TS economic growth, per capita income rate outranked southern states for 6 years

Telangana finance minister T. Harish Rao on Monday released the report 'Telangana Economy: Trends and Analysis'

By Newsmeter Network  Published on  23 Aug 2021 2:47 PM GMT
TS economic growth, per capita income rate outranked southern states for 6 years

Hyderabad: Telangana finance minister T. Harish Rao said that over the last six years the state's economic growth at current prices is higher than the nation by an average of 3.2 percent. Telangana outranked all southern states in terms of economic growth as well as per capita income growth over the same period.

The minister on Monday released the report'Telangana Economy: Trends and Analysis' at a press conference. According to provisional estimates, the state's gross state domestic product (GSDP) at current prices in 2020-21 was Rs 9,80,407 crore, an increase of 94 percent from its 2014-15 value. In 2020-21, Telangana was the sixth highest contributor to the country's GDP at current prices.

"Telangana achieved the third rank in the country in terms of the percentage increase in GSDP at the current prices between 2014-15 and 2020-21. Telangana records the highest growth rate in state's own revenue at 11.52 percent over the last six years out of 18 states with data availability," said the minister.

In the year after the state's formation, Telangana's growth rate of GSDP at current prices was 3.7 percentage points higher than India's growth rate. Telangana achieved an 11.7 percent Average Annual Growth Rate (AAGR) of GSDP at current prices from 2014-15 to 2020-21, compared to India's AAGR of 8.1 percent during the same time span. On average, Telangana grew by 3.7 percentage points more than India did for each of these years. Telangana ranked third in terms of the AAGR out of 18 states with data availability in 2020-21. During COVID-19, while India experienced a negative rate of growth of GDP (-3%) in 2020-21, Telangana's growth rate was still positive at 2.4 percent.

As per the report, in 2020-21, the per capita income for Telangana was Rs 2,37,632, one of the strongest economic indicators of the well-being of a population. It was 1.84 times that of the National PCI at Rs 1,28,829. Telangana achieved the highest average growth in per capita income amongst all southern states, at 11.5 percent, post 2014-15. Telangana's per capita income at current prices increased by 91.5 percent between 2014-15 and 2020-21, as against India's increase of 48.7 per cent in the same period.

Telangana records the highest growth rate of per capita electricity consumption in the country at 9.2 percent between 2018-19 and 2019-20. Telangana's agriculture and allied sector - employer of 55 percent of the population - grew by eight times and surpassed all southern states in six years.

Telangana experienced a 90 percent increase in the state's revenue collection from 2014-15 to 2020-21, achieving an amount of Rs 66,648 crore in 2020-21.

Agriculture

The report stated that the contribution of the primary sector i.e. agriculture and allied sector to Telangana's Gross State Value Added (GSVA) has consistently improved from 19.5 percent in 2014-15 to 24.1 percent in 2020-21. The agriculture and allied sector in the state grew by 14.3 percent at current prices in 2020-21, compared to 3.6 percent agriculture growth rate at the national level. Paddy, cotton and red gram are the three most significant crops in Telangana.

Manufacturing

Over the last five years, the average contribution of the secondary sectors i.e. manufacturing, construction, electricity and so on to Telangana's GSVA has been 18 percent. Between 2014-15 and 2020-21, the value added by the manufacturing sub-sector grew by 72 percent. Telangana had the highest growth rate of per capita power consumption in the country between 2018-19 and 2019-20.

Service

The tertiary sector i.e the service sector remains the dominant sector of the state's economy, accounting for 59.5 percent of state GSVA in 2020-21. The overall Gross Value Added (GVA) by the sector to the state GSVA increased by 86 percent from 2014-15 to 2020-21. There was a 120 percent increase in IT exports from Telangana between 2014-15 and 2020-21. Despite the pandemic, the sector recorded a rise in IT exports of Rs 19,588 crore from 2018-19 to 2019-20 and Rs 16,715 crores from 2019-20 to 2020-21. In 2014-15, the IT sector provided employment to 3.71 lakh employees, which rose to 6.28 lakh employees in 2020-21.

Real estate, ownership of dwelling and professional services are the key drivers of the services sector, with a contribution of 34.7 percent to the GVA in 2020-21. It is the single largest sub-sector of the state's GSVA. For all sub-sectors in the services sector, the GVA increased 1.5 to 2 fold between 2014-15 and 2020-21. The GVA of the trade, repair, hotels and restaurants sector increased two-fold between 2014-15 and 2020-21, despite the effect of the COVID pandemic.

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