Karnataka economy hit as IT, ITES face slowdown

February 6, 2013

IT_ITES_face_slowdown

Bangalore, Feb 6: The IT and ITES sectors, driver of the Karnataka's economy, is in all probability slipping into another slowdown phase in the current financial year.

According to the Economic Survey report for 2012-13, yet to be released by the State government, the service sector is most likely to register a disappointing 8.9 per cent growth against 10.6 per cent last year, and it may further slowdown the State's economic growth.

Due to sluggishness in the IT sector, drought hit agriculture and continued stagnation in the industry, the overall economy of the State is likely to grow at 5.9 per cent against 6.4 per cent in the previous year. The State government is likely to release the report before the presentation of 2013-14 budget scheduled on February 8. The State Planning, Programme Monitoring and Statistics Department has prepared the report based on the advance estimates.

The big blow to the State economy is expected to come from the service sector, which contributors about 55 per cent to the Gross State Domestic Product (GSDP). It is for the first time since 2008-09, the worst year of global economic slowdown, the service sector (IT and ITES) is estimated to register decline in its growth. The sector had recovered in 2010-11 and 2011-12 financial years after recording the slowest growth rate of 8.2 per cent in 2009-10.

Food production

The drought-hit agriculture sector (primary sector) is estimated to grow at just 1.8 per cent against 2.4 per cent last year. And the foodgrain production is estimated to be 125 lakh tonnes against the target of 135 lakh tonnes. The State has been experiencing severe drought for almost two years now. As many as 157 of 176 taluks have been declared as drought-affected by the government.

The primary sector had registered the highest growth of 13.3 per cent in 2010-11, with the record foodgrain production of 145 lakh tones. But the sector recorded a negative growth in 2011-12 with only 2.9 per cent.

The industry or the secondary sector is expected to remain almost stagnant with 2.4 per cent growth. The poor performance in the sector is largely due to overall economic slowdown, official sources said.

Institute of Social and Economic Change Director Prof R S Deshpande said the drought has done major damage to the agriculture sector. There will be decline in production of oilsseeds, pulses and cash crops this year. Still there will be reasonable growth due to increase in productivity. Overall, the State finances have been well maintained, he added.

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News Network
December 2,2025

Puttur: The long-cherished dream of a government medical college in Puttur has moved a decisive step closer to reality, with the Karnataka State Finance Department granting its official approval for the construction of a new 300-bed hospital.

Puttur MLA Ashok Kumar Rai announced the crucial development to reporters on Monday, confirming that the official communication from the finance department was issued on November 27. This 300-bed facility is intended to be the cornerstone for the establishment of the government medical college, a project announced in the state budget.

Fast-Track Implementation

The MLA outlined an aggressive timeline for the project:

•    A Detailed Project Report (DPR) for the hospital is expected to be ready within 45 days.

•    The tender process for the construction will be completed within two months.

Following the completion of the tender process, Chief Minister Siddaramaiah is scheduled to lay the foundation stone for the project.

"Setting up a medical college in Puttur is a historical decision by the Congress government in Karnataka," Rai stated. The project has an estimated budget allocation of Rs 1,000 crore for the medical college.

Focus on Medical Education Department

The MLA highlighted a key strategic move: requesting the government to implement the hospital construction through the Medical Education Department instead of the Health and Family Welfare Department. This is intended to streamline the entire process of establishing the full medical college, ensuring the facilities—including labs, operation theatres, and other necessary infrastructure—adhere to the strict guidelines set by the Medical Council of India (MCI). The proposed site for the project is in Bannur.

Rai also took the opportunity to address political criticism, stating that the government has fulfilled its promise despite "apprehensions" and "mocking and criticising" from opposition parties who had failed to take similar initiatives when they were in power. "Chief Minister Siddaramaiah has kept his word," he added.

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News Network
December 15,2025

Mangaluru, Dec 15: Air India Express has announced that it will resume direct flight services between Mangaluru and Muscat from March 2026, restoring an important international air link for passengers from the coastal region.

Airport authorities said the service will operate twice a week—on Sundays and Tuesdays—from March 1. The initial flights are scheduled on March 3, 8 and 10, followed by March 15 and 17, with the same operating pattern to continue thereafter. The flight duration is approximately three hours and 25 minutes.

The Mangaluru–Muscat route was earlier operated under the 2025 summer schedule, with services beginning on July 14. At that time, Air India Express had operated four flights a week before suspending the service.

Officials said the summer schedule will come into effect from March 29, after which changes in flight timings and departure schedules from Mangaluru are expected. Passengers have been advised to check the latest schedules while planning their travel.

The resumption of direct flights to Muscat is expected to significantly benefit expatriates, business travellers and others, further strengthening Mangaluru’s air connectivity with the Gulf region.

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News Network
December 2,2025

Mangaluru, Dec 2: Mangaluru International Airport responded to a medical emergency late on Monday night. Air India Express flight IX 522, travelling from Riyadh to Thiruvananthapuram, was diverted to Mangaluru Airport after a passenger in his late 30s experienced a medical emergency on board.

The Airport’s Operations Control Centre received an alert regarding the passenger’s health condition. The airport activated its emergency response protocol, mobilising the airport medical team and coordinating with stakeholders including CISF, immigration, and customs. 

Upon landing, airport medical personnel attended to the passenger, assessed his condition, and arranged to shift him to a local tertiary-care hospital for further treatment. The passenger’s relatives accompanied the passenger, who incidentally received necessary medical care on board, which helped stabilise the situation.

Following the handling of the emergency, the flight departed for Thiruvananthapuram at 2:05 am on Tuesday.

"We appreciate the cooperation of all parties involved, and this incident reaffirms our ongoing commitment to prioritising passenger safety and readiness to respond to unforeseen emergencies with professionalism and care," the Airport spokesperson said. 

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