GSDP to grow by 8.1%; per capita income rises to Rs 2.2 lakh

Bengaluru: Karnataka's gross state domestic product (GSDP) at constant prices is estimated to grow by nearly Rs 1.3 lakh crore, or 8.1%, to touch more than Rs 17.2 lakh crore in 2025-25, up from over Rs 15.9 lakh crore the previous year, the Economic Survey released Friday states. During his budget presentation, chief minister Siddaramaiah said the state's GSDP surpasses the national growth rate of 7.4%. "This performance was supported by broad-based sectoral growth and reflects the state's diversified and stable growth pattern," he said.
The estimated GSDP growth is 1.2% higher than the 7.3% growth in 2024-25, a year that had seen a dip in GSDP growth from 8.2% in 2023-24. Sector-wise analysis pegs service sector growth at 8.1%, industry sector at 6.7%, agriculture sector at 9.1%, while manufacturing is expected to grow at 7.2%. At current prices, GSDP's advanced estimates in nominal terms stand at over Rs 32.8 lakh crore in 2025-26, up from around Rs 29 lakh crore in 2024-25. For a state reeling under revenue stress, the high GSDP allows for higher borrowings while remaining within the Fiscal Responsibility and Budget Management (FRBM) framework which caps total liabilities at 25% of GSDP. The state's overall exports increased by 13.8% in 2025-26, compared to 2024-25. Export of agricultural commodities rose from $2,043.7 million to $2,457.4 million, up 20%. "This reflects improved competitiveness, diversification and global integration of the state's production base," the survey read. "Total receipts are expected to increase by 13.9%, rising from Rs 3.5 lakh crore to above Rs 4 lakh crore. Revenue receipts are expected to grow 13.4% from Rs 2.5 lakh crore to Rs 2.9 lakh crore, while capital receipts are expected to grow 15.2% from Rs 1 lakh crore to nearly Rs 1.2 lakh crore," the Survey said. However, final estimates for the fiscal, which will end March 31, will give more clarity on actual numbers for the year. Pegged at Rs 4.3 lakh, Karnataka's per-capita income (PCI) at current prices is 97% higher than India's Rs 2.2 lakh figure for the year. "Per capita income increased from Rs 3.8 lakh in 2024-25, showing a growth of 12.2% at current prices. At constant prices, it increased from Rs 2 lakh to Rs 2.2 lakh, registering a growth of 7.4%," the Survey read. While a break-up of district-wise PCI for 2025-26 wasn't estimated, numbers for 2024-25 shows that only one district (Kalaburagi) has a PCI of less than Rs 1.5 lakh. Kalaburagi had recorded a PCI of over Rs 1.4 lakh in 2024-25, which is expected to have crossed Rs 1.5 lakh in the current fiscal. Pointing out that only four years remaining, the survey said the state was aligning GSDP sectors with sustainable development goals (SDGs), in line with the UN's 2030 agenda, while also promoting SDG implementation by private sector through the environmental/social/governance framework.