Bengaluru, March 8: Chief Minister Basavaraj Bommai has put in place a roadmap to achieve the status of $1 trillion economy for Karnataka by 2032. CM Bommai has geared up his administration to execute the recommendations of a report prepared by the Planning Department committee to scale up the state economy to create massive opportunities for the people of Karnataka to gain from the expansion of the size of economy to $1 trillion economy.
While CM Bommai has said that the roadmap is to achieve the status of $1 trillion economy by 2032, he also underlined that the state Budget unveiled last month already has incorporated over 70 per cent of the recommendation to help Karnataka significantly scale up the size of the economy. CM Bommai’s $1 trillion economy is in tune with Prime Minister Narendra Modi’s $5 trillion economy target in the next few years.
“A committee, constituted by the Planning Department under the chairmanship of Additional Chief Secretary (Finance Department) ably assisted by FICCI, and McKinsey in collaboration with department secretaries and industry experts, has recommended a set of initiatives to increase the GDP of the State to $1 trillion. The insights from this document would go a long way in achieving $1 trillion economy for Karnataka,” CM Bommai has said.
The chief minister has also stated: “I am happy to see that the recommendations of the committee aim at increasing growth rate of agriculture from 13.3 per cent to 16.3 per cent, industry from 8.8 per cent to 16.8 per cent, service sector from 13.6 per cent to 16.9 per cent, aiming for the overall growth rate at 16.8 per cent by 2032”.
With Karnataka creating 50 lakh jobs in the last three years, the state is witnessing a major scaling up in various sectors under the watch of CM Bommai, who by putting in place an affidavit-based investment approval mechanism along with state level policies for diverse sectors such as semiconductor, defence manufacturing, space science, etc., has turned Karnataka into the growth engine of India. Karnataka is the largest recipient of the foreign direct investment in the country. Also, Karnataka is home to the maximum number of startups.
“A large number of recommendations of the committees have already been announced during this year’s budget like increasing area under micro irrigation, digitising agriculture improving post-harvest management and social and economic infrastructure, Youth internship, strengthening of MSMEs, Tourism, etc. In order to ensure regionally balanced growth aspirational taluk program has been announced. Data Lake to use Artificial Intelligence (AI) based big data analytics for policy making has also been announced,” added CM Bommai.
The chief minister has said that the State Institute for Transformation of Karnataka would steer innovative mechanisms to expedite the GDP growth trajectory of Karnataka and become model for others to emulate. “We propose to make district as a fulcrum of growth and development by strengthening capacity building, infrastructure support and delegation of powers to field level functionaries,” added CM Bommai in his foreword to the report.
Shalini Rajneesh, additional secretary, stated that the mission to prepare the roadmap to create $1 trillion economy for Karnataka was prepared in a span of 140 days. The action plan has been prepared through 14 sub-committees working simultaneously, she added.
“Initiatives like encouraging agri-tech startups in agro-processing, online marketing, multiple cropping, IOT based micro irrigation and encashment of carbon credits is expected to increase the growth rate of agriculture sector from 13.3 per cent to 16.3 per cent and GDP from Rs 2.9 lakh crores to Rs 13.3 lakh crores by 2032. Industry sector strategies include using available industrial land besides private sub-sector specific ‘plug and play’ industrial clusters pushing MSME growth beyond Bengaluru, leveraging production-linked-incentive scheme of Government of India and State Industrial Policy 2020-25, New Education Policy, physical and digital infrastructure to increase the growth from 8.8 per cent to 16.8 per cent and GDP from Rs 4.2 lakh crores to Rs 20.01 lakh crores by 2032,” added Rajneesh.
It is expected that several policy initiatives and state funding can take the overall GSDP to $1 trillion by 2032 and $500 billion by 2026-27, she further stated. “Cumulative investment of Rs 152.87 lakh crore, including Karnataka Government’s spend of Rs 22.93 lakh crore over the next 10 years (Rs 7-7.5 lakh crore in the next 5 years) is envisaged. Planning Department will monitor the implementation of identified initiatives through online dashboard showcasing the progress of interventions and GDP impact,” added Rajneesh.
Ulas Kamath, chairman, FICCI in Karnataka, also stated that Karnataka is among the top five states in India and has demonstrated strong growth over the years. “The state’s GSDP is estimated to be Rs 2281,127 crores in 2022-23 and its per-capita GSDP amounts to Rs 3.16 lakh. The state is currently growing at 13.6 per cent CAGR and must grow at 17 per cent CAGR to reach $1 trillion by 2032,” added Kamath.