On 1st March 2021, the Chief Minister of Telangana, K. Chandrashekar Rao, announced that Telangana has become the top state in per capita income in the country. This announcement is a significant achievement for the state, which was formed in 2014 after the bifurcation of Andhra Pradesh.
Per capita income is a measure of the average income earned by an individual in a particular region or country. It is calculated by dividing the total income of a region by its population. In India, per capita income is an important indicator of economic growth and development. The higher the per capita income, the better the standard of living of its citizens.
According to the latest data from the Central Statistics Office (CSO), Telangana’s per capita income for the financial year 2019-20 was Rs 2,27,145. This figure is higher than the national average of Rs 1,35,050. Telangana’s per capita income has grown at a compound annual growth rate (CAGR) of 12.6% over the last five years, which is higher than the national average of 9.7%.
The growth in per capita income can be attributed to several factors. One of the main factors is the growth of the IT and services sector in the state. Hyderabad, the capital city of Telangana, is home to several global IT companies such as Microsoft, Google, and Amazon. The growth of these companies has created a large number of high-paying jobs, which has contributed to the increase in per capita income.
Another factor contributing to Telangana’s high per capita income is the state government’s focus on agriculture and rural development. The state government has implemented several schemes to improve the productivity of agriculture and to provide better infrastructure and support to farmers. This has led to an increase in agricultural output and income, which has contributed to the overall growth of the state’s economy.
The state government’s efforts to improve the business environment and attract investment have also contributed to the growth of per capita income. Telangana has been ranked as the second-best state in ease of doing business by the World Bank. The state government has implemented several policies to simplify regulations and reduce bureaucratic hurdles for businesses. This has led to an increase in investment and job creation, which has contributed to the growth of per capita income.
In conclusion, Telangana’s achievement of becoming the top state in per capita income is a significant milestone for the state. The growth in per capita income can be attributed to several factors, including the growth of the IT and services sector, focus on agriculture and rural development, and efforts to improve the business environment. The state government’s focus on sustainable development and inclusive growth has helped to create a positive environment for economic growth and development. Telangana’s achievement is a testament to the state’s potential and its ability to achieve greater heights in the future.
