Eyeing trillion $ goal, T sets sights on defence, aerospace, biotech
Hyderabad: The Telangana govt will focus on three high-potential sectors - defence, aerospace, and biotechnology - to achieve its goal of becoming a trillion dollar economy by 2047.
Chief minister A Revanth Reddy has said at a number of fora that the state would achieve this goal well ahead of the national timelines.
Sources in the expert group working with the state govt on numerous projects told TOI that Telangana has so far followed the Karnataka model, which emphasised services as a major driver of growth. Now, the state may follow a model similar to that of Tamil Nadu, where manufacturing is expected to play a crucial role in boosting the economy.
This strategic shift comes at a pivotal moment. India has recently become the fourth largest economy in the world, surpassing Japan.
"One specific reason for this potential shift is availability of skilled manpower across Telangana, not just in Hyderabad. This creates an ideal situation for sectors like defence, biotechnology, and aerospace," said a senior official.
For an added impetus, the state has been requesting the Centre to make Telangana part of the National Semiconductor Mission.
"The government is working closely with some experts to strengthen the economy," an official added. Several prominent economists, including Nobel laureate Abhijit Banerjee and Montek Singh Ahluwalia, have visited the secretariat in recent months in a bid to steer the state towards its goal.
However, experts caution that apart from identifying key sectors to boost the economy, there is a need for a strategic shift in the way the govt operates.
"Freebies or welfare schemes that simply dole out cash need to be rationalised, and everyone must be encouraged to work. Job creation in the private sector is essential for achieving balance," said Krishna Reddy Chittedi, associate professor at the School of Economics, University of Hyderabad.
Telangana's Gross State Domestic Product (GSDP) for 2024-25 (advanced estimates) at current prices is pegged at Rs 16,12,579 crore, reflecting a growth rate of 10.1%.
This surpasses the national GDP growth rate. "At this rate, it would take Telangana more than a decade to reach the trillion dollar mark," Krishna Reddy added.
INDUSTRY TAKES LEAD
Industries contributed Rs.2,77,270 cr to the state gross state value added (GSVA) in 2024-25, manufacturing (47.60%) & construction (29.07%) being largest contributors
State aims for 15% annual growth in MSME registrations
Share of jobs in the industrial sector stood at 23%, according to Periodic Labour Force Survey for 2023-24
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