Telangana Posts Double-Digit Growth, Beats National GDP Rise

Hyderabad: Telangana recorded a Gross State Domestic Product (GSDP) growth rate of 10.7 per cent in 2025-26, exceeding the national GDP growth of 8 per cent, deputy chief minister Mallu Bhatti Vikramarka said in the Budget speech.

He said the state’s GSDP at current prices stood at Rs 17,82,198 crore, with growth 2.7 percentage points higher than the national average, contributing about five per cent to the country’s GDP.

Bhatti, who holds the finance portfolio, said Telangana also recorded the highest per capita income in the country at Rs 4,18,931, crossing the Rs 4 lakh mark for the first time and standing at nearly 1.9 times the national average of Rs 2,19,575. The state’s per capita income grew by 10.2 per cent, compared to the national growth rate of 6.9 per cent.

He said while the national growth rate declined from 9.8 per cent in 2024-25 to eight per cent in 2025-26, Telangana’s growth improved from 10.6 per cent to 10.7 per cent.

Criticising the previous BRS government, he said funds under Centrally Sponsored Schemes between 2014 and 2023 were not properly utilised, resulting in the stoppage of subsequent instalments from the Centre. He said the present government released nearly Rs 3,000 crore in 2025-26 to clear pending dues.

He said Telangana secured Rs 7,072 crore under Centrally Sponsored Schemes in 2025-26 so far, compared to Rs 4,826 crore in 2021-22 under the previous government, attributing the increase to improved coordination with the Centre.

Raising the issue of fiscal devolution, he said the state receives about 42 paise for every rupee contributed in taxes to the Centre. He said the government presented its case before the 16th Finance Commission, resulting in an increase in Telangana’s share in central taxes from 2.102 per cent to 2.174 per cent and inclusion of GSDP as a parameter in the devolution formula.