Dr. E.V. Ramana Reddy, IAS (Retired), currently chairs the Karnataka Skill Development Authority (KSDA) within the Government of Karnataka. With over three decades of experience in various pivotal sectors like agriculture, commerce, and IT, Dr. Reddy has been instrumental in shaping policies and initiatives that have elevated Karnataka’s global standing. His recent speech, where he highlighted key issues and opportunities related to skill development in the state, offers deep insights into his transformative leadership.

India’s Economic and Demographic Landscape

Dr. Reddy began his address by presenting the current state of India’s economy and its demographic profile. India, with a population of 1.44 billion, is the fastest-growing large economy in the world. In the last financial year (2023-2024), India achieved a 7% GDP growth rate, and for the current year, it is projected to grow at 6.5%. India is now the world’s fifth-largest economy, with aspirations to become the third-largest in the near future.

Demographically, India holds an enviable position. More than 54% of its population is under 25 years old, and 64% of the populace is in the working-age group, making India one of the youngest countries globally, with an average age of just 28.7 years. However, while India’s overall growth is impressive, the distribution is uneven, leading to significant inequality across regions. Furthermore, unemployment, which stands at 8% nationally, is a critical challenge.

Karnataka’s Contribution to India’s Growth

Karnataka, Dr. Reddy highlighted, plays a vital role in India’s economic success. The state contributes approximately $330 billion to India’s GDP, excelling in various areas such as direct taxes, GST, and exports. Karnataka ranks consistently within the top three Indian states in these metrics. The state is especially known for its prowess in IT, biotechnology (BT), research and development (R&D), and innovation. For the past three years, Karnataka has topped India’s Innovation Index. Bangalore, its capital, exports 42% of India’s software, hosts 40% of the country’s unicorn startups, and contributes 33% to India’s bio-economy.

The city also accounts for 15% of India’s electronic exports and has become the fourth-largest technology cluster globally, with over 400 Fortune 500 companies headquartered there. Additionally, Bangalore attracts more venture capital than any other Indian city, cementing its status as the country's leading tech hub.