Karnataka's Net State Domestic Product (NSDP) stood at about US$ 25.93
billion during 2004-05. Between 1993-94 to 2000-01, the state emerged as the
leader in the country registering an economic growth of 8.1 per cent. In
2003-04, the GSDP grew at a rate of 6.2 per cent.The state's per capita income
stood at US$ 390 in 2003-04. It has outperformed all other states in the growth
of per capita income, which stood at 5 per cent in 2003-04 as against the
national average of 4.3 per cent.
Source: Karnataka Economic Survey 2003-04
The agriculture sector is the mainstay for 70 per cent of Karnataka's
population. Horticulture is the largest contributor to the state's income in the
agriculture sector. Horticulture covers an area of 1.58 million hectares in the
state and has a production of 107 million tonnes (2003-04).
Karnataka is one of India's leading states in industrial development and the
sector contributes 25.6 per cent to its GDP. So far it has attracted
manufacturing investment worth US$ 6,813 million from several national and
international players and has about 1,068 units of large and medium enterprises.
Industries that have set-up facilities in the state include engineering,
chemicals, electrical, electronic goods, food processing and processing of
plantation products like tea, coffee, rubber, cashew etc.
The state is also a front-runner in the services sector, which contributes
the maximum to the state income. Karnataka's software exports, which stood at
US$ 3.85 billion, accounted for 36 per cent of the country's total software
exports. The growth of new companies has spurred the rise of employment levels in
the state, particularly in the software industry, which attracts skilled IT
professionals from various corners of the country. Karnataka has the highest
employment rate in the urban sector among all other states. Its workforce as a
proportion of the total population stood at 45 per cent (Census 2001).
