ECONOMIC DEVELOPMENT OF KARNATAKA A TREATISE IN CONTINUITY AND CHANGE (1980)

There has been a significant change in the approach to and the strategy of planning where in regional planning gained importance with reference to integrated development between different sectors of the economy, highlighting the social and economic conditions of a region. The book, in two volumes, attempts to trace the past, indicates the present level of development and discusses the future prospects.

Today, Karnataka is the most advanced state in the Indian Union. Its progrees has been remarkable during the planned development of the economy and small wonder that it is considered as the model state in the country. An attempt is made here to give a comprehensive account of the planned development. After a brief introduction, the second chapter attempts to identify the present level of development to assess the resource endowment of the state for economic development. The third chapter provides a concise history of the economic conditions of the people of the state from the very early times to the present. Against this background, the subsequent chapters give a detailed account of sectoral developments and the last chapter tries to set out a plan for the future. The book also analyses the resources endowment of the state and a plan for future is provided with a large number of suggestions. This profile sets a model to other states also.

Sectors like agriculture, horticulture, fisheries, animal husbandry, irrigation and power, industries, sericulture, forestry, communications, banking and cooperation, education and social services, tourism, famines and droughts, integrated rural development, other special programmes. Western Ghats development planning, planning for development, planning for employment are also discussed in different chapters.

This is the first attempt to present a comprehensive account of the regional economic profile of Karnataka. The book will be of use not merely to readers in Karnataka but also to those in other parts of India who are interested in regional planning.

The need for regional planning has of late been well realised in India, as in other parts of the world. Regional planning, an approach to plan philosophy and strategy, with an ultimate goal of strengthening the national economy, interalia, the integrated development of the different sectors of the economy, basically involves the preparation of a thorough integrated plan, incidentally complex in nature, encompassing the multidimensions of the particular region, like physical, economic and social components, particularly highlighting social and economic conditions of the region. This work 'Economic Development of Karnataka—A Treatise in Continuity and Change' essentially endeavours to present such a regional economic profile of Karnataka which is a progressive State in the peninsular India. While presenting the past economic trends as reflected in various sources of history and other documents, an attempt is made in this work to discuss a detailed inventory of resources for development, to identify the present level of development and finally to provide suggestions for future development of the Karnataka State. This is the first attempt in the country to present in all comprehensiveness the regional economic profile of a State.

Two important factors weigh while considering the regional planning, like the needs of the particular region and the resources available for harnessing them for the most effective results of the desired objectives to sustain the economic development. Economic planning involves strongly organised control over almost every aspect of economic life. It is proved beyond doubt that planning is an inseparable feature of the socialistic system of production. Planning is linked to policies for the current management of the economy and to those governing medium and long-term development. The main objective is to blend these different time spans into a well considered scheme of national endeavour with a clear perspective of the desired changes in the economy for the ultimate betterment of society.

The term 'planning' may be defined as the conscious and deliberate choice of some economic priority by some public authority. Keeping this in view, the country had launched the planning concept during 1951 and the purpose of the First Five Year Plan was to strengthen the economy at the base and to create conditions of sufficiency and even plentitude in respect of food and raw materials.

The plans of India have been accredited by reputed economists, as the "best in the world." So far as the methods of formulation are concerned, this credit should largely go to Karnataka State which realised the need for planning long before the birth of Five Year Plans in the country. In fact, Karnataka was the first State to formulate and adopt economic plans. The Engineer-Statesman Sir M. Visvesvaraya's role in the Mysore Economic Conferences during the period of his Dewanship and his later contributions including "Reconstructing India," his schemes for the development of small scale and cottage industries and such other works of eminence are all worthy of mention. Planning has become a pivotal concept in the achievement of economic and social change in India. The Bombay, Plan, The People's Plan and the Gandhian Plan for Post-war Reconstruction gave wide public acceptance to the notion of planning. The late Prime Minister Pandit Jawaharlal Nehru has said that "Planning meant proceeding with a variety of individual activities with some definite, ordered picture of the future." Though the development of the economy has been impressive over the past quarter century of planning in the country, unfortunately, the distribution of benefits of this development has been uneven to the detriment of the vulnerable sections. Developmental planning is a calculated effort to remove the impediments to economic, social and cultural growth. To achieve these ends, planning comprises of the essential features of rational arrangement of economic resources, pre-determined and well defined objectives, objectives to be achieved within a given interval of time and control of the resources by the State.

A plan for the economic development of a country or a State may be defined as an orderly arrangement of the most effective technique of utilising its resources available and the potentialities prevailing in accordance with an accepted pattern of priorities, principles for increasing production and securing the community higher levels of living. The need for planning may be for utilising the available resources to attain optimum result for social equality, for strengthening political power of the country, for improving the economic and living conditions of the ever-increasing population for distributing the scarce capital on priority. One of the most important objectives of planning in India is that prosperity should, as far as possible, be evenly distributed amongst all parts and all people of the country. Hence, the strategy of Central as well as State plans, has been adopted to ensure balanced regional development. Therefore, the concept of regional planning has come to stay. In such a type of planning, a number of steps can be taken in the short-run to bring about better coordination among the various programmes for the weaker sections in the rural areas. It is also possible to indicate steps towards coordination of various programmes with other developmental programmes of the plan.

The State of Karnataka occupies a unique position in the Deccan Plateau. The State is "fascinating and lovable" and is "one of the earth's magic regions." In his book "A Tour in the Mysore State," Mr. C. E. Parsons describes: "It is a land whose preeminence in so many matters continuously demands superlatives possessing as it does the world's greatest and most commandingly situated stone statue; waterfalls of almost unchallenged height and beauty; mighty peaks, primeval forests, noble rivers, unforgettably lovely scenery, temples whose unrivalled delicacy of carving and mastery of design still stand to witness to the devotion and the art of eight centuries ago; and art which to this day informs the chisels of Mysore's world famed workers in sandalwood and inlaid ivory work.... It is a land saturated in legends, teeming with romance, where diabolical cruelty met greathearted coinage, and where through ten centuries men of widely differing creeds and nationalities have left us examples of marvellous skill, of magnanimity and self-sacrifice, of utter devotion to the faith they held and a passionate quest for ultimate good, for the solution of life's many mysteries, for the end of all desires."

Lewis Rice writes that "In every department of the natural world, Mysore may claim pre-eminence. She yields by far the most gold of any country in India. ... She is the peculiar house of the sandal and of the teak; a special banet of the wild elephant; rears a superior breed of horned cattle, supplies as the staple food of her people, the nutrient gram, ragi was the cradle in India, and is still the chief garden for coffee cultivation." Mahatma Gandhiji while appreciating about the work done in the State writes that: "Mysore State brings the crowded memories of all that is noble and romantic in benevolent monarchy. During the British regime, Mysore State was regarded as the best administered of all the constituted units of India." Prof. Galbraith writes in his memoirs: "Mysore is perhaps the last place where one could see the splendours of oriental royalty. The State has solidly contributed towards the making of a new India, thanks to the unceasing interest of its Ruler in the welfare and prosperity of his people, thanks to its Dewan, and thanks also to the alertness, capability, and willingness of its officers." A Bombay weekly writes about the industrial progress of the State as: "Mysore State continues to maintain its reputation as a premier State under the beneficent rule of an enlightened prince."

By looking at the progress of the State, it was observed as early as 1938 that: "The State of Mysore is making amazing progress in its industrial and economic life.... Endowed by nature with very valuable resources and raw materials needed for industrial development. . . .it is endeavouring to become the Birmingham of India. Towards that great object it is making steady and notable progress." Writing about the industrial development, Sir M. Visvesvaraya states that: "If industrial development is carried on by agreement in spirit and principle between the government and the people, savings which now are hoarded may be mobilised for financing industries by opening branch banks all over the country." "A planned economy is required to ensure the rapid advance of industry, agriculture, commerce, finance and particularly for increasing production and earning power, reducing unemployment and encouraging self-sufficient and closer interdependence between various parts of India. It should provide for the profitable utilisation of material resources and manpower of the country and the application of the latest inventions and discoveries of economic interest to the fullest extent."

Ruled by the various royal dynasties, the State had a glorious past. The culture of the State is an expression of the rhythm in nature and its varied manifestations like art and architecture, music, painting and dance; and these were modes by which the artist established his kinship with infinity. The ravages of history did leave a deep scar on the economy of the State. The Kannada speaking area, called 'Kannada Nadu' covered the geographical area in between the rivers Cauvery and Godavari; which through the times of history was broken into bits and pieces duly attached to the neighbouring States leading to the economic backwardness of these places. There was a popular demand of over a century to bring these Kannada speaking regions under a common sway with a view to see that the necessary justice is done to those areas in all spheres like cultural, social and economic. The undaunted struggle of the Kannadigas yielded the desired fruits resulting in the unification of Karnataka on 1st November, 1956. The credit of the unification of Karnataka goes to the social reformers and also the political leaders. Stress was laid on renaming the State as 'KARNATAKA' as its history, culture and wishes of the representatives of the people gave a new orientation. The State was renamed as 'KARNATAKA' on 1st November, 1973.

Today, the Karnataka State is the most forward State in the Indian Union. Especially, the progress has been remarkable during the planned development of the economy and is considered as the model State in the country. Much has been achieved since the formation of the new State and the plans have been designed to achieve greater tempo of development and to carry the State forward towards greater prosperity. An attempt is made here to give a comprehensive account of the planned development. The under-developed areas are faced by the problems of the alarming rates of unemployment, mass poverty and illiteracy of the people. These are the major factors contributing to widen the economic disparities in the region. Therefore, the main objectives of planning should be to remove these maladies with a view to help the bulk of the rural population. The development of a region mainly depends on effective use of its natural, capital and human resources. To tackle this problem, the preparation of a result-oriented plan of development is to be regarded as the first of a series of concerted steps aimed at solving the deep-rooted economic and social problems through rapid and sustained economic growth. Such a developmental plan will achieve success only if there is proper response from the people.

In recent years, emphasis has been laid on for the removal of unemployment, elimination of extreme poverty and provision of basic goods and services. In such a context, the major objectives should be fulfilling the basic socio-economic needs, ensuring maximum development of human resources and achieving greater social justice through more equitable income distribution. For such a type of activity rapid economic development on a planned basis is the only ultimate objective. Such a regional profile of Karnataka is presented here to highlight the planned development of the economy—past, present, and future—in the various spheres of economic activity. C. E. Parsons said about this region as early as 1930 that: "And if Mysore, with her aptitude for looting the hearts of everyone inevitably steals our hearts she does at least give us in exchange countless enduring memories of scenery that is lovely, art that is exquisite and a people who not unworthily inherit traditions of honour and bravery, of devoted service and of loyalty to the uttermost."
 
 This work, as said in the introductory paragraph, is an attempt to present comprehensively the economic development of Karnataka—A State which has many firsts in its history of economic development. This work in two volumes is in twenty-five chapters. Being a treatise in continuity and change, these volumes attempt to serve the purpose of a tapestry of the economic trends in Karnataka—their past, present and future.

The first three chapters set the background. After a brief introduction in which the scope of the book is presented, an attempt is made to identify the present level of development and to assess the resource endowment of the State for economic development. The Third Chapter is an exercise in history of the economic conditions of the people of the State from the very early times till the present time. The economic conditions of the people as reflected in various historical records, documents and studies are analysed in this chapter. After a plethora of detailed accounts of sectoral developments in the succeeding chapters, this work tries to set out a plan for the future. In analysing sectoral developments, under each developmental sector, an attempt is made to go back as far as possible to trace its trend with a view to provide a setting to the chapter. Thereupon, the present level is discussed, resources are analysed and a plan for future, is provided with a large number of suggestions, which, it is hoped, would provide guideline for planning in the years to come. Being a very comprehensive treatise, this regional economic profile is hoped to set a model not merely for the State of Karnataka but for other States who are interested in such profiles. From Chapter Four onwards, sectoral developments are discussed.

Agriculture sector accounts for nearly 60 per cent of the total domestic produce and there is immense scope for agricultural development. In recent years, new technology is being adopted and efforts are being made to bring about integrated development of crop production, livestock and poultry, fisheries, and forestry and simultaneous improvement in different fields. A number of measures have been initiated for the supply of credit and inputs. To cater to the needs of the small farmers, the State Government has extended the programmes of SFDA to all the districts of the State. Previously, these were being implemented in ten districts of which eight districts were centrally sponsored and the remaining two were state sponsored. During the year 1978- 79, the programme has been extended to the remaining nine districts of the State. These agencies function to better the lot of the poor by means of beneficiary approach for their economic upliftment.

With the assistance of the World Bank, the agricultural extension and research project is being implemented. This is to train the workers at the grass root level. Agriculture development should be taken up scientifically and the inputs required should be made available to the farmers at cheap rates and within a reasonable period of time. There should be proper coordination in the agrarian structure. A sound agricultural policy will have to be evolved.

In the State, the agro-climatic conditions are favourable for the development of horticultural crops. Sufficient infrastructural development has taken place in this sector by the establishment of farms and nurseries. Still, there is scope to establish the farms and nurseries in some of the taluks where these facilities are not existing at present. The programme would also help to increase the employment opportunities. The rich and abundant natural resources will have to be exploited to the maximum extent. In the cooperative sphere a number of processing units can be established.

It is proposed to take up horticultural development with the financial assistance of the World Bank and under this project it is proposed to establish ten processing units, five large and five small, and 12 dehydration units. In each of the district, Horticultural Cooperative Marketing and Processing Society will be established to deal with the aspects of marketing and processing. The waste lands could be made use of for dry orcharding. Lot of progress has been made under the horticulture and considering the vast resources of the State, there is abundant scope for horticultural development.

Both the coastal districts of the State have rich fisheries potential. In addition, there are innumerable irrigation wells and quite a few private ponds suitable for fish culture. The exploitation of these resources has to be taken up scientifically. The necessary infrastructure has been built. In spite of these, the State's resources have not been tapped to the desired extent. The development of inland fisheries has to be taken up effectively for producing required fish seeds. There is need to strengthen training and research activities. To cater to the marketing needs it is necessary to have fishermen's cooperatives and also to strengthen the existing cooperatives. The credit and marketing activities will have to be linked and such an organised effort will lead to better methods of production, handling and distribution. The Karnataka State Fisheries Development Corporation has been established and as a result, there has been an increase in the number of activities.

The major activities of animal husbandry development relate to dairy, sheep, piggery and poultry. There has been a change in approach and emphasis has been laid to link production with processing and marketing. The State has a vast network of veterinary institutions and proper care has been taken to provide livestock health coverage. It is necessary to organise the Small Farmers Service Societies to take up the responsibility of input supply and output management along with providing technical and financial assistance.

In order to take up intensive livestock production programme, a programme has to be drawn up minimising wastage, utilising nutritive fodders and to enhance food value in order to increase feed resources. A realistic approach has to be adopted for increasing the productivity. There is need for building up an efficient veterinary public health and also coordination of the various activities for the systematic development of the livestock programme.

The State has achieved remarkable results in the field of irrigation and even during planned development of the economy highest priority has been given for irrigation development. Proper management of land and water resources is a necessity in a country like India where agriculture is the mainstay of the economy. Completion of water courses till the last survey number is an important aspect of the development of ayacuts. The farmers should be educated in the adoption of the latest technology. Though the potential has been created, still it has not been utilised to the maximum extent. This is one of the important factors restraining the agricultural output. We have to think in terms of giving highest priority for the irrigation under wells and other small works. The investment will have to be spread. There is the need to take up small works like the construction of new wells, restoration of old tanks, boring of wells, installation of persian wheels, installation of electric pumpsets on wells or streams, installation of diesel pumpsets on wells and streams and small drainage embankments. There is also need for exploitation of groundwater resources and the efficiency of its exploitation is usually much higher than that of the surface flows. It should be the responsibility of the Central Government to finance the projects costing more than Rs. 10 crores. The medium and minor works have to be taken up only when they are proved to be economically remunerative. Such a National Policy will have to be evolved.  The prosperity of a region mainly depends on the adequate supply of power.

The State has been a pioneer in generating hydro-electric power as the first hydroelectric station was established at Shivasamudram in 1902. Power development has also been given priority along with irrigation. A number of projects have been taken up for power development. It may also be possible to increase the installed capacity of the west flowing rivers. There is the imperative need for the State to develop expeditiously its existing hydro-electric potential.

While planning for power development, both power generation and distribution have to be thought of simultaneously. With a view to ensure the speedier implementation of the projects, the Mysore Power Corporation was set up. The Karnataka Electricity Board is thinking of setting up a coal-based thermal station at Mangalore and Raichur. To overcome the problems of power shortage, there is need to have sufficient advance planning, project preparation and monitoring. The development of industries and agriculture could be thought of only by increasing the State's power potential. About 5,000 mW of hydro-power potential is yet to be taken up for exploitation. Karnataka has made remarkable progress in the sphere of industrial development. With a view to have a sound industrial base, the plan stress was laid on balanced industrial development. Priority has been given for the promotion of small scale industrial units. The Government has provided a number of facilities. While taking up the industrial activities, special consideration has to be shown to the special needs of the backward areas. In these areas, growth centres need have to be set up and financial and technical assistance has to be provided.

Emphasis has been laid on the modernisation and expansion and also on the diversification of the existing units to make them economically viable. The difficulty is with regard to the availability of power. If power is made available, a large number of medium and small industries could be taken up. A number of forest-based industries could be set up by utilising the rich forest wealth of the western ghats region. Equal importance should also be given for the agro-based and mineral-based industries. In regard to the industrial development of the State, even during 1940s, it was stated by the illustrious ruler of the State that: "We have from the commencement been giving special attention to the revival of industries and the promotion of industrial and technical education in the State and you can well understand how gratified and interested I feel on hearing of what is being done towards the same object in this part of India. There has been an awakening all over this great continent regarding the urgent need that exists for recovering our lost ground in the matter of industries and commerce and all those who take a true interest in the well being of the country cannot but rejoice at the signs of revival that are noticeable on sides." Industrial sector is the major factor in the development of the economy and there should be a definite industrial policy for licencing to promote industrial growth which can be used as a powerful instrument. Efforts have to be made to have a sound industrial base for the economic development of the State.

Karnataka accounts for 85 per cent of the entire silk production in the country. The climate is also suitable for silkworm rearing and there is scope to achieve a breakthrough in silk production by making use of the available resources. With a view to developing this industry, finance of the order of over Rs. 100 crores is necessary and some assistance of the World Bank is sought. The main strategy is to increase the area under mulberry under irrigation, to adopt package of practices, to replace the local variety of mulberry with improved variety etc. Infrastructure will be built up for the development of sericulture. There is vast scope to take up tussar silk in the western ghats region. There is need for extensive training and research in the field. The State has very rich forest potential and nearly 50 per cent of the same is in the western ghats region. There is vast scope for setting forest-based industries by utilising this produce. There is need to formulate a firm and positive forest policy for forest grazing. Recreational and tourism values of forests should be recognised and developed. In the drought prone areas there is the need to establish forest banks. The State Government has set up two corporations viz., Forest Plantation Corporation and Forest Industries Corporation. The main object of the Plantation Corporation has been raising of forest plantation on a large-scale. The Forest Industries Corporation was established with the main object to exploit the forest resources for better utilisation and to popularise the lesser known species by chemical preservation and treatment, better exploitation of timber, bamboos and other forest produce. The programme would help to generate more employment opportunities.

Transportation is the basic infrastructure for industrial and agricultural development. These are the arteries which spell progress and growth of the economy. In the State there is need for conversion of some of the State highways into National highways. Especially in the Malnad region there is an urgent need for construction of roads. In regard to railway development, there has not been any development after the reorganisation of the State. Some of the metre gauge lines like Bangalore-Miraj, Bangalore-Guntakal have to be converted into broad gauge. Kottur-Harihar line has to be taken up to help the movement of iron and manganese ore from Bellary-Sandur mineral belt. Hassan-Mangalore line has to be converted to broad gauge line. There is the need to construct the railway line where there is scope to set up the industries or where the major industries are already existing. There is the need to have Hubli-Karwar line which would facilitate the transportation of ore. The conversion of lines into broad gauge would help to increase the volume of traffic and also trade. There is also sope for waterways. The development of ports contribute to the economic, commercial and industrial development of the country as a whole.

There has been sufficient development in banking and cooperation sectors and the State is the pioneer in this field. In spite of a large network of these institutions, the development that has taken place is considered uneven and inadequate. The growth mainly depends upon the investment and this mainly depends upon the cheap credit. The adoption of latest technology by the small farmers mainly depends upon the pumping of additional credit to the small borrowers. Along with credit, the marketing will have to be strengthened with a view to provide a fair deal to the producer. There is the need for linking credit with marketing. The need of the hour is to strengthen the cooperative credit structure. In recent years, a number of special programmes have been initiated which are closely linked with credit. The success of these programmes mainly depends upon the availability of credit at cheap rates.

The development of trade mainly depends upon the adequate supply base. The public distribution system should be efficient and there should not be any problem in regard to transportation and warehousing. Regulated markets are functioning in this direction and there is need to establish regulated markets in all the important trading centres. In a country, where the weaker sections predominate, there is the need for strengthening of the cooperative activities. Revitalisation of the cooperatives has to be done in the interest of the development of the economy.

Redistribution of wealth is the major aspect of developmental activity in our country. This has to be achieved by reducing the inequality among the people. These in turn will help to increase the productivity and efficiency. The basic amenities will have to be provided to its citizens by the Government. Education is the first step in this direction and in order to enhance the quality of education, incentive measures will have to be introduced. There is need for restructuring the present system of education. The scope and coverage of education should be enlarged. There has to be change in the teaching methods.

Public health has gained lot of importance in the planned development of the economy. Measures have to be taken to improve the facilities in the hospitals and for this adequate and qualified staff will have to be posted in the rural areas. For the development of the scheduled castes and scheduled tribes, programmes like the educational advancement, economic upliftment and provision of social infrastructure have to be taken up vigorously. The main objectives in the sphere of social and environmental improvement are to provide for better housing conditions, cultural facilities, drinking water facilities etc. The need is to improve the economic conditions of these people and to bring them on par with other sections of the society within a definite time frame.

Karnataka State has a lot of tourist potential. It is a paradise for tourists. Though there are a number of tourist attractions, still a lot of potential has not been exploited. The Karnataka State Tourism Development Corporation has been set up for the promotion of tourism and the first task is to identify the tourist spots where there is greater potential. Both the coastal districts can be developed as beach resorts. There are a number of hill stations, wild life sanctuaries, waterfalls and lakes which attract a large number of tourists and there is scope to develop these places. The State is famous for places of historical interest and also pilgrim centres. These places should be provided
with tourist facilities.

The State has an enormous potential to become India's Switzerland in the matter of tourism. The major requirement is the provision of necessary infrastructure for exploiting the vast tourist potential.

During the Fourth Plan period, a number of programmes have been initiated towards the achievement of 'growth with social justice' of which Drought Prone Areas Programme is one. This programme was introduced to reduce the intensity of famines and to provide employment opportunities to the weaker sections who are severely affected by droughts and scarcities. At present, the programme covers 46 taluks of the State spread in 10 revenue districts. The major objective of the programme is to have an integrated development of the drought prone areas. The Drought Prone Areas Programme during the Fifth Plan shifted its emphasis from mere employment generation and capital formation approach to a more diversified one. The programme now covers a number of sectors with two objectives of infrastructure development and making the weaker sections economically viable. The beneficiary approach is a new focus. Planning has been on watershed basis and the objectives are the maximum exploitation of land and water resources and maintenance of ecological balances. The benefits of development have been broad-based and are being shared by the large mass of the rural population. These strategies of the programmes are being continued during the Sixth Plan also.

The programme could be extended to some more taluks and the taluks have to be selected by considering the area irrigated to the net area sown, actual rainfall, proportion of weaker sections to the total population in each taluk. The successful implementation of the programme depends on effective monitoring. A perspective plan for drought proofing is also provided.

The concept of rural development has, of late, come to stay and the country has gone in for block level planning. In Karnataka, the integrated rural development programme has been taken up in 85 taluks from the year 1978-79. The taluks were selected by adopting the criteria like the percentage of agricultural labourers to total population and working population, rainfall, percentage of small farmers to total number of holders, organisational framework built up in the taluk and the percentage of the net irrigated area to the area sown. Emphasis will have to be given on the labour-intensive works. To check the growth of population, effective steps need to be taken. Highest priority has to be given for irrigation. Intensive cultivation has to be taken up in irrigated areas. Integrated rural development is the only answer for tackling the problem of rural unemployment and rural reconstruction. Three categories of programmes under integrated rural development are being launched. The normal integrated rural development blocks, accelerated integrated rural development blocks and the blocks which will have an area plan for full employment. Beneficiary approach prevails in all categories and there is need to cover the entire State by one type or the other of the integrated rural development programme.

The western ghats area provides spectacular scenes—towering trees, peaks and valleys. The ghats have an unusually rich fauna and fascinating bird life. The region has rich natural resources but these have not been exploited to the optimum extent. The integrated western ghats development plan is being implemented in 40 taluks of the State. There is vast scope for the development of horticulture, forestry, sericulture and tourism. Emphasis has to be given for the development of communication as it is the major problem of the area. The gaps in the infrastructural development will have to be bridged. To exploit the agricultural and horticultural wealth, irrigation could be taken up on a larger scale. When compared to the other regions in the State, the western ghats region is fortunate in having a good resources base and this can be developed on systematic lines which in turn depends on the overall planning of the region. There is vast scope for the development of this region.

A number of special programmes like the Small Farmers Development Agencies, Drought Prone Areas Programme, Crash Scheme for Rural Employment were taken up with a view to help the weaker sections of the rural population. The main object of the Small Farmers Development Agencies is to bring benefits of modern technology to small and marginal farmers and raise their standard of living by improved agriculture, subsidiary occupations and supplementary employment. There is scope for taking up irrigation, animal husbandry, agriculture and horticulture activities. These programmes require mobilisation of funds from the institutional sources and there is the necessity to link rural credit system with an effective marketing infrastructure. All these programmes besides creating assets, help in providing employment opportunities to the rural population and these programmes are the first real step in the direction of the achievement of 'Growth with Social Justice.'

The state of finances of Karnataka from 1957-58 to 1978-79 is described in the chapter relating to the growth of revenue expenditure. The major components of revenue are the tax and non-tax revenues and the Central grants. The tax revenue has followed a regularly increasing trend. There have been changes in the trend of development expenditure. Both development and non-development expenditure have grown very rapidly with the resultant growth in total expenditure.

Karnataka occupies the seventh place in respect of revenue and expenditure. The State has to put its finances on a sound footing by exploiting fully all the sources. Revenue has to be mobilised to the maximum extent from the industrial and commercial ventures and the leakages in its collection should be properly plugged. Appropriate monetary policy will have to be evolved to ensure mobilisation of the resources.

The problem of regional imbalances is also discussed giving the details of the development of different districts. An attempt is made to develop indicators for measuring devel- opment. When these yardsticks are applied in regard to social and economic development, South Kanara, Bangalore and Belgaum districts are considered forward districts. The backward districts are Tumkur, Gulbarga and Bidar. In Chickmagalur, Bangalore and Bellary districts, the rural areas are comparatively forward. The rural areas are backward in the districts of Tumkur, Raichur and North Kanara. Bangalore, Mysore and Coorg are forward according to urban indicators as against the backward state of affairs in Bidar, Raichur and Tumkur districts. Shimoga, Coorg and Hassan are agriculturally forward districts as against this Dharwar, Gulbarga and Belgaum are the backward districts.

The State has gone through planned development of its economy for over a quarter century. Despite this, regional imbalances have grown and created problems to planners. Unless special attention is given for the development of the backward regions, it would be very difficult to remove regional imbalances. In spite of the planned development of the economy over a quarter century, we find the problems of poverty, unemployment and unequal levels of development. These have to be tackled by considering the realities of the situation. A comprehensive plan will have to be drawn up in the light of the basic objectives of development. A long-term plan will have to be drawn up to tackle these gigantic problems. The irrigation potential has to be fully exploited. The magnitude of unemployment has been increasing and the problem has to be tackled effectively by formulating a long term policy. The employment problem has to be tackled as a primary one. The primary objective of planning should be the removal of unemployment. The programme must include an active and realistic population policy. There is an urgent need to evolve an employment-oriented growth plan which calls for a shift in investment priorities.

This work in two volumes reflects the economic conditions of the region in the past and also the present state of the economy and prospects for future development. The achievements under planning and suggestions for future development in various fields of economic activities in the State have also been presented.

Long-term plan will have to be evolved considering the needs of the area. The plan has to be prepared at the grass-root level. The state, which has been described as one of the "magic region of the earth" by a western traveller, has vast natural resources. The western ghats region has been described as the "Wales of England." A long term plan for an integrated development of this region with the main focus to preserve the evergreen protective forests and develop productive ones on sound ecological lines are called for. Surface as well as ground water potential has to be tapped systematically. In planning for development, highest priority has to be given for the problem of unemployment. Productive employment has to be created during agricultural off-season.

Greater emphasis should be on the rural industrialisation. In spite of the remarkable achievements during the planned development of the economy, there is much more to be achieved in the field of economic development. A comprehensive plan will have to be evolved to solve the deep rooted economic and social problems. Developing water resources and a dynamic growth of the industrial sector are the important segments of planning in this process. Sometimes, it may be due to the problems in the implementation stage. In most of the developing countries this seems to be the major reason for the failure of planning.

Now, there has been a change in approach and the emphasis is on integrated rural development. The main objective of rural development is to provide full employment to rural population within a period of ten years and to provide fair wages to the rural labour force. The active participation of people in the rural sector is an essential pre-condition for the growth and success of democracy in the country. Therefore, priority should be given for the balanced development of the economy. The long-range perspective is the removal of poverty and increasing the per capita income. Importance should be given for agricultural development and there is need to change the pattern of investment. Horticulture development should be taken up on a larger scale as there is vast potential. In respect of irrigation, a more integrated policy of surface water and ground water is required to improve water management. Importance should be given for the development of village industries. In addition, there is scope for the development of infrastructure. The need for development by a skilful exploitation of the vast resources and for the establishment of a minimum level of living for all is obvious. The State is endowed with a lot of power potential which could be exploited and used for agricultural and industrial development. The gaps in the existing infrastructure facilities in the various parts of the State have to be bridged without any further delay so that the stage can be properly set for self-sustained growth. Judicious exploitation of the potential is called for which requires massive investments. Therefore, efforts should be made to raise additional resources for the development of the economy. The broad thrust of the planning strategy would be to expand the coverage of irrigation as rapidly as possible. Feasible agricultural plans based on the optimum use of land and water resources and integrating animal husbandry, horticulture and forestry have to be formulated. Rural reconstruction and employment programmes should be integrated with the programmes of industrialisation. The key to solve the problem of poverty and unemployment lay in evolving an employment-oriented agro-industrial programme absorbing local skills, raw materials and catering to the local markets. A programme for development of small scale industries should be worked out along side to feed the largescale industries. Stress should be laid on the development of dairying, poultry and other subsidiary occupations. There is the need for planning at the grass-root level and developing a healthy panchayat system which would be a sine qua non for the success of these programmes.

In general, in spite of planned development of the economy still a number of developmental activities will have to be initiated. Balanced development of Karnataka means a continuous process of planning and implementation—economic, social and cultural. Concerted efforts will have to be made by the Government to improve the economic conditions of the people. In this preface, an attempt is made to provide briefly the scope of this work. The task to provide a succinct summary of the work is not an easy task. However, there are large number of suggestions for future development in each chapter which cannot be highlighted here.

I had the opportunity of working as Editor, Karnataka Gazetteers from 1958 to 1964 during which period, I was associated in the preparation of the Gazetteers for twelve districts of the State which have all been published. Ever since I left the Gazetteers, I nursed a sense of desire to attempt a comprehensive book on the regional economy of Karnataka, as no such attempt had been done in the past. The knowledge of men and matters of Karnataka which I got myself acquainted intimately through my work connected with the preparation of Gazetteers and the context of preparation of general report of the 1961 census of the State in which I was associated, and through the knowledge acquired in the Planning Department by my various evaluation studies and projects and schemes formulated to the State Government, the desire to attempt such a comprehensive work with a focus on economic development naturally increased. I am grateful to the Government of Karnataka in the Rural Development and Cooperation Department for having entrusted this onerous task to me. The Hon'ble Chief Minister of Karnataka Shri D. Devaraj Urs and the then Hon'ble Finance Minister Shri M. Y. Ghorpade have whole-heartedly supported the cause for this work. Shri Y. Rupla Naik, IAS, the then Commissioner for Special Economic Programmes, not only mooted this idea and supported all through but also helped through necessary assistance of the Government. I am grateful to the Government of Karnataka for the orders and circulars issued in this behalf. Shri G.V.K. Rao, IAS, Member, Planning Commission who was the then Chief Secretary to Government of Karnataka also encouraged this proposal. After the work was completed, when Shri Mohan Primlani, General Manager, Oxford & IBH Publishing Co., New Delhi came forward to publish this, the Government kindly agreed for its publication through such an established and reputed publishing concern. I am grateful to Shri N. Narasimha Rau, IAS, the Chief Secretary to Government and Shri Y. Rupla Naik, the then Commissioner for Special Economic Programmes for their help in giving me this permission. When the book was in its process of production, Shri Mani Narayanswami, IAS, Commissioner, Special Economic Programmes provided the necessary inspiration.

In the preparation of a comprehensive work of this nature, I will have naturally received help and assistance from various sources including personalities and it would be difficult to individually acknowledge. In particular, I appreciate the able assistance rendered by Shri R. T. Neginhal, Deputy Director, Project Formulation Division, Planning Department. I wish to acknowledge the assistance rendered by him, always willingly and in an excellent manner.

The resources, with my background and intimacy with the Karnataka's economic development, was really a task to collect and utilise them. In the process of collection of material, Shri K. N. Subramanya, Editor, Southern Economist has been of immense help. I have gone through all the publications of Southern Economist since inception. Similarly, I have gone through the Mysore Economic Review back issues—a journal founded by Sir M. Visvesvaraya as also various other journals of repute. I have gone through the rarest books, documents, reports, biographies, memoirs and travelogues and other publications which are listed in the bibliography. I have been greatly benefited by each one of these publications. I consider the bibliography itself as a small piece of research work. Shri A. R. Badri Narayan, former Minister of Education who was also at one time Chairman of the Malnad Development Committee allowed me to draw freely material on Malnad development from his mental as well as other sources which is gratefully acknowledged.

The work is illustrated by photographs and maps. Maps are drawn from various sources including some Heads of Departments. Shri R. Ananda Rao, Director of Information and Publicity and Shri K. V. Guruprasad, Photo-officer have kindly spared some photographs. Shri B. N. Betkerur, the then Managing Director, Karnataka State Tourism Development Corporation has provided similar assistance. Shri B. Kesar Singh, the reputed photographer in Karnataka has also given his helping hand. Besides these, I have myself taken some photographs which have been used. Since I had an array of photographs to be selected, it was indeed a difficult task for me to make a choice among them. In this context, Shri G. K. Ananthram, IBH Prakashana, joined hands with me inspiringly in making final choices. I wish to acknowledge with gratitude the help rendered by these friends.

The Heads of Development Departments, in particular those relating to Agriculture, Horticulture, Industries, Sericulture, Animal Husbandry, Public Works, Fisheries,Forests etc., have all helped me willingly whenever I wanted some material from them. I wish to place on record my grateful thanks to them. I had to borrow books from various libraries in Karnataka. In particular, I wish to acknowledge the help rendered by libraries attached to Rajbhavan, Secretariat, Legislature and other departmental libraries.

The publication of a voluminous work of this nature requires lot of courage and wherewithal. Shri Mohan Primlani, General Manager, Oxford and IBH Publishing Co., New Delhi volunteered to take up this publication and took it as a very personal and prestigious item. I am grateful to him. I also wish to place on record my appreciation on the neat and elegant production and the quickness with which it was produced. In this context, I also wish to profusely thank the staff of Messrs. Oxford and IBH Publishing Co., and in particular, Shri M. L. Gidwani, Production Manager.

Since this is a regional economic profile of a State written in all comprehensiveness and as this is the first attempt in the history of Karnataka in particular and in the country in general, it is hoped that the publication will be of use not merely in Karnataka but also in other parts of India and the world.

January 1980                                                                         K. PUTTASWAMAIAH

CONTENTS OF VOLUME I
Preface ................................................................................................ iii
I. INTRODUCTION................................................................................. 1
II. THE ECONOMIC BACKGROUND, RESOURCES AND INFRASTRUCTURE 11
III. SOCIO-ECONOMIC CONDITIONS IN KARNATAKA .. 30
IV. AGRICULTURE DEVELOPMENT.............................. 107
V. ECONOMIC PROSPECTS OF HORTICULTURE..................................... 226
VI. FISHERIES DEVELOPMENT—INLAND AND MARINE ........................ 332
VII. LIVESTOCK PLANNING AND PROSPECTS........................................... 397
VIII. IRRIGATION DEVELOPMENT............................................................ 476
IX. POWER DEVELOPMENT.................................................................... 532
X. INDUSTRIAL ECONOMY ................................................................... 555
XL SERICULTURE IN KARNATAKA ......................................................... 638
ANNEX TO CHAPTER II.................................................................... 709
CONTENTS OF VOLUME I
Preface ....................................................................................................... iii
I. INTRODUCTION ............................................................................... 1
II. THE ECONOMIC BACKGROUND, RESOURCES AND
INFRASTRUCTURE................................................................................. 11
The Setting ................................................................................. 11
The Coastal Region ................................................................ 11
The Malnad Region ................................................................. 12
The Northern Maidan Region ..................................................... 14
The Southern Maidan Region ..................................................... 14
Climate and Rainfall ................................................................... 14
Population .................................................................................. 16
Soils .......................................................................................... 16
Physical and Economic Setting of the State.................................. 17
Geology....................................................................................... 17
Rivers ........................... .„ .......................................................... 18
Minerals ................................................................................... 21
Forests ...................................................................................... 22
A Brief Account of the Infrastructure Development and Economic
Background ............................................................................... 24
III. SOCIO-ECONOMIC CONDITIONS IN KARNATAKA........................... 30
The Early Period.......................................................................... 30
The Kadambas of Banavasi (C 325-540 A.D.) ........................... 33
The Gangas of Talakad (C 325-999 A.D.).................................... 35
The Chalukyas of Badami (C. 500-757 A.D.) .............................. 42
The Rashtrakutasof Malkhed (751-973 A.D.)............................... 45
The Chalukyas of Kalyan (973-1198 A.D.).................................. 47
The Sevunas of Devagiri (1198-1312 A.D.)................................. 49
The Hoysalas of Dorasamudram (C. 1000-1346 A.D.) ............... 51
The Vijayanagar Dynasties (1336-1565 A.D.) ............................. 54
The Bahamani Kingdom (1347-1527 A.D.) ................................. 62
XViii ECONOMIC DEVELOPMENT OF KARNATAKA.
The Bijapur Sultanate (1490-1686 A.D.) ..................................... 64
The Nayakas of Keladi (1500-1763 A.D.) ................................... 65
The Wodeyars of Mysore (1399-1761 A.D.)................................ 68
Hyder Ali (1761-1782 A.D.) ....................................................... 70
TippuSultan(1782-1799 A.D.)..................................................... 72
The Wodeyars of Mysore (1800-1831 A.D.) .............................. 73
Krishnaraja Wodeyar-III (1811-1831 A.D.)................................. 76
The British Rule (1831-1881 A.D.) ........................................... 77
The Wodeyars of Mysore (1881-1950 A.D.)................................ 79
Socio-Economic Situation in Rural Karnataka as Reflected by Census
Surveys ........................................................................................ 85
Changes in the Rural Conditions during
Two Decades 1941-1961 .. 85
Social and Economic Conditions during 1961.............................. 89
Economic Situation as Reflected by the
Studies by T. Scarlet Epstein…………………………….. 99
1950 and Onwards ...................................................................... 100
IV. AGRICULTURE DEVELOPMENT...................................................... 107
Introduction................................................................................. 107
Infrastructure for Agricultural Development................................ 108
Natural Infrastructure............................................................ 108
Farms.................................................................................... 116
Administrative Infrastructure ............................................. 119
Resources for Agricultural Development .................................. 121
Identification of Resources ............................................... 121
Agricultural Extension ........................................................ 130
Agriculture in Successive Plan Periods ...................................... 131
Present Level of Development .................................................. 158
Land Development ............................................................... 159
Irrigation................................................................................. 161
Fertilisers and Manures.......................................................... 161
Improved Seeds ...................................................................... 162
High Yielding Varieties Programme ...................................... 163
Intensive Cultivation Programme ........................................ 164
Other Programmes ................................................................. 164
Agricultural Production Potentialities ......................................... 171
Crops..................................................................................... 172
Block Demonstrations ......................................................... 177
National Demonstrations, Crop Competitions ...................... 177
CONTENTS OF VOLUME 1 X1X
Rainfall and Irrigation Potential ............................................. 178
Input Supply ....................................................................... 181
Take-off for Agricultural Development........................................ 181
Plant Protection Chemicals and Pesticides .............................. 182
Strategy for Stepping-up Consumption of
Fertilisers and Manures ........................................................... 182
Development of Local Manurial Resources .......................... 183
Agricultural Marketing ........................................................... 185
Storages ................................................................................. 186
Crop Insurance....................................................................... 186
Stabilisation of Agricultural Prices and Rural Income............. 186
Summary ............................................................................ 187
V. ECONOMIC PROSPECTS OF HORTICULTURE .................................. 226
The Economic Background of Horticulture.................................. 226
Genesis of Horticulture Development ........................................ 229
Progress of the Gardens Department in Karnataka .................... 232
Horticulture in Successive Plan Periods .................................... 254
Horticultural Farms and Nurseries ............................................ 259
Infrastructure ............................................................................. 262
Processing of Horticultural Products ........................................... 263
Marketing of Horticultural Crops ............................................. 265
Other Infrastructure .................................................................. 269
The Present Level of Infrastructure Development........................ 270
Gaps in the Infrastructure System........................................... 271
Horticultural Potentialities of Karnataka...................................... 272
Irrigation Potentialities................................................................ 272
Horticultural Crop Wealth of Karnataka...................................... 273
Fruits ..................................................................................... 273
Vegetables ....................................................................... ---- 275
Plantation, Spices, Fibre Yielding Plants,
Rubber Yielding Plants, etc. 277
Ornamental Plants.................................................................. 277
Acreage under Various Horticultural Crops in Karnataka .......... 277
District-wise Horticultural Potentialities....................................... 283
Horticulture in Human Nutrition ............................................... 303
Horticulture in Farm Economics .................................................. 304
Horticulture in Commerce and Industry .................................... 304
Integrated Development of Horticulture .................................... 304
Cultivation of Fruits, Vegetables and Flowers............................. 308
XX ECONOMIC DEVELOPMENT OF KARNATAKA
Processing of Horticultural Crops................................................ 317
Infrastructure for Horticulture ..................................................... 319
The Prospects for Horticulture Industry—A Perspective View .... 325
Establishment of Comprehensive Horticultural Farms in Gulbarga,
Belgaum and South Kanara........................................................ 327
Establishment of Nurseries .......................................................... 328
VI. FISHERIES DEVELOPMENT—INLAND AND MARINE....................... 332
Introduction ............................................................................... 332
History of Fisheries Development ............................................ 334
Brief History of Fisheries Development ............................ 334
Development during Pre-Independence Period ............................ 335
Development of Fisheries After Reorganisation of States—Inland and
Marine....................................................................................... 342
Potential for Fisheries Development ......................................... 357
Inland Fisheries Potential .................................................. 357
Marine Fisheries Potential..................................................... 359
Infrastructure for Development of Fisheries and the
Agencies Involved for Fisheries Development…………... 360
Inland Fisheries .................................................................. 360
Marine Fisheries ................................................................... 361
A Plan for Future......................................................................... 367
Inland Fisheries .................................................................... 367
Marine Fisheries Projects ................................................... 378
Cost and Economics of Fishing and Allied
Activities at Different Centres………………………… 387
Marketing.................................................................................... 392
Conclusion.................................................................................. 394
VII. LIVESTOCK PLANNING AND PROSPECTS ....................................... 397
Introduction ............................................................................... 397
Development of Animal Husbandry in Karnataka........................ 399
Animal Husbandry Development in Successive Plan Periods .... 409
Administrative" Infrastructure of Animal Husbandry Department 422
Economic Benefits ................................................................... 425
Special Livestock Production Programme ............................ 427
Dairy Section ............................................................................ 430
Sheep and Wool Development ............................................... 430
Poultry................................................................................... 432
Meat Production ...................................... ....................... 43
CONTENTS OF VOLUME I XXI
Prospects for Future Development............................................... 437
Meteorology in Relation to Livestock Production ......................472
VIII. IRRIGATION DEVELOPMENT.......................................................... 476
Introduction................................................................................. 476
History of Irrigation Development ............................................ 478
First Irrigation Commission ................................................ 483
Irrigation during Plans............................................................ 484
Second Irrigation Commission ............................................... 490
Irrigation Potential Created and Utilised...................................... 491
Irrigation Development in the Country ................................ 493
Expenditure Incurred on Irrigation in the State ....................... 494
Total Potential Created and Utilised during Plan Periods ........ 495
Irrigation Development under Successive Plans .......................... 503
Post-Independence Period ...................................................... 505
Development during Plan Periods in India ........................... 506
Development of Irrigation under Major and Medium Projects 508
Classification of Irrigation Works ........................................ 510
Problems in Utilisation of Irrigation Potential ............................. 512
Infrastructure Facilities .......................................................... 513
Administrative Coordination ............................................... 516
Other Problems ................................................................... 517
Towards a New Irrigation Poticy ................................................. 518
Advantages of Minor and Well Irrigation ............................. 519
Need for a Change in Policy ................................................ 520
National Policy....................................................................... 522
IX. POWER DEVELOPMENT ................................................................ 532
Introduction ............................................................................... 532
Power Development in the State.................................................. 534
Anebylu Power Station................................................................ 536
Tungabhadra Left Bank Project ................................................ 544
Bhadra Hydro-Electric Project..................................................... 545
Sharavathi Valley Hydro-Electric Project .................................... 545
X. INDUSTRIAL ECONOMY................................................................ 555
Introduction................................................................................. 555
Old-time Industries...................................................................... 559
Landmarks in Karnataka's Industrial History . .. ....................... 568
XXII ECONOMIC DEVELOPMENT OF KARNATAKA
Mineral Development ................................................................574
Gold Deposits.........................................................................576
Iron Ore ...............................................................................578
Manganese ..........................................................................578
Ghromite ...............................................................................579
Bauxite.....................................................................................579
Copper ...................................................................................579
Industrial Development during the Plans .....................................581
Large and Medium Industries......................................................586
Small-Scale Industries ................................................................596
Rural Industrialisation .........................................................599
Industrial Art ..........................................................................601
Agro-based Industries.............................................................603
Forest-based Industries ........................................................603
Mineral-based Industries.........................................................604
Industrial Estates .........................................................................606
Objectives of Industrial Estates Programme ............................609
Achievements under the Plans ................................................610
Location and Layout of Industrial Estates ...............................614
Establishment of the Industrial Estates....................................617
Management of the Estates .....................................................619
Industrial Potentialities................................................................623
An Overview ...............................................................................631
A Plan for the Future ................................................................633
XI. SERICULTURE IN KARNATAKA ....................................................638
Introduction ..................... .........................................................638
History of the Industry ..............................................................641
Phases of the Industry and Varieties of Silk ..............................645
Infrastructure for Development of Sericulture..............................653
Development of Sericulture Industry over Decades ...................658
Special Programmes Implemented ............................................674
Crash Programmes for the Development of
Sericulture in Karnataka 674
Development of Sericulture under
Drought Prone Areas Programme. . .......................................... 674
Position of Sericulture Industry in Karnataka at
National and International Levels ................................................ 676
The Economics of the Industry .................................................679
Potentialities ............................................................................... 686
Problems of the Industry ............................................................. 690
Plan for Future ............................................................................ 692
Conclusions ............................................................................... 697
ANNEX TO CHAPTER II ............................................................................. 709
CONTENTS OF VOLUME I XX111
Problems of the Industry ............................................................. 690
Plan for Future ............................................................................ 692
Conclusions ............................................................................... 697
ANNEX TO CHAPTER II ............................................................................. 709
CONTENTS OF VOLUME II
XII. DEVELOPMENT OF FORESTS.............................................................809
XIII COMMUNICATIONS...........................................................................841
XIV BANKING, COOPERATION, TRADE & COMMERCE........................... 899
XV. EDUCATION AND SOCIAL SERVICES................................................. 1023
XVI. TOURISM DEVELOPMENT................................................................ 1065
XVII. FAMINES AND DROUGHTS.............................................................. 1076
XVIII. INTEGRATED RURAL DEVELOPMENT ........................................... 1114
XIX. DEVELOPMENT OF WESTERN GHATS REGION ................................ 1133
XX. OTHER SPECIAL PROGRAMMES........................................................ 1162
XXI. GROWTH OF REVENUE AND EXPENDITURE .................................... 1171
XXII. REGIONAL IMBALANCES IN ECONOMIC DEVELOPMENT .............. 1230
XXIII. THE PLANNING FOR DEVELOPMENT.......................................1352
XXIV. PLANNING FOR EMPLOYMENT .............................................. 1394
XXV. PROBLEMS IN DEVELOPMENT AND A
PERSPECTIVE PLAN FOR FUTURE ............................................. 1495
SELECT BIBLIOGRAPHY ............................................................... 1521
INDEX TO VOLUMES 1 AND 2 ........................................................ 1561
CONTENTS OF VOLUME II
XII. DEVELOPMENT OF FORESTS ....................................................... 809
Introduction.............................................................................. 809
History of Forest Department in Karnataka............................... 810
Forest Policy ............................................................................ 818
Historical Background of National Forest Policy in India...... 818
First Indian Forest Policy in 1894 ......................................... 819
National Forest Policy, 1952 .................................................... 819
Development of Forestry in Successive Plan Periods................ 823
Karnataka Forest Plantation Corporation and its Activities ....... 832
Karnataka Forest Industries Corporation and its Activities ....... 833
Importance of Forestry in National Economy........................... 835
A Plan for the Future................................................................ 837
XIII. COMMUNICATIONS.................................................................... 841
Roads....................................................................................... 842
Genesis of Road Development ................................................. 843
Regional Aspects of the System of Roads ................................ 848
The National Highways ........................................................ 849
State Highways..................................................................... 849
Major District Roads ............................................................ 849
Other District Roads............................................................. 849
Village Roads........................................................................ 849
An Appraisal of the Roads Programme during Plans................. 856
Rural Communications ............................................................. 869
The Perspective Programme for Roads..................................... 872
Financial Management ............................................................. 876
The Policy of Road Development ............................................. 879
Railways ............................................................................... 883
Railway Development........................................................... 884
Important Railways in Karnataka .......................................... 887
Expansion Programme and Construction of New Lines............ 890
XX ECONOMIC DEVELOPMENT OF KARNATAKA
Need for a Better Railway System............................................ 891
Inland Waterways .................................................................... 892
Ports ........................................................................................ 894
XIV. BANKING, COOPERATION, TRADE & COMMERCE..................... 899
Introduction .......................................................................... 899
Cooperative Movement in Karnataka ....................................... 907
Need for Cooperative Credit ................................................. 907
Evolution of Cooperative Legislation in India....................... 907
Cooperative Legislation in Karnataka ................................... 908
Starting of the Provincial Bank (Apex Bank) ........................ 909
Evolution of Cooperative Policies......................................... 912
The Role of the Apex Bank in Development ............................ 917
Rehabilitation of District Central Cooperative Banks ............ 921
Primary Agricultural Credit Cooperative Societies................ 922
The Role of Commercial Banks in the Promotion of Agricultural
Credit Structure................................................................... 927
Long Term Credit and Cooperative Land Mortgage Banks.... 927
Karnataka Agricultural Credit Project (World Bank Project). 933
Reorganisation and Revitalisation of Primary Cooperative Credit
Structure ............................................................................. 936
Cooperative Movement in Karnataka—In Prospect.................. 939
Agricultural Credit................................................................ 939
Marketing............................................................................. 943
Processing and Rural Industrialisation .................................. 946
Impact of Cooperative Agricultural Credit on Weaker Sections 949
Cooperative Marketing ............................................................ 963
Karnataka State Cooperative Marketing Federation Limited . 966
Karnataka Cooperative Seeds Marketing Federation ............. 967
Processing Cooperative ........................................................ 968
Consumer's Cooperative .................................................'... . 971
Karnataka Cooperative Consumers' Federation Ltd., Bangalore 976
Industrial Cooperatives ......................................................... 977
State Industrial Cooperative Bank and District Industrial
Cooperative
Banks .................................................................................. 978
Handicraft Cooperative Societies .......................................... 980
Khadi and Village Industries Cooperative Societies .............. 981
Coir Cooperative Societies.................................................... 981
CONTENTS OF VOLUME II XXI
Taluk Industrial Cooperative Societies.................................. 982
Labour Contract Cooperative Societies ................................. 982
Forest Labour Cooperatives .................................................. 982
Engineering Construction Cooperative Societies ................... 983
Karnataka Industrial Cooperative Bank Ltd., Bangalore........ 983
Handloom Weavers Cooperative Societies ............................ 986
Karnataka State Cotton Handloom Weavers Cooperative
Apex Society Ltd., Bangalore 991
Karnataka State Woollen Handloom Weavers Cooperative Society
Ltd., Bangalore.................................................................... 991
72
Programmes for Revitalisation ................................................. 994
Trade and Commerce ............................................................... 1000
Development of Regulated Markets.......................................... 1001
Objectives of Marketing........................................................ 1001
Establishing of State Agricultural Marketing Department...... 1002
Karnataka Agricultural Produce
Marketing (Regulation) Act, 1966. . 1003
Objects and Functions of Regulated Markets......................... 1007
Arrivals of Regulated Commodities in the Regulated Markets
.......................................................................................1011
Grading and Standardisation.................................................. 1013
Karnataka State Agricultural Marketing Board ...................... 1014
Karnataka Agricultural Wholesale Market Project ................ 1016
XV. EDUCATION AND SOCIAL SERVICES ........................................... 1023
Introduction .......................................................................... 1023
Education ................................................................................. 1024
Historical Background .............................................................. 1025
Educational Position of the State at the Country Level............. 1026
Progress of Education in the State over Years ........................... 1029
Health...................................................................................... 1045
Development during Plans .................................................... 1045
Centrally Sponsored Schemes............................................... 1049
Social Services......................................................................... 1050
XVI. TOURISM DEVELOPMENT .......................................................... 1065
Introduction ........................................................................... 1065
Tourism Development.............................................................. 1066
Beach Resorts ....................................................................... 1068
Hill Stations .......................................................................... 1068
XX11 ECONOMIC DEVELOPMENT OF KARNATAKA
Wild Life Sanctuaries ...........................................................1068
Natural Attractions ............................................................... 1069
Pilgrim Centres.................................................................... 1070
Historical Places ................................................................... 1071
Karnataka State Tourism Development Corporation................. 1072
XVII. FAMINES AND DROUGHTS.......................................................... 1076
Introduction .......................................................................... 1076
Causes ................................................................................... 1077
History of Famines ............................................................... 1078
Famines in Karnataka ...........................................................1079
Measures Initiated................................................................. 1080
Droughts and its Different Types .......................................... 1089
Programmes during Plan Period ............................................ 1090
Policy for Future................................................................... 1095
XVIII. INTEGRATED RURAL DEVELOPMENT ........................................ 1114
The Growth of the Concept ......................................................1114
The Objectives ......................................................................... 1117
Selection of Area .....................................................................1119
Rural Development in Tumkur District .................................1120
Rural Development and Block Planning................................1123
Suggestions for Future ..........................................................1128
XIX. DEVELOPMENT OF WESTERN GHATS REGION.......................... 1133
Introduction ..........................................................................1133
The Region .............................................................................. 1134
Economic Background............................................................. 1138
Resources ................................................................................ 1139
Development before the Reorganisation of the State ................ 1147
Development after the Reorganisation of the State ................... 1148
Integrated Development of Western 1149
Ghats Region during Fifth Plan.
Animal Husbandry................................................................ 1151
Horticulture ....................................................................... 1151
Agriculture ........................................................................ 1151
Minor Irrigation.................................................................... 1152
Forestry ................................................................................ 1152
Small Scale Industries........................................................... 1153
Tourism................................................................................ 1153
CONTENTS OF VOLUME III XXl
Perspective Plan ...................................................................... 1154
Animal Husbandry ............................................................... 1155
Horticulture ....................................................................... 1155
Agriculture ........................................................................ 1156
Irrigation.............................................................................. 1156
Afforestation ........................................................................ 1156
Industries and Minerals ........................................................ 1157
Tourism .............................................................................. 1157
Marketing............................................................................. 1157
Sericulture............................................................................ 1158
Communication ................................................................. 1158
Education .......................................................................... 1158
Fisheries ............................................................................... 1159
Electricity............................................................................. 1160
The Overview ..................................................... , ................. 1160
XX. OTHER SPECIAL PROGRAMMES................................................. 1162
Introduction .......................................................................... 1162
Small Farmers Development Agencies and Marginal Farmers and
Agricultural Labourers Agencies ............................................ 1162
Progress................................................................................ 1164
Problems and Suggestions .................................................... 1166
Crash Scheme for Rural Employment ...................................... 1168
Outlay................................................................................... 1168
Physical Achievements ......................................................... 1168
Integrated Dry Land Agricultural Development ....................... 1169
Physical Achievements......................................................... 1169
World Food Programme........................................................... 1169
Physical Achievements ......................................................... 1170
XXI. GROWTH OF REVENUE AND EXPENDITURE ............................... 1171
Introduction .......................................................................... 1171
Structure of the Finances.......................................................... 1172
Trends in the Finances of the State ........................................... 1176
Revenue and Expenditure ..................................................... 1176
Overall Surplus and Deficit Position of the State Budget ..... 1181
Trends in Revenue ................................................................... 1182
Proportion of the Components .............................................. 1182
XXIV ECONOMIC DEVELOPMENT OF KARNATAKA
Components and Composition of Tax Revenue..................... 1185
Proportion of Constituent Items ............................................ 1190
Per Capita Items of State Revenue ........................................ 1191
Composition of Central Tax Revenue ................................... 1194
Transfer of Resources from Centre to the State ..................... 1194
Direct vs Indirect Taxes .....................................'.................. 1199
Trends in Government Expenditure.......................................... 1199
Total Disbursement............................................................... 1199
Total Expenditure ................................................................. 1199
Growth of Development and Non-development Expenditure 1204
Composition of Total Expenditure ........................................ 1206
Share of Revenue and Capital Account in Development
Expenditure…………………………………………………… 1208
Development and non-Development Expenditure from
Revenue Account……………………………………………1209
Magnitude of Central Assistance to the
Total Expenditure of the State……………………….……...1212
Per Capita Growth and Composition of
Expenditure and Disbursement ........................................... 1212
Finances of the States in India .................................................. 1216
Budgetary Position of the States ............................................ 1216
Components of Revenue in the States................................... 1219
Components of Expenditure in the States.............................. 1222
Movement of Development and Non-development
Expenditure in the States of India…………… 1222
Summary and Conclusions....................................................... 1225
Consolidated State Budget.................................................... 1225
Trends in Revenue ................................................................ 1226
Trends in Government Expenditure ...................................... 1227
Finances of the States............................................................ 1228
XXII. REGIONAL IMBALANCES IN ECONOMIC DEVELOPMENT............ 1230
Introduction ........................................................................... 1230
The Concept of Backward Areas—Criteria of
Different Committees on Identification………………… 1231
Level of Living and its Measurement by
Indicators of Development............................................... 1234
Indicators for Disparities among the State ................................ 1239
Indicators for Disparities within the State ................................ 1240
The State's Economy at the National Level .............................. 1241
Indicators of General Economic and Social Development..... 1242
CONTENTS OF VOLUME II XXV
Indicators of Rural Facilities or Development .......................1248
Indicators of Urban Facilities or Development ......................1251
Indicators of Agricultural Development ................................1253
Overall Development of States..............................................1255
Distribution of Ranks among States.......................................1255
Classification of States according to Different Levels of
Development……………………………………………….1255
Regional Variations of the State's Economy..............................1259
Indicators of General Economic and Social Development......1259
Indicators of Rural Facilities or Development........................1265
Indicators of Urban Facilities/Development...........................1271
Indicators of Agricultural Development.................................1273
Overall Development of Districts ..........................................1278
Classification of Districts according to Different Level of
Development………………………………………….. 1278
Distribution of Ranks among Districts ...................................1283
Conclusion .............................................................................. 1283
XXIII. THE PLANNING FOR DEVELOPMENT........................................... 1352
Introduction............................................................................. 1352
Meaning of Planning ............................................................... 1353
Historical Background ............................................................. 1 355
An Outline of Plans ................................................................. 1356
The First Plan ....................................................................... 1356
The Second Plan................................................................... 1358
The Third Plan...................................................................... 1359
Annual Plans......................................................................... 1361
Fourth Five Year Plan........................................................... 1362
Fifth Five Year Plan ............................................................. 1365
Concluding Observations......................................................... 1381
XXIV. PLANNING FOR EMPLOYMENT.................................   1394
The Burning Problem............................................................... 1394
Growth of Population and the Working Force .......................... 1396
Estimate of Unemployment in India ......................................... 1403
Position under Plan Periods................................................... 1404
Disguised Unemployment. . . ................................................ 1406
The Present Position..............................................................1408
Unemployment in Karnataka.................................................1409
Position during Plan Periods..................................................1409
XXVI ECONOMIC DEVELOPMENT OF KARNATAKA
Present Position of Unemployment ..........................................1410
Categories of Unemployed....................................................... 1411
Agriculture ............................................................................ 1411
Industries ................................................................................. 1413
Education .............................................................................. 1415
Employment Exchanges and Unemployment ........................... 1417
Role of Employment Exchanges .............................................. 1417
Unemployment as Reflected by Employment Exchanges ...... 1420
Employment Exchanges and Manpower Policy................... .1423
Policy for the Future ................................................................ 1424
XXV. PROBLEMS IN DEVELOPMENT AND A PERSPECTIVE PLAN FOR
FUTURE ....................................................................................1495
Introduction .......................................................................... 1495
Agriculture ............................................................................ 1497
Horticulture ........................................................................... 1498
Fisheries .................................................................................. 1499
Livestock Development............................................................ 1500
Irrigation.................................................................................. 1501
Power ...................................................................................... 1503
Industries ..............................: ................................................. 1504
Sericulture ............................................................................... 1505
Forests .................................................................................. 1507
Communications ...................................................................... 1508
Banking, Cooperation, Trade and Commerce ........................... 1509
Education and Social Services.................................................. 1510
Tourism ................................................................................... 1511
Famines and Droughts.............................................................. 1512
Integrated Rural Development.................................................. 1513
Western Ghats Region.............................................................. 1514
Other Special Programmes....................................................... 1515
Growth of Revenue Expenditure .............................................. 1516
Regional Imbalances ................................................................ 1517
Planning for Development........................................................ 1518
Conclusion............................................................................... 1518
SELECT BIBLIOGRAPHY.......................................................................... 1521
INDEX TO VOLUMES 1 AND 2 ................................................... 1561

THE RELEASE OF “ECONOMIC DEVELOPMENT OF KARNATAKA” :
When my book : “ECONOMIC DEVELOPMENT OF KARNATAKA -

A TREATISE IN CONTINUITY AND CHANGE” was ready for release in 1980, B.V.K. and V.K.R.V. Rao had discussed without my knowledge to form a group of well-wishers to organize the function for the release of the book. The group consisted of V.K.R.V. Rao, B.V.K. K.S. Krishnaswamy, P.R. Brahmananda, A.R. Badrinarayan, M.P.L. Shastry, M.A.S. Rajan, V.L.D’souza and V. Shanmugasundaram, who was then the President of the Indian Economic Association. Moha Primlani, who had published this book in two volumes agreed to the suggestion of this group of well-wishes in which Rao and B.V.K. played the most important part, agreed to meet the entire expenditure for the function and the cost of advertisements in all the news papers in Bangalore, which appeared on the release day.

The release function took place on the evening of February 8th, 1980 at Ashoka Hotel, Bangalore. Sri. Govinda Narain, the then Governor of Karnataka released the Publication. Rao, the then Emeritus Professor in Social Sciences, Institute of Social and Economic change, delivered the main speech about the book published in two volumes, presenting the summary of the book and said that the book would be useful to the Karnataka Government as it contained a large number of suggestions for better Planning and Development. He agreed with Primlani the Publisher who had said in his welcome speech that : “The book is a challenge to the author as well as the publisher considering its size and dimentions”. He further said that: “the book is useful to all the researches on Karnataka in various branches of planning and development.” He said that, “it is a remarkable pioneering effort by the author” and congratulated me on the massive effort in bringing out the publication. Two other main speakers were M.A. Srinivasan, former Minister of Mysore State (Maharajas days) and Dewan of Gwalior and M.P.L.Shastry, the then Chairman, Mysore Education Society, Bangalore. These two speakers had also lot of appreciation for the book and agreed with all the statements made by Rao. At least, one instance has be quoted from each of these speakers which are unforgettable.

While Srinivasan called. The book as “A Lotus in mire” M.P.L. Shastry compared the chapters and pages of the book to the “Waves of the Ocean”, meaning that each chapter was looking like a beautiful wave which were coming one after the other. The comparison was in keeping with that of a Sanskrit Scholar. I wish to express my greateful thanks to Rao who joined hands with B.V.K. in organizing the function through a group of well-wishers and made the function memorable.

                           

                                INDIAN EXPRESS Saturday July, 5 1980

                       Karnataka vade Mecum

                               ECONOMIC DEVELOPMENT OF KARNATAKA

(Vol. I and II): By K. Puttaswamiah; Oxford and IBH Publishing Co. pp 1566;
It took Mr K. Puttaswamiah almost 20 years from conception to consummation to produce this monumental work on the economic development of Karnataka.

If this is the first time. a work on this scale and dimension has ever been attempted in this State, it is also relevant that Prof. Puttaswamiah is the person to do it. One could go further and say he alone could have done it.

For one thing, his six-year stint as the Editor of Karnataka Gazetteers had not only given him the historical facts and perspective but also laid open before him the portals of administration. He had access to the highest authorities of the land, and consequently, the welter of official documents.

But mere access would not have produced a work of this sort: It needed perseverance and a dauntless spirit. The author had pored through such economic journals as Mysore Economic Review (founded by Sri Visvesvaraya) and countless others.

Even a rapid glimpse of the pages of the two volumes bear testimony to the author's claim of having read "the rarest of books. documents, reports, biographies, memoirs and travelogues."

Mr Puttaswamiah is lucky. Pre-independence Mysore could boast of an enlightened administration dating to more than a century and authentic history was handed down to him for incorporation in his gigantic mission.

For myself, the principal charm of this book is the historic insight it provides into the various facets of the Karnataka economy. It is indeed a treatise in continuity and the quotations from books and documents .of yore lend an appropriateness to the, theme.

The most appropriate and comprehensive statement is from Lewis Rice who says: "In every department of the natural world, Mysore may. claim pre-eminence. She yields by far the most gold of any country: she is the peculiar house of the sandal and the teak; a special banet of the wild elephant; rears a superior breed of horned cattle; supplies as the staple food
of her people, the nutrient grams, ragi; was the cradle in India and is still the chief garden for coffee cultivation".

That, In a nutshell, Is why Karnataka is the most progressive and advanced State in the country, Industrially and otherwise.

It is idle to pretend that one has read the book to offer a review. It is just not humanly possible. But, this reviewer can solemnly affirm that he had scanned the book in samples — and the samples are good.

There are 25 chapters covering every aspect of Karnataka's economy and economic history replete with statistics, maps, graphs and figures. There is also a 40-page bibliography, in itself worthy of a Ph.D. award.

The size and price of the book makes it clear that it is not offered as a best-seller but no institution - industrial, administrative and academic- can afford to be with out it. It is a vertable vade mecum on Karnataka.

One constructive suggestion to the State Government. It would be a service if the various chapters of Mr Puttaswamiah's work are produced in separate paperbacks so that people interested in specific industries and projects — like say, sericulture — will be able to buy and make use of them. The weight of the book is the foremost deterrent to reading it. — VNN.

                                         Book Review

                                          Monthly Commentary, November 1980.

The Economic Development of Karnataka-
Treatise in Continuity and Change in two volumes
Dr. K. Puttaswamiah- Published by Oxford and IBH Publishing Co,.

This massive production, rightly described as a "Treatise" is a tribute to its author, who whilst conducting his normal duties as a senior civil servant in the State of Karnataka, has found both time and unlimited enthusiasm to embark on a massive fact presentation of Karnataka's history and recent economic development.

Dr.Puttaswamaiah could probably not have accomplished this prolific effort without great familiarity with similar presentations. He was Editor of the Karnataka Gazetteer from 1958 to 1964, and was associated then with the completion of Gazetteers for 12 districts of the State. Nevertheless there is a great difference between his present effort and the Gazetteers even though Karnataka's Gazetteers have been distinguished from the beginning of the century. The writings of Lewis Rice, partly in editing the earliest Gazetteers and, notably in Epigraphica Karnataka suddenly illuminated official publications by pages of deep scholarly insight It was not inappropriate that Lewis Rice should finally have been rewarded by the discovery of the southernmost Rock edict of Aihole in Siddapura in Chitradurga district of the State.

It is doubtful if anyone can write interestingly and comprehensively on an area unless much of his life's work has been spent there. However this creates an emotional bias which detracts somewhat from the quality of objective assessment, particularly when comparisons with other States are made. This is one of the handicaps under which Dr. K.. Puttaswamiah labours, because he is clearly not involved this time as an Editor, but  has chosen to weave into the historical presentation of the glory of Mysore some of which, pardonably, has been exaggerated. In his Preface he quotes from a large number of distinguished observers, the most notable e being a quotation from Mahatma Gandhi written many years ago, which perhaps lost its strength in the early forties :  'Mysore State brings the crowned memories of all that is noble and dramatic in a benevolent monarchy. During the British regime the Mysore State was regarded as the  best administered of all the constituted units of India." There were, indeed, advantages in the old Mysore State that it had a long line of distinguished Dewans : Sir K. SeshadriIyer who introduced hydro-electricity at Sivasmudram in 1901, Sir M. Visvesvaraya introduced not only the Badravati Steel Plant and the great Dam on the Cauvery now  known as Krishnarajasagar and Sir Mirza Ismail's numerous special development projects with a flair for town planning in Bangalore and Mysore. There was almost a touch of genius there, but much of the socio-economic breakthroughs described belong  to the last ten years.

Full description sometimes obscures the critical ingredients of history. His purpose  has been much more to set what is clearly a full record rather than separate areas of  innovation and initiative against what might be called the normal patterns of organised development in agriculture, horticulture, sericulture, education and social welfare. These chapters are more satisfying than the distinction between State sponsorship of industry between 1912 and 1940 and the recent joint ventures with the private sector with large Indian business houses participating expansively. Bangalore has been built into a great industrial town only in the last twenty years. This underlines the restricted development of industries in the old Mysore State. All in all, the picture presented is still one of more  potential than a clear indication of a finished journey in industrial development.

It would be more appropriate to describe Dr. Puttaswamiah's work as a comprehensive catalogue of the facilities now available in the State of Karnataka which were born after the State's reorganisation. The details now available in one place for the  first rime make the book an essential purchase for every Reference Library. Almost every section is supported by special maps- There are interesting illustrations, particularly those which cover Tourism but, for the scholar, the interest lies in the observations made on the numerous tables which are presented, and the ranking which is  placed on many matters, particularly on the growth of revenues in Volume I and the developments in horticulture, sericulture, livestock planning and prospects and irrigation in Volume II. It might be added that the annexe to Chapter II which appears in Vol. I is a wonderful storehouse of information giving many figutes for each of the 19 districts of  the State. For Dr. Puttaswamiah this has been a labour of love which carries its own handicap. The case is argued with undue affection but is nevertheless comprehensive. It is still a remarkable thing that a leading civil servant should be able to continue the British tradition of massive fact collection and interpretation while discharging the  increasingly onerous duties of day-to-day administration.

                                          CAPITAL

                                             INDIA’S PREMIER BUSINESS WEEKLY
August 11, 1980                                                                   Published since 1888
 BOOK VALUE

Karnataka baedekar
ECONOMIC DEVELOPMENT OF KARNATAKA VOLS. , I & II
by K. PUTTASWAMAIAH

Oxford & IBHPublishing Co. Pages 1566.

THE author describes his labour of love as the first attempt in the country to present in all comprehensiveness the regional economic profile of a state. He has certainly produced a definitive account of the economy of Karnataka running into more than 1500 pages. A 40-page bibliography and countless statistical tables, maps, graphs and photos add to the usefulness of the two-volume work.

Puttaswamaiah is romantically attached to Karnataka as a son of the soil and as one who has been associated with the state government for some 20 years, mainly as a planner and an editor of the State Gazetteers. These vantage points and the support he received from former Chief Minister Devraj Urs and his Finance minister, M.Y. Ghorpade, gave him a greater Wealth of knowledge and perspectives than a scholar could have obtained merely by study.

But he loses in the subject of Karnataka when he gets away from academic impersonalism to frequent use of the "editorial" we and ours. Thus, he says, "our farmers  are so forward" that if irrigation facilities are provided they can manage the rest. And, elsewhere, "we should explore new ideas to render our irrigation systems more efficient and economical."

But these are minor diversions which should not distract our attention from all the serious things in the book covering every aspect of the state's economy from agriculture to tourism. Fisheries and livestock; horticulture, forest development and sericulture; irrigation and power; eduction and social services; famine and droughts; communications; banking, co-operation,trade and commerce; industry; revenue and expenditure; employment each sector and sub-sector is brought into clear focus by the author.

Regional planning and development is Puttaswamaiah's strong point, a reflection perhaps of his professional Work at the grassroots level in drought-prone areas and other parts of the state. The regional imbalances in Karnataka flowing from differing historical  patterns of growth and the development needs in particular of the Western Ghats region are of special concern to him. In his view, the key to solve the problem of poverty and unemployment lies in evolving a job-oriented agro-industrial programme absorbing local skills and raw materials and catering to the local markets.

The author's suggestions in every sphere of economic activity have wider relevance beyond the borders of Karnataka. For that state, of course, it is a rich source material a model that other states and institutions might usefully emulate.


Monthly Opinion Surveys of IIPO, May-June 1981

       Economic Development of Karnataka : A Treatise or Growth

                                   Reviewed by T. K. Lakshman
               Director, Centre for Rural Development Studies and Research,
                                       University of Bangalore

Economic Development of Karnataka — A Treatise in Continuity and Change, presented in two volumes by Dr. K. Puttaswamaiah, is a massive work running into more than 1600 pages including an exhaustive and a comprehensive bibliography. It is a scholarly study with dedicated efforts, extensive collection and rigorous marshalling of data and breadth of analysis. It also indicates the author's relentless efforts to read extensively a large number of books, assimilate facts relating to multiple disciplines and use those factors in chronologically and logically developing the two volumes. Behind the two volumes stands the painstaking efforts of Dr. K. Puttaswamaiah as a researcher for the last two decades. He was an editor of the State Gazetteer and is associated with the Project Formulation Division, the Drought Prone Area Programme and the Project Evaluation Division for the last fifteen to twenty years.

With the realisation of the lesser impact of centralised macro-planning on the development of the Indian economy, much attention and effort have been diverted to regional planning. This has become urgent and necessary in view of the fact that the spread of growth has become uneven. Some regions are very backward and almost static in their growth. Further the degree of development among various regions and as well their resource endowment vary considerably from region to region. Hence the need for regional planning encompassing physical, economic and social dimension in order to accelerate economic development has all the more become important.

In this context, the two volumes of Dr.K. Puttaswamaiah under review are comprehensive regional economic profiles of Karnataka State. The author, while building up these exhaustive profiles, delved into the hoary past beginning with the Satvahanas (30 B. C. to 325 A.D.), who rose to power on the disintegration of Mayura Empire. A detailed account of various dynasties such as Kadambas, Chalukyas Rashtrakutas, Sevunas of Devagiri, Hoysalas, Vijayanagar and Bahamani Kingdoms Bijapur Sultanate, Nayaks of Keladi, Hyder Ali, Tippu Sultan, the Wodeyars of Mysore and lastly of the British has been elegantly presented highlighting the main socioeconomic chains of developments reflected in various sources of history and other documents. With this background of historic sequences of development, the author has proceeded to analyse the natural resources, infrastructure, and different sectors and subsectors of the economy.

The two volumes comprise 25 chapters, the first volume with eleven and the second with 14 chapters.

The first chapter begins with an introduction pinpointing the rapid progress of Karnataka due to the combination of rich resources and the progressive and the dynamic policies of the rulers of the State from the ancient period to various Dewans of Mysore especially personalities like Sir M. Visvesvaraya and the various rulers of post-independent democratic government. In the second chapter, an economic background including the present level of development is presented. The third chapter gives a historical account of the socio-economic conditions of the people as reflected in various historical records, documents, and studies. The subsequent 22 chapters deal extensively with the growth of innumerable sectors like agriculture, horticulture, fisheries, animal husbandry, irrigation and power, industries, sericulture, communications, banking and  co-operation, trade and commerce, education and social services, tourism, famines and droughts and integrated rural development, and development of Western Ghats Regions.

There are separate chapters for analysing the growth of revenue and expenditure, regional importance in economic development, the planning for development, planning for employment, problems in development and a perspective plan for future. Each chapter dealing with each sector presents an extensive analysis on almost all aspects beginning from natural infrastructure to resources for development, developments in the successive plan periods, present level of development and production potentialities with a lot of statistical data.

To cite a few dimensions relating to the analysis of a few sectors and the prospects for their development, the author, highlights the need for the extensive use of biochemicals as well as the dry farming technology in the agricultural sector and adoption of integrated approach combining crop production, livestock poultry, fishery, and forestry depending on the resources of the region with the simultaneous development of infrastructural and processing and marketing facilities, for the alround development of villages in the State. He also assessed the development of agriculture in successive Plans and examines the scope for exploiting the potentialities of agriculture. He aptly emphasises the need for the integration of credit, processing and marketing and also for the evolution of a suitable agricultural policy on the basis of the past experience. The author's suggestion for orcharding in dry areas as well as in some of the talukas where they have not been established, is commendable. Equally important are the suggestions for the development of inland fisheries, dairy, sheep rearing, piggery, poultry, which go a long way in helping the diversification of agricultural activities and particularly in raising the level of income of the small and marginal farmers.

The chapter of irrigation and power potential created and utilised during the successive Plan periods and especially on the need for a radical change in the policy relating to investment of funds towards the construction of new wells, bore wells and pumpsets along with an annex giving out details taluk-wise about the ground water is highly informative. It provides the necessary data for the government to shape its policies on the future exploitation of irrigation and power potential and energy availability. Similarly, every interesting and detailed accounts relating to industrial development covering both large, small and village industries and also the exploitation of mineral resources has been presented. The chapter on sericulture present a wealth of information highlighting both problems and prospects In the second volume in particular, the chapters on Banking, Co-operation, Trade and Commerce, Development of Western Ghate Region, State's Revenue and Expenditure and Regional imbalances in economic development are dealt with exhaustively. The author marks out a strong case for special consideration to be shown to the special needs of the backward areas.

Apart from covering all sectors, the author has taken much pain to present a synthetic view of each Plan over the last three decades, projecting and devoting a chapter on planning for employment. Finally, the last chapter is devoted to highlight the problems of development and present a perspective plan for development. The author points out that the future plan needs a long-term approach based on grass-root level experience and resource endowments of the area. He states that, "Planning exercise should not be confined to computations of resources required and resources available during the Plan period alone. On the other hand, a perspective angle in planning by a systematic aggregate of plans prepared at the grass-root level would be necessary to make a comprehensive plan fit for the State".

Apart from the descriptive matter, the volume is packed with statistical tables and charts covering every aspect of the economy of Karnataka. The list of total number of  tables run to more then 312 and the bibliography is comprehensive covering 40 pages of the second volume. The vast data, which has been processed and presented in a meaningful way and the innumerable books mentioned in the comprehensive bibliography are a veritable mine for several students of research to work on several problems of Karnataka. Equally, the volume is useful to the politician, the administrator and the general public.

In conclusion, it can be said, that this voluminous profile reflects the author's long and sustained study for nearly two decades ; first in the State Gazetteer and secondly as  a Director in the Project Formulation and Valuation Division. His travel throughout the lenght and breadth of Karnataka, his insight and active involvement in the very mechanics of development process and the good library he has built up over the last several years have enabled him to undertake this gigantic task and come out successfully with two masterly volumes. In unmistaken terms, one has to appreciate his patience. The work can be commended as a treatise in continuity and change.

YOJANA,

16-31,May 1982.
Magnum Opus on Karnataka
S. Venu

THE "Economic Development of Karnataka—A Treatise in Continuity and Change" endeavours to present a regional economic profile.of Karnataka and is a major work on regional planning, which attempts to give an insight into the planned development that has taken place in the State. The book presents the past, assesses- the present development and provides guidelines for future development. An attempt is made in this book to make a detailed inventory of resources for development and this is the first major endeavour to present, in all comprehensiveness, the regional economic profile of a State.

Dr. Puttaswamaiah describes the State as "fascinating and lovable" and is one of the earth's magic regions. Today, Karnataka is one of the most forward States in the Indian Union; especially, the progress has been remarkable during the planned development of the economy and it is considered as the model State in the country. Being a treatise in continuity and change, these two volumes attempt to serve the purpose of a tapestry of the economic trends in Karnataka, the past, present and future.

The book is- in twenty-five chapters. The first three chapters set the background. After n brief introduction in which the scope of the book is presented, an attempt is made to review the present level of development and to assess the resource endowment of the State for economic development. The third chapter is an exercise in history of the economic conditions of the people of the State from very early times till the present day. The economic conditions of the people as reflected in various historical records, documents and studies are analysed in this chapter. The subsequent chapters give a detailed account of tfu sectoral developments and the last chapter sets out a plan for the future. The author, while analysing the sectoral developments, has attempted to go as back to a period as possible and trace developmental trends with a view to provide a setting to the chapter. Thereupon, the present level is discussed, resources are analysed and a plan for future is provided with a large number of suggestions, which would provide guidelines for planning in the years to come. The unique feature of the State is that it is endowed with rich and abundant natural resources for development.

Dr- Puttaswamaiah while analysing the agricultural development has said that the rich natural resources offers immense scope for the development of agriculture and suggests that an integrated policy will have to be evolved combining research, education, extension and training for alround agricultural development. The State is the storehouse for horticultural wealth. While describing irrigational development, the author points out that a well integrated programme for creation of infrastructure facilities essential for development could be the only solution for ensuring not merely adequate utilisation of the potential created but also an adequate return to the cultivator himself. In respect of power development, the author points out that there is a wide gap between power generation and distribution and this is mainly due to lack of advance planning. To overcome the problem of power shortage, sufficient advance planning, project preparation and monitoring is called for.  The industrial potential of Karnataka has been surveyed in detail with an analysis of the industrial estates established. The author's view is that the estates have not had the impact which was expected. The author presents a district-wise perspective on the development potential which needs careful attention.

The different sectoral chapters present the details of the inventories of resources, description of achievements under plans, projects and schemes and suggestions for future development in various fields of "economic activity. The State which has been called by the westerners as a "magic land with abundant exuberance" has vast natural resources which are of equal importance from the point of view of planners. The author suggests that a comprehensive plan will have to be formulated and this- is to be regarded as a first concerted step at solving deep rooted economic and social problems which cannot be effective without the consent and active participation of the general public. The profile of the regional economy of karnataka has, to a large extent, the objective of providirg guidelines for future development too in the years to come. The author points out that Karnataka is the first State in India to generate hydro-electricity, construct huge irrigation dams, establish a steel mill, build railways, establish a university, a commercial bank and modern drainage in cities. The State could achieve spectacular development because of the initiative taken during the earlier days and the magnificant edifice that has been built up.

This is the first comprehensive economic history of any State in the country and the author has not only provided a panoramic perspective of the economic development of Karnataka but has also made a most useful and valuable contributions to State level regional economic planning. Dr. Puttaswamaiah richly deserves to be commended for a most useful contribution to plan formulation of an effective perspective plan for Karnataka in particular. The author has produced not only in an impressive treatise on regional planning but also a valuable encyclopedia of reference on the economic potential of Karnataka and its progressive development. The author's suggestions in every sphere of activity have wider relevance beyond the borders of the State and it is a rich source material that others might usefully emulate.  Dr. Puttaswamaiah is a reputed economist with vast field experience and he has done a yeomen service in providing this comprehensive economic treatise of Karnataka.

The author has given a detailed bibliography which itself is a research piece. The book in two volumes and in 1566 pages is replete with tables, maps, and beautiful photographs and compares in presentation, style and diction mostly with the 'Asian Drama' of Gunnar Myrdal. The work is profusely quoted and illustrated from and with the aid of rare and old records, books, memoirs- and travelogues. The two volumes including the impressive bibliography sketch a romantic regional profile of Karnataka and signifies the author's undaunted and unquestioned love to that State in particular. I should say that Dr. Putta-swamaiah is eminently qualified to write on the regional economic development and problems of Karnataka as Ex-Editor of the District Gazetteers and as one who was intimately associated with planning and evaluation and it is- to his everlasting credit that he has produced such a monumental book single han-dedly and his rich experience has helped- him to produce such a comprehensive work. The book should be of immense value to those who are interested in the planned development of India in general and Karnataka in particular. Being a comprehensive treatise in continuity and change of the developmental aspects the merit of the work is that it is current and helpful for the present and the value will be still more in the decades to come. •

*Review of "Economic Development of Karnataka A Treatise in Continuity and Change" in two volumes by Dr. K.
Puttaswamaiah, published by Oxford & IBH Publishing Co.. 66, Janpath, New Delhi, 1980, pages 1—1566+i—xxxii.
Yojana, 16—31,

P.H. KRISHNA RAO                                                 1083, 5TH BLOCK
                                                                    Rajajinagar Bangalore- 560010.
                                                                                  20th August 1980

Extracts of opinion from P.H.Krishna Rao’s letter to author on the Karnataka Book

"Economic Development of Karnataka" by Dr. K. Puttaswamaiah is a compendious treatise in two volumes running to nearly thousand six hundred pages. As the publishers justly claim it "atempts to trace the past, indicates the present level of development and discusses the future prospects.” It is comprehensive as it covers the sectors of agriculture, horticulture, fisheries, animal husbandry, irrigation and power Industries, sericulture, forestry, communications, banking and cooperation, education and social services, tourism, famines and droughts, integrated, rural development, other special programmes, Western Ghats development planning, planning for development, and planning for employment. Particularly valuable are the concluding chapters which describe the place of Karnataka as compared to other states of India.

The author is a reputed economist with vast field experience. As the Director, Project Formulation Division and Director, Drought Prone Areas Programme, Project Formulation and Evaluation, Government of Karnataka, he has done yeomen service in providing a comprehensive economic profile of Karnataka. The author, with his brilliant academic background, has many commendable achievements to his credit, both during his academic career and as a planner-economist. As a Fellow of the United Nations, he attended a comprehensive course on Planning and Evaluation at the united Nations Asian Development Institute at Bangkok in 1971 and has worked on a number of committees including the Executive Committee of the Indian Economic Association from 1968 to 1971.

I have to my credit a Draft Plan for the Development of Mysore written when I was Development Secretary to the Mysore Government, "Our Mysore' written on the model of "Our India" by Mr. M.R. Masani published by the Mysore Government in the series of books for adult education and a report on the Census of Mysore, 1941.

I know Dr. Puttaswamaiah since 1958 when I was a member of the Mysore Gazetteer Committee and the Doctor was the Editor. He belongs to Karnataka and is a devoted lover of the region who has dedicated himself to a deep study of the problems. This work it self has engaged him as I know for a period of 6 to 8 years. He may be describe as “Vidya Vinaya Samppana” combining as he does, learning with humility.

The book is replete with tables, maps and beautiful photographs and will be an ornament to any library. Primarily, it is a library edition of a reference book as it is too bulky to be carried and it is deficult to find any one who is interested in all the chapters. I would therefore, like to make a suggestion to the renowned publishers (Mohan Primlani, Oxford and IBH Publishing Co.) who have brought out this attractive edition, that if there are any copies left after the supply to governments, universities and colleges, the two volumes may be divided into ten volumes of about 200 pages each so that they may be purchased by persons interested in particular aspects of a economic development and can be easily carried.

                                                                              P.H. Krishna Rao.
                                                      Senior most Administrator and Academician
                                                              During The Royal dynasty of Mysore.
                                              Also Census Commissioner for the 1941 Census.

EXTRACTS FROM BOOK REVIEWS

ECONOMIC DEVELOPMENT OF KARNATAKA
A Treatise in continuity and Change -2
Volumes, 1980 PP 1566.

"This is a major work on regional planning, which attempts to give an insight into the planned development that has taken place in Via Karnataka. There is  no doubt that urgent steps have to be taken to develop backward areas at a faster rate and to ensure that developmental measures are aimed more to improve the lot of vulnerable sections of our society, particularly in our rural areas. Any attempt to keep us informed of such efforts is welcome" .
                                                                             Mrs. INDIRA GANDHI
                                                                        PRIME MINISTER OF INDIA
"In what is perhaps the first such comprehensive economic history of any state in the country, Dr. Puttaswamaiah has not only provided, a panoramic  perspective of the economic development of Karnataka but has also made a
most useful and valuable contribution to State level regional economic planning ....,,.... Dr. Puttaswamaiah richly deserves to be commended for a most useful
contribution to plan formulation strategy in general and to the formulation of an effective perspective plan for Karnataka in particular ..... Dr. Puttaswamaiah has produced not only an impressive treatise on regional planning but also a valuable encyclopedia of reference on the economic potential of Karnataka and its progressive development".
                                                                                         SHRI. GOVIND NARAIN,
                                                                               GOVERNOR OF KARNATAKA.
"A very useful contribution to the plan formulation strategy in general and to the formulation of an effective perspective plan for Karnataka in particular".
                                                                                   SOUTHERN ECONOMIST.
"If this is the first time a work on. this scale and dimension has ever been  attempted in this State, it is also relevant that Prof. Puttaswamaiah is the person to do it. One could go further and say he alone could have done
it. There is also a 40 page bibliography, in itself worthy of a Ph.D., award.
It is a veritable Vade Mecum on Karnataka".
                                                                                        INDIAN EXPRESS.
"The two volumes (running to 1566 pages, including the impressive  bibliography at the end) sketch a remantic regional profile of Karnataka a dominant South Indian State. The author is passionately in love with his home
State . „ „ . . „ „ . . and has an abiding faith in its destiny”.
                                                                                         THE HINDU.
"Dr. K. Puttaswamaiah eminently qualified to write on the regional economic  development and problems of Karnataka. It is to his everlasting credit that, single handed, he has produced a book which would have brought
honour to the economies department of a University or a specialised research institute none of which however has even thought of bringing out such studies on regional economics”.
                                                                                        EASTERN ECONOMIST.
"The author's suggestions in every sphere of economic activity have wider relevance beyond the borders of Karnataka. For that State, of course, it is a rich
source material a model that other States and institutions might usefully emulate".
                                                                                        CAPITAL.
"This is the first attempt in the country to present in all comprehensiveness the regional economic profile of the State".
                                                                                        MAIL.
"Dr. Puttaswamaiah’s rich experience has helped him to produce this  monumental publication".
                                                                                        KANNADA PRABHA.
"This book, being the profile Of the regional economy of Karnataka, presents not only the past and assesses the present development, but to a greater extent, also provides guidelines for its future development. The book should be of immense value to those who are interested in the planned development of India in general and Karnataka in particular".
                                                                                        PATRIOT.
"The vast data, which has been processed and presented in a meaningful way and the innumerable books mentioned in the comprehensive bibliography arc a veritable mine for several students of research to work on several
problems of Karnataka. This voluminous profile reflects the author's long and sustained study for nearly two decades. His travel throughout the length and breadth of Karnataka, his insight and. active involvement in the very
mechanics of development process and the good library he has built up over the last several, years have: enabled him to undertake this gigantic task and come out successfully with two masterly volumes. In unmistaken terms, one has to appreciate his patience. The work can be commended os a treatise in continuity and change”.
                                                                MONTHLY PUBLIC OPINION SURVEY.
“A wonderful store house of information .... It is still a remarkable thing that a leading civil servant should be able to contribute the British tradition of massive fact collection and interpretation while discharging the increasingly onerous duties of day-today administration" .
                                                                         MONTHLY COMMENTARY.
"THE two volumes bring out very succinctly the historical background, panorama and potential of Karnataka's economic development through the ages".
                                                                                        PUBLIC AFFAIRS.
"The volumes are extremely useful for background and research purposes”.
                                                                                        THE HINDUSTAN TIMES.
"This is the first comprehensive economic history of any State in the country and the author has not only provided a panoramic perspective of the economic development of Karnataka but has also made a most useful and
valuable contributions to State level regional economic planning." . . . . . . . The author's suggestions in every sphere of activity have wider relevance beyond the borders of the State and it is a rich source material chat others might usefully emulate."
                                                                                        YOJANA.
“ . . . . . A comprehensive economic profile of the Karnataka State. Even a cursory glance at the two volumes is likely to convince anybody, that the author is justified in claiming that this is the first attempt in the country to present in all comprehensiveness the regional economic profile of a state . . . . . . " .
                                                                                        FINANCIAL EXPRESS.