Economic and demographic indicatorsAlso A Head For Numbers . Outlook India. 16 July 2007Parameter Southern states of IndiaNationalPer capita net state domestic product (SDP)₹234712.16 (US$3,200)₹162416.60 (US$2,191)Percentage share in total FDI approved (1993–2003)5.484.12Average annual growth of SDP5.63.6Percentage of population below poverty line15.4129.10Percentage of urban population (%)35.8223.81Percentage of households with electricity (%)98.91%67.4Literacy rate82.8775India . World Factbook. Central Intelligence Agency. 20 March 2008
The economy of South India after independence in 1947 conformed to a socialist framework, with strict governmental control over private sector participation, foreign trade and foreign direct investment (FDI). Through 1960s–1990s, South Indian economies experienced mixed economic growth. In the 1960s, Kerala achieved above-average economic growth, while Andhra Pradesh's economy declined during this period. Similarly, Kerala experienced an economic decline in the 1970s while the economies of Tamil Nadu, Andhra Pradesh, and Karnataka consistently exceeded national average growth rates after 1970. South India first started to overtake the rest of India economically in the 1980s. Andhra Pradesh, Tamil Nadu and Karnataka were noted by some to be more reform-oriented in terms of economic policy when compared to other Indian states. Over the last decade South India has grown at 8% annually. Future savings may be negatively impacted by a growth in an aging population in South Indian states, as the aging population will require more money for healthcare expenses. However, this will not severely impact state domestic product as India's overall population is also expected to decline. Today, South India has about 20% of India's population, and contributes about 31% of India's GDP; it is projected to contribute 35% by 2030.
Over 48% of South India's population is engaged in agriculture, which is largely dependent on seasonal monsoons. Some of the main crops cultivated in South India include paddy, sorghum, pearl millet, pulses, sugarcane, cotton, chilli, and ragi. Areca, coffee, tea, vanilla, rubber, pepper, tapioca, and cardamom are cultivated on the hills, while coconut grows in abundance in coastal areas. The region is the most industrialized in the country with the city of Bengaluru, deserving its place as the IT Hub of India and having the highest no of software companies country-wide. Information Technology is a growing field in South India with Bengaluru home to over 200 software companies. Three of the country's top software exporters,Bengaluru, Chennai and Hyderabadare located in South India. Economic IndicatorsParameter Andhra PradeshKarnatakaKeralaTamil NaduTelanganaSouthern states of IndiaAll IndiaPer Capita Income By States (PCI) (2025–26)$4,031$5,248$4,780$5,437$5,721$4,903$2,818 Gross State Domestic Product (2025–26)₹18.30 lakh crore (US$216 billion)₹30.70 lakh crore (US$360 billion)₹14.27 lakh crore (US$167 billion)35.67 lakh crore (US$420 billion)₹18.00 lakh crore (US$210 billion)₹116.94 lakh crore (US$1373 billion)₹357.14 lakh crore (US$4.2 trillion)
Andhra Pradesh
Visakhapatnam district leads in Industrial sector and Service sector, which contributed and respectively. The per capita income of the state for 2014–15 was $$1,780.47
Agricultural sector is one of the chief sector contributing to the economy of Andhra Pradesh. Two important rivers of India, the Godavari and Krishna, flow through the state, which provide fertile soil favourable for agriculture. The state is the main producer of Rice and hence, it is also known as Rice Bowl of India. Poultry is another sector in the state contributing to the economy of the state. The state is a leading egg producer and also nicknamed as Egg Bowl of Asia.
The state has also started to focus on the fields of Information technology and Biotechnology. Cities such as Visakhapatnam and Vijayawada have shown growth in IT exports. During 2012–13, the contribution of Visakhapatnam was while it was for Vijayawada. This is a chart of trend of gross state domestic product of Andhra Pradesh at market prices by Ministry of Statistics and Programme Implementation with figures in crores of Indian Rupees. Accordingly, the state ranks fourth in terms of overall gross state domestic product and fourth in per capita gross state domestic product among the major states of India.
Karnataka
Karnataka's net state domestic product is of $4 billion. Bengaluru, Mysuru, Mangaluru & Hubballi-Dharwad are the major contributors, Belagavi & Kalaburagi are the other important cities contributing to the economy of Karnataka. Between 1992 and 2002, Karnataka attracted the fourth highest total Foreign Direct Investment approvals in India, to the tune of Rs. 21,566 million. Karnataka accounts for one third of India's Information technology exports. For the year 2006, the state is expected to bring in 37% of all IT revenues amounting to Rs. 370 billion ($8.2 billion). Nearly 35% of IT companies and 40% of bio-technology companies are based here. Agriculture in Karnataka, like most of India, employs 80% of the population. Agriculture and its allied activities account for 49% of the state's income. The coastal plains of Karnataka, which include Uttara Kannada and Dakshina Kannada are cultivated with rice and sugarcane. Coffee and Tea are also grown on the slopes of the Western Ghats in the district of Kodagu, Chikkamagaluru and Hassana. Karnataka produces 70% of India's coffee, of which about 50% is exported. The black soil in the northwest of the state, is hospitable for the growth of cotton, onion, course cereal, sunflower and peanuts.
The forests of the Malenadu region produce timber, bamboo and sandalwood. Karnataka is the only exporter of sandalwood in the country. Most of the world's sandalwood oil is produced in Karnataka. All of India's gold comes from the Kolar district of Karnataka. Karnataka is also rich in minerals which form the bulk of the raw materials for iron and steel industries in the state such as the one at Bhadravati. All of India's Iron ore comes from the Malnad region. The first power station in Asia was set up in Karnataka at Shivanasamudra in 1902 to produce hydroelectric power. Karnataka has 18 power stations which generate annually 16,513 million units. The state, however generates insufficient power and is forced to buy electricity from neighbouring states.
Mangaluru
One of the biggest business centres & the fastest growing cities in India. It is the best city to do business, after the capital Bengaluru in Karnataka. It is the major & the fastest growing city in Karnataka only after Bengaluru. It is the largest city in the Coastal and Malnad regions of Karnataka, besides being a leading commercial, industrial, educational, healthcare and petrochemical hub on the West Coast. It is also the 13th best business destination in India and 2nd best in Karnataka. One of the largest SEZ's in India, the ONGC MSEZ is in Mangalore. The way in which the city is growing can be gauged by pace of growth of real estate industry. Mangalore's economy is dominated by the industrial, commercial, agricultural processing and port-related activities. Karnataka's 2nd biggest industrial area-Baikampady is in Mangalore. The New Mangalore Port is India's seventh largest port, in terms of cargo handling. It handles 75 per cent of India's coffee exports and the bulk of its cashew nuts. The city's major enterprises include Mangalore Chemicals and Fertilizers Ltd. (MCF), Kudremukh Iron Ore Company Ltd. (KIOCL), Mangalore Refinery and Petrochemicals Ltd. (MRPL), BASF, Bharati Shipyard Limited and TotalEnergies India Limited (ELF Gas). Mangalore is one among the only 5 cities in the country to have both a Major Port and an International Airport. Mangalore also has an IT Park called Soorya IT Park in Mudipu. Mangalore is also home to the National Institute of Technology, Karnataka. Major information technology (IT) and outsourcing companies like Infosys, Cognizant Technology Solutions, MphasiS BPO, Thomson Reuters, Endurance International Group have established a presence in Mangalore. Plans to create three dedicated I.T. parks are underway, with two parks (Export Promotion Industrial park (EPIP) at Ganjimutt and Special Economic Zone (SEZ) near Mangalore University) currently under construction. A third IT SEZ is being proposed at Ganjimutt. Another IT SEZ, sponsored by the BA group, is under construction at Thumbe and spans 2 million square feet (180,000 m2).
The Oil and Natural Gas Corporation (ONGC) plans to invest over ₹35000 crore (US$5.15 billion) in a new 15 million tonne refinery, petrochemical plant and power, as well as LNG plants at the Mangalore Special Economic Zone. Indian Strategic Petroleum Reserves Ltd, a special purpose vehicle under the Oil Industry Development Board, is developing strategic crude oil reserves in Mangalore and two other places in India. Out of the proposed 5 million metric tonnes (MMT) storage, 1.5 MMT would be at Mangalore. According to an International edition of India Today (28 November – 4 December 2006), Mangalore is the fastest growing non-metro in South India.
Corporation Bank, Canara Bank, and Vijaya Bank were the three nationalised banks established in Mangalore during the first half of the 20th century. Karnataka Bank, founded in Mangalore, was one of the largest banks to have not been taken over by the Government. The Mangalore Catholic Co-operative Bank (MCC Bank) Ltd. and SCDCC Bank were the scheduled banks established in Mangalore. Mangalore city is one of the best connected cities in South India with 4 National Highways (17,48,13 & 169; all old numbers), apart from other roadways, railways, waterways and airways. Udupi the temple city is contributing towards the higher education with large number of professional colleges in Manipal. It is also the home of the software company Robosoft Technologies.
Hubballi-Dharwad Hubli-Dharwad is the second largest city in Karnataka, in terms of area and population, and is one of the 49 Metropolitan clusters selected by McKinsey & Company as growth hotspots in India. It is also a major city in terms of Administration, Business and Commerce in Karnataka after Bengaluru and Mangalore. It is the nerve centre for North Karnataka region. It is the fastest growing city after the capital, Bengaluru and the port city Mangalore. It is the Headquarters of South Western Railway, and the Hubli Division of SWR is one of the highest revenue generating railway divisions in India. The High Court of Karnataka is situated at Belur in Hubli-Dharwad, it also has the largest number of government offices outside Bengaluru. The Agriculture Produce market at Amargol in Hubli is one of the largest markets in Asia and the cotton market is among the largest cotton markets in India. The city is a major industrial centre, the railway workshop set-up in 1880 is one of the oldest workshops in India and is also the largest holder of EMD locomotives of Indian Railway, the city is home to Tata Motors, Marcopolo, Hitachi Construction Equipment, Telcon, Sankalp Semiconductors etc. Infosys is about to start its operations from Hubli with a campus of over 50 acres. Hubli, also known as Hubballi, is the second major city of Karnataka. The city has a huge Maharashtrian's effect on it. It was ruled by Marathas and Peshwas for a long time. In old times, Hubli used to be a business centre and it grew some useful things for trade such as cotton, peanuts and chilly.
The city is also named as chhota Mumbai and resides 550 km from Mumbai. It is a fast growing city and turning into a technology hub. It is also being seen as an alternative to Bengaluru. Hubli is often known combined with Dharwad, a nearby city. The importance of these two cities can be understood by the fact that they have been recently selected by Indian Government for the smart city project.
Mysuru