Hyderabad: The Telangana State’s growth rate in the 2023-2024 financial year was lower than the national average. According to the Socio-Economic Outlook released by the State government, the global economy grew by 3.2 percent during this period. The Indian economy had a growth rate of 7.6 percent, while Telangana recorded a growth rate of 7.4 percent. This shows that Telangana’s growth was slightly behind the national average.
However, at current prices, Telangana’s Gross State Domestic Product (GSDP) in 2023-24 was Rs 14,63,963 crore. This figure is 11.9 percent higher than the previous year. Nationally, the growth rate was 9.1 percent.
The Services Sector contributed 65.7 percent to Telangana’s Gross State Value Added (GSVA). The Industrial Sector contributed 18.5 percent, and the Agriculture and Allied Sector contributed 15.8 percent. The GSVA of Agriculture and Allied Sectors increased by 4 percent compared to 2022-23. Since this sector employs 47.3 percent of the State’s population, its success is crucial for improving living standards in Telangana. Additionally, 33 percent of the population depends on the Services Sector, and 19.7 percent on the Industrial Sector.
The survey also noted a substantial rise in debt relative to income growth. This suggests a heavy dependence on borrowing to fund expenditures, which could threaten fiscal sustainability. Without strict fiscal reforms, Telangana’s economic health could be at risk, requiring measures to balance expenditure with revenue generation and reduce borrowing dependence.
The per capita income of Telangana in 2023-24 was Rs. 3,47,229, compared to the national per capita income of Rs. 1,83,236. This means Telangana’s per capita income is higher by Rs 1,64,063. However, there is significant inequality among various districts. For instance, the per capita income of Ranga Reddy district was Rs 9,46,862, while that of Vikarabad was Rs 1,80,241. This indicates that economic development among districts is highly unequal.
