Karnataka Economy 

1. Overview

• Karnataka is one of India’s most industrially and agriculturally advanced states.
• GSDP (2023–24 est.): ~₹23.5 lakh crore (5th largest economy in India).
• Per capita income (2023): ~₹3.16 lakh.
• Key contributors to GSDP:
  • Services sector – ~66%
  • Industry – ~22%
  • Agriculture – ~12%
• Bengaluru = “Silicon Valley of India,” contributes ~40% of India’s IT exports.

2. Agriculture & Allied Sectors

• Agriculture’s share: ~12% of state GSDP; majority of rural population dependent.
• Major Crops:
  • Food grains: Rice (coastal, Tungabhadra basin), Ragi (southern maidan), Jowar (northern maidan), Bajra.
  • Cash crops: Sugarcane, Cotton, Tobacco, Oilseeds.
  • Plantation crops: Coffee, Tea, Arecanut, Cashew, Coconut.
• Karnataka = largest producer of:
  • Coffee (~70% of India).
  • Arecanut (~85% of India).
  • Ragi & Sunflower.
• Irrigation Projects:
  • KRS (Krishna Raja Sagar), Tungabhadra Dam, Almatti Dam, Ghataprabha, Malaprabha projects.
• Specialty crops: Davanagere → Rice bowl, Mandya → Sugarcane, Kodagu → Coffee.

3. Industry & Manufacturing

• Iron & Steel: Bhadravati (VISL), JSW Steel (Ballari-Hospet belt).
• Textiles: Davanagere (cotton textiles), Ilkal sarees, Mysore silk.
• Automobile & Aerospace: Bengaluru, Tumakuru, Hubballi-Dharwad.
• Electronics & IT Hardware: Bengaluru, Mysuru.
• Petrochemicals: Mangalore Refinery (MRPL).
• Pharmaceuticals & Biotech: Bengaluru (Biocon, Jubilant).

4. Services Sector

• IT & ITES:
  • Bengaluru = India’s biggest IT hub.
  • Infosys, Wipro, TCS, Accenture major companies.
  • Exports ~₹3 lakh crore annually (40% of India’s IT exports).
• Banking & Finance: Headquarters of Canara Bank, Syndicate Bank, Vijaya Bank, Karnataka Bank.
• Tourism: “One State, Many Worlds” – Hampi, Mysuru, Coorg, Jog Falls.

5. Natural Resources & Mining

• Iron ore: Ballari, Chitradurga.
• Manganese: Sandur.
• Gold: Hutti Gold Mines (only working gold mine in India today).
• Granite: Mysuru, Bengaluru.
• Limestone: Kalaburagi, Bagalkot, Vijayapura.
• Sandalwood: Karnataka = famous for high-quality sandalwood.

6. Energy & Power

• Hydel Power: Jog Falls (Sharavathi), Kalinadi, Varahi projects.
• Thermal Power: Raichur, Ballari, Yermarus.
• Nuclear Power: Kaiga (Uttara Kannada).
• Renewable Energy: Karnataka = leader in renewable energy.
  • Wind & Solar installed capacity ~16,000 MW.
  • Pavagada Solar Park (Tumakuru) = Asia’s largest solar park.

7. Transport & Infrastructure

• Roadways: 4 National Highways corridors; Bengaluru-Mysuru expressway.
• Railways: South Western Railway HQ in Hubballi.
• Airports: Kempegowda Intl. Airport (Bengaluru), Mangalore, Hubballi, Belagavi, Kalaburagi.
• Ports: New Mangalore Port (major port), Karwar, Belekeri, Tadadi.
• Metro Rail: Bengaluru Metro (Namma Metro, started 2011).

8. Government Programmes & Policies

• Flagship State Schemes:
  • Anna Bhagya (free rice to BPL families).
  • Ksheera Bhagya (milk for schoolchildren).
  • Ksheera Dhare (support to dairy farmers).
  • Krishi Bhagya (irrigation support).
  • Yuva Nidhi (unemployment allowance).
  • Shakti Scheme (free bus travel for women).
• Industrial Policies:
  • Karnataka Industrial Policy 2020–25 → focus on IT, biotech, aerospace.
  • “Beyond Bengaluru” policy → develop tier-2 cities like Mysuru, Hubballi, Mangaluru.

9. Tourism & Economy

• Cultural Tourism: Mysuru, Hampi, Pattadakal, Belur-Halebidu.
• Eco-Tourism: Western Ghats, Coorg, Kabini, Bandipur.
• Heritage Tourism: Srirangapatna, Badami, Bijapur (Gol Gumbaz).
• Tourism contributes ~15% to Karnataka’s economy.

10. Exam-Friendly One-Liners

• Karnataka = largest producer of coffee & arecanut in India.
• Hutti Gold Mines = only operational gold mine in India.
• Pavagada Solar Park = Asia’s largest solar park.
• Bengaluru = produces 40% of India’s IT exports.
• MRPL (Mangalore) = one of India’s largest oil refineries.
• Karnataka = first state to start a biotech policy (2001).
• Krishnaraja Wodeyar IV called “Rajarshi” → promoted industries in Mysore.
• VISL Bhadravati = India’s first steel plant (1923).
• Davanagere = “Manchester of Karnataka” (cotton textiles).
• Mysore silk sarees & Bidriware → GI tags from Karnataka.

Karnataka Economy – Comprehensive Quick Reference

1. Economic Overview

• GSDP & Growth Trends
  • Current size of Karnataka’s economy, growth rates, contribution to India’s GDP.
  • Sectoral contribution: Agriculture, Industry, Services.
• Economic Survey of Karnataka (latest edition – most important for data, schemes, trends).

2. Agriculture & Allied Sectors

• Agro-climatic zones of Karnataka (10 zones – very important).
• Major Crops – food crops (rice, ragi, jowar, maize, pulses), cash crops (sugarcane, cotton, tobacco), plantation crops (coffee, arecanut, coconut, spices).
• Horticulture – Karnataka as leader in floriculture, fruits & vegetables.
• Irrigation – major projects: Krishna, Tungabhadra, Upper Krishna, Hemavathi, etc.
• Animal Husbandry, Dairy, Fisheries – Karnataka Milk Federation (Nandini brand), inland & coastal fisheries.
• Government schemes: Krishi Bhagya, Raitha Siri, Fasal Bima Yojana, PM-Kisan (state implementation).

3. Industry & Infrastructure

• Industrial Profile
  • Traditional industries: textiles, silk (Karnataka = “Silk State of India”), handicrafts.
  • Modern industries: IT/BT (Bengaluru as “Silicon Valley of India”), aerospace, automobile, machine tools, pharmaceuticals.
• Industrial Corridors & Clusters
  • Bengaluru–Mumbai corridor, Peenya industrial area, Hubli–Dharwad cluster.
  • Special Economic Zones (SEZs) in Karnataka.
• Mines & Minerals – iron ore (Bellary, Chitradurga), gold (Kolar, Hutti), manganese, limestone.
• Infrastructure – roads, railways, ports (New Mangalore), airports, power generation (thermal, hydro, solar, wind, Udupi nuclear).

4. Services Sector

• IT & Software exports – Bengaluru as IT hub, contribution to state & national economy.
• Biotechnology & Start-ups – Karnataka Startup Policy, Bengaluru biotech hub.
• Tourism – heritage tourism (Hampi, Belur, Halebidu, Mysore), eco-tourism (Western Ghats, Coorg), coastal tourism.
• Education & Health – institutions like IISc, IIMB, NIMHANS; medical tourism.

5. State Finance & Budget

• Revenue Sources – tax (GST, excise, stamp duty, motor vehicle tax) & non-tax revenue.
• Expenditure – social sector, infrastructure, debt servicing.
• State Budget Highlights – flagship schemes, allocations to priority sectors.
• State Finance Commission – devolution of funds to local bodies.

6. Planning & Development

• State Planning Board – role in development.
• Karnataka Vision 2025 / 2030.
• Regional Development Boards – e.g., Hyderabad-Karnataka Region Development Board (Article 371J).
• Backward Regions & Regional Imbalances – causes, D. M. Nanjundappa Committee Report.

7. Poverty, Unemployment & Human Development

• Poverty levels, BPL statistics.
• Unemployment trends – educated youth, disguised unemployment in agriculture.
• Migration patterns – rural to urban, inter-state.
• Human Development Index (HDI) of Karnataka – literacy, health, gender, regional disparities.
• Social Welfare Programs – Anna Bhagya, Ksheera Bhagya, Gruha Lakshmi, Yuva Nidhi, Vidyasiri.

8. Environment & Sustainable Development

• Challenges – deforestation, mining issues (Bellary), water scarcity, climate change impacts.
• Renewable Energy – Karnataka as a leader in solar & wind energy.
• Green economy initiatives.

9. Current Affairs in Karnataka Economy

• Latest state budget highlights.
• Industrial projects & investments (e.g., Global Investors Meet outcomes).
• FDI inflows into Karnataka.
• Latest rankings – Ease of Doing Business, Startup ecosystem.
• Recent court rulings or policy changes affecting economy (e.g., mining bans, GST compensation issues).

✅ Strategy to Prepare Karnataka Economy

1. Start with NCERT Economics basics + Indian Economy (Ramesh Singh / Sankarganesh) → then apply Karnataka examples.
2. Study Karnataka Economic Survey (latest) → use data for Mains answers.
3. Use Budget Highlights → focus on flagship schemes & allocations.
4. Make topic-wise notes with stats → e.g., “Agriculture contributes ~15% of GSDP, employs ~50% population.”
5. Practice diagrams & maps – agro-climatic zones, irrigation projects, industrial clusters.
6. Current Affairs – follow state newspapers for updates (Deccan Herald, The Hindu Bengaluru edition, Prajavani).