HYDERABAD: Telangana recorded robust macroeconomic expansion, with nominal Gross State Domestic Product (GSDP) growing at 11.4% per annum and real GSDP growing at 6.2% annually between 2014-15 and 2024-25. The state stood second in nominal per capita income behind Goa by 2023-24.
According to a study report titled “Public Finances of Telangana: Trends, Challenges and Policy Priorities”, unveiled at the Centre for Economic and Social Studies (CESS) on Friday, Hyderabad served as the growth engine with the services sector generating 67% of the Gross State Value Added (GSVA) by 2024-25.
The study documented the state’s rapid macroeconomic expansion alongside emerging fiscal stress, particularly severe since Covid-19.
It highlighted the structural paradox of agriculture contributing only 14.1% to GSVA, continuing to employ 41.7% of the state’s workforce. However, despite the pandemic, sectors like pharmaceuticals and life sciences also joined IT/ITeS in becoming primary drivers of employment and exports.
It may be recalled that the state is currently embarking on a structural transformation through Telangana Rising Vision-2047.
The study revealed Telangana’s strong fiscal self-reliance, with the State’s Own Revenue (SOR) accounting for 76% of cumulative revenue receipts over the decade.
State’s Own Tax Revenue (SOTR) grew at 11.6% per annum, reaching Rs 1,09,233 crore in 2024-25, driven by SGST, state VAT, state excise, and stamps and registration fees, the report said.