Karnataka’s growth is slowing down

Malls of Bangalore
These numbers are mentioned in the survey’s section on human development, which lays emphasis on inclusive development. On this count, the urban-rural divide in Karnataka is stark.

It’s bad news for Karnataka. Growth is slowing down, and inter-state comparisons of socio-economic development indicate that human development indices are stagnating in Karnataka.

The Economic Survey for 2011-12 has revealed that the state fared the worst in terms of growth in 2009-10 with a paltry 3.88%, compared with an all-India average of 7.96%. In contrast, the growth in Uttarakhand was almost three times that of Karnataka — at 11.61%. The slowdown in the state becomes more obvious when one takes into account the 2004-05 to 2009-10 growth of 8.65%, which was close to the national average of 8.63%.

Karnataka’s human development index (HDI) ranking, too, remains stationary — it was placed 12th in 1999-2000; the position remained the same in 2007-08.

Dr RS Deshpande, director of the city-based Institute for Social and Economic Change (ISEC), however, does not agree with the HDI rankings. “The three main indicators of HD i.e. per capita income with purchasing power parity, life expectancy and literacy do not always reflect development, which itself is a broader concept. A change in one of the indicators does not necessarily mean that development is slowing down,” he said.

These numbers are mentioned in the survey’s section on human development, which lays emphasis on inclusive development. On this count, the urban-rural divide in Karnataka is stark. The MCPE (monthly per capita expenditure) indicator shows there is a yawning urban-rural gap. Kerala has the highest MPCE of `1,835 in rural areas and `2,413 in urban zones. In Karnataka, however, the MPCE in urban areas is more than twice that in rural regions. The figures for the state are `2,053 and `1,020, respectively.

Inclusive growth is also not to be seen in the percentage share of scheduled castes (SCs) and scheduled tribes (STs) in employment. The percentage of SCs to have been employed during 2010-11 under the MNREGA was only 16.6% against an all-India average of 30.63%. The percentage for STs was a meagre 9.36% in contrast to the national average of 20.85%. The only redeeming feature was the percentage of women employed — 42.3%, which is close to the all-India number of 44.4%.

The poverty headcount ratio (PHR), which was higher than the national average (49.5% against 45.3%) in 1993-94 has improved significantly. The PHR for 2004-05 is lower than the all-India average (33.4% against 37.2%).