Karnataka sees 8% GSDP growth in 2006-07

Bangalore, Jan 5 | Updated: Jan 6 2006, 05:30am hrs
Karnataka's gross state domestic product (GSDP) growth is expected to be around 8% in the fiscal 2006-07, according to state finance and industries minister PGR Scindhia.

Addressing a press conference here on Thursday, Mr Scindhia said that the government has started conducting pre-budget meetings by interacting with all the departments from January 5. He said the government is inviting suggestions from the public to prepare a `people friendly' budget.

Mr Scindhia said that agriculture, among other sectors, would be given major attention in the coming budget. This would spur the growth of rural economy.

Terming that the state has favourable investment climate, he said that Karnataka tops in South India by attracting industrial investments to the tune of Rs 80,000 crore during the last 18 months of Congress-Janata Dal coalition government. "All these investments come not only form the IT/BT industry but also from other sectors like automobiles, steel and tourism," he said.

He said the government would come out with alternative arrangements within a fortnight, for Kudremukh Iron Ore Company Ltd (KIOCL), which closed down mining activities following a Supreme Court judgement on December 31, 2005.

"We don't want KIOCL to be dissolved. The government is taking steps to grant mining lease in other places in Karnataka and the issue would be debated in the next cabinet meeting."

He also indicated that some car majors are showing interest in setting up their manufacturing plants in Karnataka.