Bengaluru: A recent working paper from the Economic Advisory Council to the Prime Minister (EAC-PM) reveals that Karnataka has achieved the most significant increase in its share of India's national gross domestic product (GDP) over the past fifty years. The state’s GDP share rose from 5.4 percent in 1960-61 to 8.2 percent in 2023-24, marking an impressive growth of approximately 51 percent.

In the two decades from 2010-11 to 2023-24, Karnataka’s GDP share grew by 38 percent. Other southern states also experienced growth, though not to the same extent as Karnataka. For example, undivided Andhra Pradesh’s GDP share increased from 7.7 percent to 9.7 percent, while Tamil Nadu's share rose from 7.7 percent to 9.7 percent, and Kerala's share went from 3.4 percent to 3.8 percent.

Gujarat also saw a notable increase in its GDP share, climbing from 5.8 percent to 8.1 percent, but its growth rate was slightly less than that of Karnataka. Historically, Maharashtra has been the leading contributor to India’s GDP, overtaking Uttar Pradesh over the decades.

The study, authored by Sanjeev Sanyal and Aakanksha Arora of the EAC-PM, assesses states' economic performance based on their GDP share and per capita income. It notes a dramatic transformation in southern states post-economic liberalization in 1991. Together, Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu accounted for about 30 percent of India’s GDP in 2023-24.

Prior to 1991, Karnataka's GDP share remained stagnant, maintaining the same level as in 1960-61. The state was ranked ninth among the 14 large states at that time. However, following policy changes, Karnataka's GDP share surged to 6.2 percent by 2000-01 and reached 8.2 percent by 2023-24, positioning it as the third-largest contributor to India's GDP.

In terms of per capita income, Karnataka initially lagged behind the national average by four percentage points in 1960-61, and the gap widened in the early 1990s. Since 1990-91, however, its per capita income has significantly increased, reflecting growth rates of 7.6 percent in 2000-01, 15.2 percent in 2010-11, and an astounding 74.3 percent in 2020-21. By 2023-24, Karnataka’s per capita income surpassed the national average by 80.7 percent.

The report highlights that all southern states have now achieved per capita incomes above the national average since 1991. For instance, Telangana's per capita income is currently at 193.6 percent of the national average, while Karnataka, Tamil Nadu, and Kerala stand at 181 percent, 171 percent, and 152.5 percent, respectively.