Despite its economic prowess, Karnataka is grappling with the impact of inflation across sectors, affecting ordinary citizens. The Congress party’s guarantee schemes targeting relief from inflation played a pivotal role in its electoral victory, highlighting the burden of rising prices on essentials and cost of living. The state’s thriving IT sector is contributing to the economy but also adding to the cost of living, particularly in cities like Bengaluru.
Bhavesh Kothari, Founder and CEO of Property First, noted that while Karnataka’s cost of living is higher than the national average, its vibrant business environment and tech opportunities have earned it the distinction of being the best place to live in India. The luxury property market in Bengaluru has grown due to high salaries and disposable income, causing an overall rise in living expenses.
Though inflation has hit middle-class, lower middle-class, and poor segments, the Congress’ relief schemes, such as free electricity, travel for women, and rice, have provided some reprieve. The party plans to launch further allowances for unemployed youth and women heads of households. However, concerns remain about rising prices of LPG gas cylinders, affecting food costs and dining out, despite government schemes like Pradhan Mantri Ujjwalla Yojna and Mukhyamanthri Anila Bhagya.