The primary sector in Karnataka has grown at 3.6% over the past eight years. The State government has launched the Karnataka Agriculture Mission to give the necessary boost to the agriculture sector. Other agriculture oriented programs such as Farm Mechanization scheme, Rashtriya Krishi Vikasa Yojana (RKVY) and major irrigation projects are being undertaken to revive the growth of primary sector.

The strong and vibrant industrial sector of Karnataka has been the key growth driver for Karnataka economy. Buoyed by strong fundamentals, industry friendly policies in the State and infrastructure support, the secondary sector has been growing at an average rate of 11 per cent during the past eight years.

The mining sector in this mineral rich State has clocked an average annual rate of 14%. while construction activity has grown at 13%. The employment oriented manufacturing sector registered 11% growth rate during the 2000s, pushing the job creation in the State.

The last decade has seen the emergence of Karnataka as the hub of information technology which has rendered impetus to the growth of overall services in the State. Karnataka is the leading exporter of software in India. In the year 2009-10, IT exports from Karnataka amounted to Rs. 70,375 crore, the highest in the country, clocking a growth rate of 28%.

The services sector grew by more than 9% rate over the last eight years in the State. Continuing with the same pace of growth for the next ten years, Karnataka is set to become the global services hub of India by 2020. Within the services sector, financial services grew by 14 % annually and transport and communication sector rose at 13% per annum. Trade, hotels and restaurants have grown by 9.8% and real estate sector witnessed growth in the range of 8-9%.

Infrastructure development: The presence of robust infrastructure in a region is a prerequisite for sustained economic growth. The State government has apportioned resources to build adequate physical infrastructure comprising of road network, transport and communication facilities and energy availability to households. The status of infrastructure availability in Karnataka is discussed below.

Roads: The road length of Karnataka has been growing at 7% rate annually over the period 2003-04 to 2008-09. The density of roads as measured by the proportion of length of roads to the total area of the State is higher for Karnataka as compared to all India average.

Transportation: The transportation system in Karnataka is well developed comprising of road transport, railways and aviation sector. The density of motor vehicles in Karnataka is higher than the national average.

The total length of railway lines is relatively lower that other industrial states. However, plans for expansion of rail network are set to raise the access across the State within the next five years. On completion of the ongoing projects, Karnataka will have better rail connectivity and penetration.

Karnataka being a global destination for business and commerce, the passengers movement through air transport is one among the highest in the country.

Households with electricity and LPG – Electricity and cooking gas are basic utilities that indicate household access to infrastructure and a better standard of living. The State performs better than Maharashtra and Gujarat, but is a tad lower than other southern States. However the State has to make significant improvement in making the LPG connections available to the households. With only 40% of households having LPG connections, fulfilling the rest is a challenge.