Telangana witnessed enhanced growth rates in both manufacturing and agricultural sectors apart from the services sector enabling the State to register a double digit growth in the past two consecutive years.
According to the Statement of Fiscal Policy tabled in the House by Finance Minister Eatala Rajender on Thursday, the growth of the manufacturing sector turned around after formation of the State following a significant improvement in the power situation and an investor-friendly industrial policy.
The manufacturing sector achieved a growth of 6.4 % in 2015-16 , which further improved to 7.4% in 2016-17. As per the advanced estimates, the sector will register a growth rate of 7.6% in 2017-18.
Similarly, the Finance Minister stated, the growth rate of agriculture and allied sectors picked up due to augmentation of irrigation facilities, uninterrupted power supply, improvement in ground water levels and a number of policy initiatives aimed at reviving the rural economy.
The growth of agriculture and allied sectors is estimated at 6.9% in 2017-18. The Minister said that it is likely to witness a higher growth in 2018-19 on account of further improvement in irrigation.
At the same time, the growth in the services sector is also improving. The growth is estimated to improve from 10.2% in 2016-17 to 11.1% in 2017-18.
Thus, with the improved growth rate of primary, secondary and tertiary sectors, the economy of Telangana was expected to grow at 10.4% in 2017-18 as against 10.1% in 2016-17. In contrast, the all-India growth rate is estimated to decline from 7.1% in 2016-17 to 6.6% in 2017-18.
