Economic Survey highlights Telangana’s improved inflation control, IT strength, says Sridhar Babu

The Economic Survey 2025–26 highlights Telangana’s improved macroeconomic indicators, declining inflation, and fiscal self-reliance. The State contributes significantly to India’s services output and has emerged as a preferred destination for startups, particularly in the Gen-AI ecosystem.

Hyderabad: Minister D. Sridhar Babu on Saturday said the Economic Survey 2025–26 reflected Telangana’s improved macroeconomic indicators, strong performance in the IT and services sectors, and growing fiscal self-reliance.

Quoting the Survey, he said inflation in Telangana had shown a steady decline over the past three years. While the State’s headline inflation stood higher than the national average in 2023–24, it dropped to 3.67 per cent in 2024–25, below the national average of 4.63 per cent.

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For the current financial year to date, Telangana recorded inflation of 0.20 per cent compared to the national average of 1.72 per cent, remaining well within the Reserve Bank of India’s tolerance band, he said.

The Survey also noted that Telangana generates substantial revenue through its own tax resources and is not overly dependent on Central grants or borrowings, indicating strong fiscal capacity and transparent financial management, he claimed, adding that according to the Survey, Telangana was among the four States contributing nearly 40 per cent of India’s services output, alongside Maharashtra, Karnataka and Tamil Nadu.

It also observed that the State has evolved from being a hub for Global Capability Centres to emerging as a global innovation destination. In the Gen-AI startup ecosystem, Telangana ranks fourth nationally with a 7 per cent share, with Hyderabad identified as a preferred startup destination.

The Survey further highlighted that Telangana accounts for about 5 per cent of employment in India’s organised manufacturing sector, he said.

The Economic Survey also recognised Telangana’s industrial reforms, simplified compliance mechanisms, and the role of Hyderabad’s pharma clusters in supporting MSMEs and employment generation, while noting the State’s progress in technology-driven governance and digital public service delivery.