Mahabalipuram, Aug 20: Karnataka Chief Minister D K Shivakumar on Thursday made a strong pitch for greater fiscal and political equity for southern states, urging the Union government to ensure fairness in the allocation of funds, strengthen the region’s voice in decision-making and give due recognition to states that make significant contributions to India’s economy.

Addressing the 31st meeting of the Southern Zonal Council in Mahabalipuram, Shivakumar described the South as the “engine of the Indian economy”, noting that the five southern states account for nearly 33 per cent of the country’s GDP despite comprising only around 20 per cent of its population.

Highlighting Karnataka’s role, he said the state was one of the strongest drivers of India’s economic growth, making major contributions through software exports, foreign investment, aerospace, coffee and emerging technologies.

According to the Chief Minister, Karnataka accounts for 42 per cent of India’s software exports, hosts around 1,100 Global Capability Centres and attracted more than 21 per cent of the country’s FDI equity inflows between 2019 and 2025. With just 5.5 per cent of India’s population, the state contributes about 9 per cent to the national GDP, he said.

“Pride demands fairness in return. We have always done our part. We contribute, we build, we grow, and we carry the nation forward. All we ask from the Union Government is this: please care as much as we share,” Shivakumar said.

‘States that perform should be incentivised’

Raising concerns over fiscal devolution, Shivakumar said Karnataka’s share in the divisible pool under the 15th Finance Commission had declined from 4.7 per cent to 3.6 per cent, resulting in an estimated loss of Rs 65,000 crore to the state over six years.

He also pointed out that the 15th Finance Commission’s recommended special grant of Rs 5,495 crore and state-specific grants of Rs 6,000 crore were yet to be released.

While welcoming the increase in Karnataka’s share to 4.131 per cent under the 16th Finance Commission, he said the state’s share should ultimately be restored to 4.7 per cent.

“Karnataka is the second-largest contributor to GST and Income Tax, and a state that performs on growth and revenue deserves to be incentivised, not penalised,” he said.

Shivakumar urged the Centre to compensate Karnataka through additional major projects, including the Bengaluru-Mumbai high-speed rail corridor, STRR South, an AIIMS in Raichur and a special package for Kalyana Karnataka.

Delimitation and political representation

The Chief Minister also raised concerns over delimitation, arguing that southern states should not lose political influence because of their success in controlling population growth.

“We welcome the assurance that no southern state will lose seats. But representation is not only about numbers. It is about weight, and about voice,” he said.

He called for the 1971 population basis to be honoured and for the South’s representation to be protected both in absolute numbers and in proportion to its present strength.

Shivakumar also urged the Southern Zonal Council to adopt a resolution freezing the number of Lok Sabha seats at the current level while implementing women’s reservation within the existing number of seats.

“Women have waited long enough for their rightful representation. Their reservation should not have to wait for a population count,” he said.

‘From water sharing to water cooperation’

Turning to inter-state water disputes, Shivakumar said the Cauvery, Krishna, Tungabhadra, Pennar and Palar rivers were the lifelines of the southern peninsula and called for a shift from “water sharing to water cooperation”.

Referring to the June 25 meeting involving Karnataka, Andhra Pradesh and Telangana, he said the three states had demonstrated that even complex inter-state water issues could be addressed through dialogue.

“We accept that every riparian state has legitimate needs. And our stand rests on three principles: Equity. Transparency. Cooperation,” he said.

However, he stressed that cooperation must be reciprocal and that Karnataka’s lawful share under tribunal awards, along with the timely completion of projects benefiting its farmers, must be protected.

Shivakumar said he would place Karnataka’s position on the Krishna river dispute, the Upper Bhadra project and river interlinking proposals before the Council.

He also flagged concerns relating to healthcare financing, education and nutrition, housing for economically weaker families, coastal erosion and disaster assistance, mining rights, land provided by states to Central institutions, justice delivery, digital infrastructure, financial inclusion and support for farmers.

On mining, he urged the Centre to reconsider the Mines and Minerals (Development and Regulation) Bill, 2026, contending that it affected the states’ right to tax major minerals.

The Chief Minister also called for stronger laws and stricter enforcement against drug trafficking, saying those profiting from the illegal trade must face “swift and stringent prosecution”.

“These are not isolated demands. They concern the larger question of how we make cooperative federalism work better for our people,” Shivakumar said.

“Karnataka has not come here to complain. We come as a partner in the Indian story. All we ask in return is fairness.”

“When Karnataka is strong, the South is stronger. And when the South is strong, India is stronger,” he added.

“Walk with us. Fund us fairly. And give the South its due. And we will continue to give India its future.”