Telangana secures spot in World Bank’s upper-middle-income bracket

Telangana has entered the World Bank's upper-middle-income category with a per capita income of ₹4.19 lakh for 2025-26, becoming one of five Indian states to achieve the milestone. Strong economic growth over the past decade has positioned it among India's wealthiest states

Hyderabad: Telangana has entered the ‘upper-middle-income’ category under the World Bank’s per capita income (PCI) benchmark, emerging as one of only five Indian states to cross the threshold. The milestone reflected the State’s sustained economic expansion over the past decade, largely driven by the rapid growth witnessed during the BRS government’s tenure, though the pace has moderated in recent years under the Congress government.

According to the latest estimates, Telangana’s per capita income for 2025-26 stands at Rs 4,18,931 (about USD 5,407), placing it third behind Delhi (USD 6,217) and Karnataka (USD 5,579), while remaining ahead of Tamil Nadu (USD 5,329) and Gujarat (USD 4,734). The World Bank classifies economies with PCI between USD 4,636 and USD 14,375 as upper-middle income.

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Within Telangana, Ranga Reddy district recorded the highest per capita income at Rs 11.29 lakh, followed by Hyderabad at Rs 4.77 lakh.

Since the formation of Telangana in 2014, the State’s per capita income has more than tripled from Rs 1.24 lakh in 2014-15 to an estimated Rs 4.19 lakh in 2025-26, nearly 1.9 times the projected national average of Rs 2.19 lakh. Telangana also retained the highest per capita income among major States from 2019-20 to 2024-25, before slipping to second place behind Karnataka in 2025-26.

The sharp rise in income levels coincided with a decade of strong economic performance under the K Chandrashekhar Rao-led government. During 2014-23, Telangana’s Gross State Domestic Product (GSDP) recorded an average annual growth of 12.7 per cent, significantly higher than the national average of 10.5 per cent. The State’s GSDP for 2025-26 is estimated at Rs 17.82 lakh crore, with an economic growth rate of 10.7 per cent.

The State’s contribution to India’s GDP also increased from 4 per cent in 2014-15 to 4.8 per cent in 2022-23.

While the State economy continued to expand, economic indicators pointed to a slowdown in momentum after the change in government. Telangana, which consistently outperformed national growth rates during the previous decade, has ceded its top position in per capita income rankings even as it continues to remain among India’s most prosperous States.