Telangana Plays Key Role in Economic Growth, Says Survey

Hyderabad: Telangana has emerged as a major contributor to India’s economic momentum, with the Economic Survey 2025-26 highlighting the state’s growing role in manufacturing, services, agriculture, welfare delivery, land governance and regulatory reforms.

The Survey noted that Telangana was among the seven states that together account for nearly 60 per cent of total manufacturing employment in the country, contributing five per cent on its own.

Telangana has also gained national recognition for strengthening transparency and efficiency in land governance. The state’s integrated digital platform through the Bhu Bharati portal, which connects revenue, stamps and registration departments, has been cited as a model for modern land administration.

This initiative supports secure land titles, reduces disputes and enables land to function as productive capital, thereby boosting investor confidence and accelerating development.

A major macroeconomic highlight for the State is the sharp decline in inflation, which fell dramatically from 8.61 per cent to just 0.20 per cent in 2025-26 providing substantial relief to consumers and improving overall economic stability. This moderation in prices strengthens household purchasing power and enhances the business climate by reducing input cost pressures.

In agriculture, the Survey recognises Telangana’s transformative expansion in cultivated area, which rose from 1.31 crore acres in 2014 to 2.2 crore acres by FY23. The improved irrigation coverage has strengthened crop security and expanded multiple cropping opportunities, laying the foundation for long-term agricultural resilience.

While the Survey observes that yields in major rice-producing states, including Telangana, remain below the national average due to climatic stress factors such as unseasonal rains, heat waves and dry spells, it also points to the state’s strong potential for improvement through climate-resilient seeds, better crop planning and alignment with natural resource endowments. Telangana’s irrigation expansion is viewed as a critical enabler for overcoming these constraints and improving productivity in the coming years.

In the public distribution system, Telangana stands out as one of the six states to have fully implemented the GPS-based vehicle location tracking system, ensuring real-time monitoring of foodgrain transportation.

This complements the nationwide success of Aadhaar seeding, ePoS-enabled fair price shops and digital transactions, which have substantially reduced leakages and improved subsidy targeting. Telangana’s adoption of these reforms reflects its commitment to transparent and technology-driven welfare delivery.

The Survey further notes Telangana’s leadership in services-led growth. Along with Karnataka, Maharashtra and Tamil Nadu, the state accounts for a substantial share of India’s services output, driven by high-productivity sectors such as information technology, finance and professional services. This has strengthened employment generation, urban development and economic diversification, positioning Telangana as a key hub in India’s modern services economy.

Women’s economic empowerment has also been highlighted through Telangana’s WE-Hub initiative, which connects women entrepreneurs with start-up ecosystems, investors and institutional support. This model of public-private partnership has been acknowledged as an innovative approach to expanding women’s participation in higher-value economic activities.

On the regulatory front, Telangana has been recognised for progressive labour reforms, including the removal of restrictions on women working in a wider range of industries, and for streamlining fire safety regulations through accredited third-party mechanisms.