Davangere’s total GDP is INR 69.63 billion, contributing 2.33% to state GSDP. It’s per capita annual income being INR.56, 788. However, the GDDP trend remains steady at 3.7% CAGR from 2007-8 to 2012-13; with the agriculture and allied industries contributing 4.3% to the state.
AGRICULTURE IN FOCUS
Agriculture is the highest contributor of the economic development in Davanagere. Predominantly it has 75% farmers cultivating land. The major crops of the district are Paddy,Maize and Pulses like Red gram, Green gram and Black gram. Groundnut, Sunflower, Sugar Cane and Cotton are also cultivated here.
The horticulture crops in the region are Mango, Sapota, Banana, Papaya, Pomegranate and Mozambique along with Tomato, Onion, Brinjal, Gherkin, Drumsticks, Chilli, Ginger, and Tamarind. It also grows flowers like Jasmine, Chrysanthemum, Marigold and Crossandra.
Davanagere is mostly driven by the agriculture-based food processing industries which provide the highest employment in the district. Gherkin processing, Marigold dye processing, Ground nut oil extraction units are existing food processing units in the district.
Animal Husbandry is another major activity providing supplementary income. It accounts for revenue of INR 1.79 billion annually
The fresh water lake Shanthisagar, the Tungabhadra River and 421 minor tanks provide enormous scope for inland fishing. A water amusement park on the Shantisagar is the second largest fresh water lake in Asia and is proposed to augment tourism in the region.
Textile constitutes approximately 13% of SSI industry units in the district; Plans are on to promote the sector with a focused 50 acre Apparel Park, at an estimated cost of US $ 2.35 million. Another area of focus is the sericulture industry practiced by 590 farmers in 176 villages. The task is gaining momentum with supporting infrastructure like Cocoon markets, training centers, mini silk filature, etc., being well established in the region.
6 Large and Medium scale Industries with aggregated investment INR 2.72 billion and 9,533 small-scale industries with aggregated investment INR 23.442 billion provide opportunities for further investment in the district. 3 sugar and few rice mills along with steel and engineering large scale industries are present in the region. 4 Industrial Area and 2 Industrial Estates serve the needs of the industries here. Further infrastructure projects are proposed to catalyze growth in the district. This includes a 700 MW Gas based project approved by the Government of Karnataka; a proposed IT Park and Network operation Centre through joint ventures of private participation and Karnataka Industrial Area development board, Readymade garments, Puffed rice and Steel fabrications clusters.
The district is identified as one of the 8 districts where Wind energy generation plant will be set up by the state government.