Karnataka State Brief

Karnataka Indicators at a Glance

KARNATAKA

ALL INDIA

POPULATION 1991

2001

2011

2011

Total population (million)

45

53

61

1211

Urban share (%)

31

34

39

31

Share of adults (% age 15+)

65

72

75

70

Child sex ratio (age 0-6)

960

946

948

919

1994

2005

2012

2012

POVERTY & INEQUALITY Poor (million) Poverty rate (%)

Gini coefficient

24

19

13

270

All

50

34

21

22

Rural

57

37

25

25

Urban

34

26

15

14

0.28

0.31

0.36

0.32

1994

2005

2012

2012

18,344

29,773

45,620

42,647

Agriculture

36

19

15

14

Industry

26

30

29

28

Services

38

51

55

57

All

INCOME & GROWTH Real GSDP per capita (2005 rupees) By sector (%)

Annual growth rate of real GSDP per capita (%)

1994 to 2005

2005 to 2012

2005 to 2012

4.5

6.3

6.7

JOBS Labor force participation rate (%)

Workers by sector (%)

Workers by wage-type (%)

1

June 20, 2017

1994

2005

2012

2012

All

69

68

57

56

Male

87

85

81

80

Female

52

51

33

31

Agriculture

66

63

50

49

Industry

14

15

19

24

Services

19

22

31

27

Self-Employed

52

47

48

52

Salaried

12

13

23

18

Casual Wage

35

39

30

30

Karnataka Indicators at a Glance

KARNATAKA

ALL INDIA

HEALTH 2001

2006

2013

2013

Maternal mortality ratio (per 100,000 live births)

266

213

133

167

Infant mortality rate (per 1,000 live births)

58

48

31

40

Stunting (% age 0-5)

—

44*

34~

39~

1994

2005

2012

2012

Literate (% adults)

51

62

73

70

Secondary education and above (% adults)

19

25

40

32

INFRASTRUCTURE & AMENITIES Power

1994

2005

2012

2012

All

63

89

97

80

Rural

55

86

97

73

Urban

83

96

99

96

2008

2012

2012

All

46

55

56

Rural

31

36

46

Urban

71

82

77

All

51

45

44

Rural

75

71

60

Urban

11

9

9

Connectivity

2005

2012

2012

Road density - km. per million people

3,766

4,902

3,231

Road density - km. per 1,000 sq. km.

1,097

1,581

1,206

2012

2013

2014

2014

Debt to GSDP ratio (%)

30

32

31

51

Fiscal Deficit (% of GSDP)

2.7

2.8

3.1

4.4

Real GSDP growth rate (%)

3.7

6.1

7.2

6.9

EDUCATION

Electrification (% households)

Water and sanitation Drinking water on premises (% households)

Open defecation (% households)

RECENT GROWTH AND FISCAL PERFORMANCE

* NFHS III, ~ RSOC

2

June 20, 2017

Karnataka

Poverty, Growth & Inequality Karnataka is home to 61 million people of whom 13 million — or a little more than one fifth — are poor. Since 1994, the state has made steady progress in poverty reduction; however the pace of poverty reduction slowed down after 2005. Karnataka’s growth, driven mainly by services, also fell below the national average after 2005. Moreover, consumption inequality increased, a lot more in urban areas. Today, the state has one of the highest levels of consumption inequality in the country, and pockets in the north and the east of the state record a high incidence of poverty.

Poverty in Karnataka is close to the national average Population below poverty line, 2012 (%) 50

40

40 37

37

35

34

33

32

32 29

30

22

22

21

20

20

19

17

17

15

15 12

12

10

11

11

11

10

9

9

8

8

8 5

0 CG JH MN AR BH OD AS MP UP AI MZ KA WB NL MH GJ TR RJ MG TN UK HR JK DL AP SK

PJ

KL HP GA

Low Income States are highlighted in orange, AI is All India.

Districts in the north and east of Karnataka have very high poverty District level poverty, 2012

Patna

Population below the poverty line, 2012 (%)

N

1

June 20, 2017

0.6-5.2 0-10 5.3-13.2 10-16 13.3-17.2 16-23 17.3-22.6 23-36 22.7-62.8 36-47 No data

Karnataka

Poverty, Growth & Inequality Unlike many other states, there has been a steady decline in poverty in Karnataka since 1994 Population below poverty line, (%) 70 60 50 40 30 20 10 0 MN JH BH OD AR AS CG KA MH UP AI TN AP MP WB RJ

● 1994

● 2005

GJ MG HR HP UK TR SK KL JK

● 2012

Low Income States are highlighted in orange, AI is All India.

A steady decline in poverty in both rural and urban areas of Karnataka since 1994 Population below poverty line, (%) 60

50

Rural Total

40

57

50 37

30

Urban 34

20

34

25

26

10

21 15

0 1994

2

June 20, 2017

2005

2012

PJ

GA NL DL MZ

Karnataka

Poverty, Growth & Inequality 0

10

20

30

Annual decline in poverty rate, 2005 - 2012 (%)

-1

40

50

60

70

80

High poverty, declining slowly

AS

Growth in Karnataka after -3 2005 has been lower than the national average JH

Annual growth 2005- 2012 - 2012 Annual growthrate, rate, 2005 (%) (%)

11

CG

-5

9 8 7 6

WB

-9

BH

All India

Leading OD

GJ

Data for 19 large states and All India.

Low Income States are highlighted in orange.

TN

HR

-11 KL PJ RJ

BH -13

5

Low poverty, UP declining fast

-17 Lagging

GJ

AP MH RJ

MH

KL HP

TN

HR

Interpreting the graph

KA

OD CGHP MP

-15

4

MP

KA

-7

Improving

10

UP

UK

UK

Improvement from 2005 to 2012

12

PJ

WB AP

JH AS

Weakening

3 2

0

Leading High income, high growth

Lagging Low income, low growth

Weakening High income, low growth

Standard of living, 2005

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

per capita, (2005 RealReal GSDPGSDP per capita, (2005 Rupees)

Improving Low income, high growth

Rupees) All India

Karnataka’s growth is driven mainly by services Annual growth rate, (%)

Components of GSDP growth rate, (%) 14 14

15 15

7.1

12 12 10 10

10 10

5

0

5

0 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012

■ Karnataka GSDP

■ All India GDP

8

8

6

6

4

4

2

2

0

0

2.1

6.1

5.4

4.7

5.4

5.1

2.5 2.3

5.1

3.4

2.0

1.9

2.8

1.6 0.4

-0.5

1.1 0.6

3.9

2.6

-0.4

0.9 -1.1

-2 -2 2005200520062006200720072008200820092009201020102011201120122012

■ Services

3

June 20, 2017

■ Industry

■ Agriculture

Karnataka

Poverty, Growth & Inequality Since 2005, poverty reduction in Karnataka has been slower than in many advanced states Poverty rate, 2005

Annual decline in poverty rate, 2012 Annual decline in poverty rate,2005 2005 --2012 (%)(%)

0

10

20

30

-1

40

50

60

70

80

High poverty, declining slowly

AS

-3

JH CG UP

-5

MP

KA

-7

WB

-9

BH

All India

OD

Data for 19 large states and All India.

Low Income States are highlighted in orange.

GJ HR

-11

RJ KL PJ

-13

TN

HP

-15

Low poverty, declining fast

MH

UK AP

-17

Karnataka’s share of India’s poor is equal to its share in the country’s total population bubble size: number of poor (millions)

UP

20

Data for 19 large states and All India.

Low Income States are highlighted in yellow.

BH

15

What % of India’s poor lives in this state?

Stateshare share in poor, 20122012 (%) (%) State in India’s India’s poor,

25

MP

10

MH

JH

5

OD

HP

0

WB

RJ

CG GJ

AS

0

KA

HR KL UK PJ

5

TN

AP

10

15

20

State sharein inIndia’s India’s population, 20122012 (%) (%) State share population,

4

June 20, 2017

25

Interpreting the graph Share of poor > share of population

e ar Sh

or po of

e ar sh

of

n io at ul p po

=

Share of poor < share of population

What % of India’s population lives in this state?

Karnataka

Poverty, Growth & Inequality Consumption inequality has been increasing in Karnataka, especially in urban areas Gini coefficient 0.5 0.42

0.4

0.37

0.36

0.3

0.31

0.30

0.28 0.24

0.25

0.27

0.2

0.1

0.0 Total

Rural

■ 1994

■ 2005

Urban

■ 2012

Consumption inequality in Karnataka is among the highest in the country Gini coefficient, 2012 0.4

0.3

0.2

0.1 KL DL KA MH AR TN AI HR WB MP CG UP

Low Income States are highlighted in orange, AI is All India.

5

June 20, 2017

PJ

HP GA UK AP GJ MZ OD JK JH RJ AS TR NL BH SK MG MN

Karnataka Jobs

People in Karnataka are increasingly moving away from farm jobs. Since 2005, most new jobs were created in the services sector, leading to an increase in the share of salaried jobs in the state. Despite this positive trend, overall job creation in the state after 2005 has not been enough to make up for the loss of millions of farm jobs. As a result, Karnataka ranked below most other states on job creation. The period after 2005 also saw a massive decline in the state’s female labor force participation, especially in rural areas.

Non-farm employment increased in Karnataka after 2005 Employment share by sector, (%) 100

34

37

50

80

60

66

■ Non-farm

63

■ Farm 50

40

20

0 1994

2005

2012

The share of non-farm employment in Karnataka is close to the national average Non-farm employment share, 2012 (%) 100

80

100

96

74

73 65

60

64

61

61

58

57 51

51

40

51

51

50

50

50

48

47

45

44

44

43

42

41

40

38

38 32

27

20

0 DL GA KL TR TN PJ MN WB JK HR GJ UK AI MH JH KA RJ UP AP MZ OD AS MG HP MP NL SK BH AR CG

Low Income States are highlighted in orange, AI is All India.

1

June 20, 2017

Karnataka Jobs

With over a million jobs lost, Karnataka ranked below most states on job creation after 2005 Number of jobs added, 2005-2012 (mn)

Annual job growth, 2005-2012 (%)

WB UP RJ MH CG BH OD AP DL MP GJ TN

WB

1.8

UP

0.8

RJ

1.1

MH

0.5

CG

1.6

BH

0.5

OD

0.7

AP

0.3

DL

2.2

MP

0.4

GJ

0.3

TN

0.2

PJ

PJ

0.5

TR HP SK MG GA MZ MN AR AS KL JH HR NL UK KA

TR

4.4

-1

0

1

2

3

4

HP

1.3

SK

3.9

MG

0.7

GA

1.3

MZ

1.1

MN

0.1

AR

-0.1

AS

0.0

KL

-0.1

JH

-0.2

HR

-0.3

NL

-3.6

UK

-1.0

KA

-0.5

5

Low Income States are highlighted in orange, AI is All India.

New jobs created by services in Karnataka after 2005, but millions lost in farming Number of jobs, (mn)

Annual job growth, 2005-2012 (%)

FARM

FARM

-4

THR

2

MANU

2

PUB

3

CONS

CONS

6

TRAN

TRAN

9

FIRB

9

MINE+UTIL

2

THR MANU PUB

FIRB MINE+UTIL

0

2

10

5

■ 2005 June 20, 2017

15

■ 2012

20

Karnataka Jobs

There was an increase in salaried jobs in Karnataka after 2005 Employment by wage type, (%) 100

39

30

80 Wage Labor

23

60

13 48

47

40

Self Employed

20

0 2005

■ Casual Wage

2012

■ Salaried

■ Self Employed

Nearly a fourth of Karnataka’s workers have salaried jobs, which is higher than in many other states Salaried jobs share, 2012 (%) 70 63

60

60

50 40 30

28

27

26

25

24

24

23

22

22

22

20 10

21

19

18

18

18

18

17

17

14

14

13

13

11

11

11

10

10 6

0 DL GA PJ MH TN GJ NL HR KA KL MZ SK JK AR HP AP AI UK WB MG MN AS RJ TR MP UP OD JH CG BH

Low Income States are highlighted in orange, AI is All India.

3

June 20, 2017

Karnataka Jobs

Not enough jobs in Karnataka for the size of the working age population not in school, especially for females Million

Annual growth, 2005-2012 (%)

50 50

â&#x2013; 2005

â&#x2013; 2012

Working age population not in school

40 40 +4.1

30 30

-1.0

1.5

-0.5

All Workers

+1.6

20 20

1.3

Male Workers -2.6

10 10

Female Workers

-4.2

0 0

Working age population not in school

All Workers

Male Workers

Female Workers

-5 -5

-4 -4

-3 -3

-2 -2

-1 -1

0 0

1 1

Female labor force participation in Karnataka dropped sharply after 2005, largely in rural areas Labor force participation rate, (%) 100 89

88 82

80 81

80

78

Rural Male 60

62

Urban Male

62

Rural Female Urban Female

40 38

20

28

26

23

0 1993-94

4

June 20, 2017

2004-05

2011-12

2 2

Karnataka Gender

Karnataka’s progress on gender issues is mixed. On the bright side, the ratio of girls to boys is above the national average. And, today, the state records fewer maternal deaths than before. Moreover, more girls are in school than earlier, and one in three women has completed secondary school, which is higher than in the rest of the country. Nevertheless, gender disparities exist with regard to schooling, especially in rural areas. And rural women have fewer options to diversify into other kinds of jobs. In more recent years, a large number of rural women have withdrawn from the labor force.

While fewer urban women work than urban men, nearly one in two among them have salaried jobs.

Karnataka’s child sex ratio is higher than the national average Child sex ratio, 2011 (age 0-6) females per 1,000 males 1,000 972 970 970 969

964 962

957 957 956

950

948 948

943 943 942 941 939 936 935 919 918

900

909

902

894 890 890 888 871

862 846

850

834

800 AR MG MZ CG KL AS SK TR WB KA JH NL TN GA OD AP MN BH AI MP HP UP MH GJ UK RJ DL JK

Low Income States are highlighted in orange, AI is All India.

After a decade of decline, child sex ratio increased a little in Karnataka after 2001 Child sex ratio, (age 0-6) females per 1,000 males 1,000 960

950

946

948

2001

2011

900 850 800 1991

1

June 20, 2017

PJ HR

Karnataka Gender

Maternal mortality is improving in Karnataka Maternal mortality ratio maternal deaths per 100,000 live births 300

228

200

178 133

100

0 2003

2009

2013

Karnataka has fewer maternal deaths than in many other Indian states Maternal mortality ratio, 2013 maternal deaths per 100,000 live births 300

285 285

300

244 208 208

221 221 222

200 167

112 113

100 61

68

79

127 133

141

92

0 KL MH TN AP GJ WB HR KA PJ

AI BH JH MP CG OD RJ UP UK AS

Data for 19 large states and All India.

Low income states are highlighted in orange and AI is All India.

2

June 20, 2017

Karnataka Gender

A third of Karnataka’s women have secondary school education, which is slightly higher than the national average Secondary education attainment among women, 2012 (% adults) 70 60

57 52

50

46

43

40

41

38

38

35

34

34

33

31

30

30

28

28

26

26

26

26 22

20

21

21

20

20

20 16

16

16

15

14

10 0 DL GA NL KL HP MN PJ MH TN HR KA UK MG MZ AR JK AP AI

GJ SK AS UP JH WB MP CG OD RJ BH TR

Low Income States are highlighted in orange, AI is All India.

There are gender disparities in schooling among adults in Karnataka, rural women lag behind urban Education attainment, 2012 (% adults) 50

46

Rural Females 40

36

33

45

19

14

22

30

20

19

19

17

17

Urban Females 14 19

10

14

13

53

0

Males

■ Illiterate

3

Females

■ Literate or primary school completed

June 20, 2017

0

20

■ Middle school completed

40

60

80

100

■ Secondary school or higher completed

Karnataka Gender

Gender gaps in schooling are narrowing for the young in Karnataka Enrolled in education institutes, (%)

2005 14

6

21-23

8

Female

Male 24

20

18-20 15-17

4

Age

5

55

50

9-11

93

6-8

93

100

8

86

78

12-14

3

96 94

80

60

40

20

0

20

40

60

80

1 100

Enrolled in education institutes, (%)

2012 9

21-23

10

19

Female

Male 39

18-20 15-17

Age 100

June 20, 2017

81

93 99 92

6-8

4

10

72

12-14 9-11

49

9 95

2

96

-3

92

80

60

40

20

0

20

40

60

80

0 100

Karnataka Gender

Female labor force participation in Karnataka is similar to the national average Female labor force participation rate, 2012 (%) 70 63

60

63 55

55 49

50

47 43

40

41

40

38

38

37

37

36

33

30

33

32

32

31

31

30

27

25

25

25

24 19

20

17

15 9

10 0 HP SK CG MG MZ AP RJ NL TN MH AR TR UK MN KA OD JK KL AI MP GJ

PJ

JH WB UP GA HR AS DL BH

Low Income States are highlighted in orange, AI is All India.

There was a massive decline in female labor force participation in Karnataka after 2005, specially in rural areas Labor force participation rate, (%) 100 89

88 82

80 81

80

78

Rural Male 60

62

Urban Male

62

Rural Female Urban Female

40 38

20

28

26

23

0 1993-94

5

June 20, 2017

2004-05

2011-12

Karnataka Gender

Women in rural Karnataka work mainly on the farm, more non-farm jobs for men Share of employed, 2012 (%) Rural Males

Rural Females

9

7

3

11

13 12 66

■ Farm - All

79

■ Non-farm Self Employed

■ Non-farm Salaried

■ Non-farm Casual Wage

One in two women workers have salaried jobs in urban Karnataka, greater self-employment among men Share of employed, 2012 (%) Urban Males

14

Urban Females

8

11

28

36 43

■ Farm - All

6

June 20, 2017

8

53

■ Non-farm Self Employed

■ Non-farm Salaried

■ Non-farm Casual Wage

Karnataka Social Inclusion

Karnataka displays uneven progress across social groups. Scheduled Tribes and Scheduled Castes in particular have very high levels of poverty. In addition, they lag behind in schooling and access to salaried jobs. Moreover, open defecation among the Scheduled Tribes and Scheduled Castes in Karnataka is higher than the national average. They also stand out for having poor access to drinking water in their homes.

Higher poverty among Scheduled Castes and Scheduled Tribes in Karnataka Population below poverty line, (%) 60

Households by Social Group, 2012 (%)

51

All India Karnataka Scheduled Tribe

9

5

Scheduled Caste

19

16

Other Backward Caste

43

52

General

29

26

Pace of poverty reduction

54

50 40

-7% per year

35

31

33 -7% per year

30

-8% per year

20

20

19

16 -4% per year

10 0 2005

■ Scheduled Tribe

2012

■ Scheduled Caste

■ Other Backward Caste

■ General

Poverty among Scheduled Castes in Karnataka is higher than in many other states SC population below poverty line, 2012 (%) 60 50 40

51

47

44

41

40

40

39 33

30

33

29

29

24

20

21

20

19

19

19

19

18

18

16

16

16

10

15

15

13

10 0

0 BH CG MN UP JH MP OD KA GA AI AS HR WB MH DL TN RJ

Low Income States are highlighted in orange, AI is All India.

1

16

June 20, 2017

JK

GJ SK KL HP NL

0

PJ UK AR AP TR MG MZ

Karnataka Social Inclusion

Striking differences in schooling levels between social groups in Karnataka Education attainment, 2012 (% adults) 46

Scheduled Tribe

36

Scheduled Caste

18

General 0

18

15

20

■ Illiterate

17

21

27

Other Backward Caste

19

18

18

25

15

40

13

54

40

60

80

100

■ Literate or primary school completed

■ Middle school completed

■ Secondary school or higher completed

Fewer salaried jobs for the Scheduled Tribes and Scheduled Castes in Karnataka Share of employed, 2012 (%) Scheduled Tribe

Scheduled Caste

23 40

48

59

18

12

■ Casual Wage ■ Salaried

Other Backward Caste

General

16

25 53 22

2

June 20, 2017

■ Self-employed

52 32

Karnataka Social Inclusion

More open defecation among the Scheduled Tribes and Scheduled Castes in Karnataka Households practicing open defecation, 2012 (%) 100

76

80

69 60

60 45

59 44

44

48

40 28 21

20

0 All

Scheduled Tribe

Scheduled Caste

■ Karnataka

Other Backward Caste

General

■ All India

Poor access to drinking water for most social groups in Karnataka Households with drinking water on premises, 2012 (%) 100

80

60

72 56

55

54 41

39

40

69

58

44

27

20

0 All

Scheduled Tribe

■ Karnataka

3

June 20, 2017

Scheduled Caste

Other Backward Caste

■ All India

General

Karnataka Health and Education 60 50

Health and education40outcomes in Karnataka have been improving; nonetheless progress could be faster. As for health, on the positive side, infant mortality is below the national average, 30 and declining. However, malnutrition is high among the lower income groups. And, nearly one in every two households in Karnataka defecates in the open, with open defecation being even 20 higher among the lower income groups. In education, secondary school completion is higher in 10 Karnataka than in many other states. And, learning outcomes have remained close to the national 0 average. Moreover, enrollment in private schools has increased after 2012.

Total Rural Urban Infant mortality has been declining in Karnataka Infant mortality rate Number of infant deaths per 1,000 live births 60

53

48

40

36

34

31

24

20

■ 2006

0 Total

Rural

■ 2013

Urban

Karnataka’s infant mortality is lower than in many other states Infant mortality rate, 2013 Number of infant deaths per 1,000 live births 60

50

46

40 31

30

18

20

10

9

10

21

22

24

24

31

32

32

35

35

36

26

26

PJ

TR KA WB AR UK HP MZ GJ

37

37

39

40

41

47

47

50

51

54

54

42

12

0 GA MN KL NL TN SK MH DL

Low Income States are highlighted in orange, AI is All India.

1

June 20, 2017

JK JH AP AI HR BH CG MG RJ UP OD AS MP

Karnataka Health and Education

Malnutrition in Karnataka is lower than the national average Stunting in children <5 years, 2014 (%) 50

47

40

30

20

27

19

21

28

28

29

29

32

33

34

34

34

35

35

36

35

37

38

39

41

42

42

43

49

50

43

31

31

PJ

TR JK MN UK HP KA WB AP MH RJ HR OD AI AS MP GJ MG CG JH BH UP

23

10

0 KL GA TN MZ SK AR DL NL

Low Income States are highlighted in orange, AI is All India.

Malnutrition is high among lower income households in Karnataka Stunting in children <5 years, 2006 (%) 70 58

60 50

60 53

54

48

44

47

49 38

40

41

30

25

25

20 10 0

All

Quintile 1

Quintile 2

â&#x2013; Karnataka Latest stunting data by wealth class available for 2006.

2

June 20, 2017

Quintile 3

â&#x2013; All India

Quintile 4

Quintile 5

Karnataka Health and Education

Open defecation in Karnataka is close to the national average Households practicing open defecation, 2012 (%) 100

80 68 58

60

40

34

30

20

0

0

0

0

1

0

1

2

4

7

12

16

16

16

17

35

35

39

42

44

61

Households practicing open defecation, 2012(%) 26

43

59

90

80 77

74

60 57

40

45

41

20 10

0 All

Quintile 1

Quintile 2

â&#x2013; Access and use of latrine

3

June 20, 2017

61

JK AP TN AI KA RJ MP UP BH CG OD JH

More open defecation among lower income households in Karnataka

23

74

45

Low Income States are highlighted in orange, AI is All India.

55

73

22

NL DL SK MZ MN TR KL MG GA AS AR PJ UK HR HP WB MH GJ

100

68

Quintile 3

Quintile 4

â&#x2013; Open defecation

Quintile 5

Karnataka Health and Education

Secondary school completion among adults in Karnataka is higher than in many states Secondary education attainment, 2012 (% adults) 70 62 58

60 52

50

47 38

40 30 20

18

21

24

24

25

25

25

26

26

27

28

30

32

32

32

32

34

40

39

41

43

43

48

43

34

10 0 TR OD CG BH WB RJ SK MP AS UP JH MZ GJ AR MG AI AP JK UK TN KA PJ MH KL HR HP MN NL GA DL

Low Income States are highlighted in orange, AI is All India.

There are gains in schooling for the young in Karnataka Education attainment, (% age 18-30)

Enrollment by age cohort, (%)

60 60

57

33

45

53

15-17

+23 77

+24

Age

30 30

+4

22

18-20

40 40

24

22

21

20 20

10 10

10 14

21-23

50 50

15

82

12-14

94

+12

18

11

9-11

95

6-8

94

97 92

+2 -2

00 Illiterate Illiterate

Literateoror Middle Literate Middle primaryschool school completed completed primary completed completed

Secondary Secondary andabove above and

â&#x2013; 2005

4

June 20, 2017

100 100

â&#x2013; 2012

80 80

60 60

40 40

20 20

00

20 20

40 40

60 60

80 80

100 100

Karnataka Health and Education

Public school enrollment in Karnataka is close to the national average Enrollment in public educational institutes, 2012 (%) 100%

80%

60%

40%

20%

0% TR BH AR AS OD WB CG JH MZ SK HP MP GJ

■ All education levels

JK UK AI DL KA MG TN RJ MH HR AP UP NL

● Elementary

● Secondary and above

Low Income States are highlighted in orange, AI is All India.

Enrollment in private schools increased in Karnataka after 2012, more for the rich Enrollment in public educational institutes, 2012 (%) 100

94 84

80

87

82 76

73

74

72

59

60

44

40 29

20

45

0 All

Quintile 1

Quintile 2

■ 2005

5

June 20, 2017

Quintile 3

■ 2012

Quintile 4

Quintile 5

PJ MN KL GA

Karnataka Health and Education

Learning outcomes of children in Karnataka are similar to the national average Children in Std V who can read Std II level text*, 2014 (%) 80

75

70

67

60 50 39

40 33

34

42

43

46

47

NL

SK AR UP TR

GJ

44

45

52

52

52

53

54

56

58

67

67

68

60

47

47

47

48

48

RJ

TN KA

AI

BH OD MZ CG WB MH AP MG UK KL MN PJ

34

30 20 10 0 AS MP JH

JK

Low Income States are highlighted in orange, AI is All India.

Learning outcomes have stagnated in Karnataka Children in Std V who can read Std II level text*, (%) 100

80

60

40

20

■ Karnataka

■ All India

0 2006

2007

2008

2009

2010

2011

*Data on learning outcomes available for rural areas only.

6

June 20, 2017

2012

2013

2014

HR HP

Technical Appendix

INDICATORS Demographics

DATA SOURCE

REMARKS

Population

Population Census, Registrar General & Census Commissioner, India

Urban Share

Population Census, Registrar General & Census Commissioner, India

Child Sex Ratio

Population Census, Registrar General & Census Commissioner, India

• Defined as the number of girls per 1,000 boys in the 0-6 age group.

Adults

Employment and unemployment surveys conducted by the National Sample Survey Office (NSSO)

• Individuals of age 15 years and above are classified as ‘adults’.

• The NSSO conducts employment and unemployment surveys once every 5 years. The most recent survey data is available for the year 2011-12.

Working age population not in school

Employment and unemployment surveys conducted by the National Sample Survey Office (NSSO)

• Individuals of age 15 years and above that are currently not attending any educational institutes

Poor

Poverty lines based on the ‘Tendulkar’ poverty lines published by the former Planning Commission of India

• Households whose monthly per capita consumption expenditure is below the poverty line are classified as ‘poor’.

• Poverty rate is the proportion of population that is counted as poor.

• The number of poor is calculated by applying poverty rates, estimated using NSS data, to population estimates.

Population for 1994 has been estimated by interpolating the 1991 and 2001 census population to January 1st of 1994. Similarly, population for 2005 has been estimated by interpolating 2001 and 2011 census population to January 1st of 2005. Population for 2012 has been estimated by extrapolating 2011 census population to January 1st 2012.

Census data have been interpolated/ extrapolated to noncensus years using the Compounded Annual Growth Rate (CAGR).

• The NSSO conducts consumption expenditure surveys once every 5 years. The most recent survey data is available for the year 2011-12.

• The population census is conducted once every 10 years.

The most recent population census data available is for the year 2011.

Poverty Poverty rate

Consumption expenditure surveys conducted by the National Sample Survey Office (NSSO)

Inequality Gini coefficient

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May 20, 2016

Consumption expenditure surveys conducted by the National Sample Survey Office (NSSO)

• The Gini coefficient measures the extent to which the distribution of consumption expenditure among households within an economy deviates from a perfectly equal distribution.

• Gini coefficient of 0 represents perfect equality, 1 implies perfect inequality.

• Gini coefficient is estimated using survey data on monthly per capita consumption expenditure. Expenditure is adjusted for price differences between rural and urban areas within a state using the Tendulkar poverty lines.

Technical Appendix

INDICATORS Welfare distribution

DATA SOURCE

REMARKS

Consumption expenditure quintiles

Consumption expenditure surveys conducted by the National Sample Survey Office (NSSO)

• Survey data on household consumption is used to estimate consumption expenditure quintiles within each state in India. Expenditure is adjusted for price differences between rural and urban areas within a state using the Tendulkar poverty lines.

Wealth Index quintiles

National Family Health Survey, Ministry of Health and Family Welfare

• Survey data on asset ownership is used to construct a ‘wealth index’ which forms the basis for estimating wealth quintiles within each state in India.

Real GDP/GSDP growth rate

Central Statistical Office (CSO)

Real GDP/GSDP per capita

Population Census, Registrar General & Census Commissioner, India

• 2014 All-India estimate of Gross Domestic Product (GDP) corresponds to the 2011-12 base year (new series). All other All-India GDP and state GSDP estimates correspond to 2004-05 base year and 2004-05 prices (old series).

• All estimates of GDP/GSDP are as of March 31st of the corresponding financial year. For e.g. the Real GSDP for the financial year 1993-94 is as on 31st March 1994.

• Population for the years 1994 to 2011 has been estimated by interpolating census population to March 31st of the corresponding year. For example, population for 2005 has been estimated by interpolating 2001 and 2011 census population to March 31st of 2005. Population for 2012 has been estimated by extrapolating 2011 census population to March 31st 2012. Census data have been interpolated/ extrapolated to non-census years using the Compounded Annual Growth Rate (CAGR).

• Growth rate of GSDP/ GDP across any two consecutive years is the simple growth rate. Growth rate over multiple years is the compounded annual growth rate (CAGR).

• Composition of 3 main sectors of the economy (i) Agriculture/Farm - Agriculture, forestry and fishing (ii) Industry - Mining, manufacturing, utilities, construction (iii) Services – Trade, transport, storage, communication, financial services, real estate, professional services • Components of GSDP growth rate represent the contribution of a sector to overall GSDP growth rate. This is estimated by the ratio of increase in value added in a sector to increase in overall value added and multiplying the ratio with the GSDP growth rate.

Income & Growth

Components of GSDP growth rate

Fiscal

2

Debt

Controller General of Accounts (CGA)

Fiscal Deficit

Reserve Bank of India (RBI)

May 20, 2016

• Debt is the government’s outstanding liabilities.

• Fiscal deficit is the difference between the total revenue and total expenditure of the government in the financial year.

• Both are expressed as a ratio of the nominal GDP/ GSDP (market prices).

Technical Appendix

INDICATORS

DATA SOURCE

REMARKS

Jobs Labor force participation rate

Employment and unemployment surveys conducted by the National Sample Survey Office (NSSO)

• Adult individuals are classified as part of the labor force if they are working (i.e. engaged in economic activity) or if they have been seeking work or have been available for work for a minimum of 6 months during the 365 days preceding the date of survey. This is otherwise known as the “usual status” definition of the labor force.

Workers/Employed/Number of jobs

Population Census, Registrar General & Census Commissioner, India

• Members of the labor force are classified as ‘workers’ if they are working (i.e. engaged in economic activity) for a minimum of 30 days during the 365 days preceding the date of survey. This is otherwise known as the “usual status” definition of the work force.

• The number of jobs/workers is arrived at by applying worker participation rates to population estimates. The ‘number of jobs’ estimate corresponds to the ‘number of workers’. • Population for 1994 and 2005 has been estimated by interpolating census population to January 1st of the corresponding year. Population for 2012 has been estimated by extrapolating 2011 census population to January 1st 2012. Census data have been interpolated/ extrapolated to non-census years using the Compounded Annual Growth Rate (CAGR).

• Job growth over a certain period is the compounded annual growth rate (CAGR).

• Classification of workers by sector (i) Agriculture/Farm - Agriculture, forestry and fishing (ii) Industry - Mining, manufacturing, utilities, construction (iii) Services – Trade, transport, storage, communication, financial services, real estate, professional services • Classification of workers by wage-type (i) Self-employed – Own account workers, employers and unpaid family workers (ii) Salaried –workers with regular salary (iii) Casual wage – workers with causal wages • The categories - ‘farm all’, ‘non-farm self’, ‘non-farm salaried’, ‘non-farm casual’ are a combination of the sector of work and the type of wage earned.

• A further disaggregated classification of workers by sector FARM – Agriculture/ farming CONS – Construction THR – Trade, hotels and restaurants MANU – Manufacturing PUB - Community, social and personal services TRAN - Transport, storage and communication FIRB - Financing, insurance, real estate and business services MINE+UTIL – Mining & quarrying + Utilities • Classification of workers by wage-type (i) Self-employed – Own account workers, employers and unpaid family workers (ii) Salaried –workers with regular salary (iii) Casual wage – workers with causal wages • The categories - ‘farm all’, ‘non-farm self’, ‘non-farm salaried’, ‘non-farm casual’ are a combination of the sector of work and the type of wage earned.

Job growth Workers by sector/wage-type

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May 20, 2016

Technical Appendix

INDICATORS

DATA SOURCE

REMARKS

Education Literacy Education attainment

Enrollment Public educational institutes

Learning: Children in Std V who can read Std II level text*, 2014 (%)

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May 20, 2016

Employment and unemployment surveys conducted by the National Sample Survey Office (NSSO)

• ‘Literate’ – includes those who have received both formal and informal schooling.

• Education levels explained (i) ‘Illiterate’ – individuals who are not literate. (ii) ‘Literate or primary school completed’ – includes individuals who have completed primary school as well as those are literate but have not completed primary school. (iii) ‘Middle completed’ – individuals who have completed middle school. (iv) ‘Secondary and above’ – individuals who have completed secondary schooling or any level higher. Includes individuals who have completed higher secondary, diploma or certificate course or a graduate, postgraduate or higher degree.

Employment and unemployment surveys conducted by the National Sample Survey Office (NSSO)

• Includes all those currently attending formal primary schooling and above.

• Public educational institutes include those that are run by the state/ central governments or by local bodies. This excludes any kind of privately owned and run institutes including private aided institutes.

Annual Status of Education Report (ASER), Trends over time 2006-2014, ASER Centre/ Pratham

• Data available for rural areas only

Technical Appendix

INDICATORS

DATA SOURCE

REMARKS

Health Maternal mortality ratio

Sample Registration System, Registrar General & Census Commissioner, India

• Maternal mortality ratio is derived as the proportion of maternal deaths per 1,00,000 live births reported.

• Data for 3 years is pooled to enhance sample size and yield more reliable estimates.

• For states split after the year 2000, i.e. Bihar and Jharkhand; Uttar Pradesh and Uttarakhand; Madhya Pradesh and Chhattisgarh, MMR is estimated jointly.

Infant mortality rate

Sample Registration System, Registrar General & Census Commissioner, India

• Infant mortality rate is the number of infant deaths (children aged 1 year or less) per 1,000 live births.

Malnutrition: Stunting

National Family Health Survey (NFHS), Ministry of Health and Family Welfare

• ‘Stunting’ defined as percentage of children below age 5 who are short for their age.

• Data for 2006 is from the NFHS and for 2014 is from the RSOC. Though both provide stunting estimates for children below age 5 the numbers for 2006 and 2014 may not be strictly comparable due to differences in survey methodology.

Rapid Survey on Children (RSOC), Ministry of Women and Child Development

Infrastructure & Amenities Electrification

Consumption expenditure surveys conducted by the National Sample Survey Office (NSSO)

• ‘Electrification’ defined as the proportion of households using electricity as primary source of energy for lighting.

Road density

Basic Roads Statistics, Transport Research Wing, Ministry of Road Transport and Highways

• Road density has been defined as road length per million people and road length per 1,000 sq. km.

• Road length estimates correspond to ‘total road length’ data published in the Basic Roads Statistics report.

• Population for 2005 has been estimated by interpolating 2001 and 2011 census population to January 1st of 2005.

Population for 2012 has been estimated by extrapolating 2011 census population to January 1st 2012. Census data have been interpolated/ extrapolated to non-census years using the Compounded Annual Growth Rate (CAGR).

• Land area estimates have been taken from the Registrar General & Census Commissioner, India.

Drinking water on premises

Survey of drinking water, sanitation, hygiene and housing condition conducted by the National Sample Survey Office (NSSO)

• The most recent survey data is available for the year 2012.

Open defecation Access to latrine

5

May 20, 2016

Technical Appendix

LABEL Data labels

29 STATES AND ALL INDIA

LABEL

SOCIAL GROUP

ST SC OBC General

‘scheduled tribe’ ‘scheduled caste’ ‘other backward class’ ‘others’

(7 ‘low income states’ highlighted)

AI AP AR AS BH CG DL GA GJ HP HR JH JK KA KL MG MH MN MP MZ NL OD PJ RJ SK TN TR UK UP WB

All India Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Himachal Pradesh Haryana Jharkhand Jammu & Kashmir Karnataka Kerala Meghalaya Maharashtra Manipur Madhya Pradesh Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttarakhand Uttar Pradesh West Bengal

Adjustments for split states In the year 2000, 3 large states namely, Bihar, Madhya Pradesh and Uttar Pradesh were each split to form two states each.

Jharkhand, Chhattisgarh and Uttarakhand were the 3 new states created. The NSSO survey data allows us to separately estimate variables for ‘split’ states, enabling us to construct a consistent and comparable series of variables for the pre-split and post-split period.

A consistent and comparable series for population and growth data is not available. Specifically - 1991 population census data for ‘split’ states is not available and GSDP series for ‘split’ states is only available for years after 2000. In order to create a consistent population series, the 1991 population estimates for the parent state have been divided in a way that mirrors the relative shares of the new states’ population in the parent state population in 2001.

In order to create a consistent GSDP series, pre-2000 GSDP figures for the parent state have been divided in a way that preserves the relative shares of the new ‘ GSDP in the parent state GSDP for a ten year period after the year 2000.

In the year 2014, the state of Telangana was carved out of Andhra Pradesh (AP), with the remaining portion of AP retaining the name of the parent state. Separate estimates for Telangana have not been published in the States Briefs. All state-level estimates for Andhra Pradesh correspond to AP and Telangana combined.

6

May 20, 2016