Money & Banking

Telangana economy, better than many States': Srikrishna report

V. Rishi Kumar Soma Hyderabad | Updated on January 07, 2011 Published on January 07, 2011

Mr Justice B.N. Srikrishna

Widening gulf between rich, poor can benefit vested interests, says committee

In terms of absolute Gross Domestic Product (GDP), the Telangana region (excluding Hyderabad) ranks above the States of Chhattisgarh, Jharkhand, Uttaranchal, Himachal Pradesh, Goa and all the north-eastern States. If ranked with States, Telangana would come in at the 15th place.

Even in terms of per capita income, Telangana's (excluding Hyderabad) is a notch higher than the all-India average. Within Andhra Pradesh, coastal Andhra stands out as a superior economic entity; ranked with States, its GDP would be the 13{+t}{+h} largest.

These are some of the interesting findings thrown up by the Justice Srikrishna Committee Report, which was made public today by the Union Home Minister, Mr P. Chidambaram, in New Delhi, after a meeting attended by the major political parties.

Inequalities within Telangana

The rate of growth in the overall development parameters shows that it is robust in Telangana (even after excluding Hyderabad) and coastal Andhra. However, the Committee noted that it is disturbing that there are growing levels of inequality within Telangana and Rayalaseema and also within the deprived population. In contrast, the inequality in income has declined in coastal Andhra.

The Committee has found that in spite of over 50 years of policy-protected planning and execution, there are regional variations in economic development in Andhra Pradesh. It mentions that there is a necessity to take note of inequity between the haves and the have-nots in Telangana. This not only can sustain the separatist agitation but can carry it further and increase intensity. The masses, therefore, could be used as tools of agitation by motivated groups and even political parties.

The economic inequality within the region is an important indicator of the unrest within communities. While the farmers in all regions have shown stable income, the real income of agricultural labourers has declined considerably in Telangana and increased considerably in coastal Andhra.

The committee felt that from the viewpoint of sheer size of economy, Telangana as a new State can sustain itself both with and without Hyderabad.


The Committee noted that there is a large concentration of economic activity, employment generation and markets in the urban agglomeration of Hyderabad, which accounts for about 8 per cent of GDP of Andhra Pradesh. The share of urban agglomeration of Hyderabad is expected to be much higher.

A general concern of both Rayalseema and coastal Andhra relates to Hyderabad, which is a major economic centre and revenue generator. The report said such fears are strong in Rayalseema and are apprehensive that Hyderabad city as a market destination and source of supply will be out of bounds after the creation of Telangana as a separate State. Similar fears exist in coastal Andhra. On this count, the separation of Andhra Pradesh can be a negative factor which inhibits the economic growth of newly formed states.

The share of Hyderabad district's GDP in the Telangana region works out to 18 per cent. Therefore, it was felt that it should be accessible to people and businesses from any region of Andhra Pradesh and from anywhere. This can be accomplished irrespective of whether there is political control over Hyderabad wielded through a united Andhra Pradesh or otherwise.

Referring to migration, the committee said Hyderabad, followed by Ranga Reddy district in Telangana, is attracting a large number of migrants due to job potential.

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Published on January 07, 2011
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