There are no prizes for guessing! Bengaluru Urban, Dakshina Kannada, Udupi, Chikkamagaluru, and Bengaluru Rural are among the top five districts in election-bound Karnataka with the highest per capita income.
There are a total of 36 districts in Karnataka. The data available from the Economic Survey of Karnataka for FY23 showed that, at the state level, some districts have a much higher share of the state per capita income while others are far behind in economic growth. Bengaluru Urban District’s per capita income ranks first with Rs 6,21,131, while Kalburgi, with Rs 1,24,998, is at the last spot. The income gap between the top and bottom districts is almost Rs 5 lakh. Here are more details:
Karnataka is one of the richest states in India. It contributes 8.2% to the total GDP of the country. The South Indian state also has a very high per-capita income of Rs 3.02 lakh, which is 77% higher than the national per-capita income of Rs 1.71 lakh.
Despite challenges, Karnataka has witnessed fast economic growth in the past several years. The state GSDP has increased from Rs 6.06 lakh crore in 2011-12 to Rs 22.41 lakh crore in 2022-23 with a growth of 270%. The per capita income has increased from Rs 90,263 to Rs 3,01,673 during the same period. Karnataka has emerged as a major IT hub in India in the last couple of decades. The state ranks first in software exports and fourth in merchandise exports in India. The services sector is the largest component of the state’s economy and has a 64.04% share in GSDP. The industry sector has a 20.88% share, while the contribution of the agriculture sector to the overall GSDP is 15.08% in FY23.
The districts that show higher growth in services and industries have fared well with overall growth in per capita income. While the districts in the lower positions are highly dependent on the agriculture sector, due to the lack of industries and service establishments, these districts have the lowest incomes. As per the District Domestic Product (DDP) 2021-22, the districts of Bengaluru Urban, Dakshina Kannada, Belagavi, Tumukuru, and Mysore are the top five contributing districts, and the districts of Koppal, Chamarajanagar, Gadag, Yadgir, and Kodagu are the lowest contributors to the GSDP.
Bengaluru takes pride in its well-deserved status as the start-up capital of India, as 40 out of 100 unicorns in India are housed in this city. Bengaluru Urban District tops in the secondary (industry sector) and tertiary (services) sectors due to the high concentration of major industries and infrastructure facilities. It contributes 35.6% to the state’s economy (GSDP at current prices), followed by Dakshina Kannada (5.7%), Belagavi (4.2%).
Karnataka, which ranks third among states and has a total score of 72 out of 100, excels in a number of the sustainable development objectives. The state's human development index improved, going from 0.432 in 1999 to 0.644 in 2021. It is a technologically advanced state that ranks first in both the Innovation Index and the State Start-ups ranking. It also has a strong financial standing, with a revenue shortfall of less than 4% of GSDP.
However, to reduce the income gap, it needs to focus on spreading services and industries to tier-2 and tier-3 cities as well to transform the economy of these districts from agriculture centric to service and manufacturing oriented.
