Telangana’s remarkable economic progress since its formation in 2014 has drawn significant acclaim, especially with its Per Capita Income (PCI) skyrocketing from ₹1,24,104 in 2014-15 to ₹3,47,299 in 2023-24. This impressive growth positions Telangana as the state with the highest PCI among major Indian states, significantly exceeding the national average of ₹2.12 lakh for the same period. Furthermore, it boasts the fastest growth rate among southern states.
In their recently published book, Behold the Leviathan: The Unusual Rise of Modern India, authors Saurabh Mukherjea and Nandita Rajhansa attribute much of Telangana’s success to strategic investments and reforms. Mukherjea, the founder of Marcellus Investment Advisors, commends Telangana for achieving the PCI doubling milestone in just six years, a remarkable feat by any measure.
A Model for Development
The growth trajectory established under former Chief Minister K. Chandrashekhar Rao is frequently cited as a blueprint for rapid urban and economic development, particularly in Hyderabad. Experts assert that a third term under Rao could have further advanced this momentum, potentially elevating Telangana to new heights in economic performance and development.
D. Muthukrishnan, a certified financial planner known for his insights on state fiscal performance, supports this view. “Saurabh Mukherjea in his latest book states that Telangana doubled its per capita income in the last six years. This is a phenomenal achievement by any standard,” he shared on social media. He further emphasized the importance of continuing this growth story and expressed surprise at the electorate’s decision to vote Rao out. “Ten years of Telangana’s growth, especially in Hyderabad, should serve as a case study for others.”
Sustained Economic Performance
According to Union government statistics, only three states—Gujarat, Tamil Nadu, and Telangana—maintained an annual growth rate of around 8% over the last two decades. Experts are optimistic that these states are poised to achieve double-digit growth rates in the coming decade.
Under the Bharat Rashtra Samithi (BRS) regime, Telangana’s Gross State Domestic Product (GSDP) has consistently outpaced the country’s GDP growth. Between 2014 and 2023, Telangana recorded an average annual GSDP growth of 12.7%, compared to India’s 10.5%. In 2022-23, Telangana’s GSDP contribution to the national GDP rose to 4.8%, up from 4.0% in 2014-15.
In 2023-24, Telangana’s GSDP grew by 11.9%, making it the third-highest growth rate in the country, exceeding India’s GDP growth by 2.4 percentage points. The state’s GSDP is projected to grow by 12.5% in 2024-25 compared to the previous year.
