Economic Activities
 Production, distribution and consumption of goods and services.
 Agricultural, Industrial & Service Sector.
 Availability to the customer.
 To earn income, wealth for life & secure maximum satisfaction of
needs.
Sectors of Economy
1) Primary Sector : Depends directly on natural resources.
Harvesting/Extracting of natural resources.
e.g. Agriculture, Horticulture, Mineral extraction etc.
2) Secondary Sector : Manufacturing of goods using products
from the Primary sector.
e.g. Manufacturing of cars, clothes, sugar etc.
3) Tertiary Sector : Supporting the Primary & Secondary Sector.
e.g. Banking, Insurance, Healthcare, transportation etc.
PRIMARY SECTOR
PRIMARY SECTOR
Agriculture
Importance of Agriculture :
 Dependency as a source of livelihood.
 Provides raw materials.
 Provides food/fodder.
 Foreign Exchange Resources.
 Source of Saving.
 Employment Opportunities.
Agriculture
Problems in Agriculture :
 Small farmers.
 Dependency on rainfall.
 Loss of agricultural land.
 Lack of knowledge of modern methods of farming.
 Soil Erosion.
 Inadequate storage facilities/wastage of food grains.
SECONDARY SECTOR
Manufacturing Sector
Classification of Industries
Based on type of raw material :1) Agro-based Industries
2) Forest-based Industries
3) Mineral-based Industries
Based on type of ownership :1) Public Sector Industries
2) Private Sector Industries
Agro-based Industries
Sugarcane
Sugar
Forest-based Industries
Wood
Furniture
Mineral-based Industries
Iron
Automobile
Public Sector Industries
Owned by the Government.
Central & State owned Enterprises.
 Ministry of Heavy Industries and Public Enterprises.
 The level of financial autonomy is currently divided into three
categories:
1) Maharatna : Coal India Ltd., ONGC, Steel Authority of India etc.
2) Navaratna : HP, Bharat Petroleum, HAL etc.
3) Miniratna : BSNL, BEML, Airport Authority of India etc.
Private Sector Industries
Owned by the Individuals & their or Group of Individuals.
Motive to earn money.
Area of operation – National or International.
 Large Scale/Medium Scale/Small Scale/Micro type Industries
(MSMEs).
 Multinational Companies (MNCs)
 WIPRO Ltd, Tata Motor, Godrej, Parle Biscuits etc.
Industrial Sector
Importance of Industries :
Higher income to the nation & foreign exchange.
Employment to the people. Standard of living is lifted.
Development of agriculture.
Reduces the burden on agriculture & causes overall development.
Better utilization of natural resources like minerals & forests
products.
Multinational Companies (MNCs)
Multinational Companies (MNCs)
An organization that owns or controls production of goods or
services in one or more countries other than their home country.
Importing and exporting goods and services.
Making significant investments in a foreign country.
Opening manufacturing facilities or assembly operations in foreign
countries.
One of the earliest MNCs in India : British East India Company.
TERTIARY SECTOR
Service Sector.
Production of Services instead of end products.
Known as "intangible goods“.
Supporting the Primary & Secondary Sector.
Examples : Banking, Insurance, Healthcare, transportation etc.
TERTIARY SECTOR
TERTIARY SECTOR
of
Agriculture
More than half of workforce
dependent on agriculture.
70% of activities are dependent on rainfall.
Ghataprabha, Malaprabha, Narayanpura, Almatti, Tungabhadra,
Hemavathi, Krishnaraj Sagar irrigation projects.
Paddy, Jowar, Ragi, Bajra etc are main food crops.Cotton,
sugarcane, tobacco, coffee, cardamom, pepper, coconut,
banana, arecanut etc are some plantation & commercial crops.
Horticulture
Leading state in horticulture.
Area expansion, assistance to
farmers, supply of seeds,
pesticides and marketing assistance.
Karnataka State Horticulture Development
Agency.
Credit facilities by NABARD.
Floriculture
Leader in Floriculture industry.
Leading Taluks – Devanahalli
& Chikkaballapur.
One of the major contributors to exports.
Karnataka Agro Industries Corporation (KAIC), National
Horticulture Board.
Botanical Gardens.
Dairy
Second place in India in milk
production.
4.8 million – 5 million tons of milk production.
Network of veterinary centers through out Karnataka.
Operation Flood.
Karnataka Milk Federation (KMF).
Fisheries
Karnataka has 320km of coastline &
5.6 lakh hectares of inland water.
No. of fishermen in the state is around 7.66 lakh.
300 lakh tons of fish production.
7 fishing harbors – Karwar, Tadri, Honnavar, Bhatkal, Gangolli,
Malpe & Mangalore.
Export of marine products.
Industries
Largest Public Sector Company in Karnataka – HAL.
NAL, BHEL, ITI, BEML, BEL, HMT are located in the state.TVS
plant in Mysore, TATA motors plant in Dharwad.
Bangalore – Silicon Valley of India.
One of the earliest state in India to establish Bio-technology
Industry.
Favorable government policies.
Industries in Bangalore
Banking
Sir M. Vishweswaraiah established State Bank of Mysore in 1913.
Dakshin Kannada & Udupi – Cradles of banking.
Canara Bank – First to sponsor Regional Rural Banking .
27 – Public Sector commercial banks, 16 – Private commercial
banks and 6 – regional Rural banks are operating in the state.
State Bank of Mysore, Canara Bank, Vijaya Bank, Corporation
Bank, Syndicate Bank.
Tourism
State with great heritage & cultural background.
Tourism – One of the chief contributors to the economy
State has many places of Historical importance, places of
pilgrimage, Wildlife sanctuaries & National parks, Hill stations &
water falls.
Bangalore – Garden City of India.
Karnataka State Tourism
Development Corporation (KSTDC).
Tourism in Karnataka
Power
Karnataka generates power in four different forms – Hydro,
Thermal, Wind and Solar.
Shivansamudra Hydroelectric power station was established in
1902. Jog falls, Shimsha river, Sharavathi, Tungabhadra, Almatti
dam.
Karnataka – 1st in Hydro-electric power generation.
Karnataka Power Corporation Limited (KPCL).
Karnataka Power Transmission Corporation Limited (KPTCL).
Transport
Transport sector is the lifeline of the economy.
All the economic activities depend on the transport system.
Karnataka state has a well developed transport network.
Well organized and modern Road, Rail, Air transport.
Road Transport
Wide range of Road network.
Pradhan Mantri Sadak Yojana.
Karnataka State Road Transport Corporation (KSRTC).
Among the network of roads in Karnataka, 3973 km. of roads
are National Highways.
Karnataka also has state highways of length 9829 km.
BMTC is one of the most modern bus service provider in India.
Rail Transport
One of the most important modes of transport for the economy.
Hubli – Headquarters of the South Western Zone.
 The railway network is still under development.
Konkan railway network.
Modern, hi-tech railway stations.
Connectivity to most parts of India.
Water Transport
Coastline of about 320 km.
1 major port – New Mangalore Port.
10 minor ports – Karwar, Belekeri, Tadri, Honnavar, Bhatkal,
Kundapur, Hangarkatta, Malpe, Padubidri and Old Mangalore.
Exports from the Kudremukh Iron Ore Company limited.
 The sector of Inland water transport within the rivers of Karnataka
is not well-developed.
Air Transport
International Trade of the state.
Kempegowda International Airport
in Bangalore ; Mangalore International Airport in Mangalore.
Smaller airports at Hubli, Mysore & Belgaum.
BIA is host to 9 domestic airlines and 19 international airlines.
AirAsia India, Air Pegasus, Jet Airways, Air India, IndiGo and
SpiceJet.
Communication, Healthcare &
Education
Telecommunication service is provided by both Public & Private
sectors.
Vastly improved health infrastructure.
Minimum Needs Program.
Janani Suraksha Yojana, Thayi Bhagya etc.
ESI Hospital, Bangalore
Vast network of Private & Government Hospitals.
Communication, Healthcare &
Education
 State has a literacy of 75%.
Karnataka Knowledge Commission – To meet the needs of the
industry.
Good network of educational institutions – Primary Schools to
Professional colleges.
Bangalore University
Number of universities operate in the state.
One of the largest source of Human Capital.