Hyderabad: Telangana’s economy is on a promising upward trajectory, with projections showing it will reach Rs 15.01 lakh crore in the 2023-24 fiscal year. This growth is fuelled largely by the services sector, which has been expanding rapidly, particularly in urban hubs like Hyderabad.
However, despite this shift, the state’s economic backbone remains agriculture, with a significant portion of its workforce still dependent on farming and related activities. The Telangana Statistical Abstract (ATLAS)-2024 highlights a fascinating blend of tradition and progress, where the majority of the state’s population continues to thrive in agriculture, while the economy diversifies into manufacturing, technology, and services.
Approximately 1.5 crore people—over half of the employed population—work in agriculture and related sectors, with 51% of the workforce engaged in agriculture and allied activities. This figure underscores the importance of the sector to the state’s economy, particularly in rural areas. Among the agricultural workforce, 36.2% are cultivators, while 36.2% work as labourers. A cultivator, as defined, is someone engaged in the cultivation of crops on land they either own or lease, typically in exchange for monetary compensation, kind, or shares, and may also supervise cultivation processes.
The distribution of farm workers varies across districts. Mulugu district, for instance, has the highest percentage of agricultural labourers at 64.8%, while Adilabad has the highest concentration of cultivators at 36.2%. Statewide, there are a total of 31,51,389 cultivators and 1,63,41,942 agricultural workers, highlighting the sector’s massive scale.
Land ownership patterns in Telangana also reflect significant disparities. Scheduled Tribes own 13.9% of landholdings, covering 9.7% of the area operated, while Scheduled Castes hold 11.8% of landholdings, covering 11.9% of the operated area. In comparison, the “Others” category dominates with 74.3% of landholdings, covering 78.2% of the area operated.
The census of landholdings (2021-22) data reveals that Telangana has 70.6 lakh landholdings across 155.97 lakh acres. Marginal farmers, who hold less than 2.47 acres, account for 68.7% of the landholdings but only 32.7% of the area operated. Small farmers, owning between 2.48 and 4.94 acres, hold 22.7% of landholdings, accounting for 35.4% of the area.
Beyond agriculture, Telangana’s employment landscape is also rapidly diversifying. The report shows that 12% of the workforce is employed in manufacturing, trade, hospitality, and restaurant sectors. Construction employs 10% of the population, while transport and commerce sectors account for 4%.
The burgeoning IT sector also provides jobs for 4% of the workforce, while education and health services together contribute 3%, with an additional 8% working in various other services. This shift towards a more diversified employment structure highlights the state’s ongoing transformation as a multi-sector economy, the report said.
