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Telangana at a Glance

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Telangana at a Glance TELANGANA AT A GLANCE TELANGANA AT A GLANCE Capital City Hyderabad Area 44,340 Sq Miles or 112,077 Sq.Kms Population 35 Million Urban Population 39% GSDP ( 2019 -20 ) 6.63 Lakh Crore Per Capita Income ( 2019 -20 ) 2.28 Lakh Districts & Households 33 Districts & 8.3 Million households Major Industries IT, Pharma & Biotech, Textiles, Infrastructure & Manufacturing PINK BOOK 01 Telangana was formed in June 2014 with Hyderabad as its capital. The state is land locked by (new) Andhra Pradesh to the south and the east, Maharashtra and Karnataka to the west, and Odisha and Chhattisgarh to the north. ADVANTAGES Growing economy and Telangana's GSDP grew at a CAGR of 13.84% between improving infrastructure 2015-16 and 2020-21 Prominent educational universities and institutions located in hyderabad, Rich labour pool providing a massive pool of labour The State Government has announced scholarships to attract more youth to these institutions Availability of Eay access to capital along with infrastructure which is benefiting readymade Capital the state Major multinational companies have production base in Hyderabad Policy and Institutional Three new policies in State, namely, Telangana IT Policy, 2016, E-Waste Support Management Policy, 2017, Telangana Excise Policy, 2017-19 KEY GOVERNMENT POLICIES AND OBJECTIVES Telangana Excise Standardise the process of collection of certain fees from Policy 2017-19 suppliers and others Textile and Apparel To create an enabling environment in order to encourage investment in downstream processing activites and encourage new units across the Incentive Scheme 2017 value chain Telangana Electric To make Telangana a hub for Electric Vehicles & Energy Vehicles Policy 2020-30 Storage Systems Telangana State Food Develop capacity for processing major commodities up to Processing & Preservation Policy international standards GOVERNMENT VISION FOR THE STATE Quality of life of people Agriculture Governance Power Effective Technological advancement in Ensure people centric, Become a power implementation of agriculture with more research in transparent and corruption surplus state in welfare schemes and agricultural universities. Waiver of free development. To take the next three make Hyderabad a agricultural loans up to Rs 1 lakh steps to eradicate years slum free city (US$ 1,430.81) corruption PINK BOOK 02 1.1 ECONOMY OF THE STATE Telangana is one of the fastest growing states in India posing average annual growth rate of 13.90% over the last five years. Telangana's nominal gross state domestic product for the year 2020-21 stands at ₹11.05 lakh crore (US$150 billion). Service sector is the largest contributor to the Telangana's economy with a share of about 65% in the year 2018-19. Growth in services has largely been fueled by IT services with the State holding leading position in IT & ITeS in the country in terms of production and exports. Agriculture also forms a backbone of Telangana's Economy. Two important rivers of India, the Godavari and Krishna, flow through the state, providing irrigation. Farmers in Telangana mainly depend on rain-fed water sources for irrigation. Rice is the major food crop. Other important local crops are cotton, sugar cane, mango, and tobacco. Recently, crops used for vegetable oil production, such as sunflower and peanuts, have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects. The state has also started to focus on the fields of information technology and biotechnology. There are 68 Special Economic Zones in the state. Furthermore, Telangana is a mineral-rich state, with coal reserves at Singareni Collieries. PINK BOOK 03 1.1.1 GSDP (Gross State Domestic Product) The Gross State Domestic Product (GSDP) estimates are regarded to be an indicator of the health of the economy - and at a broader level, these estimates may be used as a measure of the outcome achieved through various interventions and investments towards economic development. Telangana State, just seven years in existence, dug in, held its ground, and came up trumps even as the Covid crisis engulfed the country in the first wave of the pandemic. Not only has Telangana’s GSDP share in national GDP at current prices jumped to an impressive 5 per cent in 2020-21, but it also recorded a 1.5 per cent growth in GSDP when contraction of economies is most widely discussed. According to the MoSPI, Telangana’s GSDP share of national GDP at current prices increased significantly from 4.1 per cent in 2014-15 to 4.4 per cent in 2017-18 and is placed at 5 per cent in 2020-21 despite the adverse impact of the pandemic. At constant prices, the State GSDP growth has been higher than that of the national GDP since 2015-16. RESILIENT SHOW COMPARISON 12 11.6 % Telanagana GSDP 10 1.35% growth at current 8 7.9 % prices 8 % 6 National GDP 4 growth estimated to 4 % 2 1.26 % shrink by 8% at current prices 0 -2 TS economy more -4 resilient due to 17.7% growth in -6 primary sector -8 -8 % -10 20.9% In agriculture -12 sector(2020-21) 2015-16 2019-20 2020-21 TS GSDP (% growth) GSD (% growth) *At constant prices PINK BOOK 04 While the State GSDP grew by 11.6 per cent in 2015-16, it decreased to 7.9 per cent in 2019-20 and contracted to 1.26 per cent in 2020-21 due to the Covid-19 pandemic. On the other hand, the national GDP, which grew by 8 per cent in 2015-16, decreased to 4 per cent in 2019-20 and fell sharply to minus 8 per cent in 2020-21. Furthermore, Telangana's real gross state domestic product has grown to Rs 6.63 trillion (Rs 6.63 lakh crore) in 2019-20 from Rs.8.61 lakh crore in 2018-19 (GSDP Advance Estimates released by the Directorate of Economics and Statistics). Telangana has outperformed the All-India nominal growth rate every year since its formation. The increased GSDP can be attributed to the State’s performance in the primary sector, comprising agriculture, dairy and poultry among others, which recorded a growth of 17.7 per cent in 2020-21. The secondary and services sectors contracted to 5.2 per cent and 1.9 per cent, respectively. The agriculture sector grew by an impressive 20.9 per cent in 2020-21, cushioning the impact of Covid-19. This was due to measures taken by the State government to stimulate the rural economy. Although industrial and services growth contracted, the contraction was less severe than at the national level. Furthermore, the per capita income stands at Rs. 2,28,216 as on 2019-20. This is much higher than the All India PCI of Rs. 1,34,432 for the same year. The state’s per capita income is growing faster than that of the country - between 2018-19 and 2019-20 Telangana grew at 11.6 percent at current prices, whereas the All India per-capita income grew only at 6.3 percent. Despite the pandemic, presently, the per capita income of Telangana is higher than the country’s per capita income by ₹99,377. This is a testimony to the potential held by the youngest state in the nation. ₹99,377 PCI PCI 2019-20 PINK BOOK 05 1.1.2 Exports from Telangana Telangana ranks #2 in Export Preparedness Index 2020 under Landlocked states category. The state’s share of exports grew from 10.61 percent in 2018-2019 to 11.58 percent in 2019-2020. The overall share of Telangana in the Indian Export Growth for 2019- 20 stands at 23.53 percent. Furthermore, it is noteworthy to acknowledge that the IT exports of Telangana have grown at an ‘unprecedented rate of 17.93 percent’ compared to the national average of 8.09 per cent in recent times. A sector-wise analysis of merchandise exports reveals that the lion’s share in Telangana’s exports earnings consists of pharma and chemical products. Even as earlier as 2015-16, the data on state-wise merchandise exports reveal that Telangana has exported Rs. 35,444 crore worth of merchandise and holds a 2.07 per cent share in the overall exports on the nation - ranking it eleventh among states and union territories. Sector-wise merchandise exports from Telangana during 2015-16: Pharmaceutical Organic Electrical Machinery & Nuclear Reactors, Boilers, Machinery Products Chemicals Equipment and Mechanical Appliances ₹12,837 Cr 36.22% ₹11,776 Cr 33.23% ₹1,465 Cr 4.13% ₹1,359 Cr 3.83% Salt, Sulphur, Earths & Stone, Pearls, Precious or Semi- Articles of Stone, Plaster, Aircraft, Spacecraft Plastering Materials, Lime Precious Stones / Metals Cement, Asbestos, Mica and Parts Thereof ₹699 Cr 1.97% ₹622 Cr 1.75% ₹545 Cr 1.54% ₹503 Cr 1.42% Total Exports Preparations of Cereals, Flour, Tools and their Parts of Other 35,444 Cr Starch or Milk Base Metals Sectors ₹ ₹442 Cr 1.25% ₹423 Cr 1.19% ₹4,774 Cr 13.47% 100% The USA is the biggest importer of merchandise products from Telangana. 30 per cent of the total merchandise is exported to the USA, followed by the United Arab Emirates (UAE), China, Russia, and the United Kingdom. PINK BOOK 06 1.1.3 Investments in Telangana The youngest state of the nation holds immense potential for investments on account of its plethora of initiatives. Some of the key reasons why the state is becoming a destination for investment are: Telangana's capital, Hyderabad, is a major IT hub of the country. The state also contributes nearly one-third to India’s production and one-fifth to its exports in the pharmaceutical sector.
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