Telangana's economy: GSDP, growth, sector shares…

Core facts

GSDP 2025-26 (current prices, provisional advance estimates): Rs 17,82,198 crore, about Rs 17.82 lakh crore (Socio-Economic Outlook 2026, March 2026).
Growth 2025-26: 10.7% at current prices, against 8.0% for India.
Per capita income 2025-26: Rs 4,18,931 (current prices), up 10.2%; India: about Rs 2,19,575. So Telangana is about 1.9 times the national figure.
Per capita income 2014-15: about Rs 1.24 lakh (the year the state was formed).
Share in India's GDP: about 5% (4.99%) in 2025-26, up from about 4.1% in 2014-15.
Sector shares in GSVA 2025-26 (current prices, SEO 2026): tertiary (services) 68.6%, secondary ≈ 16.3%, primary ≈ 15.1%. In the Outlook's three-sector split the primary sector = agriculture and allied plus mining and quarrying; the secondary sector = manufacturing, construction and utilities.
Industry incl. mining (the Outlook's industry chapter): 18.5% of GSVA. Agriculture and allied alone (without mining): ≈ 13% of GSVA.
Largest employer: the primary sector, about 41.5% of workers (SEO 2026).
Inside agriculture and allied (2025-26): livestock is the biggest part (48.4%), ahead of crops (44.6%).
Inside industry incl. mining (2025-26): manufacturing 45.1%, construction 30.7%. (Without mining, the secondary sector is manufacturing 51.1%, construction 34.8%, utilities 14.1%.)
Budget projection: GSDP Rs 19,61,701 crore in 2026-27 (about 10% growth).
Vision: Telangana Rising 2047 aims at a USD 1 trillion economy by 2034 and USD 3 trillion by 2047.
The figures come from the Directorate of Economics and Statistics (DES) and are published each year in the Socio-Economic Outlook of the Planning Department.

Explained

1. The terms

GSDP (Gross State Domestic Product): the value of all final goods and services produced inside the state in a year. It is the state version of GDP.
GSVA (Gross State Value Added): output minus inputs used up, at basic prices. GSDP = GSVA + product taxes − product subsidies. Sector shares are worked out on GSVA.
NSDP: GSDP minus depreciation. Per capita income = NSDP at current prices ÷ population.
Current prices include inflation. Constant prices remove price change and show real growth. The state's constant-price series has used 2011-12 as the base year.
Estimate stages: advance or provisional advance estimates (AE/PAE) come first; then first, second and third revised estimates (FRE, SRE, TRE) as data arrive. So a year's figure changes in later Outlooks.

2. Size and growth (current prices)

Year	GSDP (Rs crore)	Note
2023-24	14,63,963	SEO 2024 estimate (11.9% growth)
2024-25	16,09,902	SEO 2026 (first revised estimate); the budget papers give 16,09,279
2025-26	17,82,198	SEO 2026 (PAE); 10.7% growth
2026-27	19,61,701	Budget estimate (10%)

Real growth is lower than the 10.7% headline. SEO 2026 puts GSDP at constant (2011-12) prices at Rs 8,89,582 crore, up 8.5% (India 7.4%); RBI state data put NSDP growth at constant prices at about 8.8%.
The Governor's address (March 2026) gave state inflation at about 0.2% for 2025-26, against about 1.7% for India. Low inflation is why nominal and real growth are close.

3. Structure of the economy (GSVA, 2025-26, current prices)

Total GSVA: Rs 16,48,613 crore (PAE), up 10.8% over 2024-25.

Sector (SEO three-sector split)	GSVA (Rs crore)	Share	Growth
Tertiary (services)	11,30,596	68.6%	13.5%
Secondary (manufacturing, construction, utilities)	2,68,325	≈ 16.3%	9.4%
Primary (agriculture and allied + mining)	2,49,691	≈ 15.1%	1.4%

Two other groupings appear in the Outlook and in exams. Industry including mining = Rs 3,04,217 crore (18.5% of GSVA, growth 8.1%). Agriculture and allied without mining = Rs 2,13,799 crore (≈ 13.0%). Always check which grouping a question uses.
Inside the tertiary sector (2025-26): real estate, dwellings and professional services 34.1%; trade, repair, hotels and restaurants 30.4%; other services 12.5%; transport, storage and communication 12.2%; financial services 7.3%; public administration 3.5%.
Services grew fastest, about 13.5%; trade, hotels and restaurants grew 16.8%. The services share was about 66% in 2024-25 (SEO 2025) and about 61% in 2019-20 (SEO series).
Industry sub-sectors (2025-26): manufacturing Rs 1,37,229 crore (45.1%), construction Rs 93,404 crore (30.7%), electricity, gas, water supply and other utilities Rs 37,692 crore (12.4%), mining and quarrying Rs 35,892 crore (11.8%). Industry grew 8.1%; manufacturing 7.7%.
Agriculture and allied sub-sectors (2025-26): livestock Rs 1,03,525 crore (48.4%), crops Rs 95,373 crore (44.6%), fishing and aquaculture Rs 7,725 crore (3.6%), forestry and logging Rs 7,176 crore (3.4%). As shares of the whole primary sector (with mining), SEO 2026 gives livestock 41.4%, crops 38.2%, mining 14.4%, fishing 3.1%, forestry 2.9%. (Detail: TGE-LA-02, TGE-LA-03.)
Mining in the state means mainly coal (Singareni), limestone and granite. The Outlook counts it in the primary sector in its three-sector split, but in industry in its industry chapter.

4. Per capita income

Year	Telangana (Rs)	Times India
2014-15	about 1.24 lakh	about 1.4
2023-24	about 3.47 lakh	about 1.9
2024-25	3,80,031	about 1.9
2025-26	4,18,931	about 1.9

Per capita income at constant prices was Rs 2,04,022 in 2025-26, up 8.3% (India Rs 1,21,968). India's per capita income at current prices grew 6.9% against Telangana's 10.2%.
Ranking (reported): Telangana had the highest per capita income among the major states from 2019-20 to 2024-25. In 2025-26 it was second among major states, behind Karnataka, and third if Delhi is counted (Telangana Today, July 2026). At about USD 5,400, it is in the World Bank's upper-middle-income range.

5. Where income is made: districts (GDDP)

GDDP (Gross District Domestic Product) is the district version of GSDP.
In 2022-23 (advance estimates, SEO 2024): Ranga Reddy had the highest GDDP (about Rs 2.83 lakh crore) and the highest per capita income (about Rs 9.46 lakh), followed by Hyderabad, then Medchal–Malkajgiri and Sangareddy.
Lowest GDDP: Mulugu, then Kumuram Bheem Asifabad and Narayanpet. Lowest per capita income: Vikarabad, then Kumuram Bheem Asifabad and Jagtial.
So nearly half of the state's output (about 46% in 2022-23) comes from the three Hyderabad metropolitan districts. (Regional gaps: TGE-HD-03.)
Latest district figures (2024-25, first revised estimates, SEO 2026): Ranga Reddy GDDP Rs 3,41,080 crore and per capita income Rs 11,29,735; Hyderabad Rs 2,25,860 crore; Medchal–Malkajgiri Rs 1,16,133 crore.

6. Jobs versus output

About 41.5% of workers depend on agriculture and allied work (SEO 2026), but the sector makes only about 13% of GSVA.
PLFS figures quoted in SEO 2026: about 62.6% of the rural workforce and 4.9% of the urban workforce work in agriculture. Services employ about 36.3% of workers and industry about 22.2% (so agriculture ≈ 100 − 36.3 − 22.2 = 41.5%).
This gap means output per worker in farming is far below that in services. (Employment detail: TGE-HD-01.)

Common traps

✗ "Agriculture is Telangana's largest sector by output." ✓ Services (68.6% of GSVA, 2025-26); agriculture is the largest employer, not the largest producer.
✗ "In the Outlook's sector split, mining is part of the secondary sector." ✓ It is in the primary sector there (primary ≈ 15.1%, secondary ≈ 16.3%); only the industry chapter adds it to industry (18.5%).
✗ "The 10.7% growth of 2025-26 is real growth." ✓ It is at current prices; real GSDP growth was 8.5% (real NSDP about 8.8%).
✗ "Per capita income is GSDP divided by population." ✓ It is NSDP (at current prices) divided by population.
✗ "Crops are the biggest part of agriculture and allied." ✓ Livestock (48.4%) is larger than crops (44.6%) in 2025-26.
✗ "Telangana's GSDP is about Rs 14.6 lakh crore." ✓ That was 2023-24; it is about Rs 17.82 lakh crore in 2025-26.
✗ "Telangana ranked first in per capita income in 2025-26." ✓ It was second among major states (behind Karnataka), third including Delhi (reported, 2026).
✗ "Construction is the largest industrial sub-sector." ✓ Manufacturing (45.1%), then construction (30.7%).
✗ "Hyderabad district has the highest per capita income." ✓ Ranga Reddy (2022-23 estimates); Hyderabad is second.

Quick revision

GSDP 2025-26: Rs 17,82,198 crore (≈ 17.82 lakh crore), +10.7% (India 8%).
Per capita income 2025-26: Rs 4,18,931 (India ≈ 2.2 lakh), ≈ 1.9×; 2014-15 ≈ Rs 1.24 lakh.
GSVA 2025-26 (Rs 16,48,613 cr): tertiary 68.6%, secondary ≈ 16.3%, primary (with mining) ≈ 15.1%; industry with mining 18.5%; agriculture and allied alone ≈ 13%.
41.5% of workers in agriculture and allied (SEO 2026).
Agriculture sub-sectors: livestock 48.4% > crops 44.6% > fishing 3.6% > forestry 3.4%.
Industry: manufacturing 45.1%, construction 30.7%, utilities 12.4%, mining 11.8%.
Share in India's GDP ≈ 5% (2025-26), ≈ 4.1% (2014-15).
Ranga Reddy: highest GDDP and per capita income; Mulugu lowest GDDP; Vikarabad lowest per capita.
2026-27 GSDP projection Rs 19,61,701 crore.
Vision 2047: USD 1 trillion by 2034, USD 3 trillion by 2047; CURE, PURE, RARE zones.

Go deeper: Deeper, Mains writing (beyond what TGPSC MPSO / ASO usually asks)

Deeper Advanced

Structural change since 2014. The services share has risen from about 61–62% (2019-20 to 2022-23) to 68.6% (2025-26). Agriculture's share rose to about 20% in 2020-21 (the COVID year, when services fell) and has fallen since, as services grew faster. Industry has stayed near 16–19% throughout (SEO series). In 2025-26 the primary sector grew only 1.4%, against 13.5% for services.
Livestock is larger than crops. In 2025-26 livestock's value added (Rs 1,03,525 crore) was larger than that of crops (Rs 95,373 crore). Sheep, poultry, meat and eggs drive this (TGE-LA-03).
Nominal versus real growth. The headline 10.7% is nominal. In years of high inflation the gap between nominal and real growth is wide; in 2025-26 state inflation was close to zero, so most of the nominal growth was real.
Revisions. The 2025-26 GSDP was Rs 17,82,198 crore in SEO 2026 but Rs 17,82,004 crore in the budget's revised-estimate table. Small differences like this come from estimate stages. Exams quote the Outlook figure.
Telangana Rising 2047 (vision document released at the Telangana Rising Global Summit, Bharat Future City, 8–9 December 2025): the state is planned as three zones:
- CURE (Core Urban Region Economy): inside the Outer Ring Road (services, IT, finance)
- PURE (Peri-Urban Region Economy): between the ORR and the planned Regional Ring Road (manufacturing, logistics)
- RARE (Rural Agriculture Region Economy): beyond the RRR (farming, agro-processing).
Statement-level points.
- Sector shares are on GSVA, not GSDP.
- In the Outlook's three-sector split, mining is primary; so primary ≈ 15.1% and secondary ≈ 16.3%. Agriculture and allied alone is ≈ 13%; industry with mining is 18.5%.
- Per capita income uses NSDP, not GSDP.
- The largest sector by output is services; the largest employer is the primary sector.
- Within agriculture and allied, livestock, not crops, is the largest part (2025-26).
- Within industry, manufacturing is the largest part, then construction.

Mains writing Mains writing

Frame: Telangana is a high-growth, high-income state whose growth is led by services around Hyderabad, while most people still earn their living from farming.
Points for:
- Nominal GSDP more than tripled from about Rs 5 lakh crore (2014-15) to Rs 17.82 lakh crore (2025-26).
- Per capita income about 1.9 times the national average; share in India's GDP up from about 4.1% to about 5%.
- Diversified services base: IT, finance, real estate, trade and transport.
Concerns:
- Concentration: Ranga Reddy, Hyderabad and Medchal–Malkajgiri dominate output; Mulugu, Kumuram Bheem Asifabad and Narayanpet lag.
- Jobs gap: 41.5% of workers in a sector making about 13% of value added.
- Thin manufacturing (about 8% of GSVA) limits mass jobs for the less educated.
Way forward: manufacturing clusters outside Hyderabad (the PURE zone idea), agro-processing near farms (RARE), skilling, and district-level targets.
Data points to quote: GSDP Rs 17.82 lakh crore, growth 10.7% (2025-26); per capita income Rs 4,18,931; tertiary 68.6%, secondary ≈ 16.3%, primary ≈ 15.1% (agriculture and allied alone ≈ 13%); 41.5% of workers in agriculture.
Model opening line: "Telangana's growth story is a services story centred on Hyderabad; the policy task now is to spread that prosperity to the districts and to the 41.5% of workers still on the farm."

Medha AI writes its own notes and checks them against the sources listed. Medha AI is an independent preparation service. It is not affiliated with, endorsed by or connected to APPSC, TGPSC (formerly TSPSC), MPSC, UPSC or any other commission or government body.

6.1.1 Telangana's economy: GSDP, growth, sector shares and per capita income

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