Telangana outpaces national growth with 10.7% GSDP rise, targets $1 trillion economy by 2034: Bhatti

Hyderabad: Telangana has once again emerged as one of the fastest-growing state economies in the country.

The state has recorded a Gross State Domestic Product (GSDP) growth rate of 10.7 per cent in 2025–26, significantly higher than the national growth rate of 8 per cent. At current prices, the state’s GSDP stands at Rs 17,82,198 crore.

Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu disclosed these details on Friday after presenting the state Budget for 2026–27 with a total outlay of Rs 3.24 lakh crore.

Telangana accounts for 5% of national GDP

The state’s growth rate is 2.7 percentage points higher than the national average, underlining Telangana’s role as a key contributor to India’s economy. The state now accounts for 5 per cent of the national GDP, reinforcing its position as a strong growth engine.

While India’s growth rate declined from 9.8 per cent in 2024–25 to 8 per cent in 2025–26, Telangana maintained its upward trajectory, improving from 10.6 per cent to 10.7 per cent during the same period.

Per capita income is nearly double the national figure

Telangana has also recorded a robust rise in per capita income.

In 2025–26, the state’s per capita income reached Rs 4,18,931, registering a growth of 10.2 per cent. This is significantly higher than the national average of Rs 2,19,575, which grew at 6.9 per cent.

The state’s per capita income is Rs 1,99,356 higher than the national average, nearly 1.9 times more, highlighting improved individual prosperity levels.

Ambitious long-term economic vision

The government has set an ambitious roadmap to transform Telangana into a $1 trillion economy by 2034 and a $3 trillion economy by 2047. To achieve these milestones, sector-specific strategies are being prepared, focusing on sustained and inclusive growth.

Focus on welfare and development

The budget has been structured to balance growth with welfare, prioritising farmer support, women’s empowerment, employment generation for youth, quality education with skill development, healthcare, student nutrition and infrastructure expansion.

Despite financial constraints, the government asserted that Telangana continues to progress rapidly, likening its resurgence to a phoenix rising from the ashes.

Loans worth Rs 25,612 crore restructured

Addressing fiscal challenges, the Finance Minister said that excessive borrowings by the previous government had placed a heavy burden on the state. To ease this, loans worth Rs 25,612 crore raised at high interest rates were restructured at lower rates.

The repayment period has been extended, with principal repayment tenure now ranging between 20 and 39 years.

As a result of this restructuring, the repayment burden between 2025–26 and 2031–32 has been reduced from Rs 34,058 crore to Rs 11,915 crore. This has led to a cash outflow reduction of Rs 22,142 crore, significantly improving the state’s liquidity position.