The committee report thinks so taking sheer size of economy into view

From the point of view of sheer size of economy, Telangana as a new State can sustain itself, with and without Hyderabad.

The other two combinations of regions — Coastal Andhra and Rayalaseema together can also sustain themselves as a State and also sustain themselves separately, according to the Srikrishna Committee report. While touching upon economic viability in a chapter on ‘Regional Economic and Equity Analysis', the report said that the size of the State GDP can be considered as a neutral factor in the decision-making relating to Telangana.

It said an interesting scenario emerges if various regions of AP are compared between themselves and other States in India in terms of gross domestic product (GDP) and per capita income. For example, Telangana region (excluding Hyderabad) ranks 15 {+t} {+h} in the list of 28 States ( excluding Andhra Pradesh) in terms of the absolute amount of GDP and is listed above Chhattisgarh, Jharkhand, Uttarakhand, Himachal Pradesh, Goa and all the North-eastern States.

Per-capita income

In terms of per-capita income, Telangana ( excluding Hyderabad) is a notch higher than the all-India average. Telangana (including Hyderabad) ranks 13 {+t} {+h} in gross state domestic product (GSDP) as well as in per capita terms. The relatively deprived region of AP is Rayalaseema; but it ranks just a notch below the all-India average in per capita income and its overall GDP is higher than Uttarakhand, HP, Goa and north-eastern States, excepting Assam.

Economic reforms

It mentioned that Coastal Andhra stands out as a superior economic entity within Andhra Pradesh and its GDP will be the 13 {+t} {+h} largest compared with the States of India. In terms of per capita GDP, it is much higher than the national average and stands 10 {+t} {+h} in ranking amongst States of India.

While touching upon economic reforms and the States, it mentioned that it is normally believed that formation of smaller States additionally contribute to pre-existing barriers to the inter-State and intra-State trade and movement of goods and services. It referred to fears in Rayalaseema that Hyderabad city as a market destination and also source of supply will be out of bounds after the creation of Telangana as a separate State. Coastal Andhra will also lose a major market inherent in huge population, business and market concentration of the city of Hyderabad. “On this count, separation of AP can be a negative factor which inhibits economic growth of newly formed States,” it observed.

The argument in favour or against separation on the issue of governance and representation can work both ways and the impact will not be uniform on all segments of the newly formed States.