Datanomics: Can DKS sustain Siddaramaiah-led K'taka growth momentum?

As D.K. Shivakumar takes charge, Karnataka hands over a high-growth economy marked by rising incomes, expanding national share and investment-led fiscal management

With Siddaramaiah stepping down as Karnataka chief minister and D K Shivakumar taking over on June 3, the state’s economic record forms the backdrop to the transition. Karnataka was among India’s strongest post-pandemic performers, recording average real GSDP (gross state domestic product) growth of 8.73 per cent between 2021-22 (FY22) and FY25 — above India’s 8.25 per cent and the highest among southern states.  Strong growth pushed per capita income from ₹2.05 lakh in FY20 to an estimated ₹4.33 lakh in FY26. This makes Karnataka India’s per capita income leader among major states overtaking Telangana, which held the spot for some time. Over the same period, Karnataka's share in the national GDP rose from 7.83 per cent to an estimated 9.19 per cent. The growth story was also broad-based: real growth accelerated to 7.37 per cent in FY25 from 5.98 per cent a year earlier, aided by a recovery in the primary sector from a contraction of 1.62 per cent to growth of 5.17 per cent.  Karnataka’s fiscal profile, meanwhile, suggests borrowing was not largely financing routine expenditure — revenue deficits remained well below fiscal deficits, indicating a sizeable share of spending appears linked to capital outlay and investment. As Siddaramaiah exits after three years at the helm, Shivakumar inherits the challenge of sustaining this growth momentum while balancing the state’s development and fiscal priorities.