Telangana’s economic growth lauded: Per Capita Income soars, highest among major States

Certified Finance Planner D Muthukrishnan, who regularly posts on the fiscal performance of different States, is one of those who believe this.

Hyderabad: In the decade since Telangana’s formation in 2014, the State’s economic growth has earned widespread recognition, with its Per Capita Income (PCI) more than doubling, from Rs 1,24,104 in 2014-15 to Rs 3,47,299 in 2023-24. Telangana’s PCI is now the highest among major Indian states, far surpassing the national average of Rs 2.12 lakh for 2023-24. This growth rate is the fastest among southern States as well.

Highlighting Telangana’s economic strides, Saurabh Mukherjea and Nandita Rajhansa’s new book ‘Behold the Leviathan: The Unusual Rise of Modern India’ attributes much of this success to Telangana’s strategic investments and reforms. Mukherjea, founder of Marcellus Investment Advisors, commends Telangana for achieving the PCI doubling milestone within just six years, a phenomenal achievement by any standard.

The growth story under former Chief Minister K Chandrashekhar Rao is often cited as a model for rapid urban and economic development, particularly in Hyderabad. Experts believe a third term under Chandrashekhar Rao could have continued this trajectory, propelling Telangana to even greater heights in economic performance and development.

Certified Finance Planner D Muthukrishnan, who regularly posts on the fiscal performance of different States, is one of those who believe this.

“Saurabh Mukherjea in his latest book states that Telangana doubled its percapita income in the last 6 years. Phenomenal achievement by any standard. As I’ve shared earlier too, Telangana under KCR for 10 years was a great growth story. We need more such stories from many states. And it is really surprising people of Telangana voted KCR out. A third term for KCR would have propelled Telangana to greater heights. Ten year growth of Telangana, more so Hyderabad needs to be a case study,” he posted on X.

The Union government statistics indicate that just three States – Gujarat, Tamil Nadu and Telangana, maintained an annual growth rate of around 8 per cent in last two decades. Experts believe that these States have the ability to record a double-digit growth rate in coming decade.

Under the BRS regime, Telangana’s Gross State Domestic Product (GSDP) consistently outpaced India’s GDP growth. Between 2014 and 2023, Telangana recorded an average annual GSDP growth of 12.7 per cent, compared to India’s 10.5 per cent. In 2022-23, Telangana’s GSDP contribution rose to 4.8% of the national GDP, up from 4.0 per cent in 2014-15.

In 2023-24, Telangana’s GSDP grew by 11.9 per cent, the third-highest rate nationwide, surpassing India’s GDP growth by 2.4 percentage points. The State’s GSDP is projected to grow by 12.5 per cent in 2024-25 over 2023–2024.