While Karnataka cements its position as India’s growth engine with gross state domestic product (GSDP) rising from ₹29.06 crore in 2024-25 to ₹32.81 crore in 2025-26, the latest regional economic survey for 2025 and 2026 reveals wide disparities.
Kalaburagi District and Kalyana Region of Karnataka (Kalaburagi Revenue Division) continue to remain at the bottom of Karnataka’s revenue rankings.
According to the Karnataka Economic Survey 2025-26, Kalaburagi ranked last in the per capita income (PCI) table in the state with ₹1,44,449 in 2024-25, down from ₹1,45,377 in 2023-24, a negative growth of minus 928. The state average PCI is ₹3,86,156.
The performance of other districts of Kalyana Karnataka is also not impressive. Of the bottom eight districts, six are from the region – Yadgir (₹1,64,388), Raichur (₹1,78,888), Koppal (₹1,81,152), Bidar (₹1,85,079) and Vijayanagara (₹1,93,230 at the bottom of Kalaburagi) The other two are Belagavi (₹1,83,217) and Vijayapura (₹1,87 ₹429). Only Ballari did better, taking the 11th spot with ₹3,24,111.
Disparity
In contrast, Bengaluru city district, which leads the state’s economy, recorded a PCI of ₹ 8,55,960, almost six times that of Kalaburagi.
Dakshina Kannada (₹6,26,279), Udupi (₹6,00,683), Chikkamagaluru (₹4,94,787) and Shivamogga (₹3,89,743) also remain far ahead in income levels. While Bengaluru increased its PCI by ₹ 89,198 compared to 2023-24, the other top performing districts also increased their PCI significantly in the same year – Dakshina Kannada (₹ 58,735), Udupi (₹ 56,492), Chikkamagalur (₹ 33, 079647, ₹ 079647).
In contrast, PCI growth in Kalyana Karnataka districts is modest – Yadgir (₹15,287), Raichur (₹8,403), Koppal (₹17,834) and Bidar (₹13,711) and Vijayanagara (₹20,814). Belagavi (₹20,414) and Vijayapura (₹19,195) from Kittur Karnataka were among the weakest.
The worst performing district is Kalaburagi, which recorded negative growth. Earlier too, in 2015-16 and 2020-21, the district recorded negative growth.
The clustering of most districts of Kalyana Karnataka at the lower end of the income scale underscores the persistent regional imbalances in the Karnataka economy.
GDP disparity
The disparity is also evident in the size of district economies measured by gross district domestic product (HDDP). According to the survey, Kodagu recorded the smallest district economy in the state in 2024-25 with a GDP of ₹21,510 crore, followed by Yadgir (₹26,517 crore) and Gadag (₹28,603 crore). Koppal reported ₹33,020 crore, reflecting the limited scope of economic activity in several districts.
Both the Union and State Governments have been late in implementing the Mega Textile Park at Kalaburagi. | Photo credit: FILE PHOTO
In contrast, economically stronger districts show much higher levels of production. Bengaluru Urban alone recorded a GDP of ₹11,73,574 crore, while Dakshina Kannada (₹1,54,509 crore) and Belagavi (₹1,11,225 crore) also reported significantly larger district economies. Along with other major districts such as Tumakuru (₹1,00,988 million) and Mysuru (₹99,527 million), these five largest economic centers account for more than half of the state’s total economic output, highlighting the concentration of economic activity in several regions of Karnataka. Although GDP alone is not necessarily a measure of development, as smaller districts naturally tend to experience lower output while larger and more urbanized districts show higher economic size, it does indicate a district’s contribution to GDP.
State measures
The survey noted that the state government has attempted to address regional imbalances through policy initiatives aimed at decentralizing economic activity outside Bengaluru, including the Karnataka Startup Policy 2025–30, which was unveiled with an outlay of about ₹518.27 million. The policy seeks to support 25,000 new start-ups across the state. The survey noted that a key feature of the policy is the emphasis on spatial decentralization with the aim of nurturing at least 10,000 start-ups outside Bengaluru.
Sangeeta Kattimani, Member, State Policy and Planning Commission, Karnataka, pointed to the structural problems: “With limited industrialisation, an underdeveloped service sector and largely untapped tourism potential, North Karnataka remains heavily dependent on agriculture. Dry weather also contributes to this as extreme heat affects productivity across sectors.”
Sharanabasappa M. Pappa, president of the Kalyana Karnataka Chamber of Commerce and Industry, said that while a significant amount of money is being pumped into the region through special grants, it is not clear how effectively these funds are being used.
Pointing to the PM-MITRA Mega Textile Park proposed in Kalaburagi, Mr. Pappa said large scale projects of this scale could accelerate industrialization and create substantial employment opportunities. He, however, expressed displeasure at what he described as prolonged delay by both the Union and state governments in implementing the project. “The state government has sanctioned ₹390 crore for infrastructure development at the proposed PM-MITRA Mega Textile Park in Kalaburagi, but allocated only ₹75 crore in the recent budget. If this approach continues, the project could drag on for another five years,” he said.
