Sectoral Composition & Economic Development: A Case Study Of Karnataka

Abstract:

The aim of this study is to examine the trends and patterns of sectoral composition of gross state domestic product (GSDP) in Karnataka from 2010 to 2017, and to analyze the impact of industrial sector growth on per capita income and poverty ratio in the same period. The study uses secondary data from various sources such as Economic Survey of Karnataka, Karnataka State Finances, Karnataka Budget Analysis, World Bank Document, and Poverty Estimates for Karnataka. The study employs simple linear regression models to test two hypotheses: (1) there is a positive relationship between industrial sector contribution to GSDP and per capita income in Karnataka; and (2) there is a negative relationship between industrial sector growth rate and poverty ratio in Karnataka. The results of the regression analysis show that both hypotheses are supported by the data, indicating that industrial sector development has a significant effect on socio-economic conditions in Karnataka. The study also discusses the implications and limitations of the findings, and suggests some policy recommendations for enhancing the role of industrial sector in the state’s economic development.