HYDERABAD: Hit by Covid woes, Telangana’s gross state domestic product (GSDP) dipped 1.29% (at constant price of 2011-12) to Rs 9.78 lakh crore during 2020-21.
However, the share of Telangana in the national GDP increased by 26 basis points to 5% in 2020-21 as against 4.74% in 2019-20.
“The growth rate fell 1.26% at constant prices (2011-12) due to Covid pandemic but is significantly better than India’s projected GDP contraction at 8%,” said Telangana IT and industries minister KT Rama Rao while launching the industries and commerce department’s annual report on Thursday.
He pointed out that in 2020-21, Telangana’s economy benefited from agriculture and allied sectors, which grew by 21% as compared to 3% growth at the national level.
The industrial sector growth, including the mining sector, contracted by 5.6% in the state as against 8.2% contraction at national level and the services sector too contracted nearly 5% in 2020-21 as compared to a national contraction of 8.1%, the report said.
“Due to its high growth rate, the agriculture and allied sectors contributed a higher share of 20.6% to overall GSDP than in any year since the state’s formation.
However, at an aggregate level, the services sector continues to contribute the highest share at 60.3%.
The contribution of the industrial sector stood at 19.1%,” the report added.
KTR said that small and medium enterprises (SMEs) have been adversely impacted due to Covid-19 and urged the Centre to step up its efforts to help SMEs tide over the crisis.
“They had announced last year that there would be a Rs 20 lakh crore stimulus package.
We request the Centre to work with the states because SMEs are the most important piece when it comes to rapid industrialisation and providing employment,” he said.
Meanwhile, KTR said the state government has provided financial support to SMEs through rental and talent acquisition subsidies.
He said over 20 government projects were offered exclusively to SMEs to give them more business opportunities during Covid times.
He pointed out that the state’s life sciences sector is playing a major role in fighting the pandemic by way of innovation.
In 2020-21, the Telangana State Industrial Infrastructure Corporation (TSIIC) developed 10 new industrial parks and allotted 810 acres to 453 industries with an expected investment of Rs 6,023 crore and potential employment of 7,623.
He said that TS-iPASS has facilitated cumulative investments of over Rs 2.15 lakh crore, creating 15.6 lakh jobs.
Telangana ups share in India’s GDP to 5%
