Telangana’s Economic Growth: Per Capita Income Surges to Highest Among Major Indian States
Since its formation in 2014, Telangana has garnered significant recognition for its impressive economic growth. The state’s Per Capita Income (PCI) has more than doubled from ₹1,24,104 in 2014-15 to ₹3,47,299 in 2023-24, making it the highest among major Indian states and well above the national average of ₹2.12 lakh for the same period. This remarkable growth rate is also the fastest among southern states.
Factors Contributing to Growth
In their recent book, “Behold the Leviathan: The Unusual Rise of Modern India,” authors Saurabh Mukherjea and Nandita Rajhansa attribute much of Telangana’s success to strategic investments and significant reforms. Mukherjea, the founder of Marcellus Investment Advisors, praises the state for achieving the milestone of doubling its PCI in just six years, a noteworthy accomplishment by any measure.
Leadership Impact
The growth narrative under former Chief Minister K. Chandrashekhar Rao (KCR) is often highlighted as a model for rapid urban and economic development, particularly in Hyderabad. Experts believe that a third term for KCR could have continued this positive trend, further enhancing Telangana’s economic performance and development.
D. Muthukrishnan, a Certified Finance Planner known for his insights on state fiscal performance, expressed this sentiment on social media. He emphasized the significance of Telangana’s economic strides, noting, “Saurabh Mukherjea in his latest book states that Telangana doubled its per capita income in the last six years. It’s a phenomenal achievement. KCR’s tenure has been a remarkable growth story. A third term for KCR could have propelled Telangana even higher.”
Comparative Growth Analysis
According to Union government statistics, only three states—Gujarat, Tamil Nadu, and Telangana—have maintained an annual growth rate of approximately 8% over the last two decades. Experts predict that these states may achieve double-digit growth rates in the coming decade.
Under the BRS regime, Telangana’s Gross State Domestic Product (GSDP) consistently outperformed India’s GDP growth. Between 2014 and 2023, Telangana experienced an average annual GSDP growth of 12.7%, compared to India’s 10.5%. In 2022-23, Telangana’s GSDP contribution rose to 4.8% of the national GDP, up from 4.0% in 2014-15.
In 2023-24, Telangana’s GSDP grew by 11.9%, marking the third-highest rate in the country, and surpassed India’s GDP growth by 2.4 percentage points. Projections indicate that Telangana’s GSDP is expected to grow by 12.5% in 2024-25 compared to the previous year.
Conclusion
The economic achievements of Telangana over the past decade illustrate a successful model for growth and development in India. Continued focus on strategic investments and reforms can further elevate the state’s economic standing and contribute to sustainable progress in the future.
