Karnataka’s GSDP expected to grow at 8.10% against India’s GDP growth of 7.4%

The agriculture and industry sectors recorded growth over the previous year while the services sector reported a marginal decline even as Karnataka’s Gross State Domestic Product (GSDP) is expected to grow at 8.10% against India’s Gross Domestic Product (GDP) growth of 7.4%. Karnataka’s per capita income at ₹4.33 lakh is 97% higher than the all India average of ₹2.19 lakh.

Good monsoon during this year and anticipated growth of meat production has contributed to the agriculture sector’s growth by 9.1% compared to 7.0 % in 2024-2025, said the Economic Survey of Karnataka 2025-2026, released here on Friday. The per capita income in Karnataka has registered a growth of 12.2% over 3.86 lakh in 2024-2025.

While Bengaluru Urban has the highest per capita income at ₹8.55 lakh, Kalaburagi has the lowest with ₹1.44 lakh.

The manufacturing (7%) and electricity (7.5%) contributed mainly to the industrial sector’s growth by 6.7% in 2025–26 compared to the sector’s growth of 4.1% in 2024–25. However, the services sector is expected to grow by 8.1% in 2025–26 compared to 8.4% in 2024–25. The survey noted that growth in service sector is mainly due to expansion of IT related services, hotel and restaurants, public administration and other services.

The survey noted that between 2024–25 and 2025–26, the share of agriculture and industry in Karnataka’s GSDP declined marginally with contribution of agriculture decreased from 11.02% to 10.77% and contribution of industry declined from 19.82% to 19.36%. The services sector, the largest contributor to the GSDP recorded a slight increase from 69.16% to 69.87% during the same period.