Karnataka is one of the highest economic growth states in India with an expected GSDP (Gross State Domestic Product) growth of 9.5% in the 2021–22 fiscal year. The total expected GSDP of Karnataka in 2022–2023 is about $240 billion. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the tertiary sector contributed the most to GSDP (US$31.6 billion─55 percent), followed by the secondary sector ($17 billion─29 percent), and the primary sector (US$9.5 billion─16 percent).
With an overall GDP growth of 56.2% and a per capita GDP growth of 43.9% in the last decade, Karnataka surpassed all other states in India, pushing Karnataka's per capita income in Indian Rupee terms to sixth place. Karnataka received US$2,026.4 million worth of Foreign Direct Investment for the fiscal year 2008–09, placing it at the third spot among states in India. At the end of 2004, the unemployment rate of Karnataka was 4.57% compared to a national rate of 5.99%. For the fiscal year 2006–07 the inflation rate of Karnataka was 4.4%, which was less than the national average.
Between 2011-12 and 2017-18, the GSDP of the state grew at a Compound Annual Growth Rate (CAGR) of 13.11 per cent to reach 12.69 trillion (US$196.88 billion) and the net state domestic product (NSDP) grew at a CAGR of 12.83 per cent to reach 11.45 trillion (US$177.68 billion).
A fiscal year in Karnataka begins on 1 April of the previous calendar year and ends on 31 March of the year with which it is numbered.
After Bengaluru Urban, Dakshina Kannada (Mangaluru) Hubli-Dharwad and Belagavi districts contribute the highest revenue to the state respectively.
Agriculture and Livestock
Agriculture is the primary occupation of most of Karnataka's rural people. A total of 123,100 km2 of land is cultivated in Karnataka, constituting 64.60% of the total geographical area of the state. According to the 2001 census, farmers and agricultural labourers formed 56% of the workforce of Karnataka. Agriculture in Karnataka is heavily dependent on the southwest monsoon since the extent of arid land in the state is second only to Rajasthan. Only 26.5% of sown area (30,900 km2) is subjected to irrigation. The state has three agricultural seasons – Kharif (April to September), Rabi (October to December) and Summer (January to March).
Given below is a table of 2015 national output share of select agricultural crops and allied segments in Karnataka based on 2011 prices
Primary Crops grown in Karnataka
The main crops grown are Rice, ragi, jowar (sorghum), maize, and pulses (tur and gram) in addition to oilseeds and a number of other cash crops. Cashews, coconut, arecanut, cardamom, chillies, cotton, sugarcane and tobacco are also produced. Karnataka is the largest producer of coarse cereals, coffee, raw silk and tomatoes among the states in India. Horticultural crops are grown in an area of 16,300 km2 and the annual production is about 9.58 million tons. The income generated from horticulture constitutes over 40% of income generated from agriculture and it is about 17% of the state's GDP. In floriculture, Karnataka occupies the second position in India in terms of production and 700 tons of flowers (worth 500 million) were produced in 2004–05.
A majority of the thirty-five billion rupee silk industry in India is headquartered in Karnataka State, primarily in Mysore and North Bangalore regions of Doddaballapura, the site of a planned 700 million "Silk City".