Why in news?

Chief Minister Basavaraj Bommai said a vision group would be constituted to draw up an action plan to make the state a $1 trillion economy.

Highlights:

• To facilitate outcome-oriented and targeted budget ,Karnataka should be in sync with the Union government’s target of $5 trillion economy, with the state contributing $1 trillion.
• The vision group was announced after CM received a report titled “Karnataka: A $1 Trillion GDP Vision” authored by Mohandas Pai and Nisha Holla based on the Karnataka Economic Survey 2021-22 of the Planning, Program Monitoring and Statistics Department.
• The group comprising the government and industry representatives will be formed for suggesting a roadmap for realizing this goal.
• It will prepare, monitor, and evaluate an action plan with the goal of achieving a USD 1 trillion economy by 2025. The progress of this action plan could be monitored under the chairmanship of an additional chief secretary of the finance department.

What does the report states?

• The report presents a comprehensive analysis of Karnataka’s socio-economic status. It explains various factors that have propelled Karnataka to consistently rank as one of India’s Top 5 state economies.
• The state has the third highest GDP in FY 22, the highest per-capita income among the larger states, and 66 per cent of its economy comes from services.
• It also hosts robust agriculture and industry sectors.
• The report calls for a re-evaluation of the state’s growth drivers in the light of the pandemic and the upcoming golden targets of reaching USD 500 billion GDP by 2026 and USD 1 trillion GDP by 2032, from the FY 22 GDP of USD 273 billion (INR 20 lakh crore).

What are the steps need to be taken ?

• The innovation measures include economy greening , assets monetization ,formalization of employment data , geo enabled governance practises, sustainable urbanization , focused development of Bengaluru and beyond Bengaluru strategies
• Human capital is the most signifcant driver of socio economic development over the next decades . Karnataka is conscious of the need of the population . It is the first state to start the state institute for Transformational of Karnataka (SKIT), modelled on NITI Aayog at the centre.
• SITK hopes to build on the human resource development led rapid socio- economic growth
• The report has presented 9 point agenda to drive all round economic growth including

1. Boost agriculture sector through technology ,branding, marketing and exports
2. Boost manufacturing and export via labour- intensive industries
3. Boost construction sector through increased infrastructural spending
4. Systematic urbanization
5. Aspirational district programmes
6. Specialized hi-tech industries to drive high value added manufacturing and exports
7. Bengaluru :Global Hi-Tech ,Artificial intelligence
8. Export IT services hub
9. Invest in startup ecosystem

Way forward:

• This report must be productively utilized by all the departments in re formulating their outcome oriented strategies and plan