Hyderabad: Telangana's economy continues to expand significantly, with its Gross State Domestic Product (GSDP) rising to Rs 15.02 lakh crore at current prices in 2023-24 from Rs 13.11 lakh crore in 2022-23, according to the latest data from the Reserve Bank of India (RBI). Despite the growth, the state slipped one spot to rank seventh among Indian states in terms of GSDP at current prices.
At the time of its formation in 2014, Telangana's GSDP was Rs 3.91 lakh crore. Over the decade, it has surged to Rs 15.02 lakh crore, reflecting robust economic growth. At constant prices, the GSDP rose to Rs 7.93 lakh crore in 2023-24 from Rs 7.26 lakh crore the previous year.
Among states, Maharashtra retained the top spot with a GSDP of Rs 40.44 lakh crore at current prices, followed by Tamil Nadu, Uttar Pradesh, Karnataka, West Bengal, and Rajasthan.
Telangana ranked eighth at constant prices, with Maharashtra and Tamil Nadu again leading the list.
Telangana continued to remain the richest state by per capita income. It has maintained its top position among major states in per capita income at current prices, reaching Rs 3,56,564 in 2023-24, up from Rs 3,12,522 in 2022-23.
At the time of its formation, the state's per capita income was Rs 1,12,162. However, Sikkim and Delhi, smaller states, outperformed Telangana with per capita incomes of Rs 5,87,743 and Rs 4,61,910, respectively.
At constant prices, Telangana's per capita income stood at Rs 1,83,854, ranking third among major states after Kerala and Haryana.
Telangana's outstanding debt rose to Rs 3.89 lakh crore in 2023-24, compared to Rs 3.52 lakh crore in 2022-23. In 2014-15, this figure was Rs 56,398 crore. The state’s gross fiscal deficit increased to Rs 56,063 crore from Rs 50,147 crore, while its revenue deficit widened to Rs 4,882 crore.
Interest payments on loans surged to Rs 22,408 crore in 2023-24, and pension payments rose to Rs 13,024 crore, compared to Rs 18,912 crore and Rs 11,385 crore, respectively, in the previous year. Social sector expenditure also saw significant growth, reaching Rs 1,27,123 crore in 2023-24 from Rs 1,06,855 crore in 2022-23.
The state’s tax revenue (SOTR) climbed to Rs 1,31,029 crore in 2023-24, a substantial increase from Rs 1,10,592 crore in 2022-23. Similarly, non-tax revenue (SNTR) rose to Rs 22,808 crore from Rs 15,292 crore.
Despite its impressive economic growth and high per capita income, Telangana faces challenges such as rising debt and fiscal deficits. The state government has emphasised increased social sector spending and revenue generation as key priorities to sustain its growth momentum.
