Insights from Telangana Socio economic
outlook- 2024
Welfare Policies:
1. Six Guarantees – Abhaya Hastam
a. The Telangana government has implemented the "Six Guarantees" under the
Abhaya Hastam initiative, aimed at providing holistic welfare through
schemes like Mahalakshmi, Rythu Bharosa, Gruha Jyothi, Indiramma
Indlu, Yuva Vikasam, and Cheyutha.
b. Mahalakshmi provides monthly financial assistance of ₹2,500 to women, free
bus travel for women, and LPG cylinders at ₹500.
c. Rythu Bharosa offers ₹15,000 per acre for farmers, ₹12,000 per year for
agriculture laborers, and a paddy bonus.
2. Targeted Assistance for Marginalized Communities
The Scheduled Castes Special Development Fund (SCSDF) and
Scheduled Tribes Special Development Fund (STSDF) together allocated
₹36,750 crore and ₹15,232 crore respectively for 2023-24. These funds focus
on economic, educational, and social upliftment through targeted welfare
schemes, such as education and employment support.
Schemes like Kalyana Lakshmi/Shadi Mubarak provide ₹1,00,116 as
marriage assistance to girls from SC/ST/BC/EBC and minority families, thus
supporting over 83,000 BC/EBC families and 41,858 minority families in the
year.
3. Women and Child Welfare
Telangana places a strong focus on women’s empowerment and child
development. Sakhi One-Stop Centers and 181 Women Helpline serve as
critical support systems for addressing violence and offering shelter and legal
aid. Over 2 million calls have been addressed, and 36 OSCs handled more
than 62,000 cases of violence.
Child development schemes through Anganwadi Centers provide nutrition,
health counseling, and education to about 14 lakh children and 4 lakh
pregnant and lactating women.
4. Pensions and Social Security
Cheyutha offers a pension of ₹4,000 per month to elderly citizens, with
Telangana’s Real-Time Digital Authentication system for pensioners using
facial recognition to enhance transparency and efficiency. Over 2.65 lakh
pensioners have been registered under this system
5. Education Support for Backward Classes and Minorities
Telangana provides extensive support for education through residential
educational institutions catering to marginalized communities. 268 SC
Residential Institutions, 165 Tribal Institutions, and 204 Minority
Institutions provide free education, boarding, and lodging
Pre-Matric and Post-Matric scholarships along with fee reimbursement
schemes have been crucial in improving school retention rates among
SC/ST/BC students
6. Agricultural Welfare
Through Rythu Bandhu and Rythu Bharosa, farmers receive direct financial
support to enhance agricultural productivity. Additionally, farm loan waivers
and proposed crop insurance schemes are vital for safeguarding against
weather risks
7. Housing and Infrastructure
The Indiramma Indlu program aims to construct 22.5 lakh fully subsidized
houses for the economically weaker sections and promote gender equity by
registering houses in women's names
Analysis of Telangana's Industries Based on the Socio-Economic
Outlook 2024
1. Industry Contribution to State Economy:
o The industrial sector accounts for 18.5% of Telangana's Gross State
Value Added (GSVA) in 2023-24, showing a growth of 10.1% from the
previous fiscal year. Key industrial subsectors include manufacturing,
construction, mining, and electricity .
2. Pharmaceuticals and Life Sciences:
o Telangana is a major hub for pharmaceuticals, producing one-third of
India’s pharmaceutical products and contributing to 32% of the state’s
total merchandise exports, valued at ₹36,893 crores. Hyderabad’s
Genome Valley is an R&D hub and is dubbed the "Vaccine Capital of
the World" .
o The Biopharma Hub and Medical Devices Park initiatives are key
contributors, with plans for ten pharma villages expected to generate
₹1 lakh crore in investment and 5 lakh jobs .
3. Mining Sector:
o The mining sector saw a 10.5% growth in 2023-24, largely driven by
the Singareni Collieries. Telangana is a significant player in coal
production, generating over 70 million tonnes of coal in 2023-24,
supporting the state's electricity needs and contributing to economic
growth .
o Limestone mining supports Telangana's cement production, while
sand mining contributes substantially to state revenues .
4. Textiles and Handlooms:
o Telangana is known for its traditional textiles, including Pochampally
Ikat and Gadwal Sarees. To boost the sector, the government
developed the Kakatiya Integrated Mega Textile Park in Warangal.
The Telangana Textile and Apparel Policy (T-TAP) offers various
incentives like capital assistance and interest subsidies to attract
investments .
o Despite being a top cotton producer, challenges like outdated weaving
technologies and insufficient infrastructure remain .
5. Food Processing:
o The food processing industry is expanding, focusing on reducing
agricultural losses and providing fair compensation to farmers.
Telangana leads in turmeric and sweet lemon production and ranks
third in chili production .
o Key infrastructure, such as special food processing zones and mega
food parks, is aimed at encouraging private investment .
6. MSMEs (Micro, Small, and Medium Enterprises):
o Telangana's MSME sector is vital for economic growth and rural
employment. The state has 9.2 lakh registered MSME units across
various sectors, with a large number in manufacturing and services .
o Government initiatives like T-IDEA provide incentives such as
investment subsidies and SGST reimbursements to promote
MSMEs .
7. Ease of Doing Business:
o The TG-iPASS system, introduced by the Telangana government,
simplifies the approval process for industrial projects. In 2023-24, 2,677
projects with a total investment of ₹28,126 crore and employment
potential of 84,929 jobs were approved .
Critical Analysis of Telangana's Agriculture Sector:
1. Contribution Decline:
o The agriculture sector's contribution to the Gross State Value Added
(GSVA) has declined from 17.0% in 2022-23 to 15.8% in 2023-24. This
decline highlights the need for structural reforms to address underlying
inefficiencies and vulnerability to climatic conditions.
2. Monsoon Dependency:
o Delayed monsoons and rainfall variability have significantly impacted
crop yields, particularly affecting dry crops like red gram, maize, and
bengal gram. The high dependency on monsoon rains makes
agriculture in the state unpredictable and vulnerable.
3. Fragmentation of Landholdings:
o The average landholding size has decreased from 1.00 hectare in
2015-16 to 0.89 hectares in 2021-22. This fragmentation affects
productivity and limits the adoption of modern farming practices.
4. Heavy Focus on Paddy:
o Paddy remains the dominant crop, occupying 44.30% of the gross
sown area in the Vaanakalam season. This heavy reliance on a water-
intensive crop may exacerbate water scarcity issues in the long term
and limit crop diversification efforts.
5. Shift Towards Livestock:
o While the crops sector has shown a decline, the livestock sector has
increased its contribution to the GSVA, indicating a growing focus on
animal husbandry. Livestock farming is becoming an increasingly
important income source for small and marginal farmers.
6. Irrigation Initiatives:
o The state’s push towards improved irrigation through projects like the
Kaleshwaram Lift Irrigation Scheme has been instrumental in
stabilizing water supply. However, the benefits are yet to fully
materialize across the state, and areas dependent on rain-fed
agriculture continue to face challenges.
7. Government Schemes:
o Initiatives like Rythu Bandhu and Rythu Bima provide financial and
insurance support to farmers. However, concerns remain about
whether the schemes are reaching the intended beneficiaries and if
they are sufficient to tackle larger structural problems like debt and
poor market access.
Telangana’s Horticulture Sector:
1. Significant Area Under Horticulture:
o Telangana's horticulture covers 12.12 lakh acres, with a total
production of 53.06 lakh metric tons (MT). This includes fruits,
vegetables, spices, and plantation crops such as mango, sweet
orange, and chillies. However, the sector is still underdeveloped
compared to its potential in increasing farmers’ income.
2. Government Focus on Oil Palm:
o Under the National Mission on Edible Oils – Oil Palm (NMEO-OP),
Telangana has aggressively promoted oil palm cultivation, targeting 1
lakh acres by 2024-25. The expansion of oil palm aims to reduce
dependence on imports. However, oil palm is a water-intensive crop,
which raises concerns about long-term sustainability in water-scarce
regions.
3. Low Adoption of Modern Practices:
o The adoption of modern technology in horticulture is limited. While
schemes like the Micro Irrigation Project (TGMIP) aim to increase
water efficiency, the penetration of these practices remains uneven
across the state.
4. Challenges in Value Addition:
o Though Telangana is a leading producer of high-value crops such as
turmeric and chillies, value addition and food processing remain
underdeveloped. Farmers primarily sell raw produce, missing out on
potential revenue from processed goods, which is a significant
opportunity for growth.
5. Climate and Market Vulnerabilities:
o Horticulture is particularly vulnerable to climate variability, which
affects both yield and quality. Additionally, market access remains a
challenge, with many small and marginal farmers dependent on local
markets where prices are highly volatile.
Critical Analysis of Animal Husbandry and Fisheries in Telangana:
Animal Husbandry
1. Growing Importance:
o The livestock sector has become a significant contributor to the state's
economy, with 29 lakh families engaged in animal husbandry for their
livelihoods.
2. Increase in Livestock Population:
o Between 2012 and 2019, the livestock population grew from 26.7
million to 32.6 million, marking a 22.09% increase.
3. Contribution to Income:
o The sector is crucial for income generation, with small and marginal
farmers and landless laborers contributing 62% of total milk production.
4. Women’s Role:
o Women constitute about 69% of the workforce engaged in livestock
farming, highlighting the sector's role in empowering women.
5. Diverse Livestock:
o Telangana has a diverse livestock population, including 190.63 lakh
sheep, 799.99 lakh poultry, and 42.26 lakh buffalo.
6. Milk Production Challenges:
o The per capita availability of milk is improving, but there is a need for
increased production and better support for dairy farmers, especially
regarding the Milk Incentive Scheme.
7. Veterinary Services:
o The government provides veterinary services through 100 IT-enabled
Mobile Veterinary Clinics, which treated over 39 lakh cases.
8. Need for Policy Support:
o A new Bovine Breeding Policy aims to enhance milk yield and focus on
indigenous breeds. However, effective implementation is essential for
success.
Fisheries
1. Rapid Growth:
o The fisheries sector is one of the fastest-growing sectors, with inland
fish production reaching 4,39,513 tons in 2023-24, a 3.58% increase
from the previous year.
2. Freshwater Prawn Production:
o Freshwater prawn production also grew significantly, by 16.90%,
totaling 16,532 tons.
3. Income and Employment:
o Fisheries provide vital income and employment for families in rural
areas, enhancing food security and nutrition.
4. Formation of FFPOs:
o The government encourages the establishment of Fish Farmer
Producer Organizations (FFPOs) to improve income through value-
added products.
5. Insurance for Fishermen:
o The state government insures 4.16 lakh fishermen under the Group
Accidental Insurance scheme, providing financial security in case of
accidents.
6. Export Opportunities:
o A new wholesale fish market is being established to promote domestic
and export sales, enhancing the sector's economic viability.
7. Need for Skill Development:
o While the sector is growing, there is a need for better training and skill
development programs for fishermen to enhance productivity and
income.
Education & Skill Development in Telangana:
1. Literacy Rates:
o Telangana’s literacy rate stands at 73.4%, with male literacy at 82%
and female literacy at 64.8%. Although there is an improvement,
significant gender and urban-rural disparities exist.
2. School Education Initiatives:
o The government focuses on universal access to education through
programs like Samagra Shiksha, targeting early childhood and
elementary education.
o Nutrition is supported in schools with mid-day meals and breakfast
programs, enhancing students' overall health.
3. Kasturba Gandhi Balika Vidyalayas:
o Telangana leads the country with the highest number of operational
Kasturba Gandhi Balika Vidyalayas (KGBVs), promoting girls'
education. This initiative includes 479 KGBVs across 31 districts, with
a total enrollment of 1,24,153 girls.
4. Higher Education:
o The state manages 146 Government Degree Colleges with a Gross
Enrollment Ratio of 39.3%. This indicates a growing focus on
improving higher education access and quality.
5. Skill Development Programs:
o The Telangana Academy for Skill and Knowledge (TASK) offers
various skill development programs to enhance employability. In the
2023-24 fiscal year, over 1,17,146 students benefitted from these
initiatives.
o The government has partnered with Tata Technologies to establish
Advanced Technology Centers (ATCs), aimed at improving technical
education and job readiness.
6. Technical Education:
o The government is committed to enhancing technical education by
updating curricula and ensuring industry relevance. 56 government
polytechnics cater to around 12,000 students annually,
predominantly from rural areas.
7. Women Empowerment:
o Women Self-Help Groups (SHGs) play a significant role by producing
school uniforms, supporting 30,000 SHG members and providing them
with a source of income.
8. Challenges in Skill Development:
o Despite various initiatives, challenges remain in bridging the gap
between education and employment. Many youths, especially in rural
areas, still lack access to quality training and job opportunities.
9. Socio-Economic Disparities:
o Economic disparities affect educational access and outcomes,
particularly for marginalized communities. Initiatives like scholarships
and coaching for competitive exams aim to address these issues but
require further support.
10. Need for Infrastructure Improvements:
Continued investment in educational infrastructure and teacher training is
essential to improve educational quality and ensure a conducive learning
environment.
Health & Wellbeing in Telangana:
1. Healthcare Accessibility:
o Telangana has made efforts to enhance healthcare accessibility
through a wide range of facilities, including 2 District Hospitals, 26
Teaching Hospitals, 72 Area Hospitals, and 246 Urban Primary
Health Centres (UPHCs).
o A total of 461 Basti Dawakhanas serve vulnerable populations in
urban areas, improving access to essential healthcare services.
2. Maternal and Child Health:
o The state reports a Maternal Mortality Rate (MMR) of 43 deaths per
100,000 live births, significantly better than the national average of 97.
o The Infant Mortality Rate (IMR) is also low at 21 per 1,000 live
births, compared to the national average of 28. These statistics
indicate effective maternal and child healthcare programs.
3. Government Health Programs:
o The Rajiv Aarogyasri Scheme provides health insurance for below-
poverty-line families, covering medical expenses up to ₹10 lakh per
family annually. This enhances financial protection and access to
quality healthcare.
o Maternal and child health programs like the MCH Kit and Nutrition Kit
support prenatal and postnatal care, with 14.95 lakh MCH Kits
distributed to mothers.
4. Emergency Transport Services:
o The state offers robust emergency transport services through the 108
Emergency Health Transportation Scheme, ensuring timely access
to medical care.
5. Public Health Initiatives:
o Telangana has implemented extensive screening programs for non-
communicable diseases (NCDs), identifying significant cases of
hypertension and diabetes, which indicates a proactive approach to
health management.
6. Challenges with Disease Control:
o The state aims to eliminate tuberculosis (TB) by 2025 but faces
challenges in ensuring full notification and treatment success among
TB cases.
o The rise in NCDs and mental health issues requires continuous
attention and resources.
7. Need for Skilled Workforce:
o There is an ongoing recruitment initiative for 435 Civil Assistant
Surgeons to strengthen the healthcare workforce and enhance service
delivery.
8. Healthcare Infrastructure Development:
o The establishment of Special Newborn Care Units (SNCUs) and
increased focus on diagnostics through the Telangana Diagnostics
initiative reflects a commitment to improving healthcare services.
Women and Child Welfare in Telangana:
1. Dedicated Focus:
o Telangana has a dedicated department for women and child welfare,
emphasizing holistic development and safety.
2. Extensive Outreach:
o The Integrated Child Development Services (ICDS) program operates
35,700 Anganwadi Centers, reaching around 14 lakh children and 4
lakh pregnant and lactating women annually.
3. Anganwadi Services:
o The state introduced an Anganwadi Helpline (155209) for better
service delivery and support for women and children.
4. Child Protection Initiatives:
o The government runs 35 Children’s Homes and 33 District Child
Protection Units to support vulnerable children, preventing child
marriages and rescuing children in need.
5. Prevention of Child Marriage:
o In 2023-24, the state prevented 1,022 child marriages, showing a
commitment to safeguarding children's rights.
6. Support for Women in Distress:
o Sakhi One-Stop Centres provide integrated services for women
affected by violence, offering medical, legal, and psychological support.
7. Helplines and Support Networks:
o The Women Helpline (181) has handled over 2 million calls,
addressing domestic violence, harassment, and other issues.
8. Nutritional Programs:
o Initiatives like Aarogya Lakshmi and Nutrition Kits aim to combat
malnutrition among mothers and children, distributing thousands of
nutritional packs.
9. Focus on Maternal Health:
o Programs provide financial incentives for institutional deliveries and
improve maternal health through various targeted interventions.
10. Awareness and Empowerment:
o The Mission Shakti scheme enhances women's safety and
empowerment, with a focus on preventing violence against women.
11. Transgender Welfare:
o The state supports transgender individuals through financial aid and
plans for dedicated shelter homes, promoting inclusivity.
12. Challenges in Implementation:
o Despite strong initiatives, challenges remain in outreach, accessibility,
and ensuring all vulnerable groups receive adequate support.
Panchayat Raj and Rural Development in Telangana:
1. Decentralization Efforts:
o The government is focused on decentralizing power to strengthen
Panchayat Raj Institutions (PRIs). This empowers local bodies to
make independent decisions for rural development.
2. Financial Allocation:
o For 2023-24, ₹1,553.17 crore has been allocated to PRIs, enhancing
their ability to implement development projects effectively.
3. Water Supply Initiatives:
o Special drives were launched to ensure continuous drinking water
supply, with significant investments in repairing borewells and
pipelines.
4. Rurban Mission:
o The Shyama Prasad Mukherji Rurban Mission (NRuM) aims to
create well-planned rural clusters. A total of ₹4,247.25 lakh was spent
to complete 1,257 projects in 2023-24.
5. Employment Generation:
o The Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) provided wage employment to 40.62 lakh
individuals, generating 12.09 crore person-days in 2023-24.
6. Infrastructure Development:
o The Panchayat Raj Engineering wing focuses on constructing and
maintaining rural infrastructure, including roads and drainage systems.
This is essential for connecting villages and improving transportation.
7. Skill Development Initiatives:
o The Swamy Ramananda Tirtha Rural Institute (SRTRI) offers
vocational training for rural youth and women, enhancing employability
and entrepreneurship skills.
8. Community Engagement:
o Efforts to involve Non-Resident Indians (NRIs) and local businesses in
village development are commendable, encouraging community
participation and investment.
9. Challenges in Implementation:
o Despite progress, challenges such as bureaucratic delays and
resource allocation issues may hinder the timely execution of
development projects.
10. Impact of SERP:
The Society for Elimination of Rural Poverty (SERP) plays a vital role in
organizing women into Self-Help Groups (SHGs) and providing them access
to financial services, contributing to women's empowerment.
Urban Development in Telangana:
1. Rapid Urbanization:
o Telangana is one of India's rapidly urbanizing states, led by
Hyderabad, which is known for its IT industry and infrastructure.
2. Investment in Infrastructure:
o The government is actively investing in roads, sewage systems,
sanitation, and public health services to improve urban living
conditions.
3. Water Supply Initiatives:
o Efforts to provide safe drinking water and proper waste disposal in
urban areas are underway, ensuring hygiene and sanitation for
residents.
4. Urban Forest Parks:
o The creation of Urban Forest Parks aims to enhance green spaces and
improve air quality, helping mitigate urban pollution.
5. Solid Waste Management:
o The government is implementing effective solid waste management
systems, including a 'Waste to Energy' plant to convert waste into
electricity.
6. Focus on Inclusive Development:
o The urban development strategies prioritize the needs of marginalized
communities, including women and low-income groups, through self-
help groups and skill development programs.
7. Hyderabad Metro Expansion:
o The Hyderabad Metro Rail is being expanded to reduce traffic
congestion and promote sustainable transportation options across the
city.
8. Musi River Front Development:
o Plans are in place for the Musi River Front Development Project, aimed
at creating recreational spaces and enhancing tourism while improving
urban aesthetics.
9. Challenges in Governance:
o Despite improvements, challenges remain in effective governance,
including ensuring public participation and addressing bureaucratic
inefficiencies.
10. Need for Sustainable Practices:
o The urban development initiatives must focus on sustainable practices
to balance growth with environmental conservation.
Energy Sector in Telangana:
1. Growing Energy Capacity:
o Telangana's total contracted energy capacity reached 19,475 MW, with
a significant focus on solar energy, which stands at 6,123 MW.
2. Rising Agricultural Demand:
o The agriculture sector has 28.34 lakh connections and saw annual
consumption rise to 19,995 million units (MU) in 2023-24, highlighting
increased energy needs.
3. Effective Transmission System:
o Transmission losses are low, recorded at only 2.30%, demonstrating
efficient energy management. TGTRANSCO ensures safe electricity
transmission across the state.
4. Peak Demand Management:
o The state grid met a peak demand of 15,623 MW on March 8, 2024,
indicating robust infrastructure capable of handling high consumption
levels.
5. Diverse Energy Sources:
o The energy mix includes 4,042.50 MW from thermal power, 2,441.76
MW from hydropower, and ongoing efforts to expand solar capacity,
contributing to a sustainable energy future.
6. Focus on Renewable Energy:
o Telangana has established policies promoting solar parks and
renewable energy integration, aiming to reduce reliance on fossil fuels
and improve environmental sustainability.
7. Government Initiatives:
o Programs like Gruha Jyothi provide free electricity up to 200 units per
month for eligible households, enhancing energy access for lower-
income families.
8. Challenges in Infrastructure:
o Despite advancements, the state faces challenges in rural energy
access and the need for further investment in renewable technologies.
9. Future Prospects:
o Continued exploration of green hydrogen and geothermal resources
indicates a commitment to diversifying energy sources and promoting
cleaner technologies.
Irrigation in Telangana:
1. Irrigation Potential:
o The government aims to create irrigation potential for 127.58 lakh
acres. Currently, about 73.60 lakh acres have been developed,
leaving 53.98 lakh acres still to be developed.
2. Investment in Infrastructure:
o Post-formation of the state, irrigation expenditures increased
significantly to ₹1.81 lakh crore. However, this has not translated into
proportionate improvements in irrigation facilities.
3. Major vs. Minor Projects:
o Major projects account for 71.95% of the total irrigation potential, while
medium and minor projects cover 3.81% and 20.15%, respectively.
The reliance on major projects indicates a potential overemphasis on
large-scale initiatives.
4. Cracks in Major Projects:
o Major irrigation projects like the Kaleshwaram Lift Irrigation Scheme
have faced structural issues, with reports of cracks leading to
significant concerns about the management and execution of projects.
5. Commission for Accountability:
o In response to the structural failures of projects, the government has
constituted a commission to investigate mismanagement and hold
responsible parties accountable.
6. Narayanpet Kodangal Scheme:
o The recent Narayanpet Kodangal Lift Irrigation Scheme aims to
provide irrigation to drought-prone areas. However, it is essential to
ensure that such schemes are properly funded and managed to
achieve their objectives.
7. Focus on Efficiency:
o The government emphasizes increasing water use efficiency through
better management and technology, which is critical for ensuring
sustainable irrigation in drought-prone regions.
8. Flood Control Responsibilities:
o The irrigation department is also responsible for flood control, which
highlights the dual role of irrigation systems in both providing water for
agriculture and protecting communities from flooding.
Transportation in Telangana:
1. Comprehensive Transport Network:
o Telangana has a well-developed transportation network comprising
roads, railways, and airways, essential for the movement of goods and
people.
2. Road Infrastructure:
o The total road length in Telangana is 110,756 km, with 61.88% being
rural roads. This extensive network facilitates connectivity but raises
concerns about maintenance and quality.
3. Rural Road Focus:
o Rural roads, managed by the Panchayat Raj Engineering Department,
make up a significant portion of the network, indicating a focus on
improving rural accessibility.
4. State Transport Corporation:
o The Telangana State Road Transport Corporation (TGSRTC) plays
a pivotal role in providing affordable public transportation. It operates
9,094 buses with an impressive occupancy ratio of 91.99%.
5. Digital Initiatives:
o The TGSRTC has embraced technology through initiatives like the
Intelligent Ticket Issue Machine (i-TIMS) and mobile apps,
enhancing the efficiency and convenience of bus travel.
6. Hyderabad Metro Rail:
o The Hyderabad Metro Rail is a significant achievement, covering 69
km in Phase 1, with plans for an additional 73 km in Phase 2. This
project is crucial for reducing urban traffic congestion.
7. Environmental Considerations:
o The introduction of e-metro buses and plans for additional electric
buses reflect a commitment to sustainable transportation and reducing
air pollution.
8. Air Traffic Growth:
o Rajiv Gandhi International Airport has experienced substantial
growth, with passenger traffic reaching 25 million in 2023-24. New
international routes have been added to enhance connectivity.
9. Regional Ring Road:
o The Hyderabad Regional Ring Road project aims to improve
connectivity and ease traffic congestion, facilitating better access to
hinterlands.
10. Challenges in Urban Transport:
o Despite advancements, urban transport faces challenges such as
traffic congestion, inadequate infrastructure in peripheral areas, and
the need for better integration of various modes of transport.
Digital Infrastructure in Telangana:
1. Foundation for Development:
o Digital infrastructure is essential for Telangana's economic growth and
connectivity. It enables various communication modes, including
telecommunication networks, servers, and data centers.
2. Government Initiatives:
o The state government has prioritized building efficient digital
communication networks to support overall development and improve
service delivery to citizens.
3. Digital Telangana Programme:
o The Digital Telangana initiative aims to provide comprehensive digital
facilities to all citizens. This aligns with the national Digital India project
and focuses on accessibility and affordability.
4. Common Services Centres (CSCs):
o Telangana operates 13,352 CSCs, with over 8,997 in rural areas, to
promote digital literacy and provide essential public services. This
helps bridge the urban-rural digital divide.
5. AI Focus:
o The government is expanding its digital efforts to include Artificial
Intelligence (AI), aiming to position Telangana as a hub for AI
development and innovation.
6. Drone Ecosystem:
o The establishment of Telangana Drone City aims to create a thriving
drone ecosystem, fostering innovation and entrepreneurship in drone
technology.
7. Infrastructure Enhancements:
o The government is working on enhancing digital infrastructure,
including the setup of a Very Low Frequency (VLF) radar station,
which will improve communication capabilities for the Indian Navy.
8. Advanced Centre for Digital Design:
o A 1000-member Advanced Centre for Digital Design and
Construction is being established in Hyderabad, contributing to the
state’s digitalization plans.
9. Challenges in Implementation:
o Despite advancements, challenges like ensuring internet access in
remote areas and enhancing digital literacy across all demographics
remain critical.
10. Need for Sustainable Practices:
o Continuous investment in maintaining and upgrading digital
infrastructure is vital to support emerging technologies and ensure
long-term benefits for citizens.
Services Sector in Telangana:
1. Dominant Sector:
o The services sector constitutes 65.7% of Telangana's Gross State
Value Added (GSVA), reflecting its critical role in the state’s economy.
2. Significant Growth Rates:
o The services sector grew by 14.6% in 2023-24, surpassing the national
growth rate of 9.5%, showcasing the state's robust economic activities.
3. Key Sub-sectors:
o The Trade, Repair, Hotels, and Restaurants sub-sector experienced
a growth of 20.81%, indicating strong consumer demand and recovery
in hospitality post-pandemic.
4. Transport and Communication:
o The Transport, Storage, Communication, and Broadcasting sub-
sector grew by 15%, underscoring the importance of logistics and
connectivity in urban development.
5. Financial Services Decline:
o The contribution of Financial Services decreased from 7.9% to 7.6%,
indicating challenges within the banking and insurance sectors that
need addressing.
6. Real Estate Challenges:
o Real Estate and professional services saw a decline from 36.8% to
35.6%, reflecting market fluctuations and potential oversupply issues in
urban areas.
7. Gender Representation:
o Employment in the services sector is higher in Telangana (66.6%)
compared to the national average (62.2%), with a notable
representation of both genders.
8. Emerging Gig Economy:
o The gig and platform economy is expanding, offering flexible job
opportunities. However, gig workers face challenges like irregular
payments and lack of social security.
9. Digitalization Initiatives:
o Telangana is integrating technology into services for better
governance, efficiency, and inclusivity, making strides in digital
transactions and e-governance.
10. Sustainability Focus:
o Urban services are evolving to incorporate sustainability practices,
such as the introduction of electric buses to promote green
transportation.
Governance in Telangana:
1. Commitment to Good Governance:
o Telangana emphasizes fair decision-making through participation, rule
of law, and transparency. Good governance is fundamental for
equitable societal development.
2. Decentralization of Administration:
o Local governments are empowered, enhancing accountability and
citizen participation. This improves service delivery and promotes
efficient governance.
3. Citizen-Centric Initiatives:
o Programs like Praja Palana and Praja Vani enhance citizen
engagement. They provide platforms for grievances, ensuring
government accountability and responsiveness.
4. E-Governance Adoption:
o Telangana is a leader in e-governance, with high rates of electronic
transactions. The eTaal project facilitates the tracking of public service
transactions, improving transparency and efficiency.
5. Real-Time Digital Authentication:
o The Real-Time Digital Authentication of Identity (RTDAI) system
allows pensioners to verify their identity digitally, reducing fraud and
improving service delivery speed.
6. Public Grievance Redressal:
o Praja Vani allows citizens to register complaints easily, providing
multiple avenues for grievance registration, including online, offline,
and via phone.
7. Streamlined Procurement Processes:
o The e-Procurement Platform has revolutionized procurement,
enhancing efficiency and transparency in government contracts and
tenders.
8. Technology Integration:
o The government leverages technology to prevent corruption and
improve public service delivery. Initiatives like T-Wallet facilitate
seamless financial transactions.
9. Focus on Inclusivity:
o Governance frameworks aim to include marginalized voices, promoting
social justice and equal opportunities for all societal groups.
10. Challenges in Implementation:
o Despite advancements, challenges remain in ensuring complete
transparency and efficiency across all departments. Continuous efforts
are needed to address bureaucratic inefficiencies.
Public Finance in Telangana:
1. Increasing Revenue Receipts:
o Projected revenue receipts for 2024-25 are expected to reach
₹2,05,602 crore, marking a 15.4% increase from the previous year.
2. Rising Tax Revenue:
o Tax revenue is projected at ₹1,38,228 crore, a rise of 16.9%, indicating
a positive trend in tax collection efforts.
3. Significant Expenditure Growth:
o Total expenditure for 2024-25 is projected at ₹2,75,891 crore,
reflecting a 22.8% increase, emphasizing ambitious government
spending plans.
4. High Debt Levels:
o The total debt has surged from ₹72,658 crore in 2014-15 to ₹6,71,757
crore by December 2023, nearly a tenfold increase, raising concerns
about fiscal sustainability.
5. Debt Servicing Strain:
o Servicing debt consumes 34% of the state's revenue receipts, and
salaries and pensions consume another 35%, limiting fiscal space for
development initiatives.
6. Dependence on Borrowing:
o Telangana's heavy reliance on borrowing to meet expenditures risks
long-term economic stability, as evidenced by the rising per capita
debt, which increased from ₹20,251 to ₹1,76,360.
7. Fiscal Deficit Concerns:
o The fiscal deficit for 2024-25 is projected to widen to ₹53,228 crore, a
57.5% increase from the previous fiscal year, indicating a growing gap
between revenue and expenditure.
8. Strategic Allocations:
o The budget prioritizes welfare schemes, with ₹53,196 crore allocated
under the Abhaya Hastam initiative, focusing on social welfare and
economic development.
9. Sectoral Allocations:
o Major allocations include ₹28,024 crore for irrigation, ₹21,389 crore
for education, and ₹11,500 crore for health, reflecting a focus on
essential services.
10. Need for Fiscal Reforms:
o To ensure long-term fiscal health, the state needs stringent reforms to
balance spending with revenue generation and reduce reliance on
high-cost borrowing.
Aspect Details
Projected to reach ₹14.64 lakh crore in 2023-24, growing by
GSDP Growth
11.9% compared to the previous year.
- Services: 65.7% of GSDP
Sector
- Industries: 18.5%
Contributions
- Agriculture: 15.8%.
Per Capita Increased from ₹1,24,104 in 2014-15 to ₹3,47,299 in 2023-24,
Income exceeding the national average by ₹1.64 lakh.
Rising Debt Total debt surged from ₹72,658 crore to ₹6,71,757 crore (over
Levels 824.5% increase).
Economic Demonstrated resilience despite global economic challenges,
Resilience recovering from the pandemic.
Employment Labour Force Participation Rate (LFPR) at 66.5%, higher than
Indicators the national average.
Sector Growth Services sector grew at 14.6%, while agriculture sector only saw
Variability 4.0% growth.
Need for Fiscal Rising debt compared to income growth highlights the necessity
Reforms for stringent fiscal reforms.
Challenges High debt servicing costs are consuming a significant portion of
Ahead revenue, limiting funds for development projects.
Continued investment in infrastructure and targeted policies aim
Future Outlook to enhance economic dynamism and address regional
disparities.
Data Item Details
Gross State
Projected at ₹14.64 lakh crore in 2023-24, an increase of
Domestic Product
11.9%.
(GSDP)
Per Capita Income ₹3.47 lakh in 2023-24, which is ₹1.64 lakh higher than the
(PCI) national average of ₹1.83 lakh.
Agriculture & Allied Year-on-year growth of 4.0% between 2022-23 and 2023-
Sector GVA Growth 24.
Industrial Sector
Achieved a growth rate of 10.1% in 2023-24.
Growth
Services Sector
Increased by 14.6% in 2023-24.
GVA Growth
Increased from ₹72,658 crore in 2014-15 to ₹6,71,757
Total Debt
crore by December 2023 (over 824.5% increase).
Fiscal Deficit Projected at ₹53,228 crore for 2024-25.
Total Expenditure Expected at ₹2,75,891 crore, a 22.8% increase for 2024-25.
Tax Revenue Projected at ₹1,38,228 crore, a rise of 16.9% in 2024-25.
Labor Force
Stood at 66.5% in 2022-23, higher than the national average
Participation Rate
of 61.6%.
(LFPR)
Unemployment Higher than the national average, indicating a mismatch
Rate (UR) between workforce and job opportunities.
Livestock Increased from 26.7 million to 32.6 million between 2012
Population Growth and 2019 (about 22.09% growth).
Horticulture Total production of 53.06 lakh metric tons across various
Production crops.
Telangana ranks 12th in population, with 350.04 lakh
Urban Population
residents as per the 2011 Census.
Investment in
₹21,389 crore allocated to the education sector for 2024-25.
Education
Welfare Schemes ₹53,196 crore allocated under the Abhaya Hastam initiative
Allocation for welfare schemes in 2024-25.
Scheme Name Description
Abhaya Hastam (The A comprehensive set of schemes aimed at providing financial
Six Guarantees) assistance and support to various vulnerable groups.
Provides ₹2,500 monthly financial assistance for women,
Mahalakshmi
free bus travel across the state, and subsidized LPG at ₹500.
Offers ₹15,000 per acre annually for farmers and tenant
Rythu Bharosa farmers, ₹12,000 per year for agricultural laborers, and a
₹500 bonus for paddy crops.
Gruha Jyothi Supplies 200 units of free electricity to eligible households.
Aims to construct 22.5 lakh subsidized houses for
Indiramma Indlu
economically weaker sections, with a focus on gender equity.
Provides a Vidya Bharosa Card worth ₹5 lakh for students
Yuva Vikasam and establishes Telangana International Schools in every
Mandal.
Offers ₹4,000 monthly pensions for the elderly and provides
Cheyutha ₹10 lakh coverage under the Rajiv Aarogyasri insurance
scheme.
Kalyana
Provides financial support of ₹1,00,116 for unmarried girls at
Lakshmi/Shadi
the time of marriage, benefiting marginalized communities.
Mubarak
Praja Palana Aims to receive applications for various welfare schemes,
Programme receiving over 1.28 crore applications to date.
Scheduled Castes
Enacted to support SC/ST communities in economic,
and Scheduled Tribes
educational, and human development, with significant
Special Development
funding allocations.
Fund
Public Distribution Serves 281.71 lakh beneficiaries through 89.97 lakh Food
System (PDS) Security Cards using a network of Fair Price Shops (FPS).
Telangana Offers free diagnostic services to residents, enhancing
Diagnostics healthcare accessibility.
Real-Time Digital
Utilizes facial recognition technology for pensioners to verify
Authentication of
their identity digitally, enhancing convenience and security.
Identity (RTDAI)
A flagship program aimed at increasing tree cover in the
Vanamahotsavam state, targeting the planting of 2,002 lakh seedlings in 2024-
25.
Provides financial assistance for income-generating assets
Economic Support
to SC, ST, BC, and minority communities, promoting self-
Schemes (ESS)
sustainability.
Haj Pilgrimage
Facilitates Haj pilgrimage activities, including health camps,
Activities for
transportation, and training for pilgrims.
Minorities
Aspirational Districts Focuses on improving socio-economic indicators in
Programme (ADP) underdeveloped districts through targeted interventions.
Aims to enhance governance and quality of life in
Aspirational Blocks
underdeveloped blocks through convergence of schemes
Programme (ABP)
and focused efforts.
Offers vocational training and skill development programs to
Skill Development
empower youth, enhancing employability and self-
Initiatives
employment opportunities.
Ambedkar Abhaya A pilot scheme providing a self-employment package and
Hastham (AAH) social security for Below Poverty Line (BPL) SC families.
Society for Telangana Operates TSAT for distance learning, providing educational
Network (SoFTNET) content via satellite communications.
Upgrades ITIs to provide skill development in collaboration
Advanced Technology
with Tata Technologies, enhancing employment
Centers (ATCs)
opportunities.