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Karnataka Economic Notes

The Human Development Index (HDI) for Karnataka is 0.645, slightly above the national average, with Bengaluru Urban having the highest HDI in the state. Key indicators include a life expectancy of 69-72 years, a literacy rate of 75.6%, and a poverty rate of around 20%. Karnataka is rich in natural resources, including forests and minerals, and faces challenges such as urban overcrowding and water scarcity due to population dynamics and migration.

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0% found this document useful (0 votes)
243 views17 pages

Karnataka Economic Notes

The Human Development Index (HDI) for Karnataka is 0.645, slightly above the national average, with Bengaluru Urban having the highest HDI in the state. Key indicators include a life expectancy of 69-72 years, a literacy rate of 75.6%, and a poverty rate of around 20%. Karnataka is rich in natural resources, including forests and minerals, and faces challenges such as urban overcrowding and water scarcity due to population dynamics and migration.

Uploaded by

ambubhovi0755
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Human Development Index

The Human Development Index (HDI) is a composite measure used to assess the
overall development of a region based on health, education & standard of living

 Karnataka’s HDI (2019): 0.645, higher than the national average (0.644).
 Bengaluru Urban has the highest HDI within Karnataka.

key indicators:

1. Health Indicators

 Life Expectancy: Karnataka's life expectancy is around 69–72 years.


 Infant Mortality Rate (IMR): Approximately 21 deaths per 1,000 live births
(better than the national average).
 Maternal Mortality Rate (MMR): Around 69 deaths per 100,000 live births.
 Healthcare Access: Presence of public health programs like Ayushman Bharat
and Arogya Karnataka.

2. Educational Indicators

 Literacy Rate: Around 75.6% (higher than the national average).


 Gross Enrolment Ratio (GER): High GER in primary education but lower in
higher education.
 School Infrastructure: Improvement in digital classrooms and midday meal
schemes.

3. Economic Indicators

 Per Capita Income: Higher than the national average, with Bengaluru as a major
economic hub.
 Unemployment Rate: Varies, with urban areas showing better employment rates
due to IT and manufacturing sectors.
 Poverty Rate: Around 20%, but varies significantly across districts.

4. Social & Gender Development

 Human Development Index (HDI): Karnataka ranks among the top 10 states in
India.
 Gender Ratio: Around 973 females per 1,000 males.
 Women’s Empowerment: Increasing female participation in education and
employment.
5. Infrastructure & Digital Growth

 Urbanization Rate: Around 40% due to migration to cities like Bengaluru and
Mysuru.
 Smart City Development: Initiatives in cities like Bengaluru, Mangaluru, and
Tumakuru.
 Digital Penetration: One of the highest internet and mobile penetration rates in
India.

Natural resources
Karnataka, located in the southern part of India, is endowed with a rich variety of natural
resources, including forests, minerals, water bodies, and fertile agricultural land. These
resources play a crucial role in the state's economy, ecology, and cultural heritage.

Importance of natural resources

1. Sustaining Life – Resources like water, air, and sunlight are fundamental for
human survival, agriculture, and ecosystems.
2. Economic Growth – Natural resources such as minerals, oil, and forests
contribute to industries, job creation, and national economies.
3. Energy Production – Fossil fuels, solar energy, wind, and hydropower provide
the energy needed for transportation, electricity, and industries.
4. Food and Agriculture – Land, water, and soil fertility are crucial for growing
crops and raising livestock, ensuring food security.
5. Environmental Balance – Forests absorb carbon dioxide, regulate the climate,
and provide habitats for wildlife, maintaining biodiversity.
6. Industrial and Technological Development – Natural materials like metals,
wood, and petroleum are used in manufacturing, construction, and technology.
7. Recreation and Tourism – Natural landscapes, oceans, and wildlife attract
tourism, benefiting local economies and promoting conservation.

Natural resources are essential for the survival and development of all living beings.
Their importance includes:

Key natural resources

1. Forest Resources

- Karnataka has a significant forest cover, accounting for about **20% of its geographical
area**.

- The forests are diverse, ranging from tropical rainforests in the Western Ghats to dry
deciduous forests in the plains.

Key Forest Regions

- Western Ghats (a UNESCO World Heritage Site and biodiversity hotspot).


- Bandipur National Park, Nagarhole National Park, and Dandeli Wildlife Sanctuary.

Flora and Fauna

- Home to endangered species like tigers, elephants, leopards, and the lion-tailed macaque.

- Rich in medicinal plants, timber, and non-timber forest products (NTFPs) like bamboo,
honey, and spices.

2. Mineral Resources

- Karnataka is one of the most mineral-rich states in India, contributing significantly to the
country's mineral production.

Key Minerals

- Gold Kolar Gold Fields (KGF) and Hutti Gold Mines are major gold-producing areas.

- Iron Ore. Bellary-Hospet region is a major iron ore mining hub.

- Manganese Found in districts like Ballari, Chitradurga, and Tumakuru.

- Bauxite, Chromite, and Limestone**: Widely available in various regions.

-Other Minerals Granite, dolomite, and quartz are also abundant.

3. Water Resources

- Karnataka has a well-developed network of rivers, lakes, and reservoirs.

- Major Rivers

- Krishna: Important for irrigation and hydropower.

- Tungabhadra A major tributary of the Krishna River.

- Sharavathi Known for the Jog Falls and hydropower generation.

- Lakes and Reservoirs

- Bengaluru’s lakes (e.g., Ulsoor Lake, Bellandur Lake).

- Reservoirs like Krishna Raja Sagara (KRS) and Tungabhadra Dam.

- Groundwater A critical resource for agriculture and drinking water, especially in arid
regions.

4. Agricultural/Land Resources

- Karnataka has diverse agro-climatic zones, making it suitable for a variety of crops.

- Key Crops

- Food Grains Rice, ragi, and maize.

- Cash Crops Sugarcane, cotton, and tobacco.


- Horticulture Coffee, spices (cardamom, pepper), and fruits (mango, banana).

- Plantations Coffee estates in Kodagu and Chikmagalur are world-famous.

- Soil Types Red soil, black soil, and laterite soil are predominant, supporting diverse
agricultural activities.

6 Renewable Energy Resources

- Karnataka is a leader in renewable energy production in India.

- Solar Energy

- Pavagada Solar Park is one of the largest solar parks in the world.

- Wind Energy

- Wind farms in districts like Chitradurga, Davangere, and Gadag.

- Hydropower

- Major hydropower projects on rivers like Sharavathi, Kali, and Cauvery

Population dynamics-
Population dynamics in Karnataka, like in many other Indian states, are influenced by factors
such as birth rates, death rates, migration, urbanization, and socio-economic development.
Here’s an analysis of population growth, composition, density, problems, and rural-urban
migration in Karnataka

1. Population Growth

- Karnataka has experienced steady population growth over the decades, though the rate has
been declining due to falling fertility rates and improved healthcare.

-Current Population Approximately 68 million (as of 2023 estimates).

- Growth Rate- The decadal growth rate has decreased from **15.7% (2001-2011)** to
around **9-10% (2011-2021)**.

- Factors Influencing Growth:

1. High Birth Rate – Although declining, the birth rate in some rural areas remains
relatively high, contributing to population growth.
2. Declining Death Rate – Improved healthcare facilities, better sanitation, and medical
advancements have reduced mortality rates.
3. Migration – Karnataka, especially cities like Bengaluru, attracts a large number of
migrants from other states due to job opportunities, education, and a better standard of
living.
4. Urbanization – The rapid growth of cities like Bengaluru, Mysuru, and Mangaluru has
led to increased population density due to economic opportunities.
5. Improved Healthcare – Government initiatives and private healthcare advancements
have led to longer life expectancy, contributing to population growth.
6. Agricultural Prosperity – Fertile regions like the Cauvery basin support agricultural
activities, sustaining large rural populations.
7. Educational and Industrial Growth – Karnataka is an education and IT hub, attracting
students and professionals from across India.
8. Socio-cultural Factors – Traditional beliefs and societal norms in some rural areas
encourage larger families, though this is changing with awareness.
9. Government Policies – Welfare schemes, better public services, and economic growth
have improved living conditions, indirectly influencing population growth

Impact of population growth

1. Positive Impacts

Economic Growth & Development

Larger Workforce – More people mean a bigger labor pool for industries, IT, and services,
boosting Karnataka’s economy.

Urban Expansion – Cities like Bengaluru have become global hubs for IT, education, and
startups due to population-driven demand.

Increased Consumer Market – More people lead to higher demand for goods and services,
driving business growth.

Social Development

Diverse Culture – Migration and population growth have created a rich mix of traditions,
languages, and food.

Better Innovation & Talent Pool – The rise in population has contributed to a thriving
educational and technological ecosystem.

2 Negative Impacts

Pressure on Resources

Overcrowding in Cities – Bengaluru and other major cities face congestion, traffic issues,
and lack of housing.

Water Shortages – High demand for water, especially in drought-prone areas, leads to
scarcity.

Deforestation & Land Degradation – Expanding urban and rural settlements lead to loss of
forests and agricultural land.
Economic Challenges

Unemployment & Underemployment – The rising population increases job competition,


leading to wage suppression and joblessness.

Rural Poverty – Many rural families struggle with small landholdings and lack of
employment, forcing migration to cities.

Slum Growth – Rapid urbanization leads to the rise of slums with poor living conditions.

Social & Environmental Issues

Strain on Healthcare & Education – More people mean increased demand for hospitals,
schools, and public services, often exceeding capacity.

Traffic & Pollution – Bengaluru faces severe air pollution and traffic congestion due to a
rising number of vehicles

Climate Impact – More industrialization and urbanization contribute to pollution and rising
temperatures.

Measures to control population growth

1. Family Planning & Healthcare Initiatives

 National Family Welfare Program – Provides free contraceptives, sterilization


procedures, and reproductive health services.
 Mission Parivar Vikas – Targets high fertility districts with awareness programs
and family planning services.
 Janani Suraksha Yojana (JSY) – Encourages institutional deliveries and
maternal healthcare to reduce infant mortality.
 Karnataka Health Mission – Strengthens primary healthcare services to
improve maternal and child health.

2. Women Empowerment & Education

 Beti Bachao Beti Padhao – Promotes education for girls, delaying early
marriages and reducing fertility rates.
 Karnataka Bhagyalakshmi Scheme – Provides financial support for girl
children, encouraging smaller families.
 Awareness Campaigns – Conducted in rural areas to educate women about
reproductive health and birth control methods.
3. Rural Development & Employment Schemes

 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) –


Provides rural employment, reducing migration to cities.
 Rurban Mission – Develops rural infrastructure to improve living conditions and
reduce population pressure in cities.
 Skill Development Programs – Helps rural youth get jobs, improving income
levels and reducing population growth rates.

4. Urban Planning & Migration Control

 Smart Cities Mission – Develops planned urban centers with better


infrastructure.
 Pradhan Mantri Awas Yojana (PMAY) – Provides affordable housing, reducing
the growth of slums.
 AMRUT (Atal Mission for Rejuvenation and Urban Transformation) –
Improves water supply, sanitation, and urban living conditions.

5. Awareness & Incentives for Small Families

 Two-Child Policy Awareness – Encourages families to limit births through


government campaigns.
 Financial Incentives – Couples opting for sterilization receive monetary benefits
in some districts.
 School & Community Programs – Promote reproductive health education
among young people.

2. Population Composition

- Age Structure

- Karnataka has a relatively young population, with a significant proportion under the
age of 35.

- The working-age population (15-59 years) constitutes about 65% of the total
population.
- Gender Ratio

- The sex ratio in Karnataka is 973 females per 1,000 males** (as per the 2011
Census), slightly below the national average.

- Urban areas tend to have a lower sex ratio compared to rural areas.
- Literacy Rate
- The literacy rate in Karnataka is 75.4% (2011 Census), with urban areas having
higher literacy rates than rural areas.
- Religious and Ethnic Composition

- The population is predominantly Hindu (84%), with significant Muslim (13%) and
Christian (2%) minorities.

- Karnataka is home to diverse linguistic groups, including Kannadigas, Tuluvas,


Kodavas, and others.
3. Population Density

- Karnataka’s population density is 319 persons per square kilometer (2011 Census),
which is lower than the national average.
- Regional Variations

- High density in urban areas like Bengaluru, Mysuru, and Hubli-Dharwad.

- Low density in forested and hilly regions like Kodagu and the Western Ghats.

- Bengaluru Urban district has the highest density, while districts like Udupi and
Chikmagalur have lower densities.
4. Problems Related to Population Dynamics

- Urban Overcrowding

Rapid urbanization has led to overcrowding in cities like Bengaluru, resulting in


inadequate infrastructure, traffic congestion, and pollution.
- Rural-Urban Disparities

Rural areas face issues like poverty, lack of healthcare, and poor educational facilities,
leading to migration to urban centers.
- Water Scarcity

Overpopulation and urbanization have strained water resources, especially in cities


like Bengaluru.
-Unemployment

Despite a young population, unemployment remains a challenge, particularly among


educated youth.
- Environmental Degradation
Population pressure has led to deforestation, loss of biodiversity, and pollution in urban
and industrial areas. 5. Rural-Urban Migration
Rural urban migration

Rural-urban migration is a significant demographic trend in Karnataka, driven by


economic and social factors.
Causes of Migration

1. Economic Factors

 Job Opportunities – Cities like Bengaluru, Mysuru, and Hubballi-Dharwad offer


better employment in industries, IT, and services.
 Better Wages – Urban areas provide higher wages compared to rural
agricultural jobs.
 Industrialization – Growth of manufacturing and IT sectors attracts rural workers
seeking stable incomes.

2. Agricultural Challenges

 Low Agricultural Income – Farming in rural Karnataka is often unprofitable due


to low prices, high costs, and middlemen exploitation.
 Drought & Climate Change – Frequent droughts in regions like North Karnataka
force farmers to migrate to cities for alternative livelihoods.
 Land Fragmentation – Small landholdings make agriculture unsustainable,
pushing people toward urban jobs.

3. Social Factors

 Better Education & Healthcare – Cities provide better schools, colleges, and
medical facilities, attracting families.
 Infrastructure Development – Urban areas offer better transport, electricity,
water supply, and communication services.
 Marriage & Family Migration – Many people move due to marriage, joining
family members already settled in cities.

4. Government & Policy Factors

 Smart Cities & Urbanization Projects – Investments in urban infrastructure


create more job opportunities, drawing rural populations.
 Rural Development Gaps – Lack of sufficient rural employment schemes
pushes people toward cities.
5. Aspirations & Lifestyle Changes

 Modern Lifestyle & Facilities – Youth prefer urban lifestyles with access to
malls, entertainment, and career growth.
 Technology & Awareness – Exposure to urban life through media and social
networks influences migration decisions.

Impact of Migration

Rural-urban migration in Karnataka has both positive and negative impacts on rural and
urban areas.

1. Positive Impacts
On Urban Areas

 Economic Growth – Migrants contribute to industries, construction, and


services, boosting the urban economy.
 Labor Supply – Provides a workforce for IT, manufacturing, transport, and
domestic work.
 Cultural Diversity – Migration enriches urban culture with diverse traditions,
food, and languages.

On Rural Areas

 Remittances – Migrants send money back to villages, improving rural


households’ financial conditions.
 Reduced Pressure on Agriculture – Decline in population reduces the strain on
farmland and water resources.
 Skill Development – Returning migrants bring new skills and knowledge that
can benefit rural communities.

2. Negative Impacts
On Urban Areas

 Overcrowding – Rapid migration leads to congestion, slums, and unplanned


urban growth, especially in cities like Bengaluru.
 Strain on Infrastructure – Increased demand for housing, water, transport, and
healthcare leads to shortages.
 Unemployment & Informal Work – Many migrants end up in low-paying,
insecure jobs or remain unemployed.
 Increase in Pollution & Waste – Urban expansion results in higher pollution
levels and waste management challenges.
On Rural Areas

 Decline in Agriculture – Labor shortages affect farming, leading to abandoned


lands and lower agricultural output.
 Aging Population – Youth migration leaves behind an aging population,
impacting productivity and rural development.
 Loss of Traditional Culture – Migration leads to the erosion of rural traditions
and customs

Government Initiatives to Address Population Issues

- Urban Development

- Smart City projects in Bengaluru, Mysuru, and Hubli-Dharwad to improve urban


infrastructure.
- Rural Development

- Schemes like MGNREGA (Mahatma Gandhi National Rural Employment


Guarantee Act) to provide employment in rural areas.
- Healthcare

- Expansion of healthcare facilities under the National Health Mission (NHM).


- Education

- Programs to improve rural education and skill development to reduce migration.


- Water Management

- Initiatives like Jal Jeevan Mission to provide safe drinking water in rural areas
Unemployment in Karnataka
Unemployment refers to a situation where a person actively searches for employment but is
unable to find work. Unemployment is considered to be a key measure of the health of the
economy.

Unemployment rate

Karnataka’s unemployment rate is low compared to the rest of India.

In September 2024, Karnataka’s unemployment rate was 2.9%.

In September–December 2022, Karnataka’s unemployment rate was 2.4%.

In March 2023, Karnataka’s unemployment rate was 2.3%, which is lower than the
national average of 7.8%.
In 2022–2023, Karnataka’s unemployment rate was 2.7%, which is lower than India’s
4.2%.
Youth unemployment

In September–December 2022, the unemployment rate for youth aged 15–24 in


Karnataka was 22.1%. This is much lower than the national average of 45.8%.
Formal jobs

From September 2017 to March 2021, Karnataka added 24 lakh formal jobs.

Karnataka holds 4.7% of India’s population, but 10.4% of the formal jobs added under
EPFO payroll are from Karnataka.
Challenges

Moving workers from agriculture into manufacturing and service sectors

Increasing female labor force participation

Unemployment can be classified into different types based on its causes and nature. In
Karnataka, like in other regions, multiple types of unemployment exist due to economic,
social, and technological factors.
Types of Unemployment

Based on Economic Factors

1. Structural Unemployment – Occurs when there is a mismatch between


workers’ skills and available jobs. Example: IT companies needing
advanced AI skills, but graduates lacking those skills.
2. Cyclical Unemployment – Caused by economic downturns or
recessions, where companies reduce their workforce due to low demand.
3. Frictional Unemployment – Temporary unemployment when people
switch jobs or are searching for better opportunities. Example: A software
engineer resigning and taking time to find a new job.
Based on Region & Sectors

4. Rural Unemployment – Common in villages where agricultural work is


seasonal, and alternative jobs are scarce.
5. Urban Unemployment – Found in cities due to competition for jobs,
automation, and lack of relevant skills.
Based on Nature of Work
6. Seasonal Unemployment – Found in industries that operate only during
certain seasons, like agriculture, tourism, and construction.
7. Disguised Unemployment – When more people are employed than
needed, leading to inefficiency. Example: Five family members working on
a small farm where only two are required.
8. Underemployment – When people work in jobs below their skill level or
work part-time instead of full-time. Example: An engineering graduate
working as a delivery driver.
Causes of unemployment

1. Economic Factors

A)Slow Industrial Growth Despite Karnataka being a hub for IT and


biotechnology, industrial growth in other sectors has been slow, limiting job
creation.
B) Economic Downturns
Global or national economic recessions can lead to reduced demand for goods
and services, resulting in layoffs and hiring freezes.
C( Automation and Technological Advancements The rise of automation and
AI in industries like manufacturing and IT has reduced the demand for low-skilled
and even some high-skilled jobs.
2. Educational and Skill Mismatch

A) Lack of Skilled Workforce Many job seekers lack the skills required by
employers, particularly in emerging sectors like IT, biotechnology, and
advanced manufacturing.
B) Outdated Curriculum Educational institutions may not be updating their
curricula to match the evolving needs of the job market, leading to a gap
between what students learn and what employers need.
C) Overemphasis on Degrees There is often a cultural preference for formal
degrees over vocational training, which can lead to an oversupply of
graduates in certain fields and a shortage in others.
3. Demographic Factors

D) Population Growth Karnataka, like much of India, has a rapidly growing


population, which increases the number of job seekers each year.
E) Rural-Urban Migration
Many people move from rural areas to cities in search of better
opportunities, but the urban job market may not be able to absorb all of
them.
4. Policy and Governance Issues

F) Inadequate Labor policies Labor laws and policies may not be


conducive to job creation, particularly in the formal sector.
G) Lack of Infrastructure
Poor infrastructure in rural and semi-urban areas can deter investment
and limit job creation.
H) Bureaucratic Hurdles
Red tape and corruption can discourage businesses from setting up
operations, thereby limiting job opportunities.
5. Social Factors

I) Caste and Gender Discrimination


Social inequalities can limit access to education and employment
opportunities for certain groups, including women and lower-caste
individuals.
B) Lack of Entrepreneurship Cultural and financial barriers can
discourage entrepreneurship, which is a significant source of job creation.
6. Sector-Specific Issues

J) Agricultural Dependence
A significant portion of Karnataka's population is still dependent on
agriculture, which is often seasonal and subject to fluctuations due to
weather conditions, leading to periodic unemployment.
K) Decline in Traditional Industries
Traditional industries like textiles and manufacturing may be declining due
to competition from other regions or countries, leading to job losses.
7) Globalization:

L) Outsourcing
While globalization has brought jobs to Karnataka, particularly in the IT
sector, it has also led to the outsourcing of jobs to other countries with
cheaper labor costs.
M) Competition
Increased competition from other states or countries can lead to job losses
in certain sectors.
8. Pandemic Impact of COVID-19
The pandemic has had a significant impact on employment, with many
businesses shutting down or reducing their workforce. The recovery has been
uneven, with some sectors struggling to bounce back.
9. Informal Sector Dominance

A) Lack of job security


A large portion of the workforce is employed in the informal sector, where jobs
are often temporary, low-paying, and lack benefits. This sector is more vulnerable
to economic shocks.
10. Regional Disparities
A) Uneven Development Economic development is not evenly distributed
across Karnataka. While cities like Bangalore thrive, other regions may lag
behind, leading to unequal employment opportunities.

Measures to reduce unemployment

1. Enhancing Skill Development

 Expand vocational training and technical education programs to align with


industry needs.
 Promote skill development initiatives like Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) and state-run training programs.
 Encourage apprenticeship programs and industry-academia collaborations to
improve job readiness.

2. Promoting Entrepreneurship & Startups

 Provide financial support, subsidies, and low-interest loans to small businesses


and startups.
 Strengthen Karnataka Startup Policy and incubators in Bengaluru and other
cities.
 Promote rural entrepreneurship through self-help groups (SHGs) and
microfinance initiatives.

3. Strengthening Agriculture & Rural Employment

 Improve irrigation facilities and modernize agricultural practices to create year-


round employment.
 Expand Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) coverage to provide sustainable rural jobs.
 Promote agribusinesses, food processing units, and cooperative farming.

4. Industrial & Infrastructure Development

 Attract investments in sectors like manufacturing, textiles, IT, and renewable


energy.
 Develop industrial corridors and Special Economic Zones (SEZs) to boost
employment.
 Improve transport, power, and logistics infrastructure to enhance business
opportunities.

5. Strengthening the IT & Service Sector

 Expand IT and software hubs beyond Bengaluru to tier-2 and tier-3 cities.
 Promote Business Process Outsourcing (BPO) and Knowledge Process
Outsourcing (KPO) sectors.
 Support growth in healthcare, education, and tourism sectors to generate more
jobs.

6. Educational Reforms

 Update school and college curriculums to include practical skills, coding, and
AI-related courses.
 Strengthen internship and on-the-job training programs for students.
 Increase focus on STEM (Science, Technology, Engineering, Mathematics)
education.

7. Labor Market Reforms

 Simplify labor laws to encourage businesses to hire more employees.


 Provide incentives for companies that create more jobs, especially in rural areas.
 Strengthen worker protections while ensuring a flexible and business-friendly
environment.

8. Promoting Tourism & Handicrafts

 Develop Karnataka’s historical and cultural sites to boost tourism-related


employment.
 Support artisans and handicraft industries through marketing and e-commerce
platforms.
 Improve hospitality training programs to create more skilled workers in the
tourism sector.

9. Encouraging Foreign & Domestic Investments

 Offer incentives to attract multinational companies to set up operations in


Karnataka.
 Strengthen public-private partnerships (PPPs) for large-scale infrastructure
projects.
 Promote Karnataka as an investment-friendly state through global summits
and trade expos.

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