Hyderabad: The 15th Finance Commission has noted that the services sector, is the largest contributor to the state’s Gross State Value Added (GSVA). The commission said that IT and ITeS units have been key drivers, and the state share was over 10 per cent of the country’s IT exports.
However, the state came last in the south with regard to the manufacturing or secondary sector. Its share of GVSA stood at 18.66 per cent against AP’s 19.44 per cent. The share of the primary sector (agriculture, fishing, mining) stood at 17.54 per cent against 37.01 per cent for AP.
In Telangana, the share of the GSVA was 63.80 per cent against 43.55 per cent for AP. The state’s manufacturing sector mostly comprises the pharmaceutical industry and non-mineral products. Officials said that there was a 37.4 per cent increase in the number of dealers in the GST regime due to the government’s effort. The commission held discussions with trade associations and industry bodies apart from the industries officials.
They said except in the initial months, the government had not received any GST compensation from the Centre. The growth rate of GST revenue in the state was 20 per cent against 14.7 per cent of AP from April to December last over the same period of 2017. The Commission discussed the need to provide enh-anced impetus to the dev-elopment of manufacturing sector which would reduce its overdependence on the IT and ITeS sector, thereby reducing the concentration risk to growth. The panel pointed out that of all the districts in the state, only Ranga Reddy, Hyderabad, Medchal-Malkajgiri and Sangareddy had a per capita income that is above the state average.
