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Telangana is the richest among large Indian States, with highest per capita income. In 2022-23, the latest twelvemonth for which information for each States are available, the fig for Telangana stood astatine ₹3.54 lakh (at existent prices).
For Karnataka it was ₹3.44 lakh, Haryana ₹3.24 lakh, Gujarat ₹3.1 lakh, Tamil Nadu ₹3.09 lakh, Kerala ₹2.9 lakh and Maharashtra ₹2.89 lakh.
This is an awesome accomplishment arsenic these States were ranked higher successful 2013-14, astatine the clip of Telangana’s enactment successful June 2014. Using Gross State Domestic Product (GSDP) and District Domestic Product (DDP) data, the State’s show tin beryllium assessed successful presumption of determination attraction and sectoral spread. These 2 issues were rather cardinal to the request for a abstracted State of Telangana. Neighbouring Andhra Pradesh serves arsenic the comparator for this purpose.
Economic size of Telangana
In 2004-05, Telangana’s economical size was astir three-fourths of Andhra Pradesh (74%). The spread became astir negligible astatine the clip of the bifurcation (96% successful 2013-14). Since then, the State’s comparative size has remained unchangeable (96.5% successful 2024-25). The aforesaid holds successful per capita presumption arsenic well.
The illustration beneath shows Telangana’s GSDP and per capita income (pcGSDP) arsenic a percent of Andhra Pradesh (in changeless prices)
Telangana’s per capita income was somewhat higher than Andhra Pradesh’s successful 2004-05 (6%). It steadily roseate to 1.3 times by 2013-14, and remained changeless since past (1.35 times successful 2024-25).
Sectoral composition:
At a sectoral level, the comparative diminution of the cultivation and concern (and manufacturing) sectors successful Telangana has been faster than the nationalist average. The services assemblage was astir 1.25 times that of Andhra Pradesh successful 2013-14. This has steadily climbed to 1.47 by 2024-25. The illustration beneath shows sectoral show of Telangana arsenic a percent of Andhra Pradesh (in changeless prices).
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Components of the services sector: Which portion of the services assemblage has driven this? ‘Real estate, ownership of dwelling, and Business service’ (Real property and IT) and ‘Trade, Hotel, and Restaurants’ (THR). Compared to Andhra Pradesh, the erstwhile assemblage jumped from 2 times to 2.7 times during 2013-14 and 2024-25. The illustration beneath shows 2 large components of Telangana’s services assemblage arsenic a percent of Andhra Pradesh (in changeless prices)
This show is intimately matched by the 2nd sub-sector. Due to this awesome performance, these 2 sub-sectors represent astir two-thirds of the services assemblage output successful 2024-25 successful Telangana: existent property and IT (35.3%), and THR (29.6%).
What astir the geography of economical growth? Undivided Andhra Pradesh had 23 districts of which 10 were carved retired to signifier Telangana. Soon after, successful October 2016, Telangana was divided into 21 caller districts, with 2 much formed successful 2019. Hyderabad was the lone territory near undivided.
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To summation a perspective, we way the output shares of the archetypal 10 districts since 2004-05. For clarity, the illustration shows lone 2 starring districts: Hyderabad and Ranga Reddy (RR). None of the different 8 districts ever contributed much than a tenth of the system of the State since its creation. In 2022-23, the scope was betwixt 4.4% (Nizamabad) and 8.9% (Medak).
The dominance of Metro Hyderabad: Hyderabad, on with its neighbouring RR district, is the State’s economically ascendant region. The illustration shows the stock of Rangareddy’s and Hyderabad’s system successful Telangana’s system implicit the years (at changeless prices)
These 2 districts (Metropolitan Hyderabad) relationship for astir fractional of the State’s system (47.5% successful 2022-23). They screen little than a tenth of its country (8.7%), and are location to somewhat implicit a 4th of its radical (27.9% based connected the 2011 Census). Metro Hyderabad’s economical stock has remained astir unchangeable implicit the past decade.
The emergence of Ranga Reddy district: RR territory was carved retired of Hyderabad successful 1978, comprising mostly of its agrarian areas.
In its archetypal creation, it surrounded Hyderabad from each sides. In 2016, arsenic portion of a State-wide strategy, RR territory was subdivided into 3 districts. The smaller RR territory covered Hyderabad from the south, Medchal-Malkajgiri from the northbound portion the occidental portion became Vikarabad, with Metro Hyderabad arsenic a contagious area.
In 2014, RR territory overtook Hyderabad successful the metro portion to go the economically starring district, chiefly owed to the booming IT sector. It is simply a humanities irony that RR territory (then an undivided district) was 1 of India’s 250 astir backward districts (out of 640) successful 2006. It is present 1 of India’s richest districts, with a per capita income of ₹ 9.5 lakh successful 2023-24.
On the flip side, Vikarabad (which was portion of RR territory until 2019), has present the State’s lowest per capita income (₹1.8 lakh).
Telangana’s engine
Telangana’s emergence is stunning. Metro Hyderabad is its engine, contributing astir one-half of the State’s output, driven by 2 sub-sectors, namely, existent estate-IT, and trade, hotel, and restaurants. However, the motor is unhinged from the remainder of the State, with its neighbouring district, Vikarabad, for instance, is lagging, with conscionable 1.5 % of Telangana’s output. In a deepening democracy, specified an highly uneven maturation process tin pb to societal and governmental backlash, fixed the State’s agelong past of people’s movements and convulsive struggles. The concern calls for policies to dispersed the fruits of maturation crossed the State to redress terrible spatial imbalances.
R. Nagaraj was formerly with the Indira Gandhi Institute of Development Research. Vikash Vaibhav teaches astatine the School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat
