Karnataka is predominantly rural and agrarian. About 76% of its population live in rural areas with nearly 71% work force engaged in agriculture and other allied activities. Major crops grown here are Rice, Ragi Jowar, Maize, Bajra and Pulses. Cash crops grown here are Coffee, cordons Arecanut, Safflower, Coconut, Cotton, Groundnut, Chilies, Castors, Sugarcane and Tobacco. The state stands second in the value of products per hectare and second in total income from forests. Sandalwood (produces most of world's sandalwood), Teakwood, Bamboo, Rosewood, rubber, gum lac, are the major forest produces. It is one of the leading states in horticultural crops. Bananas and oranges are grown in abundance.

Marine fish production also forms an important part of its economy.

The state is blessed with abundance of minerals like, Manganese, iron ore, chromate, magnetite, china clay, copper, mica and bauxite. The "Kolar Gold Fields" produces 85% of the country's gold. It has rich deposit of Granite.

Karnataka is one of the leading industrialized states in India. Public sector undertakings included - Bharat Heavy Electricals, Wheel and Axle factory, Manager, Chemicals and Fertilizers, Hindustan Aeronautics Limited, Hindustan Machine Tools, Bharat Earth Movers, Bharat Electronics etc.

There are a number of factories under joint and private sector and also small scale Industries - some of the items manufactured are - telephones, rail-coaches, spark-plugs, sandalwood oil, electronic goods, porcelain, ceramics, paper etc.

The silk industry in Mysore and Bangalore produces very fine silk, for this silk worn cultivation on the "Tout" tree is done.

Karnataka is blessed with many rivers, like the Kaveri, Godavari, Krishna, the Pennar and Palar Basins with a drainage area of 1,91,170 sq. km mostly of east-flowing rivers for irrigation. Kali and Sharavathi, the westward flowing rivers are used for generating hydro-electricity. The important power projects are Sharavthi Hydro Electric Project, Power Project on the river Kali and the Shi Vasamudra hydroelectric project. The Thermal Power Station at Raichur is another feather in its cap.

Irrigation has an important place in Karnataka, as agriculture in the rain-shadow region of Deccan is singularly dependent on it.

Roads : The road network in Karnataka is very extensive. It has national highways also. During the monsoons the road surface is not good.

Railways: Rail network in Karnataka includes Broad Gauge, Meter Gauge and Narrow Gauge. The rail network is extensive and all major cities are well connected by rail.

Aviation: Bangalore, Belgaum and Mangalore are the main airports. There are small airports for domestic air services at Bangalore, Bellary, Nubli, Mangalore and Mysore etc.