Hyderabad: Telangana recorded a growth rate of 10.7 per cent in 2025-26, surpassing the national average of 8 per cent, Finance Minister Bhatti Vikramarka Mallu said while presenting the State Budget.
The Telangana growth rate improved from 10.6 per cent in 2024-25 to 10.7 per cent in 2025-26. In contrast, the national growth rate declined from 9.8 per cent to 8 per cent during the same period. This indicated strong economic resilience in the State.
The Gross State Domestic Product stood at Rs.17,82,198 crore at current prices. The government said the steady expansion came despite global and national economic challenges.
Telangana contributed nearly 5 per cent to the national GDP. The State continued to attract investments and maintain a strong base in industry and services. These sectors supported the upward growth trend.
Per capita income reached Rs.4,18,931 in 2025-26. This was about 1.9 times higher than the national average. The increase reflected improved living standards and stronger income levels.
The government attributed the performance to multiple factors. These included investment inflows, industrial expansion and growth in services. Welfare measures also supported consumption and demand.
Investment push drives Telangana growth rate momentum
Investment inflows played a key role in sustaining the Telangana growth rate. The Telangana Rising Global Summit attracted commitments worth Rs.5.75 lakh crore. These are expected to create jobs and boost industrial activity.
The government said it maintained fiscal discipline despite debt pressures. It ensured that development programmes continued without disruption. Corrective steps were taken to stabilise finances and improve spending efficiency.
Sectoral development was guided by the CURE, PURE and RARE framework. This approach promoted services, manufacturing and agriculture. It aimed to ensure balanced and sustainable growth across regions.
Urban development, especially in Hyderabad, remained a major focus. Projects such as Bharat Future City and IT expansion are expected to strengthen the economy. Infrastructure upgrades will further support growth.
The IT sector remained a strong contributor. Exports reached Rs.3.13 lakh crore, while employment crossed 9.39 lakh. The government plans to expand IT growth beyond western Hyderabad under its GRID policy.
Agriculture and allied sectors also supported growth. The State recorded strong productivity and expanded horticulture activities.
The Finance Minister reiterated long-term economic goals. Telangana aims to become a $1 trillion economy by 2034. It also targets a $3 trillion economy by 2047 with sector-specific strategies.
Overall, the Telangana growth rate reflected strong economic fundamentals, driven by investments, policy initiatives and sustained sectoral performance.