Industrial sector has been lagging in agriculture and service sectors in Karnataka over the last five years and its growth rate has declined in the pandemic years. While the agriculture sector and service sector have grown 16.6% and 11.6% CAGR respectively, the industrial sector grew by 6.1% CAGR in five years. The dampened industrial contribution has continued even in 2022.
The pandemic dampened industrial growth more than other sectors as industrial share in the gross state value added (GSVA) of Karnataka fell from 21.3% to 19.4% in the financial year 2021 even as the agriculture sector supported by favourable monsoons, significant Budget spends and subsidies increased from 12.3% to 14.3%, data in the Karnataka Economic Survey 2021-2022 shows. The service sector contributed 66.3% during the same period.
