Telangana to focus on strategy anchored in three pillars in its journey towards US $3 trillion economy

Setting for itself an ambitious target of achieving US $1 trillion economy by 2034 and US $3 trillion economy by 2047, the Telangana Government has decided to pursue a coordinated strategy anchored in three mutually reinforcing pillars — human capital, productivity and investment.

The three pillars are conceived as the foundation towards the US $3 trillion journey as “none can replace the other and each amplifies the rest”. The State has therefore decided to pursue an integrated approach that would combine innovation led growth with sound macroeconomic management and inclusive participation.

According to the Telangana Rising 2047 Vision, Telangana’s nominal GSDP was projected to reach $ 1.21 trillion by 2046-47, a seven fold increase from 2022-23. The per capita GSDP is expected to rise 6.7 times from US $4,200 to US $ 28,00. The real GDP growth is forecast to average 8% during 2025-30, 7% during 2031-39 and 5.3% during 2041-47, gradually moderating as economy matures.

Since its formation in 2014, Telangana witnessed a decade of robust and inclusive growth, with nominal GSDP rising from ₹ 5.1 lakh crore in 2014-15 to ₹15 lakh crore in 2023-24, an annual growth of 12.7% (7.5% real). Per capita income increased from ₹1.24 lakh in 2014-15 to ₹3.87 lakh in 2024-25, nearly 1.9 times the national average. The nominal GDP curve likewise showed a consistent climb reaching close to ₹16.41 lakh crore or about US $185 billion by 2024-25.

The State feels that the existing momentum is likely to take the State to roughly US $1.2 trillion in the targeted period. But to triple this outcome, the State asserted that it will pursue a decisive shift anchored in productivity, knowledge and investment.

“Telangana envisions positioning itself as India’s most dynamic, knowledge-driven economy by 2047. Anchored in innovation, productivity, and human capital, our journey towards a US $3 trillion GSDP will be powered by strategic reforms and sustained investments in ideas, talent, and technology,” as per the Telangana Rising 2047 Vision document.

Reaching the US $3 trillion milestone demands deep, structural transformation sustained over the next two decades. The reason is straightforward and there is essentially only one viable pathway to achieving this aspirational goal. “Telangana is determined to move far beyond its current trajectory and achieve a US $3 trillion economy by 2047,” the document said.

How human capital would be achieved?

Accordingly, growth will be accelerated in the human capital by investing heavily in education, skilling and health. From foundational learning to frontier research, the State would nurture globally competitive workforce capable of driving innovation and productivity across every sector. In terms of productivity and innovation, the focus will be on lifting total factor productivity by building a strong science, technology and innovation ecosystem. The effort will be to convert research into enterprise enabling every district to contribute to the State’s innovation economy through the State’s scientific return programme, EduCities and frontier technology missions.

The Government will focus on raising domestic savings and investment rate through fiscal discipline, financial inclusion and policies that attract both domestic and global capital. The Government envisages translation of every rupee of savings into productive growth by expanding the reach of formal finance, deepening capital markets and improving project execution.

Telangana must act boldly and deliver on three fronts simultaneously, as per the Vision document, which added that human capital growth rate should increase to nearly 1.75 times the current pace of growth; total factor productivity (TFP) should be accelerated to about 1.75 times its present rate and domestic savings rate has to rise towards 50% to support sustained capital formation.