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When India’s GDP declines, Karnataka set to record higher growth rate of 8.5%

News Network
February 17, 2018

Buoyed by a robust growth in services sector, the Gross State Domestic Product (GSDP) of Karnataka is set to record higher growth rate of 8.5% even as the country's GDP growth is projected to decline to 6.5% in 2017-18 as compared to 7.1% in 2016-17 at constant prices (2011-12).

According to the state Economic Survey for 2017-18 tabled in the legislature ahead of the Budget for 2018-19 by Chief Minister Siddaramaiah, the services sector is expected to grow by 10.4% in 2017-18 as against a growth of 8.9% during 2016-17.

During the last few years, the services sector has been contributing a larger portion of GSDP. The share of the sector saw a marginal increase from 65.53% in 2016-17 to 66.63% in 2017-18. The contribution of real estate, professional services and ownership of dwellings is highest with 35% in 2017-18, followed by manufacturing (13.88%), trade and repair services (9.27%) and crops (7.68%), the survey said.

GSDP is the most important indicator in measuring economic growth of the state. While in 2016-17, the country's GDP was 7.1% at Rs 1,21,96,006 crore at constant (2011-12) prices, the state's GSDP was growing at 7.5% at Rs 8,74,395 crore. This is now (2017-18) expected to grow at 8.5% and reach Rs 9,49,111 crore.

The gross state value added (GSVA) growth rate of agriculture and allied sector in 2017-18 has been lowered to 4.9% compared to 5.7% in 2016-17 on account of the decline in the area under tur and paddy to 3 lakh hectares and 2 lakh hectares respectively, in kharif 2017-18 compared to 2016-17.

The industry sector, which comprises of mining and quarrying, manufacturing, construction and electricity, gas and water supply, is expected to grow by 4.9% in 2017-18 against a growth of 3.7% during 2016-17. Also, the state's real estate, professional services and ownership of dwellings, is expected to grow at 11.5% in 2017-18, whereas, the first revised estimates (FRE) of 2016-17 was 10%.

"Our government is managing finances without causing deficit of resources for the developmental schemes of the state, even in the midst of financial burden caused on account of waiver of farm loan and pay revision of government employees," Siddaramaiah said in his Budget speech.

The Net State Domestic Product (NSDP) at constant prices is estimated at Rs 8,48,692 crore, showing a growth of 8.5%. The NSVA growth of agriculture and allied activities, industry and services sectors are expected to be 4.8%, 4.8% and 10.3% respectively, the survey added.

Per capita state income of Karnataka (at current prices) is estimated to increase by 10.9% to touch Rs 1,74,551 during 2017-18, against Rs 1,57,436 in 2016-17. In 2015-16, it was Rs 1,42,267. Karnataka's per capita income is higher by 56.2% over all-India per capita income for 2017-18, which is Rs 1,11,782. The level of per capita state income at constant prices is also expected to grow from Rs 1,20,496 during 2016-17 to Rs 1,29,362 for 2017-18 to reach an increase of 7.4%.

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News Network
February 17,2020

Kasaragod, Feb 17: A Kerala Muslim couple conducted the wedding of their Hindu foster daughter at a Bhagavathi temple in Kerala, scripting another tale of communal harmony at Kasaragod.

The wedding ceremony was held on Sunday.

The woman Rajeshwari tied the knot with Vishnu Prasad in the presence of family and friends belonging to both Hindu and Muslim communities.

Abdulla and Khadeeja adopted Rajeshwari after her father who worked at Abdulla's farm died. Rajeshwari's mother also passed away when she was a child.

Rajeshwari grew up alongside Abdulla and Khadeeja's three sons- Shameem, Najeeb and Shereef.

Earlier in January this year, cutting across the lines of religion, a mosque in Kerala's Kayamkulam hosted a Hindu marriage ceremony.

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News Network
July 2,2020

Bengaluru, Ju 2 As many as 19 deaths and 1,502 new COVID-19 cases were reported in Karnataka till 5 pm on Thursday, as per information provided by the State Health Department.

The total number of COVID-19 cases in the state now stands at 18,016, including 9,406 active cases.

While 8,334 patients have been discharged after treatment, 272 people have succumbed to the virus.

India's COVID-19 tally breached the 6 lakh cases mark with 19,148 new coronavirus cases being reported in the last 24 hours, informed the Union Ministry of Health and Family Welfare on Thursday.

The total cases now stand at 6,04,641 of which there are 2,26,947 active cases while 3,59,860 patients have been cured/discharged/migrated. 434 deaths have been reported in the last 24 hours taking the number of COVID-19 deaths in the country to 17,834.

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News Network
February 19,2020

Feb 19: Pay increases across India’s organized sector will probably grow at the slowest pace since 2009 this year, according to a survey from Aon Plc.

Companies will increase average pay by 9.1% in 2020, down from 9.3% in 2019 and 9.5% the previous year, Aon said in a report published Tuesday. The small increase reflects a deep slowdown in Asia’s third-largest economy, where growing pessimism about job prospects have led many to cut down on consumption -- the main driver to growth.

India still leads the Asia-Pacific region in pay rises, but that is mainly due to higher inflation and a “war for key talent and niche skills,” Aon said.

“There is a general air of caution about the economy as we enter into 2020,” Tzeitel Fernandes, partner for rewards solutions at Aon, told reporters in New Delhi. “Low GDP projection and weak consumer sentiment are the reasons behind our lowest ever prediction.”

E-commerce companies and start-ups will probably get the biggest salary increases, projected at an above-average 10%, while financial institutions will hand out 8.5%. Unsurprisingly, the auto sector witnessed the biggest drop in growth -- down to 8.3% from 10.1% in 2018, according to Aon. The survey covered more than 1,000 companies across over 20 industries.

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