a high literacy rate, with over 70% of the population over the age of 15 literate.
- Option B: Outdated technology is a challenge faced by some industries in Karnataka, but it is not a major challenge faced by the state’s economy as a whole. The state has a strong focus on information technology, and it is home to a number of technology companies that use cutting-edge technology.
- Option D: Lack of natural resources is not a major challenge faced by Karnataka’s economy. The state has a number of natural resources, including coal, iron ore, and bauxite.