Hyderabad: As Telangana steps into the new year, its economic story is no longer confined to being one of India’s fastest-growing states. By key global yardsticks — per capita income, GDP size and growth momentum — the state is edging closer to the economic profile of several middle-income countries, underscoring a quiet but significant leap in its development trajectory.Economists point to rising per capita income (PCI), steady GDP expansion and the rapid spread of global capacity centres (GCCs) as the main engines propelling Telangana forward. If current trends hold, the state could soon find itself economically comparable to mid-level Asian economies — and comfortably ahead of many developing nations. For the financial year 2026-27, Telangana’s PCI is projected to touch ₹4.2 lakh at current prices. At an assumed exchange rate of ₹90 to a US dollar, this translates to roughly $5,000 per person — a milestone that would place Telangana firmly in the middle-income bracket by global standards. Notably, this level of income already exceeds that of several lower-income and developing countries worldwide. Outperforming Pak, NepalData analysis by TOI shows that Telangana has emerged as a standout performer on the PCI front. For 2023-24, the state’s PCI was estimated at ₹3.56 lakh. According to the Directorate of Economics and Statistics, the PCI at current prices stands at ₹3,56,564 per person. Converted at an exchange rate of ₹83 to a dollar, this amounts to about $4,292 annually. This places Telangana ahead of several Asian economies traditionally considered peers in development discussions. Afghanistan’s nominal PCI is estimated at around $405. Bangladesh and Cambodia trail with approximately $2,700 and $2,800, respectively, according to ‘Statistics Times.’ Telangana also outperforms countries such as Pakistan and Nepal, reinforcing the scale of its income advantage. “If we maintain a business-as-usual model, considering around 8% growth rate in the economy, we will reach a PCI of $5,000 in the new year, which is promising in the context of global data. Although factors like migration from other areas and population decline may impact PCI, GCCs will drive Telangana’s economy forward. Many investors are showing interest in these centres, and Telangana is performing well in this regard,” said Prasanna Tantri, director of the Centre for Analytical Finance at the Indian School of Business. Catching up with mid-tier Asian economiesAt current levels, Telangana’s income metrics already align closely with mid-tier Asian economies. Bhutan’s nominal per capita income stands at about $4,285, while Sri Lanka’s is around $4,301 — figures that sit squarely within Telangana’s present range. Beyond income levels, the state’s broader economic scale is also expanding rapidly. Projections suggest that by 2028, Telangana’s GDP could reach $239 billion, accounting for nearly 5% of India’s total GDP. Such growth would place the state’s economy on a par with Algeria, Africa’s largest country by area. An economic assessment report further indicates that by 2027, the GDP of some major Indian states, including Telangana, could surpass those of European nations such as Norway and Hungary. Growth trajectoryFor context, Telangana’s GDP in 2022-23 was assessed at around ₹13 lakh crore. With a population of approximately 3.8 crore, the state’s economic output compares favourably with Algeria, which has a population of about 4.5 crore — highlighting the efficiency and productivity gains embedded in Telangana’s growth story. “Telangana has set a goal of achieving a $3 trillion economy by 2047. To reach this target, the regular growth rate of PCI needs to be accelerated. Otherwise, the state is likely to perform better in terms of PCI compared to many lower- and middle-income countries,” said Krishna Reddy Chittedi, associate professor at the School of Economics, University of Hyderabad. As the year draws to a close, Telangana’s economic trajectory reflects more than headline growth numbers. It signals a structural shift — one where rising incomes, global capital flows and knowledge-driven industries are steadily reshaping the state’s place in the global economic map.
