As Telangana welcomes the new year, its economic narrative is undergoing a profound transformation. The state is rapidly shedding its identity as merely one of India's fastest-growing regions and is beginning to mirror the economic profile of several middle-income nations on the global stage. This shift is powered by robust gains in per capita income, consistent GDP expansion, and the accelerating influx of Global Capability Centres (GCCs).
Surpassing Regional Peers: A New Income Benchmark
Recent data analysis reveals Telangana's remarkable performance on individual earnings. For the financial year 2023-24, the state's per capita income (PCI) was estimated at ₹3,56,564. Using an exchange rate of ₹83 to the US dollar, this translates to an annual income of approximately $4,292 per person. This figure already places Telangana ahead of several Asian economies traditionally discussed as peers.
For instance, Afghanistan's nominal PCI is around $405, while Bangladesh and Cambodia stand at roughly $2,700 and $2,800 respectively. Notably, Telangana's income level outperforms that of Pakistan and Nepal, highlighting a significant economic advantage. The trajectory points even higher, with projections for 2026-27 indicating the PCI could reach ₹4.2 lakh. At an assumed rate of ₹90 to a dollar, this would mean a per person income of about $5,000, firmly situating the state in the global middle-income bracket.
Drivers of Growth and Future Ambitions
Economists identify key engines behind this ascent. Prasanna Tantri, Director of the Centre for Analytical Finance at the Indian School of Business, notes that maintaining an 8% growth rate could see the state achieve the $5,000 PCI milestone. He emphasized that while migration patterns might influence figures, Global Capability Centres (GCCs) are a primary force propelling the economy forward, attracting substantial investor interest.
The state's economic scale is expanding in tandem with individual prosperity. Estimates suggest that by 2028, Telangana's GDP could swell to $239 billion, accounting for nearly 5% of India's total economic output. This would make its economy comparable in size to Algeria, the largest country in Africa by area. Furthermore, an economic assessment report indicates that by 2027, the GDP of major Indian states like Telangana could exceed that of European nations such as Norway and Hungary.
Structural Shift Towards a Knowledge Economy
This growth represents more than just numerical increase; it signals a deep structural change. Krishna Reddy Chittedi, an associate professor at the University of Hyderabad's School of Economics, pointed out that Telangana has set an ambitious target of becoming a $3 trillion economy by 2047. Achieving this will require accelerating the regular growth rate of PCI. He affirmed that the state is already positioned to perform better than many lower- and middle-income countries.
For context, Telangana's GDP in 2022-23 was around ₹13 lakh crore. With a population of approximately 3.8 crore, its economic output compares favourably with Algeria, which has about 4.5 crore people. This underscores the efficiency and productivity gains embedded within Telangana's development model.
As the year concludes, Telangana's economic journey reflects a quiet but significant leap. The convergence of rising incomes, global capital flows, and knowledge-driven industries is steadily redrawing the state's position on the world economic map, marking its transition towards a more advanced and globally integrated economy.
