Karnataka can become $1 tln economy by 2032: FICCI report

BENGALURU, Oct 8: Karnataka has the potential to increase its performance to become a $1 trillion economy by 2032, according to an action-oriented report prepared by FICCI and the state government. This will likely require increasing the state’s economic growth rate from 13 percent to 17 percent per year and may involve targeted interventions to drive cross-sectoral growth initiatives across high- and low-performing sectors, the report said.

The report was distributed to reporters in a press conference ahead of the SOUL Conclave on technology to be held here on October 11. As one of India’s top five states, Karnataka has demonstrated strong growth over the years, and in the 2022?23 period, it had a per-capita gross state domestic product (GSDP) of Rs 3.16 lakh and GSDP of Rs 22,81,127 crore, report said.

The services sector grew the most during this period, at 15.5 percent, followed  by manufacturing at 10.8 percent, and agriculture at 11.8 percent, it said. The services sector was also the largest contributor to Karnataka’s GSDP, making up more than two-thirds of the economy, it added. “This skewed sectoral landscape provides the state with an opportunity to invigorate agriculture and manufacturing to become economic powerhouses, ” the report said.

Similarly, interventions in the services sector, particularly in education, healthcare, tourism, and technology, could help Karnataka attain its 2032 vision, it said. Overall, the interventions that these outcomes call for could involve a cumulative investment of Rs 152.87 lakh crore over the next ten years, of which Rs 22.93 lakh crore is expected from the Karnataka government and Rs 107.01 lakh crore is expected from the private sector, the report.

“On the growth path we envision, the Karnataka economy could be worth $500 billion by 2026?27 and $1 trillion by 2032. In addition to the interventions, the state may have to overcome challenges in various sectors. These include poor urban mobility, duplication of functions by state departments and parastatals, low enrolment in education, inadequate  transport services and infrastructure in rural areas, and the concentration of public services and employment opportunities around Bengaluru,” it said.

With a careful and detailed plan, Karnataka can tackle these challenges on a  sector-by-sector basis. These interventions could add Rs 23.4 lakh crore to  the economy in 2031?32, taking the state to its $1 trillion goal, the report said. Beyond these cross-sectoral initiatives, each of the 14 sectors have been proposed for specific aspirations for growth, it said. Eleven aspirations across 14 priority sectors have been proposed for growth, the report said.  (UNI)