Karnataka's Gross State Domestic Product (GSDP) growth for the year 2023-24 has been influenced significantly by the varying performance of its three main economic sectors: agriculture, industry, and services.

Sectoral Growth Rates:

1. Agriculture Sector:
   • Growth Rate: The agriculture sector is expected to contract by -1.8% in 2023-24 due to severe drought conditions. This is a significant decline from the previous year's growth of 2.8%.
   • Contribution to GSDP: The contribution of agriculture to the overall GSDP has decreased to 13.04% from 13.66%.
2. Industry Sector:
   • Growth Rate: The industry sector is projected to grow by 7.5% in 2023-24, recovering from a lower growth rate of 3.8% in the previous year, attributed to the post-COVID-19 recovery.
   • Contribution to GSDP: The industry's contribution to GSDP is 20.24%, slightly down from 20.92% previously.
3. Services Sector:
   • Growth Rate: The services sector, being the largest, is expected to grow by 8.7% in 2023-24, slightly lower than the 9.9% growth seen in the previous year.
   • Contribution to GSDP: The services sector's contribution has increased to 66.72% from 65.41%. Within this sector, 'Real estate, Professional Services & Ownership of Dwellings' contribute 38.32%, 'Computer-related services and R&D' contribute 28.16%, and 'Trade and Repair Services' contribute 8.61%.

Overall GSDP Growth:

• 2023-24 GSDP Growth: The overall GSDP growth at constant (2011-12) prices is estimated at 6.6%, which is lower than the national GDP growth rate of 7.3%.
• Current Price GSDP: At current prices, Karnataka's GSDP is projected at Rs. 25,00,733 crore, marking a growth rate of 10.2%.

Analysis:

• Agriculture Sector: The negative growth in agriculture (-1.8%) has a dampening effect on the overall economic performance of the state. Given the significant rural population (61.33%), a decline in agriculture impacts income and employment in these areas.
• Industry Sector: The rebound in the industry sector (7.5%) contributes positively to the state's GSDP. This growth is crucial for employment and economic stability, helping to balance the negative impact from agriculture.
• Services Sector: The robust growth of the services sector (8.7%) is the main driver of Karnataka's economic performance. The high contribution from IT services and real estate reflects the state's strong position in these industries, particularly in urban areas like Bengaluru.

Conclusion:

The overall GSDP growth of Karnataka for 2023-24 is a result of mixed performances across different sectors. The decline in agriculture due to adverse weather conditions is counterbalanced by strong growth in the industry and services sectors. The services sector remains the cornerstone of Karnataka's economy, driving the majority of the economic growth. This sectoral analysis highlights the importance of diversifying economic activities and strengthening resilience in agriculture to ensure balanced and sustainable growth.