The State’s economic output, the gross State domestic product (GSDP), grew by 2.4% during the previous financial year 2020-21, the adverse impact cast by the Coronavirus (COVID-19) pandemic on the State’s economy notwithstanding.
The growth assumes significance as the economic output at the national level fell by 3% during the same time. The GSDP at ₹9.8 lakh crore showed the impressive resilience during the year and recovery is already underway. The resilience is led by agriculture and allied sectors which grew by 18.5%, much higher than 6.6% growth in these sectors at the national level, according to a report on the State Economy released by the Directorate of Economics and Statistics.
The report said the agriculture and allied sectors contributed a higher share to overall GSDP than in any year since the formation of the State. The services sector however continued to contribute the highest share to the GSDP in the overall terms. Although the secondary and tertiary sectors contracted by 2.1% and 3.9% respectively, they still fared better as there were much steeper contractions at the national level.
The State’s GSDP at current prices increased by 93.8% since its formation till FY21. This was against the 58.4% increase witnessed at the national level during the same period. In the process, the State achieved the third highest percentage increase in GSDP value at current prices since its formation.
The State was sixth highest contributor to the country’s GSDP at current prices and the State improved its rank to four during the current financial year, according to a recent report released by the Reserve Bank of India.
The per capita income, one of the strongest economic indicators, of Telangana during the fiscal was ₹2,37,632, 1.84 times higher than the national average of ₹1,28,829. The report said tertiary sector continued to remain dominant sector in the State’s economy accounting to 59.5% of the gross value added.
The GVA for all sub-sectors in the services sector was 1.5 to 2 times. Its value during the formation of the State and the contribution of the primary sector to GSVA consistently improved from 19.5% to 24.1% in the past six years. The agriculture and allied sector grew by 14.3% at constant prices during 2020-21 as compared to 3.6% at the national level. The average contribution of the second sector to the State’s GSVA (Gross State Value Added) was 18% over the last five years and the value added by the manufacturing sector grew by 72% since the formation of the State, the report said.