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Summary of Disconnect
Economic Success vs. Human Development
📈 The State's Challenge
Telangana has demonstrated strong financial capacity but shows a critical mismatch between economic success and human development outcomes. The challenge is to translate financial strength into targeted, efficient spending on social inclusion, education and health to ensure sustainable growth that benefits all citizens.
🎯 Priority Areas
🤝 Social Inclusion
Creating a more equal society through targeted interventions
♀️ Gender Parity
Empowering women through education and economic opportunities
🏥 Health & Education
Building human capital through quality healthcare and education
An Investment-Led, Debt-Dependent Model
Understanding Telangana's Economic Dynamics
⚙️ Model Summary
Telangana's economy operates on an aggressive, investment-led model that can be summarized by these key dynamics:
Exceptional Revenue Generation
Rank 2 and Rank 3 in creating wealth and collecting its own taxes. This powerful revenue engine is the state's greatest asset and provides a strong capacity to repay its loans.
Prudence in Consumption
Revenue Surplus (-0.11%) proves that high expenditure is not on consumption (salaries, subsidies) but is primarily Capital Expenditure (asset creation). This is fiscally sound.
The Debt Challenge
Fiscal Deficit (3.29%) and Debt to GSDP Ratio (34.47%) are the primary vulnerabilities. The state has consistently borrowed above recommended limits to fund large-scale capital projects and welfare schemes.
Revenue Generation
Rank 2 & 3
Revenue Surplus
-0.11%
Fiscal Deficit
3.29%
Debt to GSDP
34.47%
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Note: Click on any Rank X of Y badge to view the detailed ranking source and methodology in below sections.
Economy
Real NSDP Per Capita Income Growth (2013-14 to 2023-24)
Measures the change in average standard of living, adjusted for inflation. Shows how much the economy is translating into wealth for the average person.
Being ranked 2nd out of 28 states is outstanding. Telangana's average income per person has grown at one of the fastest rates in India over the past decade (+91.44% growth).
Real GSDP Growth (2013-14 to 2023-24)
Measures percentage change in state's total economic output, adjusted for inflation. The most common measure of overall economic growth.
Rank 6 confirms Telangana is among the top tier of states in economic expansion (+103.36% growth). Driven by robust activity in IT, pharmaceuticals, services, and agriculture.
Fiscal Health
Debt to GSDP Ratio (CAG) (2023-2024)
The most important metric for evaluating long-term financial sustainability. Measures total financial burden relative to economic size.
34.47% (vs. 33% target) indicates debt is growing faster than sustainable. High ratio means larger portion of future revenue consumed by interest payments.
Interest Payments to Revenue Receipts Ratio (2023-2024)
Vital indicator of fiscal flexibility and debt burden. Shows how much day-to-day income is consumed by interest obligations.
18.8% of revenue locked in debt servicing. Above optimal 15% threshold, signaling need for greater borrowing prudence.
Revenue Deficit/Surplus to GSDP Ratio (2023-2024)
Key measure of ability to fund day-to-day operations without borrowing. Indicates whether government lives within its means.
-0.11% (Surplus) demonstrates fiscal responsibility. Primary borrowing funds capital expenditure (asset creation), not day-to-day consumption.
Fiscal Deficit to GSDP Ratio (2023-2024)
Most crucial indicator of total borrowing requirement. Measures gap between total spending and non-borrowed income.
3.29% (vs. 3.0% limit) places state among higher borrowers. Sign of stretching borrowing capacity for investment.
Revenue Capacity
PCI Own Tax Revenue (2023-2024)
Best yardstick for measuring state's financial muscle. Shows how much money government can generate from its own population and economy.
Key strength. Demonstrates robust local economy, efficient tax administration, and reduced dependence on central funds.
PCI Tax Revenue (2023-2024)
Total tax money available to spend, per person. Includes both own tax revenue and share in central taxes.
Strong ranking. Drop from Rank 3 to Rank 7 suggests proportionally lower share of central tax pool despite highly effective internal tax engine.
Social Development (SDG Performance)
SDG 10: Reduced Inequality
Measures state performance in creating a more equal society. Key metrics include crime rates against marginalized communities and income distribution.
Challenges in Protection: Crime Rate against STs (22nd/36) and Crime against SCs (30th/36) are the lowest-ranked indicators, requiring improved law enforcement and community outreach.
Strength in Economic Equality: Telangana excels with a Gini Coefficient of 0.10 (4th/36), indicating very low income inequality. The focus is on sustaining this inclusive growth.
Strength in Economic Equality: Telangana excels with a Gini Coefficient of 0.10 (4th/36), indicating very low income inequality. The focus is on sustaining this inclusive growth.
SDG 5: Gender Equality
Measures progress toward gender parity and women's empowerment. This extremely low rank highlights severe disparities in the treatment and status of women across key indicators.
Key Areas of Concern:
Strategic Focus: Requires targeted interventions across health, economic participation, and political leadership to address systemic gender imbalances.
Sex Ratio at Birth
Poor
Female Labor Force
Low Participation
Political Representation
Insufficient
SDG 4: Quality Education
Focus shifting from Access to Quality and Equity. While infrastructure and teacher coverage are strong, the state now faces a critical Quality Crisis and deep Gender/Equity Gaps.
Key Challenges & Targeted Solutions:
- Digital Access (30/36): Only 42.9% of schools have computers. Solution: Phased Digital Rollout prioritizing the remaining 57.1% with low-cost tablet/mobile learning.
- Adult Literacy (26/36): 75.7% literate population (15+). Solution: Mission-Mode Functional Literacy (NILP) integrating financial/legal literacy.
- Learning Quality (24/36): Grade VIII Proficiency at 69.5%. Solution: Implement "Teaching at the Right Level" (TaRL) for foundational learning remediation.
- Pupil-Teacher Ratio: Excellent PTR of 10 at Secondary Level (vs. 18 All-India average). Index Score: 100.
- Trained Teachers: 97.8% of secondary teachers are trained. Index Score: 94.
- Infrastructure: 90.81% of schools have electricity and drinking water. Index Score: 88.
⚠ Long-term Impact: Failure to address quality gaps will limit the supply of skilled labor required by the state's high-growth IT and services sectors.
SDG 3: Good Health and Well-being
Strengths in critical areas offset by infrastructure gaps. The state excels in maternal & child health outcomes but requires investment in healthcare workforce and systems.
Key Strengths:
- Maternal Health: MMR of 43 (per 1 lakh) and 100% institutional deliveries indicate strong maternal care systems.
- Child Health: Low Under-5 Mortality Rate of 23 (per 1,000) and excellent immunization coverage at 106.13%.
- Disease Control: Strong TB case notification (91.18%) and very low HIV incidence (0.05 per 1,000).
- Health Workforce: Low health worker density (57 per 10,000 population) creates service delivery bottlenecks.
- Out-of-Pocket Expenditure: High at 30.31% of MPCE, indicating financial burden on households.
- Public Health Issues: Elevated suicide rate (26.3 per 1 lakh) and road accident deaths (19.92 per 1 lakh) require attention.
⚠ Strategic Focus: While core health outcomes are strong, building healthcare capacity and reducing financial burden on citizens are critical for sustainable progress.
2024 SDG India Index (Composite)
Respectable position. State's strong performance in economic growth and infrastructure masks severe deficits in education and social equality. Urgent need to prioritize social sector development for sustainable growth.
GROSS STATE DOMESTIC PRODUCT (GSDP)
Compared to India's Gross Domestic Product (GDP)
Current Prices (Nominal)
2013–14: ₹4,51,580.40 Cr (India GDP: ₹1,12,33,522 Cr)
2023–24: ₹15,01,981.41 Cr (India GDP: ₹2,95,35,667 Cr)
+233% Growth (India GDP: +163%)
2011–12 Prices (Real)
2013–14: ₹3,89,956.78 Cr (India GDP: ₹98,01,370 Cr)
2023–24: ₹7,92,940.60 Cr (India GDP: ₹1,73,81,722 Cr)
+103% Growth (India GDP: +77%)
NET STATE DOMESTIC PRODUCT (NSDP at Market Prices)
Compared to India's Net National Income
Current Prices (Nominal)
2013–14: ₹4,08,281.70 Cr (India NNI: ₹101.85L Cr)
2023–24: ₹13,61,395.31 Cr (India NNI: ₹265L Cr)
+233% Growth (India NNI: +160%)
2011–12 Prices (Real)
2013–14: ₹3,49,592.66 Cr (India NNI: ₹85.3L Cr)
2023–24: ₹7,01,974.38 Cr (India NNI: ₹159L Cr)
+101% Growth (India NNI: +86%)
PER CAPITA NSDP (PCI based on NSDP)
Using Registrar General of India Population Projections
Current Prices (Nominal)
2013–14: ₹1,12,162
NSDP: ₹3,94,810 Cr ÷ Population: 3.52 Cr
India PCI: ₹80,671
2023–24: ₹3,56,564
NSDP: ₹13,61,395 Cr ÷ Population: 3.82 Cr
India PCI: ₹1,78,622
+218% Growth (India PCI: +121%)
Method: NSDP ÷ RGI Projected Population | CAGR: ~12.3%
2011–12 Prices (Real)
2013–14: ₹96,039
Real NSDP: ₹3,38,057 Cr ÷ Population: 3.52 Cr
India PCI: ₹67,556
2023–24: ₹1,83,854
Real NSDP: ₹7,02,322 Cr ÷ Population: 3.82 Cr
India PCI: ₹1,07,042
+91.4% Growth (India PCI: +58%)
Method: Real NSDP ÷ RGI Projected Population | CAGR: ~6.7%
Primary Data Sources:
- Reserve Bank of India - Handbook of Statistics on Indian States (Key economic indicators)
- Directorate General of Employment - Annual Reports (Employment and labor statistics)
- Census of India (Demographic and socioeconomic data)
- Ministry of Statistics and Programme Implementation (MoSPI) (National accounts and projections)
- Comptroller and Auditor General of India (CAG) (State finances and public accounts)
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