syllabus:Structure and Growth of Telangana Economy: Telangana Economy in

Undivided Andhra Pradesh (1956-2014) – State Finances ( Dhar Commission,

Wanchu Committee, Lalit Committee, Bhargava Committee) – Land Reforms -
Growth and Development of Telangana Economy Since 2014 – Sectoral Contribution
to State Income – Per Capita Income .

Structure and Growth of Telangana Economy:

Economy during Nizam period

Net sown area telangana < other areas (mh,ka areas) in hyd state.
Share of Agriculture Labour increased from 10.9 in 1881 to 41..4 % by 1941
•Share of cultivators decreased from 87.2% in 1881 to 47.9 % by 1941.
•During 1941-1951 share of Ag Labour decreased from 41.4% to 25.2% and

V
that of cultivators increased from 47.9% to 71.4%.
• The change was due implementation of Land
Reforms after the Hyderabad State was merged with India in 1948.
Paddy, Maize, Jowar, groundnut, Castor, cotton, Tobacco
• Area under the cultivation of food crops decreased from 75% in 1920-22 to
JD
68.5% by 1949-50.
Among the foodgrains the area under the cultivation of Paddy increased from
3% in 1920-22 to 6% by 1949-50 while Jowar and Bajra(Sajjalu) decreased
from 49% in 1920-22 to 31% by 1949-50.
Area under cultivation increased from
• 15.3 million to about 30 million by 1932-33.
• Irrigated area increased from 0.8 million in 1922 to 1.7 million in 1945.
Agrarian Crisis
• Bonded Labour system
• Unjustified Collection of taxes/duties (82 types of collections)
•Forceful collection Agricultural products through levies
• Low agricultural wages
First Stage: 1870-1919
•Railway Line 1861. Three broad gae lines (352 miles), three metre lines(620
miles)
• Telegraph system 1857 industry: First Stage: 1870-1919
•Big industries increased from 68 in 1901 to 330 by 1920.
• Mostly Agro based industries
Second Stage: 1919-1939
 •Establishment of the Industrial Laboratory in 1917 gave a boost to small and
micro units.
•Establishment of industrial corridor at Musheerabad-Azamad.
Third stage 1939-1949
• Continued encouragement by Nizam government
• Two developments during this period: emphasis shifted from agro-based to
non-agro-based-chemical, fertiliser , plastic,synthetic,
Pharmaceutical, engineering products etc.
• Planned industrial development: Planning Department in 1943.
Industry
• The industrial development took place during the period 1857-1948
• About 20 industries-Mining of Pearls, ship building, Iron Ore mining and
Melting, Steel, Defence Equipment, gold mining, copper mining, LimeStone,
Manufacturing of brass, copper, bidri, silver, bangles, leather goods etc

V
• Defence Equipment,
• Textiles, Pears and Ship Building for exports
• Luxury goods for domestic consumption like Gold, silver, Pattu and wood.
JD
1956: t 62%<70% ap population on agri.
On eve of 1959 sectoral share : tertiary—T > ap
agri—-ap>T
2nd —-T>ap
Telangana: 42% area,35% Population in UAP.

Telangana Economy in Undivided Andhra Pradesh (1956-2014)

i) 1956-70
Sown area 1956-68 remains constant and Irrigated area 3.5L increases which
is Less.

In 1956 Of the total gross cultivated area of 124 lakh acres

only 23 lakh acres was under irrigated (only 18.7%)
 • Agriculture accounted for 37% while that of industry and service sectors was
24% and 39% respectively.
On the eve of 1956 Telangana Endowed with natural Resources and surplus
budget
• The share of Telangana in State revenue was 45% in Second plan and 42.3 %
in Third plan.
But the expenditure incurred was 34% in Second plan and 37% in Third plan
• Thus Telangana region generated more revenue than the expenditure incurred.
As per the Telangana Regional committee Report the Telangana region has
experienced less progress than all India.
• In some sectors like Agriculture, Irrigation, transport, Education the progress was
not even half of All India.
• Though there is progress in Agriculture related activities the share did not exceed
in many cases.

VShare of Telangana in GDP was 31% in 1961 but increased to 34 in 1971 to 40 in

1981 and to 45 in 199.
Share of Agriculture declined from 20 to 23 both in Telangana and Andhra.

• Share of industry declined in Telangana and increased in Andhra

• Share of services increased both in Telangana and Andhra.
JD
discrimination in Water Allocation
• 68% of Krishna river water flows through Telangana region but only 35% was
allocated
• As per Bachavat Award Telangana share was 174.3 TMC water but only 17.48
TMC was allocated
As against 68% share in catchment only 38% was allocated
Industry during 1956-69
• Telangana region was industrially ahead before 1956.
• Most of them are not Agro-based but based on natural resources.
• In Khammam, Adilabad Coal and Iron and forest based Industries are conducive
• Due to locational advantage Hyderabad and Secunderabad many industries
-including heavy industries such as BHEL BEL HAL Hindustan Asbestos Pragatools
Republic forge AMTC.
Due to heavy concentration of industries in and around Hyderabad two-third of
them are located in Telangana.
IDBI survey(1974):
 Regional Inequalities and Political factors have contributed to stagnation.
• Sirpur Paper mill, Azamzhahi mill Sirsilk got neglected during this period.
Telangana youth got discriminated against in employment which partly contributed to
the slow progress in human resources development.
As per Sri Krishna committee Report during 53 years 2.5 lakh you lost job

V
opportunities.

1970-1990 Period for Public Sector Telangana

• Historical and social factors were shown as responsible for underdevelopment
• Despite vast pool natural resources
JD
During this period public sector investment was supposed to address the
underdevelopment.

ii)1971-90
Public sector assured importance in AP

During 1980-90 growth of value of Agriculture products was only 2.2% in north
Telangana and 2.8% in south Telangana
• Dependence on Rainfall and the consequent uncertainty.
• The index of instability was 11.93% north Telangana and 12.8% in south Telangana
compared to 4.93 in Andhra.
Bw 1982-2012-NIA under canals ,tanks dec and wells inc.
• During this period there was a change in cropping pattern
• Production of rice increased.
• Area under Commercial crops like cotton and chilly also increased
The Area under the production of millets such as Jowar, Sajja declined.
• Public investment in irrigation was low
• Due Dependence on wells the cost of cultivation was high
• Majority of the farmers was debt ridden (About 89% as per 70th NSSO Survey)
 • Electricity project with a capacity of 1760 Megawatts which was supposed to be
Manuguru Coal belt (Khammam)shifted to Vijayawada
During 1966-2004-05 hydel projects (Kuntala, Pranahita, Ichampally, Sangareddy,
Dindi) and two gas based Projects (Shankarpally and Nedunur) with a capacity of
4617 MW were proposed to be established but neglected.
Service sector was on rise
acc to James and subramaniam(2003)
During 1981-91 out migration was less than in migration.
Acc to kishan rao and rahul (2009) telangana has 8.1% migrants.
• Out of 100 persons 8 are migrants and it was 2.5 in Hyderabad.
• Most of the migrants were from South coastal Andhra-89 out of 100 migrated.

iii) 1993-2014

V
Irrigation under private wells further increased.

Telangana state income and pci was computed from 1993-94.

Telangana : AGR 8% in 1994 mostly fluctuations.highest 2010-11.
JD
Sectoral contribution to GSDP between 1993-2014
i) agri— dec
ii) industry–dec
iii) service –-inc
Share of dist in GSDP between 1994-2014
Increase in RR,HYD,Medak
Decrease in Khammam
Constant in MBN, NLG
PCI between 1994-2014–avg AGR is fluctuating.
Violations in irrigation
Section 108(2)- projects under construction will not be stopped.
By end of 2nd five years plan irrigation capacity - 3.6:1

i) bachhawat committee-1969
Report -1973
For krishna river
Telangana share –297.86 TMC
But the AP government allocated only 17.84 TMC from the jurala project.
As a result mbn has suffered and migration increased.

For Godavari-

V
2004- share of bank credit to telangana agri -29%.
JD
State Finances
i) Dhar Commission - 1948

The linguistic provinces commission

three members S.K.Dar, retired judge, Pannalal, a retired Indian civil service and Jagat Narain
Lal, a member of the constituent Assembly.
This commission was directed to examine and report on the formation of new provinces of Andhra,
Kerala, Karnataka and Maharashtra.
The report gave the financial position of the 11 Telugu districts of Andra province for the 3 years
from 1945-46 to 1947-48.
According to the report, the new province of Andra will have a deficit of 7652 lakh.
Thus, the Andra state was with a deficit budget on the eve of its formation.

ii)Wanchu Committee-1953

Chief Justice Wanchoo was entrusted to report on the financial and other implications and the
questions to be considered to establish Andra state by the Government of India in 1952.
report on 7th February 1953.
His observation for the new state of Andhra was that it would be facing a budget deficit.
 A.P. state finance department in 1957 issued the guidelines.
The Government and the Regional Committee came to an agreement on the principles to be
followed concerning the income and expenditure of regions.
But the agreed principles did not come into force.(2:1)

iii) Lalit Committee-1969

To solve surplus funds issue,
By state government conducted an all party meeting on 19th January
1969.
In this meeting they have decided to take the help of Accountant General level officer who is
working in the Comptroller and Auditor General Office.
Sri Kumar Lalith was deputed by the Comptroller and Auditor General of India to calculate the
quantum of Telangana surplus.
Committee to estimate Telangana surplus:
According to Lalith committee, between 1956 and 1968 Telangana was eligible to get 34.09
crores

On 11" April 1969,

to fulfill the needs of Telangana
V
iv)Justice Bhargava Committee-1969

By Indira Gandhi declared the 8 Points Programme in the Parliament.

JD
As part of the 8 points programme, the central government appointed a high power committee to
calculate Telangana surplus funds.
This committee was headed by Justice Vashista Bhargava (Supreme Court Judge). Prof. Mukut
Vihari Madhur, Hari Bhushan Bhar and T.N. Krishna Swamy
Committe declared 28.34 crore is surplus.
Telangana Regional Committee Chairman Prof. Ch. Hanumantha Rao did not accept the reports of
Lalith Committee and Justice Bhargava Committee.
According to Prof. Ch. Hanumantha Rao, Telangana surplus would be 117.45 crore.
However, the regional committee calculated Telangana surplus as 107.13 crore.
Lalith committee and Justice Bhargava Committee recommended Andra and Telangana shares in
investment and expenditure as 2:1.

As per the recommendations of Sri Kumar Lalith report, the shares of expenditure on agriculture in
Telangana and Andra had to be in the ratio of 2:2.5
the actual expenditure shares for the period 1956-69 were at 1:2.2
The discrimination in expenditure in the agriculture sector was glaring.
2nd five years plan expenditure on t<ap , less than its plan resources.

Land Reforms

Article 38:
Article:39 b, c
JD
V
Land tenures system in HYD state

i) Inamdars
For poets,pundits,mosques
16 types
ii) jagirdar
V
JD
iii) sarf-e-Khas
iv)Samsthanas
5 big “
v)Khalsa,Deewani or ryotwari
60% Area.
SJ 1 introduced survey settlement policy in 1875 to promote ryotwari system.
Ijra- to get land under cultivation

1918-land records system by govt

1938-dept of land records
Zamindari System was introduced by Cornwallis in 1793 through the Permanent Settlement
Act. It was introduced in the provinces of Bengal, Bihar, Orissa and Varanasi. Also known as
Permanent Settlement System. Zamindars were recognized as the owner of the lands.

Classification of land reforms

i) abolition of intermediaries
ii) tendancy reforms
iii) land ceiling on land holdings
iv) consolidation of landholdings
Telangana Prevention of Fragmentation and Consolidation of Holdings Act, 1956 was enacted in
unified AP to increase the average land holding size.
In Telangana average land holding size is 1.12 hectares against the all India average of 1.16
hectares.

v) co operative farming

LR in HYD state

V
a)elimination of middlemen and protection of tenants
JD
Before 1844 there were 2 types of tenants in Hyderabad areas.
i) Shakmidala : He is a permanent tenant with security.
ii)Assamese Shakmidars: Temporary tenants without any security or rights.

The tenancy system that existed in Telangana in Hyderabad state was in three forms vIz. Bethai,
Gallamaktha and Surf-e-khas.

the then Nizam government constituted Barucha Committee in 1937 to give apt suggestions to
rectify the problems of tenants.
The committee recommended that the peasants uninterruptedly cultivating the land for a period
of 12 or more years can be conferred with occupancy. rights (all types of legal protection).
They were known as 'shakmidar". Other tenants without such occupancy rights were identified as
'Aasami shakmidar'. However, the recommendations of the committee were failed in
implementation

1931: Karachi. President: Vallabhbhai Patel passed Resolution: abolition of zamindar.

The JC Kumarappa Committee (1948) took into consideration land issues and problems of the
tenants in both Telangana and Andhra regions of A.P.
This committee has emphasised on the necessity of enactment of land ceiling acts and
protection of tenants and elimination of middlemen to settle the land issues and improve the
agrarian relations.
i) hyd jagirdar abolition regulation act 1949
Jagirdar and sarf-e-Khas are converted as Deewani or ryotwari.
Govt Paid compensation to landlords.
About 975 jagirdars were removed.

ii) hyd (T) tenancy and agricultural lands act 1950

The Hyderabad tenancy act came into force from June 1950 on the basis of recommendations of
Hyderabad Agrarian Reforms Committee by JN govt.
This act was made applicable to all inam lands except the lands allocated for religious
institutions and charitable trusts.
The act says every agreement of tenancy should be in written form and be submitted to the
tahasildar concerned within one month of such agreement.if not one should have right to go to
court for deciding rent.
The tenants cultivating the land consecutively for a period of 6 years from 1948 were recognised
as protected tenants.
As long as the payment of rent to the owner of the land was regular, the tenant should not be

V
evicted from the land. The legal rights of the tenants on land should not be nullified by any court
of law.
Tenant can apply for loan by this agreement.
Inspite of such broad features, there were certain provisions in the act for owners to evict the
tenants and occupy the land.
The unrest among tenants has resulted in protests and movements.
JD
The government was invariably forced to issue

Prevention of Eviction Ordinance, 1952.

As per the Ordinance, if the land was under tenant cultivation for 6 or more consecutive years
during 1943-1953 or uninterruptedly cultivated on or before January, 1948 for 6 years or
continuously cultivating for the last 6 years prior to the ordinance, such tenants were treated as
protected tenants.
Without protected farmers permission land can not be sold.
Whenever, the landlord is willing to sell away his land, first priority should be given to the tenant.
The ordinance has specified that certain amount to be paid by the tenant to the landlord in such
case.
The price was fixed as 8 times of rental value for wet lands under well irrigation, 6 times for other
irrigated lands and 5 times for dry lands.
Such amount can be paid at once or 16 instalments in 8 years.

When the government planned to implement the act experimentally in Khammam district from
1955 and then in the entire Telangana area from 1968, the High Court dismissed the bill (act)
on implements from landlords.

In fact, these acts (1950 and 1952 acts) benefited the tenants at large.
To overcome the earlier loopholes, the government issued another notification in 1973.
iii) AP (telangana area ) inamdari abolition act, 1955
To protect interest of farmers
Also tried to protect the rights of tenants.
Later in 1964 high court striked

b) ceiling on land holdings

Govt recognize 70% land were in hands of landlords and enacted following.

i) AP Agriculture lands ceiling act,1961

Introduced in 1958 and came to force in 1961.
limit: every family 27 to 324 acres based on land, tax, crop profit.
Compensation allocated.
Person as unit can have up to a 4X limit.( i.e up to 324x4 which led to failure )
23,000 acres realised under this act which is lower than expected.
Many exemption for many landlords as factories and other reasons
Many court cases by landlords and not by farmers.

V
JD
ii) AP Land reforms (ceiling on land holding) Act, 1973

Realising the poor implementation of Land reforms this was enacted.

In 1974 the act was made part of the 9th schedule by 39th AA
It was implemented in 1975.
W+h+3 minor children=unit(5 members)
If 5< ,each member is considered as a separate unit and additional land is allocated.
Irrespective of member land should not be more than 2X of family holding.
The Major son was treated as a separate unit.
Act terminated benami transfers bw 1971 to 75.
Holding defined by taking land utilisation,crop pattern,source of irrigation.
Wet land classified into 6 and dry land into 5 categories.
50% ceiling to should be allocated to sc,st.
Remaining 50% to 2/3rd to bc.
This act also gave many exemptions .

c) distribution of waste lands

i)During 1970-80 decade by govt
By the name indira kranthi patham distribution of assigned land

1406,1407 GOs in 1958 by the government of AP formulated policy for govt-assigned lands.
ii)Government Assigned Lands (Prohibition of Transfers) Act, 1977

With a number of exemptions and loopholes in implementation, the very purpose of assigning
lands to the poor was side-lined.
In this context, the government has enacted Goverment Assigned Lands (Prohibition of Transfers)
Act in 1977.
This act came into force simultaneously both in Telangana and Andra areas. The act gave powers
to the government to occupy the assigned lands, whichever in illegal occupation by evicting the
persons from possession of land. In case of death of the head of the family, if the family is
considered as a poor family then the land will be assigned to their heirs.
If the first assignee lease-out or sells away the land, the land should not be assigned to him
forever.

V
Koneru ranga rao committee 2006
To look in to above act and examination in implementation
report:14L land to 10L people
Per capita assigned 1.4 acres
Not up to mark
For effective implementation of GO.1406,
JD
Committee categorically recommended that
i.approval of Gramsabha and participation of people of concerned village and particularly the poor
and weaker sections in the process made mandatory.
ii.if the government lands to be assigned to the poor, the land survey and correction of land
records should be a regular process and issue of pattadar pass books to the beneficiaries are
must conditions.
iii.To speed up the process, the land should be handed over to the eligible landless poor for
cultivation within a period of three months from receipt of written application.
The committee also stated that for transparency in implementation of the act, village level
Sarpanch and IP president and secretary should be included in the assignment committee.
There are 14 types of lands available in the state for distribution.
It further clarified that there is sufficient land with the government to distribute one acre for every
poor landless farmer.

With the ER further it does not yield any result.

Govt leased out lands to industrialists.

iii) land purchase program in UAP

2004-2009
to encourage the poorer sections to purchase the cultivable land.
Conferment of legal rights on land purchased by the poor was the core objective of this
programme.
Each beneficiary can purchase 1.5 acres of dry land or 1.5 acres of wet land with single crop or
1.0 acre of land with two crops.
The government provides Rs. 45,000 or 75 per cent of land value as grant to each beneficiary for
purchase of the land.
Out of the remaining 25 per cent, the beneficiary has to bear at least 10 per cent of expenditure
on purchase of land and remaining 90 per cent financial support has to get from either mandal or
village samakhya. Another important feature of this programme was the issue of pattadar rights to
the women member of the family for the land purchased with grant from the government.
No official statistics were available on the extent of land purchased by the poor under this
programme in the Telangana region.

iv)Licensed Cultivators Act (LCA), 2011

on the basis of Koneru Ranga Rao Committee recommendations. "A. P. Licensed Cultivators Act -
2011" was an attempt for further liberalisation of the tenancy acts.

V
Every licensed cultivator is eligible for loan and the Loan Eligibility Card (LEC) being issued by the
revenue officer.
The right on Loan Eligibility Card to the cultivator will be confined to the lease period. The
district-wise progress:Rangareddy (85 per cent), Warangal (84 per cent) and Nalgonda (68 per
cent) districts topped in the list of licensed cultivators.
On the other just 12 per cent tenants in Nizamabad and 8 per cent in Medak have become
JD
licensed cultivators.
While meeting with an initial success, political will around the LEC has been weakened.
In 2014, no single card was distributed in Telangana.
Land less in telangana

TSDR bmw 2002-12 43% households (75% SC less than 1 acer)

SKS 56% rural households(68% total households ,67% SC)

V) purchase land program in telangana -2014

3 acres for women dalit landless agrarian families.
Launched through GO 4.

d)Tribal Acts
The beginning was made with the introduction of Tribal Rights Act, 1356 fasli (1946 A. D.).
In continuation of this act, Hyderabad Notified Tribal Areas Regulation Act, 1949 came into force.
Establishment of special administrative set-up, prohibition of land patta to non-tribals, conferment
of civil, criminal and revenue powers to Collectors are some of the important features of the act,
1949.
The tribal lands in Telangana have been named after Scheduled Areas after the Constitution of
India came into force with the issue of Scheduled Areas Ordinance in 1950.
Control and administration of Scheduled areas and Scheduled tribes came into the purview of the
Fifth Schedule of the Constitution under Article 244.
In order to exercise the powers accrued through the fifth Schedule of the Constitution, the then
Government has enacted

i) A.P. Scheduled Areas Land Transfer Regulation Act, 1959.

It provided a comprehensive legal framework and furnished protection to the tribals of both
Telangana and Coastal Andhra Regions against the exploitation and oppression by non-tribals.
The regulation came into force first in Andhra and later extended to Adilabad, Warangal and
Khammam districts of Telangana as Regulation Il of 1963.
An interesting feature of this regulation is that if the transferor or his heir unwilling to take back
land/property or when their whereabouts are not known, the officer concerned may sell'or assign
such property to any other member of Scheduled tribe or co-operative society or otherwise
dispose of the same as the property of the Government.
Further, in case of transferor or his heir are not willing to take back the property, powers are
conferred to the Special officer to dispose of the property. This provision is the major loophole of
the regulation, 1959,
In order to protect the tribals further by plugging loopholes, several amendments were made in
1959 regulation act.
Such amendments were made in 1963, 1970, 1971 and 1978.

V
The amendments popularly known as regulation Il of 1968, lof 1970, I of 1971 and I of 1978.
Among them, the most popular one is the I of 1970 Act.
The act amended the sub-section (1) of the section 93 of 1959 regulation. This amendment
prohibited and declared null and void the transfer of immovable property situated in Agency area
by any person whether a member of Scheduled Tribe or not, who is unwilling to sell his land to
another tribal Provision has been made in amendment to surrender such land to the Government.
JD
Frequent filing of writ petitions in the court of law by non-tribals with intolerance on provisions of If
1970 act has hampered the implementation of the act.

ii)The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006
is a key piece of forest legislation passed in India on 18 December 2006 and came into force
from31 December 2007.
It has also been called the Forest Rights Act, the Tribal Rights Act, the Tribal Bill, and the Tribal
Land Act.
The law concerns the violation of the rights of forest-dwelling communities on land and other
resources, which were denied to them over decades as a result of the continuance of colonial
forest laws in India.
Forest Rights Act is also known as Community Forest Management (CFM) in Telangana.
This act was notified into force on 2007.

Supporters of the Act claimed that it will redress the "historical injustice" committed against fOrest
dweller.

further, the opinion expressed by the Supreme Court of India in 2018 "in all pending cases where
stay against proceedings of a civil or criminal trial is operating, the same will come to an end on
expiry of six months, unless extended by the courts including High Court.
Thus, even legally, non-tribals cannot take shelter under the stay orders granted long ago and
continue occupying tribal lands.
 Growth and Development of Telangana Economy Since 2014

● In the year 2021-22 the state is the 7th largest contributor to GDP at cp
Among 13 general states.

V
● Current prices make no adjustment for inflation. Constant prices adjust for the effects of inflation.
● Using constant prices enables us to measure the actual change in output (and not just an
increase due to the effects of inflation.
● GSDP =GVA + (tax earned by govt)-subsidies provided by govt.
JD
JD
V
JD
V
JD
V
Telangana @2014

At the time of formation, what the state received as legacy was a host of challenges cutting across
different sectors:

1. 9 /10 districts in the state were then covered under the Backward Regions Grant
Fund (BRGF).
2. The twelfth Five-Year Plan document by the Planning Commission categorised two
districts in the state -- Khammam and Mahbubnagar --as ‘Most Hungry’.
3. The agriculture and allied sectors which support nearly 46% of the state’s population
were mired in distress driving farmers to suicides.
4. The number of farmers committing suicide was the second highest among all the
states as per the data published by the National Crime Records Bureau, Union

V Ministry of Home Affairs.

5. severe Power crisis-The Peak Demand was short by 2,700 MW, resulting in Power
cuts of 4 to 8 hours daily. Due to the Power shortage a Two day Power holiday to
industries was being implemented forcing the industrial units to operate only for a few
days in a week and that too in shifts.
6. The revenue growth potential of the state was very limited since a majority of the
JD
districts were economically backward.
7. Telangana’s performance in terms of the Gross State Domestic Product (GSDP), In
the two years preceding state formation, Telangana region’s average rate of growth
of GSDP, at 12.1%, was 1.3 percentage points less than India’s average rate of
growth of GDP.

● in the year of state formation itself, Telangana achieved a 1 percentage point higher growth
rate of GSDP than India’s GDP.
● On an average, in the period post 2014-15, Telangana has grown at 12.5% -- 2 percentage
points higher than India’s average growth rate of 10.5%.
● india’s GDP increased by only 118.2% from 2014-15 to 2022-23, Telangana achieved a
155.7% increase in the GSDP value during the same period, making it the 2nd ranking state in
terms of the overall GSDP increase during this period.
● the state’s share in national GDP increased from 4.1% in 2014-15 to 4.8% in 2022-23, despite
its share in the national population remaining constant at 2.9% throughout this period.
 For 2022-23

growth in 2021-22

telangana India

GSDP at cp 13.27cr 15.6% 15.4%

GSDP at bp 7.27 cr 7.4% 7.0%

PCI at cp 3.17 L 15.1% 13.7%

V
Per Capita Income (PCI)
@ 2014-Rs. 1,12,162 (india PCI Rs. 79,118)

● In 2022-23, the average Telangana citizen earned an income of Rs. 3,08,732 -- Rs. 1,36,732
more than the income of an average Indian citizen (Rs. 1,72,000).
● In the 2 years prior to state formation, Telangana region had an average growth rate of PCI of
JD
10.9%, which was 0.8% lower than the national PCI growth rate (11.7%). Since state
formation, however, Telangana’s PCI has grown at an average rate of 12.1% in comparison to
India’s average PCI growth rate of 9.2%
● Telangana surpassed 8 states in a span of 9 years, moving from 10th position in the year of
state formation to become the top ranking Non-Special Category (NSC) state in terms of Per
Capita Income in 2022-23.
● The Government has also ensured inclusivity in growth, and as per the NFHS 2019-21
report4, the state ranks 1st among all states (along with Tamil Nadu and Kerala) in
terms of equitable income distribution, with a Gini coefficient of 0.10.
● Hanumakonda lowest with 4k more than national avg.
● All districts in telangana have PCI higher than national avg in 2020-21.RR
● (5x national avg ) is highest in pci with above 6L.
 V
Sectoral contribution
JD
GSVA
between 2021-22 to 2022-23

Agri and allied at cp 11.9%

Industries at cp 10.5%

Service at cp 17.5%
 Since state formation, the Services sector has been the highest contributor to Telangana’s Gross
State Value Added (GSVA), followed by the Industries, and Agriculture and Allied sectors
respectively.

1. Agriculture & Allied Sectors

● employ more than 46% of the population.
● started out with a negative 0.7% growth rate in 2014-15,
● it managed to revolutionize these sectors, attaining exemplary growth rates of 37.0% (13.3%
even during the pandemic years of 2019-20 and 2020-21. )
● The sector grew by 15.7% in 2022-23.
● upward growth path for the past nine years.
● During the period 2014-15 to 2022-23, the sector grew at an average rate of 12.8%.
● share of Agriculture and Allied sectors in the total current-price GSVA of the state— from
16.3% in 2014-15 to 18.8% in 2022-23.
● During the period 2014-15 to 2022-23, the Government has incurred an amount of Rs 1.61
lakh crore on irrigation projects.
● the Gross Irrigated Area (GIA) has significantly increased by 117% (from 62.48 lakh acres in

V 2014-15 to 135 lakh acres in 2021-22).

● Cotton production has been increased by 33% from 18.85 lakh MTs in 2015-16 to 25.08 lakh
MTs in 2021-22.
● Agriculture, Forestry, Livestock and Fisheries sectors’ Gross Value Added (Current Prices) to
the state economy has seen a CAGR of 14.1% from Rs. 76,123 crores in 2014-15 to Rs.
2,17,983 crores in 2022-23 (AE) and during the same period the sector CAGR at all India
level is 10.1%.
JD
● A significant portion of this growth was driven by the crops sub-sector, currently crops
accounts for 49.7% of the overall sector GSVA at Current Prices, followed by livestock at
43.6%, fishing and aquaculture at 3.4%, forestry and logging sector stood at 3.3% in 2022-23
(AE).
● As per 20th livestock census-2019, Telangana ranks
first place in the sheep population.
3rd in egg production,
5th in meat production
13th position in milk production during 2021-22.

2. Industrial Sector

● In the year 2022-23, the industrial sector’s contribution to the Gross State Value Added (GSVA)
at current prices is estimated at 19.0%.
● The Industrial sector in Telangana, after experiencing a robust recovery from the pandemic in
2021- 22, grew at 9.5% in 2022-23. The growth rate of the Industrial sector in Telangana, as in
the case of India, was lower in 2022-23 than in 2021-22.
● According to the Periodic Labour Force Survey 2020-21,
‘Manufacturing’ sub- sector employing 10.95%
‘Construction’ sub-sector employing 8.82% of the total working population are the
two major sub-sectors that have led to maximum employment creation in the state.
● In 2022-23 (upto January 2023), TS-iPASS has approved 2518 units bringing in new
investments worth Rs. 20,237 crore.
3. Services Sector
● It is the largest sector of the global economy in terms of value-added, accounting for 53.40%
of the global GDP in 2021-22.
● The Services sector accounts for 62.2% of the state’s value added.
● The Services sector in Telangana experienced a 17.8% growth in GVA in 2022-23.
● Telangana ranked 2nd in the overall ranking category of the NITI Aayog India Innovation Index
2022 which was measured on key parameters like Human capital, Investment, knowledge
workers, Business environment, Safety, Legal environment, Knowledge output, and
Knowledge diffusion in the state.
● as per the PLFS 2020-21 report the sector provided employment to more than one-third of the
total workforce.
● According to the Periodic Labour Force Survey 2020-21, 63.22% of the urban workers in the
state were working in the service sector, whereas it was 18.28% in the rural areas.
● The total employment in the IT sector increased from nearly 3.7 lakhs to 7.7 lakhs during this
period.
● Within the services sector in the state, more than one-third of total workers (39.75%) are

V
employed in the ‘Trade, Hotels and Restaurants’ sub-sector, 21.04% of the workers are
employed in the ‘Transport, Storage and Communication’ sub-sector, together accounting for
60.79% of the employment in the services sector.
JD