Associate Professor,
India has experienced transformation from the regime of regulated economic development to competitive regime since the liberalizations of 1991. The main thrust of these liberalizations has been on industrial delicensing and openness, that is, import liberalization and removing barriers to exports for accelerating growth. Karnataka is considered as one of the most deserved industrial locations for setting industries in the country. State has been consistently pursuing progressive outlook to meet the changing needs of the State's economy and industry. In this paper, an attempt has been made to review the proportion of Production, investment and export in the state of Karnataka. The study found that at disaggregated level of industries, there has been considerable similarity with some exceptions in pattern of sources of growth of output. The overall organized industrial sector of Karnataka registered an impressive double-digit growth of 11.34% in 2009–10 compared to the earlier two years: 7.35% in 2007–08 and 4.72% in 2008–09. Degree of openness is measured by the ratio of value of exports to GDP at national level and by the ratio of value of exports to GSDP at State level. Karnataka's degree of openness to export trade has been about 44 percent during 2007–08 to 2009–10. This is remarkably higher than at all India level (about 19 percent). Increasing degree of openness to trade is an indicator of economic globalization.
