Hyderabad: The Gross State Domestic Product (GSDP) of Telangana state is expected to witness a decent growth rate this financial year (2016-17) on the back of good agriculture season.
Finance minister Etela Rajender, who attended the State Credit Seminar conducted by Nabard here on Friday, said that the agriculture sector, which shrunk during the last two years in the state, has grown four per cent in the first half of this fiscal (April-Septe-mber 2016) due to good rains.
He said the contribution of the agriculture sector to the GSDP is expected to increase to 22 per cent this for the present 17 per cent.
“The growth in the agriculture sector is a good sign. It will have a positive impact on the entire state economy, which is still predominantly agri-based. A majority of the people in the state rely on agriculture for their livelihood in rural areas. If there are good crops, the rural economy will boom, which in turn would boost the state economy. If there is a growth in industrial or services sectors, it will have a positive impact only on some sections of the society,” Mr Rajender said.
According to the state finance minister, the economic growth rate in Telangana state has surpassed the national average in the first half of this fiscal.
