Telangana Socio-Economic Survey Outlook 2020-21
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Telangana Socio-Economic outlook 2021: COVID-19 Pandemic has put an end to economic growth all across the world. According to the International Monetary Fund, the world economy will decline by 4.4 per cent in 2020 (compared to 2019). In India, the Ministry of Statistics and Program Implementation (MoSPI) has released its second advance estimate of Gross Domestic Product (GDP), which is shown to shrink by 8% in 2020-21.
But Telangana’s economy has been shown to be more robust than these negative growth projections. In the past year, Telangana’s economy has performed better than the rest of the country. Telangana’s Gross State Domestic Product (SGDP) was Rs. 9.78 lakh crore in 2020-21; it only decreased by 1.26% in 2011-12 prices and grew by 1.35 % in 2020-21 prices.
Telangana GDP Sectoral Growth Agricultural, Industrial and Service Sectors 2021
Agricultural and allied sectors
Telangana’s economy has performed better than the rest of the country because of the impressive performance of the agricultural and allied sectors (crops, livestock, fisheries, and forestry). In this sector, Real Gross State Value Added (GSVA) grew by 20.9% (the national growth rate is 3%). It is the second-highest rate since Telangana formation.
The agricultural and allied sectors have grown at an average annual rate of 14.5% since 2016-17. The crop and livestock subsectors have been the main driving factors behind this, with yearly growth rates of 17.1% and 13.9%, respectively.
The Telangana government’s various initiatives on horticulture crops, livestock like the Sheep Rearing Development Programme and the Mass Free Sheep and Goat Deworming Programme, and irrigation through the Kaleshwaram project, Mission Kakatiya, and other irrigation projects contributed to this robust growth.
The industrial sector (which includes the mining sector) shrank by 5.6% (at national, the industrial sector shrank by 8.2%).
Despite the fact that the sector was struck heavily at first, it has quickly recovered. Tracking the monthly trend of the Industrial Index of Production (IIP), an index that measures the growth rate of the industrial sector on a monthly basis, revealed the state’s V-shaped recovery.
In 2020-21, the services sector is estimated to shrink by 4.9%, compared to an overall contraction of 8.1 per cent.
The state’s economy is driven by the service industry. The services sector has contributed the most GSVA of the 3 sectors since the state’s formation, accounting for 62.3% of total GSVA on average during this period. The services sector also provided the highest share of the national economy (53.1%).
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Telangana Economy Gross District Domestic Product 2020-21
Some districts in the state contributed more to GSDP (Gross State Domestic Product). Rangareddy, Hyderabad, Medchal-Malkajgiri, Sangareddy, and Nalgonda are the five districts with the highest GDDP, Gross District Domestic Product, which collectively contributed 51.8% of the state’s total GSDP.
Telangana Economy Per Capita Income 2020-21
While GDP gives an idea of the scale of the economy, per capita income is a better indicator of people’s well-being. In 2020-21, the state’s per capita income was Rs. 2.27 lakh, up 0.6% from Rs. 2.26 lakh in 2019-20 at current prices.
However, the state’s per capita income is not only greater than the national average, but it has continuously grown at a quicker pace of 10.7%, compared to the national rate of 7.2% during the same period.
State per capita incomes are now 1.78 times greater than the national average, compared to 1.43 times higher when the state was formed.
Telangana Economy Employment 2020-21
The labour force participation rate (LFPR) is a measure of the labour supply in the economy. It is the proportion of all people aged 15 and up who are either working or searching for work.
The state’s LFPR was 55.1%, which was higher than the national level (50.2%), according to the PLFS, Periodic Labour Force Survey (2018-19) conducted by the Ministry of Statistics and Programme Implementation (MoSPI), Government of India.
Female LFPR, which is also a measure of female empowerment and a proxy for female empowerment, is particularly important. The female LFPR was significantly greater in Telangana (38.3 per cent) than in India (24.5 per cent).
According to PLFS statistics, the Telangana state unemployment rate in 2018-19 was 8.3 per cent. Overall, 27% of employed people in Telangana state have a salaried job. This is higher than the national average of 23.8%.
In terms of job quality, the state is likewise doing well. Salary jobs account for 27 per cent of all jobs in the state. This is more than double the national average of 23.8 per cent. In the non-agricultural sector, 25.9 per cent of salaried workers have a formal job contract, and 39 per cent are entitled to paid leave. Furthermore, 37.8 per cent of the population receives some form of social benefit (PF/pension, gratuity, healthcare, or maternity benefits).
According to the GSDP estimates for 2020-21, COVID-19 had a huge impact on growth in Telangana. As the vaccine implementation programme progresses, the state’s recovery is expected to accelerate. This will allow it to capitalise on its solid fundamentals and push its economy ahead.