Telangana revs up engine of growth
RBI report sees net value rise to 8.1 lakh crore from `5.39 lakh crore in just 5 years
Hyderabad: The Telangana State's economic activity is on a high positive note as the value of agriculture, trade, hotels, restaurants, electricity, gas, water supply and other utility services have doubled in the state GSDP (Gross State Domestic Product) in just five years. The growth in the mining and manufacturing sectors also reported more than 50 per cent growth.
According to a report released by the RBI titled "Statistics on the Indian Economy – 2020-2021", the net value of the Telangana economic activity has increased to Rs 8.10 lakh crore as against Rs 5.39 lakh crore registered in the year 2016-17. The contribution of agricultural activity to the economy alone was Rs 1.76 lakh crore, followed by real estate (Rs 1.59 lakh crore) services sector (gas, electricity etc Rs 1.32 lakh crore) , manufacturing (Rs 80,733 crore), financial services (Rs 51,900 crore), transport, storage and communications (Rs 41,000 crore) and the value of economic activity in the mining and quarrying has been Rs 26,486 in 2020-21.
According to the report, total paddy output has increased to 76.99 lakh metric tonnes in 2020-21 and it was 30 lakh metric tonnes only in 2016. The steep growth in the paddy production was the result of a slew of measures taken in the improvement of irrigation facilities, mainly the construction of the Kaleshwaram lift scheme and the completion of many decades old irrigation projects. Pulses, oilseeds, sugarcane and cotton production had also increased substantially for the last five years.
The investor-friendly approach adopted by the government and the TSiPASS industrial policy was yielding good results. Even in the difficult periods, the State emerged as a hub of the manufacturing sector with not less than Rs 80,000 crore worth economic activity per year. In 2017, it was only Rs 63,802 crore and Rs 71,274 crore in 2018 in the manufacturing sector.
The fast growth registered in the manufacturing and the services sector has given a push to the realty industry which grew to Rs 1.5 lakh crore in 2021 from Rs 1.14 lakh crore in the total GSDP of the state during the five-year period.
Financial services also gained momentum by the establishment of global banking systems in Telangana particularly in Hyderabad. The contribution of financial services in the state economic activity has increased to Rs 51,900 crore from Rs 35,000 crore in five years.
The report further said mining and quarrying activity registered more than 50 per cent growth every year. The highest economic activity of Rs 28,111 crore has been reported in the mining sector in 2018-19.
State officials predicted Telangana's total economic activity would touch Rs 10 lakh crore by the end of 2021-22 financial year.