Economics P.S.D.

Economy Of Telangana
(An Overview of Growth, Sectors, and Challenges)

-Presented by: Pranav Vir Singh

Course:B.A. LL.B
Section:1-b
 Introduction to Telangana's Economy
 Formed as the 29th State of India, Telangana came into being on the 2nd of June, 2014. The State has an area of
1,12,077 sq. Km. and has a population of 3,50,03,674 (2011 Census). The Telangana region was part of the Hyderabad
state from 17th September 1948 to 1st November 1956, until it was merged with Andhra State to form Andhra Pradesh.
 It is Recognized as one of the fastest-growing states in India.
 It’s Current GSDP is Estimated at ₹14.64 lakh crore for FY24.
 The economic performance of a nation or state is evaluated based on its status across various economic indicators. In
the context of a state, the most important used indicators are Gross State Domestic Product (GSDP) and Per Capita
Income (PCI).
 GROSS STATE DOMESTIC
PRODUCT(G.S.D.P)
GSDP/GDP is the value of all the final goods (e.g. cars, food, furniture) and services (e.g.
services provided by barbers, taxi drivers, waiters) produced within the state’s
boundaries in a specific time period (usually a year). • It is a comprehensive scorecard of
a state’s economic health, and can be used to estimate the size of the economy, and its
growth rate. • GSDP/GDP helps policymakers, investors, and businesses make decisions
by understanding an economy’s health.
GSDP Growth Overview (2018-19 to 2023-
24)
2018-19: ₹8,57,427 crore
2019-20: ₹9,50,090 crore (Growth: 10.8%)
2020-21: ₹9,43,078 crore (Decline: -0.7% due to
pandemic)
2021-22: ₹11,24,086 crore (Recovery: Growth of
19.2%)
2022-23: ₹13,11,823 crore (Growth: 16.7%)
2023-24: ₹15,01,981 crore (Projected Growth:
14.5%)
Cumulative Growth
From 2018 to 2023, Telangana's GSDP showed
resilience with a compound annual growth rate
(CAGR) of approximately 12.9%, significantly higher
than the national average during the same period.
 Sectoral Contributions to GSDP

Sector Contribution (%) Growth Rate (%)

Services 65.7% 14.6%
Industry 18.5% 10.1%
Agriculture &
15.8% 4%
Allied

1.)Agriculture: The contribution of agriculture has been steady,

supported by irrigation projects and agricultural schemes.
2.)Industry: Telangana has seen growth in industries such as
pharmaceuticals, IT hardware, textiles, and food processing.
3.)Services: The services sector, especially IT and IT-enabled
services, is the dominant contributor to the state's GSDP, making
Hyderabad a major IT hub.
 Performance of Key Sectors
1.)Services Sector:
Major driver of growth with contributions from IT, finance, and real estate.
Hyderabad: Major IT hub with multinational corporations.
2.)Industrial Sector:
Includes manufacturing and mining, with a recovery seen post-pandemic.
Growth in pharmaceuticals, textiles, and automobiles.
3.)Agriculture Sector:
Employs about 47.3% of the population, crucial for rural livelihoods.
Supported by government schemes like Rythu Bandhu and Mission Kakatiya
for irrigation.
 Per Capita Income
 Per Capita Income (PCI) is the metric for determining a state’s economic
output or average income for each person residing within the state. It
measures the amount of money that would be available per person if the
total value of all goods and services produced in the economy were to be
divided equally among all citizens.Per Capita Income is often used as a
measure of the standard of living in a state.
 Telangana has the third highest per capita income in the country
Struggle Of Telangana Economy
 In 2011-12, before the Telangana State was formed, the per capita income
in the region was ₹91,121. This was lower than Goa, Haryana, Kerala,
Maharashtra, Sikkim, Uttarakhand, Chandigarh, Delhi and Puducherry. At
the time of State formation in 2014-15, the per capita income was
₹1,24,104. It was topped by 13 States: Goa, Gujarat, Haryana, Karnataka,
Kerala, Maharashtra, Sikkim, Tamil Nadu, Uttarakhand, Andaman and
Nicobar Islands, Chandigarh, Delhi and Puducherry.
 Per Capita Income
Rise Of Economy
 The State recorded double digit growth in per capita income except
during the COVID pandemic era when it logged a negative growth of –
2.45%. The best year of growth was 2021-22 when TS recorded 20.02%
growth.
 The PCI data compiled by the Telangana Directorate of Economics &
Statistics however, shows a wide regional disparity. Rangareddy district
has the highest PCI of ₹8,15,996 and Hyderabad ranks second with
₹4,03,214, while Vikarabad on the edge of Hyderabad district has the
lowest per capita income of ₹1,55,525. Despite the wide regional
variation, all the districts have higher PCI than the national average of
₹96,522, according to Niti Aayog data.
Government Initiatives for Economic Growth
1.)TS-iPASS, the government's flagship initiative, attracted
Rs 20,237 crore of investment in 2022-23 (up to Jan 2023)
through 2,518 new industries and created employment for
72,908 people. Innovation and technology are the prime
drivers of industrial growth in Telangana.
2.) Mission Kakatiya:Mission Kakatiya is a flagship
programme launched by the Government of Telangana
which aims at rejuvenation of water tanks and other water
storage structures to provide assistance and help to the
small and marginal farmers of the state.
The name kakatiya is given in the memory of
the valour and courage of the kakatiya rulers who ruled
over the territory near Warangal and are known for there
role in the development of large number of tanks in their
kingdom.
Government Initiatives for Economic Growth
3.)Rhythu Bandhu Scheme: The Rythu Bandhu scheme, also known as the Farmer's Investment Support
Scheme (FISS), is a welfare programme for farmers started by the Telangana government in 2018.
The objective of this scheme is twofold:
– to provide a timely cash grant for the initial investment needs of farmers
– to ensure that farmers do not fall into the debt trap.
Under the scheme, financial assistance of Rs 5,000 per acre per farmer each season is directly transferred to
each farmer's account.
This financial support was distributed biannually, allocated for both the kharif and rabi harvests.
4.) Mission Bhagiratha
Overview: Mission Bhagiratha, launched in 2016, is a massive project aimed at providing safe and
sustainable drinking water to every household in Telangana.
Objective: To ensure piped drinking water to all households, especially in rural areas, to improve public
health and quality of life
5.) T-Hub
Overview: Established in 2015 in Hyderabad, T-Hub is India’s largest startup incubator, providing a
platform for innovation and entrepreneurship.
Objective: To promote startups and foster innovation in areas such as information technology,
biotechnology, agriculture, and healthcare.
 Telangana's economy is characterized by robust growth
driven by the services sector, with significant contributions
from industry and agriculture.
 Addressing challenges like debt management and
agricultural stability will be crucial for sustained economic
progress.
 The state's strategic initiatives aim to foster an inclusive and
resilient economy for future generations.