Structure and Growth of Telangana Economy

2.1 to 2.4 Size and growth

• The Gross State Domestic Product was about ₹17.82 lakh crore in 2025-26 at current prices (Provisional Advance Estimates).
• Real growth of 8.5 per cent is lower than nominal growth of 10.7 per cent because real growth removes the effect of price rise.

Agriculture

• Agriculture and allied activities gave about 15 per cent of the State's value added in 2025-26, in the primary sector at current prices.
• About 47 per cent of workers were in agriculture in 2022-23, so output per worker is low.

Industry

• Industry, meaning mainly manufacturing, construction, electricity and water, gave about 16 per cent of value added in 2025-26.
• Within the secondary sector, manufacturing is about half and construction about one-third.

Services

• Services gave about 69 per cent of value added in 2025-26 and grew fastest, by 13.5 per cent at current prices.
• Services employed about 33 per cent of workers in 2022-23.

2.5 to 2.6 Per capita income

• Telangana's per capita income was ₹4,18,931 in 2025-26, about 1.9 times India's ₹2,19,575 (current prices, same 2011-12 series).
• An average hides gaps: Rangareddy had ₹9.47 lakh and Vikarabad ₹1.80 lakh in 2022-23.

2.7 Inequality

• Official Telangana evidence measures consumption inequality, not income inequality, and no income-distribution statistic was located.
• Three districts produced about 46 per cent of district product in 2022-23: the Hyderabad effect.

2.8 Poverty

• No official monetary poverty estimate for Telangana exists after 2011-12.
• Multidimensional poverty fell from 13.18 per cent to 5.88 per cent between the National Family Health Surveys of 2015-16 and 2019-21.

2.9 Inclusive development

• Growth reduces poverty when it reaches people through jobs, incomes and fair distribution.
• Services produce about two-thirds of output but employ about one-third of workers, so growth and inclusion can diverge.