Kalaburagi at bottom of income ladder as Kalyana Karnataka districts trail State economy

While Karnataka cements its position as India’s growth engine with the Gross State Domestic Product (GSDP) increasing from ₹29.06 lakh crore in 2024-25 to ₹32.81 lakh crore in 2025-26, the latest Economic Survey for 2025-26 reveals a stark and widening regional disparity.

Kalaburagi district and Kalyana Karnataka region (Kalaburagi Revenue Division) continue to remain at the bottom of Karnataka’s income ladder.

According to the Karnataka Economic Survey 2025-26, Kalaburagi occupied the last rung in per capita income (PCI) grid in the State with ₹1,44,449 in 2024-25, falling 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 Kalyana Karnataka districts 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), apart from Kalaburagi at the bottom-most rung. The other two are Belagavi (₹1,83,217) and Vijayapura (₹1,87,429). Only Ballari managed to perform better, occupying the 11th rung with ₹3,24,111.

Disparity

In contrast, Bengaluru Urban district, which leads the State economy, recorded a PCI of ₹8,55,960, nearly 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, other top-performing districts also increased their PCI significantly in the same year – Dakshina Kannada (₹58,735), Udupi (₹56,492), Chikkamagalur (₹42,647) and Shivamogga (₹30,079).

In contrast, the growth of PCI in Kalyana Karnataka districts are meagre — 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 bottom performers.

The worst performance is from the Kalaburagi district, which recorded a negative growth. Earlier also, in 2015-16 and 2020-21, the district recorded negative growth.

The clustering of a majority of Kalyana Karnataka districts at the lower end of the income ladder underscores the persistent regional imbalance within Karnataka’s economy.

GDDP disparity

The disparity is also visible in the size of district economies measured through Gross District Domestic Product (GDDP). According to the survey, Kodagu recorded the smallest district economy in the State with a GDDP of ₹21,510 crore in 2024-25, followed by Yadgir (₹26,517 crore) and Gadag (₹28,603 crore). Koppal reported ₹33,020 crore, reflecting the limited scale of economic activity in several districts.

In contrast, economically stronger districts report far larger output levels. Bengaluru Urban alone recorded a GDDP of ₹11,73,574 crore, while Dakshina Kannada (₹1,54,509 crore) and Belagavi (₹1,11,225 crore) also reported significantly larger district economies. Together with other major districts such as Tumakuru (₹1,00,988 crore) and Mysuru (₹99,527 crore), these top five economic centres account for more than half of the State’s total economic output, highlighting the concentration of economic activity in a few regions of Karnataka. Though GDDP alone is not necessarily a measure of development, as smaller districts naturally tend to record lower output while larger and more urbanised districts report higher economic size, it indicates a district’s contribution to the GSDP.

State measures

The survey noted that the State government has attempted to address regional imbalance through policy initiatives aimed at decentralising economic activity beyond Bengaluru, including the Karnataka Startup Policy 2025–30, unveiled with an outlay of about ₹518.27 crore. The policy seeks to foster 25,000 new start-ups across the State. A key feature of the policy, the survey noted, is its emphasis on spatial decentralisation, with a target of nurturing at least 10,000 start-ups outside Bengaluru.

Pointing to structural issues, Sangeeta Kattimani, member of the State Policy and Planning Commission, Karnataka, said, “With limited industrialisation, a poorly developed service sector and largely untapped tourism potential, north Karnataka remains heavily dependent on agriculture. The dry weather also contributes, as extreme heat affects the productivity across sectors.”

Sharanabasappa M. Pappa, president of the Kalyana Karnataka Chamber of Commerce and Industry, said that while a considerable amount of money is being pumped into the region through special grants, there is little clarity on how effectively the funds are utilised.

Pointing to the PM-MITRA Mega Textile Park proposed in Kalaburagi, Mr. Pappa said that large projects of this scale could accelerate industrialisation and generate substantial employment opportunities. However, he expressed dissatisfaction over what he described as the prolonged delay by both the Union and State governments in taking the project forward. “The State government has approved ₹390 crore for developing infrastructure at the proposed PM-MITRA Mega Textile Park in Kalaburagi but allocated only ₹75 crore in the recent Budget. If that continues to be the approach, the project could get dragged on for another five years,” he said.