The Hindu Business Line : Infrastructure development high on Karnataka industry wishlist

Bangalore, May 25 Even as the Bharatiya Janatha Party was toasting victory, despite being short of a simple majority, the industry in Karnataka has prepared its wishlist.

The primary demand was infrastructure development in the State. President elect of the Federation of Karnataka Chambers of Commerce and Industry, Mr D. Muralidhar, said, “We have had a recent history of infrastructure neglect. The result is beginning to show up in infrastructure deficits. We want that situation corrected.”

The Bangalore Chamber of Commerce and Industry said in statement, “Infrastructure, both urban and rural — be it roads, power supply, irrigation or ports that form the backbone of the economy — is in disarray. It must be attended to, improved and built on a mission mode.”

The main worries stem from the fact that new power capacities have not yet been added to the State despite a widening peak and base load deficits. Karnataka currently has peak deficit of 12 per cent and base deficit of 3 per cent. But this deficit was largely on account of the fact that there has been little addition to the manufacturing capacity.

Besides, there is also concern over the State’s low farm sector growth. The farm sector comprises only 17 per cent of the gross State domestic product, despite being the largest employer. The GSDP of Karnataka is currently estimated at about 2.15 lakh crore for the current year. The manufacturing sector is 27 per cent of the GSDP.

The industry wants a refocus on the farm and manufacturing sectors. Both chambers said that these two sectors have long been neglected.

Mr Muralidhar said, “GSDP growth has remained unicentric and unidirectional.” The reference was to the excessive focus on development of Bangalore and the Information Technology sector at the cost of the rest of Karnataka. BCICI said, “The new government needs to address these issues on high priority.”

Both chambers have indicated that they were prepared to work with the Government for addressing these deficits fast. FKCCI said, “We are prepared to work with the Government on public-private partnerships to reverse the slowing growth.”

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