Mon Jan 26 01:30:00 UTC 2026: # Telangana’s Economic Rise Masks Regional Disparities

The Story:

A January 26, 2026, report in The Hindu analyzes Telangana’s economic performance since its formation in June 2014. The report highlights Telangana’s impressive growth, making it the richest major Indian state in 2022-23 with a per capita income of ₹3.54 lakh. However, this prosperity is heavily concentrated in Metropolitan Hyderabad (Hyderabad and Ranga Reddy district), raising concerns about regional imbalances and potential social and political unrest.

Key Points:

  • Telangana’s per capita income surpassed other states like Karnataka, Haryana, Gujarat, Tamil Nadu, Kerala, and Maharashtra.
  • Since its formation, Telangana’s economic size relative to Andhra Pradesh has stabilized at approximately 96.5%.
  • The services sector, particularly real estate, IT, trade, hotels, and restaurants, has driven Telangana’s growth.
  • Metropolitan Hyderabad, comprising Hyderabad and Ranga Reddy districts, accounts for approximately 47.5% of the State’s economy, despite representing a small fraction of its area and population.
  • Ranga Reddy district, once one of India’s most backward, is now among the richest, highlighting the region’s IT-driven boom, while neighboring Vikarabad suffers from the lowest per capita income in the State.

Key Takeaways:

  • Telangana has experienced significant economic growth since its formation, largely driven by the services sector.
  • Economic growth is heavily concentrated in the Hyderabad metropolitan area, leading to significant regional disparities.
  • The concentration of wealth may create social and political instability due to uneven development across Telangana.
  • Policy interventions are needed to distribute the benefits of economic growth more evenly throughout the State.

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