Service sector fuels Telangana’s explosive per capita income growth in 10 years

Mahabubnagar has emerged as a champion of per capita income (PCI) growth over the past decade in Telangana, according to 10-year data of Telangana Socio-Economic Survey. From a per capita income of ₹74,392 at the time of creation of the State to ₹3,36,898 in 2024-25, the district logged a stupendous 352.86% growth. 

According to the current prices, the per capita income for India is ₹2,05,324 and all the districts in Telangana have higher PCI than this. 

The standout performer has been the Rangareddy district which logged a seven-figure per capita income at ₹11,29,735. The district had a strong fundamental beginning with ₹3,43,731 and recorded 228.66% growth in per capita income as the district is hub to service sector that includes IT companies and dozens of Global Capability Centres. 

In his Budget speech recently, Telangana Finance Minister Mallu Bhatti Vikramarka linked the decline of Naxalism in the State to the elimination of social inequality: “…after our government assumed office, 732 Maoists of various levels surrendered. Telangana has shown that only by eliminating feudal social and economic inequalities can the Naxalism movement truly be brought to an end.” 

However, this rise in per capita income in the State from ₹1,40,840 to ₹3,80,031, a 169% increase in one decade, has not been evenly spread. The lop-sided growth can be seen from the fact that 29 out of 33 districts in Telangana have below the state average PCI of ₹3,80,031. This contrast becomes all the more starker as the Finance Minister informed that the estimated per capita income for 2025-26 is ₹4,18,931. A stunning 197.452% growth in 11 years. This despite the blimp of two years of Covid-19 pandemic. 

However, Jagtial and Vikarabad have recorded the lowest PCI of ₹2,44,245 and ₹2,47,747 respectively for the year 2024-25. Only the three urbanised districts of Hyderabad, Rangareddy and Sangareddy have PCI higher than the State’s average. This is still above the national average PCI of ₹2,05,324 for the same year.

Area under cultivation

Telangana saw change in land use pattern where the net sown area increased from 41.75 lakh hectares to 56.18 lakh hectares in the period under consideration.

The area under cultivation of food grain grew nearly three times from 21.80 to 62.51 lakh hectares. At the same time, the production of food grain jumped more than four times from 51.45 lakh tonnes to 232.10 lakh tonnes. This has led to a surge in food grain production.

While the boom in agriculture is apparent from the numbers, the contribution of the primary sector, that includes agriculture, livestock and  forestry is only 15.76%. It is the Tertiary Sector including real estate, hospitality, trade and transport that powered the growth contributing 69.06% of growth in PCI. Manufacturing, construction and utilities, part of the secondary sector, contributed the rest of 15.18% for the growth.

The biggest underperformers have been Hyderabad and Sangareddy showing near stagnant growth. Hyderabad has achieved only 74.88% growth from ₹2,72,576 to ₹4,76,679. Medchal-Malkajgiri district, which borders Hyderabad, also logged only 80.85% growth, showing a contrast with the adjacent Rangareddy having seven digit per capita income.