The correct answer is C) Rapid diversification.
Karnataka’s economy is the sixth-largest state economy in India, with a nominal GDP of â¹10.37 lakh crore (US$140 billion) and a per capita GDP of â¹2.3 lakh (US$3,000) in 2020â21. The state is a major producer of coffee, rice, sugar, and milk. It is also home to a number of major industries, including information technology, biotechnology, and manufacturing.
In recent years, Karnataka’s economy has been growing rapidly. The state’s GDP grew at an average rate of 8.5% per year between 2011 and 2019. This growth has been driven by a number of factors, including the expansion of the IT sector, the growth of the manufacturing sector, and the development of infrastructure.
Karnataka’s economy is expected to continue to grow rapidly in the coming years. The state has a number of strengths that will help it to sustain its growth, including a skilled workforce, a strong infrastructure, and a favorable investment climate.
The other options are incorrect because:
- A) Traditional agriculture is not the main characteristic of Karnataka’s economy. The state has a diversified economy with a number of major industries.
- B) Stagnation is not the main characteristic of Karnataka’s economy. The state’s economy has been growing rapidly in recent years.
- D) Reliance on foreign aid is not the main characteristic of Karnataka’s economy. The state has a strong domestic economy and does not rely heavily on foreign aid.