In 2020-21, TS was 6th highest contributor to country’s GDP

In 2020-21, TS was 6th highest contributor to country’s GDP

The NITI Aayog has published a report that the Gross State Domestic Product of Telangana by provisional estimates was ₹ 9.80 lakh crore, an increase of 94% from its 2014-15 value.

Telangana achieved third rank in the country in terms of percentage increase in GSDP at current prices between 2014-15 and 2020-21. In 2020-21, the State was the sixth highest contributor to the country’s GDP at current prices.

The report highlighted that the contribution of agriculture, which was the backbone of the State’s economy, was around 16% in the GSDP. As per the latest census records, 86% of the farmers were small and marginal while the average land holding was 1.12 hectares.

The industrial sector contributed nearly 17% to the GSDP. Telangana’s industrial landscape had been a mix of high-tech sectors such as pharma, biotechnology and nanotechnology and traditional sectors such as textiles, leather, food processing and minerals.

As per the Department for Promotion of Industry and Internal Trade data, the cumulative Foreign Direct Investment inflow in Telangana amounted to $ 1,539.82 million between October 2019 and December 2020.

Pharmaceutical product exports from the State stood at $4.63 billion in 2019-20.

Total liabilities

Quoting the Fifteenth Finance Commission, the report estimated Telangana to bring down its total liabilities from 29.5% in 2020-21 to 29% of GSDP in 2025-26 by following the fiscal deficit targets set for States by the commission.

Central taxes

As per the commission’s recommendations for 2021-26 period, Telangana will have a 0.86% share in the divisible pool of Central taxes.

It implied that Telangana will get ₹ 0.86 out of every ₹ 100 of revenue in the divisible pool during 2021-26.

Telangana was not among the qualifying States for which the commission had recommended revenue deficit grants in 2021-26.

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