Telangana economy shows resilience
Hyderabad: Notwithstanding the adverse impact of Covid-19 pandemic on the economic growth across the world, the economy of Telangana State has shown impressive resilience and the recovery is already underway. In 2020-21, Telangana recorded Gross State Domestic Product (GSDP) of Rs 9,80,407 crore with 2.4 per cent growth rate. In comparison, the economic output (Gross […]
Hyderabad: Notwithstanding the adverse impact of Covid-19 pandemic on the economic growth across the world, the economy of Telangana State has shown impressive resilience and the recovery is already underway. In 2020-21, Telangana recorded Gross State Domestic Product (GSDP) of Rs 9,80,407 crore with 2.4 per cent growth rate. In comparison, the economic output (Gross Domestic Product) at the national level fell by three per cent.
Highlighting the robust economic condition of Telangana, the Directorate of Economics and Statistics under the Planning department had published three books – Telangana’s Journey-Trailblazing it’s Way to Success, Telangana Economy-Trends and Analysis, and State Economy.
These reports indicated that the resilience was led by the agriculture and allied sectors, which grew by 18.5 per cent in Telangana, dwarfing the 6.6 per cent growth of these sectors at the national level. Although the secondary and tertiary sectors contracted by 2.1% and 3.9% respectively, they still fared better than the much steeper contractions at the national level.
Due to its high growth rate, the agriculture and allied sector contributed a higher share to overall GSDP than in any year since State formation. However, at an overall level, the services sector continued to contribute the highest share to the GSDP. Telangana’s GSDP at current prices increased by 93.8 per cent between 2014-15 and 2020-21, as against India’s GDP increase of 58.4 per cent in the same period.
Telangana achieved the third highest percentage increase in GSDP value at current prices between 2014-15 and 2020-21. In 2020-21, Telangana was the sixth highest contributor to the country’s GDP at current prices. Further, the per capita income (PCI) for Telangana was Rs 2,37,632 as against national PCI of Rs 1,28,829 in 2020-21. The PCI is one of the strongest economic indicators of the well-being of a population and Telangana’s PCI was 1.84 times that of the national PCI.
Meanwhile, the tertiary sector remains the dominant sector in the State’s economy, accounting for 59.5 per cent of GSVA (Gross State Value Added) in 2020-21. For all sub-sectors in the services sector, the GVA (Gross Value Added) in 2020-21 was 1.5 to 2 times its value in 2014-15. There was a 120 per cent increase in IT exports from Telangana between 2014-15 and 2020-21.
Similarly, the contribution of the primary sector to Telangana’s GSVA at current prices has consistently improved from 19.5 per cent in 2014-15 to 24.1 per cent in 2020-21. The agriculture and allied sector in the State grew by 14.3 per cent at constant prices in 2020-21 as against 3.6 per cent agriculture growth rate at the national level. Over the last five years, the average contribution of the secondary sector to Telangana’s GSVA has been 18 per cent. Between 2014-15 and 2020-21, the value added by the ‘Manufacturing’ sub-sector grew by 72 per cent.
Since the State’s formation, growth in Telangana has consistently outpaced growth in the rest of the country. On an average, Telangana has grown at a 3.7 per cent higher than India in the period post 2014-15. For the same instance the growth was 3.2 per cent at constant prices.
Telangana’s Annual Average Growth Rate of GSDP was the highest amongst all Southern States, with 11.7 per cent at current prices and 7.6 per cent at constant prices, post 2014-15.
Releasing the three books here on Wednesday, Telangana State Planning Board vice-chairman B Vinod Kumar said the books published by the Directorate of Economics and Statistics were very useful for different departments in the government in planning and executing different programmes. He said the three books provide comprehensive information about the State’s economic performance in the last seven years since its formation. A comprehensive plan is being prepared for further development of the State, he added.
