Tamil Nadu 's net state domestic product is the second largest economy in India. *Figures for 2023-24 and 2024-25 are projections. Hyderabad: The share of Telangana's economy in the national GDP has gone up by 26 basis points to touch 5 per cent in 2020-21 against 4.74 per cent in 2019-20. Fiscal deficit:It is the excess of total expenditure over total receipts. It is within the 4.5% limit permitted by the central government for 2021-22 (of which, 0.5% of GSDP becomes available upon undertaking power sector reforms). Table 2 : Expenditure Budget 2022-23 (in Rs crore). "There was a 142 per cent increase in contribution of agriculture and allied sectors to Telangana GSVA between 2014 and 2020," the report said, adding that the contribution of industrial. The growth is estimated at 8.2 percent during 2019-20 as compared to the growth rate of 9.5 percent in 2018-19. a. In world ranking, Bihar is at 176th and 149th position in nominal and ppp terms, respectively. LTD. All rights reserved. In 2020-21, the state observed a revenue deficit of Rs 22,298 crore (2.30% of GSDP). All the comments will be moderated by the newindianexpress.com editorial. In 2020-21, the State recorded a per-capita income of Rs 2,27,145 compared to the national average of Rs 1,27,768, said Industries and IT Minister KT Rama Rao. The contribution of the industrial sector stood at 19.1%," the report added. A positive figure means a surplus, a negative figure means a deficit. In comparison, national GDP is estimated to grow at 8.9% in 2021-22. [citation needed]. Outstanding liabilities: Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account. [citation needed], The state government is in the process of developing Industrial Parks at different places, for specific groups of industries. The state's GSDP increased at a CAGR of 12.33% between 2015-16 and 2022-23BE. For states, the 15th Finance Commissionrecommended the fiscal deficit limit (as % of GSDP) of: (i) 4% in 2021-22, (ii) 3.5% in 2022-23, and (iii) 3% during 2023-26. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. In per capita net state domestic product too, Telangana was in the fourth place. He said during question hour on Friday that due to the progressive policies of the TRS government, Telangana's growth rate had been higher. As per theFRBM statementspresented along with the budget, the states fiscal deficit is targeted at 3.50% of GSDP in 2023-24 and 2024-25. It is equal to the limit of 4% of GSDP permitted by the central government in 2022-23 as per the Union Budget (of which, 0.5% of GSDP will be made available upon undertaking power sector reforms). Two important rivers of India, the Godavari and Krishna, flow through the state, providing irrigation. Global growth for 2019 was 2.4%, the slowest since the financial crisis. Disclaimer: This data is being furnished to you for your information. Hyderabad: The state's contribution to country's GDP was 4.06% at the time of formation of Telangana, which has grown to 4.97% in 2020-21, said state finance minister T Harish Rao. Telangana however, is expected to register a real economic growth rate of 8.2% in 2019-20 - well above the national average. This Video shows the top 25 richest cities by GDP from 1960 to 3000Subscribe for twice a week Uploads! On average, states spend 55% of their revenue receipts on committed expenditure (as per 2021-22 budget estimates). Sources:Telangana Budget Documents 2022-23; PRS. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects. This data has been collated without regard to the objectives or opinions of those who may receive it. At constant prices, the State GSDP growth has been higher than that of the national GDP since 2015-16. Now you can get handpicked stories from Telangana Today onTelegram everyday. This gap is filled by borrowings by the government and leads to an increase in total liabilities of the state government. Annexure 2: Comparison of 2020-21 Budget Estimates and Actuals. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. This comprises spending on salaries (14% of revenue receipts), pension (6%), and interest payments (9%). The average for a sector indicates the average expenditure in that sector by 30 states (including Telangana) as per their budget estimates of 2021-22. [6], Telangana is a mineral-rich state, with coal reserves at Singareni Colleries.[7]. PRS is an independent, not-for-profit group. Sources: Ministry of Statistics and Programme Implementation; PRS. Try to avoid outside hyperlinks inside the comment. Sources: Telangana Budget Documents 2022-23; PRS. Service sector is the largest contributor to the Telangana's economy with a share of about 65% in the year 2018-19. Actual spending in sectors such as Housing, Urban development, and Agriculture and allied activities was 94%, 71%, and 30% less than budget estimates, respectively. Growth in services has largely been fuelled by IT services with the State holding leading position in IT & ITeS in the country in terms of production and exports.[5]. Rs 4,000 crore has been allocated to debt relief to farmers. Rs 822 crore has been allocated towards the National Health Mission. The increased GSDP can be attributed to the States performance in the primary sector, comprising agriculture, dairy and poultry among others, which recorded a growth of 17.7 per cent in 2020-21. Note: A negative revenue balance indicates a deficit. In 2020-21, the actual expenditure (excluding debt repayment) by the state was Rs 1,50,003 crore, 15% less than the budget estimate of Rs 1,76,393 crore. But we need to be judicious while moderating your comments. Industry includes various manufacturing sub-sectors. Hyderabad, being the capital of Telangana, is the largest contributor to the state's GDP (Gross domestic product) and state tax. India's definition of services sector includes its construction, retail . A revenue deficit implies that the government needs to borrow to finance its expenses which do not increase its assets or reduces its liabilities. Revenue Balance: It is the difference of revenue expenditure and revenue receipts. Other important crops are tobacco, mango, cotton, and sugar cane. Telangana with 2.5% of Indian population contributes 5.0% to India's GDP (Source: RBI report, October 2021) What the country needs is "Double Impact" governance, Not futile Double Engines. Telangana State Tourism Development Corporation (TSTDC) is a state government agency which promotes tourism in Telangana. Agriculture has been the chief source of income for the state's economy. However, it stood in fourth place in contributing to the economy of the country. Important rivers of India, the Godavari, Krishna flow through the state, providing irrigation. At current prices, Telangana's gross state domestic product (GSDP) was estimated at Rs. *Figures for 2023-24 and 2024-25 are projections. District police has been allocated Rs 3,864 crore. The unemployment rate, which was 8.3 per cent in the State in February last, dropped to 7 per cent in December last. Rs 9,947 crore has been allocated towards the Aasara pensions. This resulted in a compounded annual growth rate (CAGR) of 8.08 per cent, said the report. The per capita net state domestic product of the State was Rs 1,24,104 in 2014-15 and it increased to Rs 2,37,632. State governments guarantee the borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. 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. Table 1 : Budget 2022-23 - Key figures (in Rs crore). INDUSTRIAL PROFILE: Introduction: Hyderabad is a historic beautiful City and is the Capital of Telangana. Table 4 : Sector-wise expenditure under Telangana Budget 2022-23 (in Rs crore). Dalit Bandhu scheme has been allocated Rs 17,700 crore. Rs 2,000 crore has been allocated towards construction of medical colleges and super specialty hospitals. 13.04 trillion (US$ 167.82 billion) in 2022-23BE. The share of services in Gross State Domestic Product (GSDP) increased significantly from 57 per cent in 2013-14 to 65 per cent in 2018-19. Figure 3 : Outstanding Liabilities (% of GSDP). The opinions expressed herein are entirely those of the author(s). Click the link to subscribe. The report, 'Handbook of Statistics . In India, the Government accounts for around 21% of the GDP, agriculture accounts for 21%, the corporate sector accounts for 12% and the balance 48% of the GDP is sourced from small proprietorship and partnership companies, unorganized sector and households. Telangana is one of the fastest-growing states in India posing average annual growth rate of 13.90% over the last five years. Help us delete comments that do not follow these guidelines. : Major sources of states own-tax revenue (in Rs crore). Rs 4,472 crore has been allocated towards the capital outlay on roads and bridges. The second advance estimates released by the MoSPI reveal that the national economic output, measured by GDP, will shrink by 8 per cent at current prices in 2020-21. The secondary and services sectors contracted to 5.2 per cent and 1.9 per cent, respectively. Note that in 2020-21, the centre allowed states to increase their fiscal deficit from 3% of GSDP to 4% of GSDP. [10] At the end of 2021-22, the outstanding guarantee of the state is estimated to be 11.7% of GSDP, higher than 10.8% of GSDP at the end of 2020-21. To calculate GDP in Dollar, Formula = 2,869* (contribution of state)/100. The Telangana Fiscal Responsibility and Budget Management (FRBM) Act, 2005 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit, and fiscal deficit of the state government. ; 18% higher than the corresponding figure in 2020-21 (Rs 2,57,894). There are 68 Special Economic Zones in the state. Sources: Telangana Budget Documents 2022-23; Telangana Economic Survey 2021-22; PRS. HYDERABAD:Telangana is the fourth largest contributor to the countrys economy. In comparison, national GDP is estimated to grow at 8.9% in 2021-22. Note: *Negative sign indicates a deficit, positive sign indicates a surplus. Sources: Telangana Budget Documents 2022-23; PRS. IT and ITeS exports from Telangana increased at a CAGR of 11.32% from 2013-14 to Rs. PRS Legislative Research is licensed under a Creative Commons Attribution 4.0 International License. Note: BE: Budget Estimates. A comparison of Telanganas expenditure on the key sectors with that by other states is shown in Annexure 1. Hyderabad: Telangana 's real gross state domestic product has grown to Rs 6.63 trillion (Rs 6.63 lakh crore) in 2019-20 from Rs 4.16 trillion (Rs 4.16 lakh crore) in 2014, according to a report by Knight Frank India. In US Dollar, five states/UTs have an economy of greater than $200 billion for year 2019, and 13 have above $100 bn. According to the Handbook of Statistics on the Indian Economy 2020-21 released by the Reserve Bank of India (RBI) on Wednesday, the Net State Value Added (NSVA) by the State at current prices to the country increased from Rs 4,16,930 crore in 2014-15 to Rs 8,10,503 crore in 2020-21. The following tables compare the actuals of 2020-21 with budget estimates for that year. Sources: Telangana Budget Documents 2022-23; various state budgets; PRS. Hyderabad: Telangana State, just seven years in existence, dug in, held its ground and came up trumps even as the Covid crisis engulfed the country in the first wave of the pandemic. The graphs below compare Telanganas expenditure on six key sectors as a proportion of its total expenditure on all sectors. Click to follow Telangana Today Facebook page and Twitter . Annexure 1: Comparison of states expenditure on key sectors, The graphs below compare Telanganas expenditure on six key sectors as a proportion of its total expenditure on all sectors. Note: A negative revenue balance indicates a deficit. 145,522 crore (US$ 20.05 billion) in 2021-21. Outstanding liabilities are set to rise from 21.32% of GSDP in 2019-20 to 25.29% of GSDP in 2022-23. 65 million MSMEs are expected to be impacted by conducive policymaking. Hyderabad: The share of Telanganas economy in the national GDP has gone up by 26 basis points to touch 5 per cent in 2020-21 against 4.74 per cent in 2019-20. Sales tax/VAT is the second largest source of own tax revenue after SGST in 2022-23 (30% of own tax revenue). Though the unemployment in India peaked at 23.5 per cent in April and 21.7 per cent in May during the lockdown, the increase in unemployment rate was delayed in Telangana and the peak was much lower at 14.7 per cent. However, Telanganas GSDP grew by 1.35 per cent at current (2020-21 base) prices. In 2022-23, the fiscal deficit is estimated to be Rs 52,167 crore (4% of GSDP). Between 2014-15 and 2021-22, the State's contribution to India's nominal GDP increased from 4.1 per cent to 4.9 per cent. Automobiles and auto components industry, spices, mines and minerals, textiles and apparels, pharmaceutical, horticulture, poultry farming are the main industries in Telangana. Tamil Nadu (Rs 15,44,935 cr), Karnataka (Rs 13,40,350 cr), West Bengal (Rs 11,04,866 cr) are ahead of Telangana in that order. The states FRBM Act stipulates to limit the amount of annual incremental risk weighted guarantees to 200% of the total revenue receipts in the year preceding the current year. BE: Budget Estimates. . The contribution of 30 working State public sector undertakings (SPSUs) of Telangana to the GSDP has declined from 8.36% in 2018-19 to 7.73% in 2019-20 to 6.76% in 2020-21, the Comptroller and. The State Domestic Product is classified under three broad sectors such as Primary . Sources: Telangana Budget Documents2022-23. In 2018-19 it was 9.8 per cent against GDP . Agriculture also form a backbone of Telangana's Economy. At constant prices, the State GSDP growth has been . By Express News Service HYDERABAD: A day after RBI in its 'Handbook of statistics on the Indian Economy 2020-21' declared that Telangana is the fourth largest contributor to the country's. In his budget speech, the Finance Minister stated that Telangana will not be undertaking reforms in the power sector as required by the central government for additional borrowing. Table 5 : Break-up of the state governments receipts (in Rs crore). As per revised estimates of 2021-22, Telangana is estimated to spend Rs 54,895 crore on committed expenditure items, which is 35% of its revenue receipts. Telangana was formed in June 2014 with Hyderabad as its capital. Telanganas guarantees are within these limits. Note: These numbers are as per constant (2011-12) prices which implies that the growth rate is adjusted for inflation. Total expenditure in 2020-21 includes eight crore rupees towards inter-state settlement. [12] Telangana has a variety of tourist attractions including historical places, monuments, forts, water falls, forests and temples. Growth in services has largely been fuelled by IT and. Unemployment was prevalent across India during the lockdown with the national unemployment rate shooting up from 7.8 per cent in February last to 9.1 per cent in December. The GSDP at constant prices for the year 2019-20 is estimated at Rs.6,63,258 crore as against Rs. One of the major driving factors of India's GDP growth is the MSME industry, which employs 40% of India's Workforce (110.98 M), contributing 45% of the output and 40% of the exports. The economy of Maharashtra is close to $400 billion. A positive figure means a surplus, a negative figure means a deficit. Rice is the major food crop. Industry includes various . Note that as of 2019-20, outstanding guarantee given by states was around 3.3% of their GSDP. PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. However, at an aggregate level, the services sector continues to contribute the highest share at 60.3%. Rs 14,800 crore has been allocated to Rythu Bandhu Scheme. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. ( for example, gdp of Kerala = 2,869*4.12/100. According to the International Monetary Fund, the global economy is estimated to have contracted by 4.4 per cent in 2020 (compared to 2019). "Due to its high growth rate, the agriculture and allied sectors contributed a higher share of 20.6% to overall GSDP than in any year since the state's formation. PTI HYDERABAD: Telangana's GSDP grew at 10.1 per cent (at constant prices) during the last financial year to Rs 5.11 lakh crore as against 9.5 per cent in FY16, state Industries and Commerce Minister K T Rama Rao said today. In 2022-23, revenue from both sales tax/VAT and stamp duty and registration fees is expected to increase by 25% over revised estimates of 2021-22. The Finance Minister of Telangana, Mr. T. Harish Rao, presented the Budget for the state for the financial year 2022-23 on March 7, 2022. Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry and services. Sectoral Composition with respect to contribution to Gross Domestic Product (GDP) and Employment Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry and services. Overview of the economy in the Indian state of Telangana, Hyderabad Information Technology and Engineering Consultancy City, Telangana State Tourism Development Corporation, "State economy growing faster than nation's", "Telangana leads the country in services sector growth", "The Singareni Collieries Company Limited", 2015 agricultural output of Telangana based on 2011 prices, "Special governance for Hyderabad needed for growth", "Huge challenges ahead for new Telangana tourism corporation", List of cities in Telangana by population, List of urban agglomerations in Telangana, https://en.wikipedia.org/w/index.php?title=Economy_of_Telangana&oldid=1113955118, All Wikipedia articles written in Indian English, Short description is different from Wikidata, Articles with unsourced statements from February 2020, Articles with unsourced statements from November 2014, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 4 October 2022, at 01:48.