Socio-Economic Outlook reveals gross income inequality among districts in TG

Hyderabad : The Telangana State has recorded a growth rate less than the national average in 2023-2024 financial year. The Socio-Economic Outlook released by the State government has disclosed that “Global economy has recorded a growth rate of 3.2 per cent during 2023-24. Indian economy has recorded a growth rate of 7.6 per cent and Telangana recorded 7.4 per cent during the same period. It is evident that Telangana’s growth rate was less than the national growth rate.

However, at current prices, Telangana’s Gross State Domestic Product (GSDP) in 2023-24 was Rs 14,63,963 crore. This was 11.9 per cent higher than the previous year. At the national level, this growth rate was at 9.1 per cent.

The Services Sector has contributed 65.7 per cent, Industrial Sector 18.5 per cent, Agriculture and Allied Sector has contributed 15.8 per cent to Telangana’s Gross State Value Added (GSVA). At current prices, the GSVA of Agriculture and Allied Sectors has increased at 4 per cent as compared with 2022-23. Since the Sector employs 47.3 per cent of the State’s population, its economic success is critical to improving the living standards in Telangana. 33 per cent of the State’s population was dependent on Services Sector and 19.7 per cent on Industrial Sector, the survey said.

The survey also observed, “The substantial rise in debt relative to income growth suggests a heavy dependence on borrowing to fund expenditures, potentially endangering fiscal sustainability. The persistent rise in debt far outstripping income gains suggests that without stringent fiscal reforms, Telangana’s Economic Health could be at risk, necessitating measures to balance expenditure with revenue generation and reduce dependence on borrowing.”

The per capita income of Telangana in 2023-24 was Rs. 3,47,229 whereas the per capita income of the country was Rs. 1,83,236. Compared to the National per capita income, Telangana’s per capita income is higher by Rs 1,64,063. At the same time there is a gross inequality among various districts. For example, the per capita income of Ranga Reddy district was Rs 9,46,862 whereas that of Vikarabad is Rs 1,80,241. This indicates that the economic development among districts is grossly unequal,” the survey said.