PMRY - Institute for Social and Economic Change

Table 2.2: Index of Industrial Production in the Manufacturing Sector by Major
Industry Groups 1995-96 to 1997-98
NIC Industry Group Weight 1995-96 1996-97 1997-98
Group
20-21 Food Products 20.22 117.81
(7.66)
125.98
(6.93)
142.18
(12.86)
22 Beverages, Tobacco & Tobacco Products 5.03 122.79
(8.50)
128.55
(4.69)
141.40
(9.99)
23 Cotton Textiles 4.37 117.76
(-3.02)
127.15
(7.98)
143.27
(12.68)
24 Wool Silk & Man Made Fiber Textiles 4.71 115.20
(7.95)
128.46
(11.51)
141.38
(10.06)
26 Textile Products 4.96 111.89
(2.56)
126.30
(12.88)
159.26
(26.09)
27 Wood & Wood Products 1.95 119.81
6.32)
128.94
(7.62)
147.28
(14.22)
28 Paper & Paper Products 4.16 117.07
(5.78)
127.92
(9.27)
138.76
(8.47)
29 Leather & Leather Products 1.62 116.27
(7.69)
126.67
(8.94)
137.53
(8.58)
Note: Figures in parentheses indicate the percentage growth compared to previous year.
Source: Directorate of Economics & Statistics, Bangalore; cited in Planning Commission, Economic Survey 2000.
Karnataka has attracted foreign investment from more than 169 foreign investors
from Germany, Japan, USA, UK, Switzerland and Sweden. They have invested in
computer software, telecommunications equipments, electronics and electrical, machine
tools and engineering products, medical and laboratory equipments, minerals, ceramics,
chemicals, leather products, food processing and tourism.
2.3. Agricultural and Allied Services
Agriculture and allied sectors in Karnataka have been quite resilient, improving
its performance from the 1980s to 1990s. Growing at an average annual rate of 2.4 per
cent in the 1980s (constant 1993/94 prices), the sector improved on its past record and
grew faster in 1990s at an average annual growth rate of 3.5 per cent (slightly above
the All India average of 3.4 per cent). In 1998/99, it contributed about 30 per cent of
the gross state domestic product (SGDP), amounting to Rs 264 billion. Hence, the
sector continues to play an important role in the economy of the State. Although its
share of total SGDP has been declining over time, it continues to be the largest source
of employment in the state; about 70 per cent of the population is employed in the
sector. With the larger proportion of poor households in rural areas, sustaining and
improving on the growth performance of the agriculture and the allied services sector
will be critical for the state’s agenda for reducing poverty overall. The sector could play
a critical role to the extent that it could contribute to greater employment generation
and rural income growth. This poses a major challenge for the government in the future.
26