Telangana has been a lot in the news because of the splitting of the state and the decision about the capital. The fact, however is that this newly formed state is indeed showing new directions to all.
No matter what the situation, today the state of Telangana is one of the most buoyant economic corridors in India.
The State has been high in Best Economy State rankings and this speaks about the buoyant economy of the state. There has been a distinct upward shift in the growth path of the economy of Telangana since its formation in June 2014.
The average annual growth of State Domestic Product (GSDP) increased from 4.2% in the two years preceding the formation of the state (2012-14) to an impressive growth of 9.5% during the three years following the formation of the State (2014-17).
Fiscal prudence maintained by Telangana State government in the last four years has placed the newly created T state in the list of the fastest growing states in the country. With sustained financial discipline and a buoyant state economy, Telangana emerged as a leading state in capital formation, welfare measures and revenue generation.
In this scenario, Telangana has so far attracted over Rs 1.23 lakh crore investments after implementing TS-iPASS, the state’s new industrial policy which came into being from June 2015
Maintaining momentum of economic growth, fiscal prudence and maintaining debt sustainability are the three important factors that contribute for a better economy and the state adheres to them. The broad fiscal policy in India lies with the union government and states are to be alike but cannot be unlike. Telangana is among few select states to become eligible for availing the additional borrowing limit of 0.5% of GSDP taking the total eligibility of the state to 3.5% of GSDP on maintaining all the fiscal parameters within the limits laid down under the FRBM legislation and those laid down by the 14th Finance Commission.
Telangana also makes optimum use of funds under the centrally sponsored schemes and obtains timely release of funds from the center after submitting utilization certificates. Telangana joined UDAY scheme and has taken over Rs. 8923 Crores of Loans to make Discoms more financially healthy and to remove their financial burden.
When Telangana went for selling bonds they were sold overnight. For infusing and instilling confidence in the industry, 24-hour power was supplied to them without any power cuts. After uninterrupted supply for over three months they got confidence and Industries started working in three shifts.
This is how it contributed to the growth of economy. Further, growth of economy could be understood the way the economy rolls fast. For instance, due to copious rainfall paddy production in the state reached about 94 lakh metric tonnes. Four states purchased paddy from Telangana. Even small rice millers were happy as they were not left behind in the whole scenario.
For nearly six decades, Telangana remained neglected despite its significant share in revenue collections and potential. Telangana is in the process of a major transition from a shackled economy to that of an economy which is being nurtured back to fulfill the long-pending just needs of its people.
Telangana is indeed an economic corridor to watch out for now and in the coming years as there is a lot of potential here in all areas beginning from farming to technology and arts and crafts.
Jamuna Rangachari is the digital content curator at eGrowth
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