Economic Survey 2025-26 - Executive Summary

Sep 18, 2026

Economic Survey 2025-26 executive summary presents Karnataka’s development trajectory through economic dynamism, inclusive governance, and environmental responsibility. It highlights growth in GSDP, changes in sectoral performance across agriculture, industry, and services, and district-level contributions to state output and per capita income. It also covers inflation trends using WPI and CPI indicators and reviews fiscal development, emphasizing stability, transparency, prudent debt management, and deficit targets aligned with the Karnataka Fiscal Responsibility Act.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages674

Reading Time28 h 18 min

AccessFree to download

Executive Summary

Introduction

State Income and Prices

GSDP growth and GDP share

Sectoral growth and per capita income

Inflation trends (WPI and CPI)

Fiscal Development and State Finances

Fiscal responsibility and deficit management

EXECUTIVE SUMMARY INTRODUCTION Karnataka’s development trajectory reflects a calibrated blend of economic dynamism, social commitment, and environmental responsibility. Emerging as one of India’s foremost growth engines, the State has leveraged progressive policy frameworks, technological innovation, and inclusive governance to build a robust and diversified economy. Its prominence in information technology, biotechnology, and high-technology industries has positioned it as a premier investment destination, with exports accounting for a substantial share of Gross State Domestic Product. Karnataka’s growth story extends beyond industrial achievement. Agriculture continues to anchor rural livelihoods, supported by expanded irrigation, technological integration, and farmer-centric initiatives to enhance productivity and resilience. At the same time, the state’s rich ecological heritage, reflected in its substantial forest and tree cover and the biodiversity of the Western Ghats, demonstrates a deep and continuing commitment to sustainability and conservation. Infrastructure development has been transformative, particularly in renewable energy and urban mobility, reflecting a people-oriented model of progress. Social initiatives, including expanded access to mobility and digital governance reforms, have strengthened inclusion and institutional transparency. Karnataka’s sustained progress in health, education, and the Sustainable Development Goals affirms that its vision of development extends beyond mere output expansion to the enhancement of human well-being. The State’s trajectory reflects a deliberate and balanced effort to align economic competitiveness with social equity, ensuring that growth is both inclusive and environmentally responsible. 1. STATE INCOME AND PRICES Y The State’s GSDP increased from Rs.29.06 lakh crore in 2024-25 to Rs.32.81 lakh crore in 2025-26, registering a growth of 12.9 per cent at current prices. At constant prices, it increased from Rs.15.94 lakh crore to Rs.17.23 lakh crore, reflecting a growth rate of 8.1 per cent. Y During 2025-26, the State recorded a growth rate of 8.1 per cent at constant prices, which is higher than the national growth rate of 7.4 per cent. Y The State’s share in India’s GDP increased to 9.19 per cent in 2025-26 from 8.79 per cent in 2024-25. Y The per capita income of the State stood at Rs.4,33,326 in 2025-26, which is about 97 per cent higher than the All-India per capita income of Rs. 2,19,575 . Y Per capita income increased from Rs. 3,86,156 in 2024-25 to Rs.4,33,326 in 2025-26, showing a growth of 12.2 per cent at current prices. At constant prices, it increased from Rs. 2,08,397 to Rs. 2,23, 866 registering a growth of 7.4 per cent. Y The agriculture sector is expected to grow by 9.1 per cent at constant prices in 2025-26, compared to 7.0 per cent in 2024-25, indicating a recovery. Y The industry sector is projected to grow by 6.7 per cent in 2025-26 at constant prices, compared to 4.1 per cent in 2024-25. Manufacturing growth of 7.2 per cent has contributed significantly to industrial expansion. 2 Executive Summary Y The Services sector is expected to grow by 8.1 per cent at constant prices in 2025-26, from 8.4 per cent in 2024-25. Growth in IT-related services increased from 10.20 per cent to 10.50 per cent. Hotel and Restaurants (13 .90 per cent) Public Administration (8 .6 per cent) and Other Services (7 .9 per cent) are also key contributors. Y Services account for 69.8 per cent of GSVA, followed by Industries at 19.4 per cent and Agriculture at 10.8 percent. Y Bangalore Urban district contributed Rs. 11,73,574 crore, accounting for 40.4 per cent of the State GDP for the year 2024-25. It is followed by Dakshina Kannada district (5 .3 per cent) and Belagavi district (3 .9 per cent) . Y The Kalaburgi division recorded the lowest per capita income at Rs. 1,89,938, followed by the Belagavi division (Rs. 2,26,213) and the Mysore

FAQs

What were Karnataka’s GSDP growth figures for 2024-25 to 2025-26?

GSDP rose from Rs. 29.06 lakh crore to Rs. 32.81 lakh crore, a 12.9% growth at current prices. At constant prices, it increased from Rs. 15.94 lakh crore to Rs. 17.23 lakh crore, reflecting 8.1% growth.

How is per capita income changing in 2025-26?

Per capita income is Rs. 4,33,326 in 2025-26, about 97% higher than the All-India per capita income of Rs. 2,19,575. It increased from Rs. 3,86,156 in 2024-25, with 12.2% growth at current prices.

What fiscal discipline targets does Karnataka follow in the survey period?

Karnataka maintains fiscal discipline by keeping the fiscal deficit within 3% of GSDP. It records 2.90% in 2024-25 (RE) and targets 2.95% in 2025-26 (BE) under the Karnataka Fiscal Responsibility Act, 2002.

Sep 18, 2026

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