Telangana economy on a booming path

State set to close FY16 with 11.7% growth; Per capita income goes up by 10.7% to 1.43 lakh

It is a matter of pride that there has been a significant improvement in the growth of GSDP since the formation of the State despite below normal rainfall in last two consecutive years. With the expectation of a normal rainfall next year coupled with a number of developmental initiatives taken by the government, there are good prospects of further improvement in the growth of the economy

Hyderabad: The economy of newly-created Telangana State is on a booming trajectory as Gross State Domestic Product (GSDP) is set to register an impressive 11.7 per cent growth in the current fiscal despite a negative growth in the agriculture and allied sectors. This growth rate is far more the national average of 8.6 per cent, indicating inherent strengths of Telangana.

“It is a matter of pride that there has been a significant improvement in the growth of GSDP since the formation of the State, despite below normal rainfall in last two consecutive years. The deficiency in south-west monsoon in the years 2014 and 2015 was 31 and 14 percent, respectively.

The deficiency in rainfall from the north-east monsoon in 2014 and 2015 was much higher at 58 and 79 percent, respectively,” Eatala Rajender, Finance Minister, Telangana, said in his Budget speech on Monday.

Pointing out that the GSDP was estimated to grow at an impressive rate of 11.7 per cent in 2015-16 at current prices, he said: “With the expectation of a normal rainfall next year coupled with a number of developmental initiatives taken by the government, there are good prospects of further improvement in the growth of the economy”.

The per capita income at current prices also improved by 12.7 per cent in 2014-15 to Rs 1,29,182 and is estimated to further improve by 10.7 percent to Rs 1,43,023 in 2015-16, much higher than the national average of Rs 93,231, he added.

“In the past, the growth of Telangana economy has been much lower than its potential because of deliberate neglect of its infrastructure and social sectors and diversion of its resources to other regions of the erstwhile combined State. With the formation of our own State, we have gained control over our water for irrigation, resources and employment,” he said.

With this, the economy has been unshackled and poised for a big leap in its growth trajectory as is evident from the growth rates achieved since the formation of the State, the Finance Minister said.

Fortunately, the State has several drivers of growth for the economy, namely, agriculture and allied sectors, industry and manufacturing and services sectors, he added. “In his first address to the people of Telangana after assuming the office, our Chief Minister envisioned Bangaru Telangana where everyone in the State will be prosperous, healthy and happy and where no one suffers any distress.

The vision of Bangaru Telangana is not a mere statement of intentions but a determined effort to transform the potential of Telangana into reality, to regain our past glory and unique rich cultural identity, which remained suppressed in the combined State,” he said.