E-Paper
Karnataka per capita income to rise by 9%: Economic survey
Much of this growth is powered by Bengaluru, which contributes over half of the state’s gross domestic product, the survey said.
The per capita income of Karnataka is expected to rise by 9% (constant prices) from the corresponding year, according to the Karnataka economic survey, indicating growth despite the Covid-19 pandemic-induced lockdown in the state.
“On comparison, the level of per capita state income at constant (2011-12) prices was ₹1,54,123 in 2020-21 and is expected to be ₹1,68,050 in the year 2021-22 with a growth rate of 9.0%,” the survey said.
At current prices (with no adjustment for inflation), the per capita income is expected to rise by 17.9% to ₹278,726 in 2021-22 as against the national average of ₹1,50,326, the data showed.
Much of this growth is powered by Bengaluru, which contributes over half of the state’s gross domestic product, the survey said.
Bengaluru, along with some other southern districts have double the per capita income when compared to its northern counterparts like Kalyana-Karnataka (formerly Hyderabad-Karnataka) and Kittur-Karnataka (formerly known as Mumbai-Karnataka), data showed.
“Kalaburagi region’s per capita income is less than half of the per capita income of the Bengaluru region,” the economic survey noted. Kalaburagi division represents the Kalayana-Karnataka region while the Belagavi division represents the Kittur-Karnataka region, which is home to some of the most backward districts in the country.
The Kalaburagi division’s per capita income stood at ₹123,489 for 2019-20 as against ₹326,099 in Bengaluru, while the per capita income of the Mysuru region stood at ₹223,305 as against ₹137,089 in the Belagavi division, according to the data.
The per capita income of Bengaluru (excluding urban district) stood at ₹165,361 for 2019-20, data showed.
“Bengaluru has been growing mainly because of the preeminence of the private sector. In the 1950s when the Indian government and erstwhile Mysore government started public sector industries, it attracted a large number of workers to this part,” Professor Abdul Aziz, a Bengaluru-based economist said, emphasising the historical reasons for the disparity.
He added that the subsequent setting up of educational institutions like the Indian Institute of Science (IISc) and several others also contributed to the growth of skilled workers which in turn attracted investments and private capital.
“This private capital led to the building of small enterprises and companies. The service sector emerged and business became important which led to a situation that the people of Bengaluru were drawn into high paying jobs. So obviously, the per capita income of Bengaluru increased tremendously. Though there was an increase in other regions it was not proportionate, hence the disparity,” Abdul Aziz added.
The Constitution (118th Amendment) Bill, 2012 was introduced in the Lok Sabha the same year in which a resolution was passed to make special provisions for the Kalayana-Karnataka region (then Hyderabad-Karnataka) to reduce the inter-region and inter-district disparity in the southern state.
Successive governments in Karnataka have set aside funds for the development of the region as well as provided reservations in employment and education.
Presenting the Budget for 2022-23, the Basavaraj Bommai-led Bharatiya Janata Party (BJP) government has announced ₹3000 crore for the development of Bengaluru region.
“In the background of “Amrutha Mahotsava” of Kalyana Karnataka, Rs.3000 crore ‘Amruth Ayavyaya’ will be provided to the Kalyana Karnataka Region Development Board. Out of this, Rs.1500 crore will be reserved for education, social and economic development and Rs.1500 crore for micro-projects,” according to the budget.
