The Planning Commission has decided to prepare State Development Reports (SDRs) for all States and Union Territories of India. The objective in bringing out these reports is to provide a credible independent quality reference document on the development profile, set out strategies for accelerating the growth rate of States, lessen disparities and reduce poverty. The SDR is meant to discuss the constraints and challenges faced by a State and provide a vision, blueprint or a roadmap for its socioeconomic progress.

Each SDR is being prepared with the assistance of reputed national-level agencies, under the supervision of a Core Committee, headed by a Member of the Planning Commission, and including a senior representative of the State Government. The publication of the Karnataka Development Report follows the recently published SDRs of Maharashtra, Uttar Pradesh, Rajasthan, Tamil Nadu and Himachal Pradesh, while SDRs of many other States and Union Territories of India are under various stages of preparation.

The Karnataka Development Report dwells upon the entire gamut of the State, across sections ranging from real and financial sector, regional disparities, human and social development, environmental sustainability, governance and service delivery. Karnataka's strength lies in four major areas viz., good governance (transparency and accountability), solid resources (i.e. a good accumulation of human capital), near absence of communal conflicts and a good track record of management. The State however needs to address the stagnancy in agriculture, persisting regional disparity in respect of industrial development, income inequality, and levels of living related issues and social security. The report brings together exclusive chapters dedicated to the statement of a vision for future development in all these while also prescribing policy directions and ‘drivers'.

Core Group

Preface

Message from Chief Minister, Karnataka

Message from Member, Planning Commission

List of Tables, Figures, Boxes and Appendices

Executive Summary

1. An Overview of Karanataka’s Economy

1.1 Introduction

1.2 Economic Growth of Karnataka

1.3 Growth of Investment, Employment and Exports Inflow of Private Investment

1.4 Trends and Patterns of Consumption and Extent of Poverty

1.5 Human Development Indicators

1.6 Price Variations

1.7 Concluding Remarks

2. The Dynamics of Karnataka’s Growth

2.1 Introduction—the Economic Reform Context

2.2 Key Features of Karnataka’s Growth

2.3 Karnataka’s Growth Dynamics—Some Issues of Concern

2.4 Karnataka’s Economic Growth Policy Priorities—Continuity and Change

3. Natural Resources in Karnataka

3.0 Introduction

3.1 Land Use

3.2 Forest Sector

3.3 Water Resources in Karnataka

3.4 Marine Resource Exploitation and Management in Karnataka

3.5 Minerals and Mineral Development

4. Human Resources of Karnataka

4.1 Perspective

4.2 Demographic Profile

4.3 Literacy in the State

4.4 Human Capital in Karnataka State

4.5 Labour and Employment in Karnataka State

4.6 Summative Observations

5. Economic Infrastructure in Karnataka

5.1 Introduction

5.2 Some Aggregate Perspectives on Infrastructure

5.3. Development of Communication Sector

5.4 Power Sector Development

5.5 Road Development

5.6 Rail Infrastructure

6. Social Infrastructure in Karnataka

6.0 Introduction

6.1 Educational Infrastructure

6.2 Health Infrastructure

6.3 Nutrition

6.4 Integrated Child Development Services in Karnataka State: A Current Status

6.5 Housing: A Current Scenario in Karnataka

6.6 Water Supply and Sanitation in Karnataka: Current Status

6.7 Social Security Schemes

6.8 Conclusion

7. Financial Infrastructure: Banking, Capital Markets and Cooperatives

7.1 Introduction

7.2 Financial Infrastructure in Karnataka

7.3 Commercial Banking in Karnataka

7.4 Regional Rural Banks

7.5 Cooperative Banking

7.6 Recovery and Non-Performing Assets

7.7 Micro-finance Institutions

7.8 All-India and State Level Financial Institutions

7.9 Non-banking Financial Companies

7.10 Capital Market

7.11 Summary and Conclusions

8. Political, Cultural and Social History of the State

8.1 Introduction

8.2 An Overview of Social History

8.3 The Heritage that Shaped the Economy

8.4. Religious Diversity

8.5 Development of Literature and Culture

8.6 History of Socio-Economic Development

8.7 Social Movements

8.8 Social Mobilisation

8.9 The Concept of Karnataka State

8.10 Voluntarism and Decentralised Governance

8.11 Political Participation and the Question of Women’s Empowerment

8.12 The Way Forward

9. Social Sector Development

9.1 The Socio-economic Status of Scheduled Tribes in Karnataka

9.2 Scheduled Caste in Karnataka: Analysis of Status

9.3 Gender Issues in Karnataka Development

10. Regional Dimensions of Development in Karnataka

10.1 Introduction

10.2 Karnataka vis-à-vis Other States

10.3 Interdistrict Disparities in Karnataka

10.4 Regional Variation in Resource Allocations

10.5 Regional Dimensions of Human Development

10.6 Towards Redressal of Regional Imbalances

10.7 Regional Development Policies in Karnataka

10.8 Future Vision, Options and Possibilities

11. Politics, Governance and Service Delivery in Karnataka

11.1 Introduction

11.2 Significance of Governance Reforms on Service Delivery

11.3 Governance Issues in Karnataka

11.4 Recent Governance Reforms in Karnataka

11.5 Governance Reforms and Service Delivery

11.6 Decentralised Governance and Participative Reforms

11.7 Urban Decentralised Governance and Service Delivery

11.8 Governance Reforms and Outcome

12. Karnataka State Finances

12.1 Introduction

12.2 Fiscal Indicators

12.3 Tax and Non-tax Resources of Karnataka

12.4 Government Expenditure

12.5 Public Debt of Karnataka

12.6 Fiscal Decentralisation in Karnataka

12.7 Conclusions and Policy Implications

13. Environment, Biodiversity, Climate Change and Urbanisation

13.1 Introduction

13.2 Environment

13.3 Biodiversity Conservation: Status and Management

13.4 Wetlands in Karnataka

13.5 Coastal Ecosystem and Development in Karnataka

13.6 Climate Change and Its Impact in Karnataka

13.7 Urbanisation In Karnataka

13.8 Urban Solid Waste Management

14. Agricultural and Allied Sectors: Need for Re-Engineering

14.1 Introduction

14.2 Performance Over Five Decades

14.3 Infrastructure: A Shift Parameter

14.4 Allied Sectors: A Powerful Backup

14.5 Problems, Prospects and Promotion

14.6 Development Imperatives

14.7 Drivers of Growth

15. Industrial Development in Karnataka

15.0 Introduction

15.1 The Process of Industrialisation

15.2 Industrial Performance: Karnataka

15.3 Plan and Strategies for Karnataka

15.4 Small-Scale, Village and Cottage Industries

15.5 Village and Cottage Industries

15.6 Karnataka State Public Sector Enterprises

15.7 Industrial Finance

15.9 Concluding Observations and Vision

15.10 Policy Suggestions

16. Tourism, Entertainment and IT-enabled Services

16.1 Tourism

16.2 Entertainment

16.3 Software Services in Karnataka

17. Vision of Development in Karnataka

17.1 Introduction

17.2 Macro-Perspectives and Sectoral Growths

17.3 Resource Development

17.4 Infrastructural Development

17.5. Sectoral Visions and Initiatives

17.6 Employment and Social Security

17.7 Vision on External Sector

17.8 Human Development

17.9 Social Development

17.10 Regional Balance

17.11 On Devolution of Power and Governance

18. Policy Directions and Drivers for Future Development

18.1 Introduction

18.2 The Directions

18.3 Basic Thrusts

18.4 Sectoral Policies

18.5 Regional Policies

18.6 Policies on Human Development

18.7 Fiscal and Financial Policies