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ECONOMIC SURVEY OF KARNATAKA 2010-11

HIGHLIGHTS
Advanced estimates of Gross State Domestic Product (GSDP) at constant prices or State Income is expected to grow by about 8.2 per cent during 2010-11, mainly attributable to higher growth of primary and tertiary sectors from 3.3 and 3.7 per cent in 2009-10 to 5.7 and 9.7 per cent in 2010-11 respectively. The secondary sector made a remarkable recovery to positive growth rate (9.3 per cent) in 200910 and projected to maintain it at 7 per cent in 2010-11. Tertiary sector continues to dominate in the economy with 55.17 percent to GSDP at constant prices as compared to primary sector (16.22 percent) and secondary sector (28.61 percent). The per capita Net Income (per capita NSDP at factor cost), at current prices, is estimated at Rs.60,000 for 2010-11 as against Rs.51,858 for 2009-10. The growth rate in per capita net income is estimated at 15.7 percent during 2010-11, as against 12.0 percent during previous year. The per capita GSDP (or) per capita income during the year 2010-11 at current prices is likely to attain a level of Rs. 67,253 as compared to the quick estimates for the year 2009-10 of Rs.58,582. The growth rate in per capita income is estimated at 14.8 percent during the year 2010-11, as against the previous years estimate of 12.3 percent. The annual rate of inflation based on monthly WPI rose to 8.43 per cent for December 2010 as compared to 6.92 per cent in the corresponding month of 2009. The point to point rate of inflation based on consumer price index for industrial workers for the month of December, 2010 is 9.47, whereas it was 14.97 per cent in the corresponding month of the previous year. The wholesale price index of agricultural commodities (WPIAC) (Base 198182=100) in Karnataka has increased from 768 in April 2010 to 807 in December 2010 or by 5.08 per cent. In 2010-11 (up to Dec 2010), the average WPIAC (779.8) has increased by 4.63 per cent as compared to the same period in 2009-10. During current financial year (2010-11) from April to December, the States own tax revenue has recorded a growth of 30 per cent as compared to the corresponding period of last year. The size of the State Plan has increased by more than 20 per cent per annum in the last 3 years. The State has one of the highest per capita (Rs.5217) plan expenditure in the country and there has been a continuous increase in the share of plan expenditure (42 percent) in total expenditure in the State.

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The production of food grains increased from less than 110 lakh tonnes in 2009-10 to above 125 lakh tonnes during the current year. The cumulative irrigation potential under major, medium and minor irrigation (surface water) is anticipated to go up to 35.12 lakh hectares (excluding ground water) in 2010-11 from 34.43 lakh hectares in 2009-10. The ASI figures (2007-08) indicate that Karnataka accounted for 5.53 per cent of the total registered factories in the country, 7.10 per cent of the fixed capital investment, and 7.23 per cent of the total Gross Value Added of registered factories in the country. Karnataka accounted for 5.64 per cent of the total number of unorganized manufacturing enterprises and 5.42 per cent of the total unorganized manufacturing employment in the country in 2005-06. In terms of gross value added per enterprise as well as per worker, Karnataka performed better than AllIndia and stood fourth among the states of India. The tourist flow in to the State has continuously been increasing steadily from 2.52 crores in 2005 to 3.32 crores in 2009, which indicates an increase of 16 per cent. For the current year, up to December 2010, the State Level Single Window Clearance Committee (SLSWCC) has approved 378 projects with an investment of Rs.6087.37 crore, with an employment potential of 1.03 lakhs. Further the State High Level Clearance Committee (SHLCC) has cleared 130 projects with an investment of Rs. 146566.89 crore, and employment potential of 4.63 lakhs persons. The Global Investors Meet was held on 3-4 June 2010. The expected total investment from the Meet is about Rs.473000 crore and with an employment potential of 85000 new jobs. Karnataka as partner State of Vibrant Gujarat 2011 participated in the 5th Global Summit on 12-13 January 2011. About 20 MOUs/EOIs have been signed with expected investments of Rs.24759 crore in 10 sectors and employment potentials of 24795 persons. In 2009-10, Karnataka's exports amounted to about Rs.142871.41 crore or about 13.3 percent of the country's exports. Commodities which have more than 5 percent share in Karnataka's exports are electronics & computer software (63.5 per cent), Petroleum and Petroleum products (7.7 per cent) and gems & jewellery (12.2 per cent). These three commodities account for over 83 per cent of Karnataka's exports. Presently the state has a higher density of financial institutions compared to the national average, persons per bank branch is 8091 against the national average of 14000 and state ranks 4th and 5th in deposit mobilization and advances respectively, compared to other states.
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Economic Survey of Karnataka 2010-11

The state has a total of 58,889 primary schools and 12,453 high schools. The state has a total enrolment of 100.35 lakh children in class I to X. The state has a total of 12,453 secondary schools and a total enrolment of 25.78 lakh pupils in high schools. There are about 9.72 lakhs students studying in the Pre-university colleges. There are 3640 pre-university and 1362 colleges and 18 Universities to impart General education. There are 289 Polytechinc and 187 Engineering colleges to provide technical education. Vocational education is provided through 553 institutions. There are 8143 sub-centres, 2193 primary health centres and 326 community health centres and taluk hospitals catering to the health needs of the rural population. The infant mortality in 2009 is 41 per 1000 live births as against 47 in the year 2008. Karnataka improved its position in labour force with third highest Labour Force Participation Rate (49.2 percent) in the country compared to other States. Organised sector employment in the state has increased by 0.25 per cent from 22.85 lakh at the end of March 2010 to 22.91 lakh at the end of September 2010 adding 0.06 lakh additional jobs. Employment generation has been estimated based on three factors viz., income, employment elasticity over a period of years and anticipated estimates of gross state domestic product for the 2010-11. During 2010-11, it is 283.72 lakh persondays compared to 278.22 lakh person-days in the previous year. In Mahatma Gandhi National Rural Employment Guarantee Scheme, 277.53 lakh mandays were generated by providing employment to 49.08 lakh workers up to December 2010. According to UNDP report, 2010, the position of Karnataka in multi-dimensional poverty is also better than the all India with nearly 46 per cent people being multidimensional poor in the state as against 55.4 per cent at the all India level. A total number of 96 lakh cards have been issued to the poor in Karnataka that includes 11 lakh AAY and 85 lakh BPL card holders.

Economic Survey of Karnataka 2010-11

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