The Telangana region, comprising 10 of the 23 districts in Andhra
Pradesh, has a larger area than the other two regions, Rayalaseema and
coastal Andhra. Excluding Hyderabad, Telangana sprawls over 1.14 lakh sq
km, while the four districts of Rayalaseema cover 67,000 sq km and the
nine coastal districts encompass 92,800 sq km.
Fundamentally, the Telangana economy is vibrant, thanks to the contributions from Hyderabad and Rangareddy districts.
Telangana’s broad economic parameters, such as the Gross State Domestic
Product (GSDP), which is the total value of goods and services produced
in a given year, and standard of living as indicated by per capita
income, appear to be sound vis-à-vis the Andhra and Rayalaseema regions.
The aggregate gross district domestic product of the proposed state’s
10 districts in 2009-10, stood at approximately Rs 2,16,281 crore.
That was a little less than half of Andhra Pradesh’s Rs 4,90,411 crore
GSDP in the same period. Indeed, if the Andhra and Rayalaseema regions
were to be taken individually, Telangana’s contribution to the State
Domestic Product was the highest. This was obviously driven by a strong
contribution from Hyderabad as can be seen in the table.
PER CAPITA INCOME
As a reflection of the standard of living, per capita income at factor
cost doubled at the state level from Rs 25,321 in 2004-05 to Rs 52,814
in 2009-10. Excluding Hyderabad, Telangana’s per capita income was lower
than the state average in many districts. Khammam, Warangal, Nizamabad,
Adilabad, Karimnagar and Nalgonda had shown low per capita income.
Discrepancies in gross district domestic product and trends in per
capita income indicate that the new State will have to go a long way in
providing a better standard of living to the people. In terms of foreign
direct investment, the State as a whole registered a fall from $1.2
billion in 2010-11 to $848 million in 2011-12, largely due to
uncertainties over the Telangana issue.
The report of the Srikrishna Commission on Telangana points out that the
region, excluding Hyderabad, has lagged behind other regions. Overall,
the State attracted Rs 12,421 crore through FDI, and of this, the
region’s share was only Rs 1,658 crore, as compared to Rs 5,499 crore
for coastal Andhra. But if Hyderabad is included in Telangana, its share
in the FDI pie would be Rs 6,490 crore. Clearly, Telangana needs to
create an economic climate that will attract investors.
Beyond Hyderabad, the potential for industrial growth in the immediate
future can be seen in the Jadcherla area of Mahboobnagar district. A
Pharma Special Economic Zone, anchored by Aurobindo Pharma, is in the
offing there.
Looking ahead
In addition, a ‘Green Industrial Park’ over a 1,000 acre area is coming
up with the active support of the Confederation of Indian Industry and
State Government.
Iron ore reserves in Manuguru in Khammam district have the scope for a
‘greenfield’ steel plant. Vizag Steel has signed up to use iron ore from
here. Similarly, the limestone rich district of Nalgonda holds the
promise of more cement units. The coal reserves with Singareni
Collieries can lead to the setting up of power plants in future,
something Telangana Rastra Samithi Chief K. Chandrasekhara Rao has been
harping on.
The agri-based sector is also quite promising. With 15 lakh hectares
under cotton cultivation, there is rich potential for new textile units
to come up. A handful of units in the region, including GTN textiles,
provide quality material to global brands. There is also talk of revival
of the sugar industry, especially the Nizam Sugar Factory in Bhodan,
Nizamabad district.
The recent approval by the Centre for a hardware park on the outskirts
of Hyderabad, where the electronic industry is expected to come in with
big investments, is expected to give a major fillip to neighbouring
districts, both in terms of employment and ancillary units.
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