TSPSC Group-II Paper-III Economy and Development

TSPSC Group-II Paper-III Economy and Development

The TSPSC Group-II Paper-III Economy and Development covers various aspects of the economy and development of Telangana state. The topics covered under this paper are as follows:

In conclusion, the TSPSC Group-II Paper-III Economy and Development covers a wide range of topics related to the economy and development of Telangana state. The paper provides a comprehensive understanding of the various sectors of the economy and the challenges faced by them. Government initiatives to promote growth and development in different sectors are also covered in the paper, making it an important resource for those interested in the development of Telangana.

Telangana is a state located in southern India with a population of over 39 million people. The state has a diverse economy, with agriculture, services, and manufacturing being the major sectors contributing to its growth.

In recent years, Telangana has experienced robust economic growth. According to the state's economic survey for 2021-22, the Gross State Domestic Product (GSDP) of Telangana was estimated to be Rs. 10.71 lakh crore (approximately USD 143 billion) in 2020-21, representing a growth rate of 10.9% over the previous year. The per capita income of the state also increased to Rs. 2.74 lakh (approximately USD 3,655) in 2020-21 from Rs. 2.51 lakh (approximately USD 3,355) in the previous year.

The services sector is the largest contributor to the state's economy, accounting for around 56% of the GSDP in 2020-21. Within the services sector, the major sub-sectors include IT/ITES, tourism, and real estate. The manufacturing sector is the second-largest contributor to the state's economy, accounting for around 30% of the GSDP. The major sub-sectors within manufacturing include pharmaceuticals, textiles, and food processing. The agriculture sector contributes around 14% of the GSDP, with paddy, maize, and cotton being the major crops grown in the state.

Despite the overall positive growth trajectory, the Telangana economy faces several challenges. One of the main challenges is the high unemployment rate, which was estimated to be 7.4% in 2019-20. The state also faces issues related to water scarcity, which impacts the agricultural sector. In addition, the COVID-19 pandemic has had a significant impact on the state's economy, particularly on the tourism and hospitality sectors. The state government has taken various measures to mitigate these challenges, including promoting investment in key sectors, improving infrastructure, and providing incentives for job creation.


Agriculture is an important sector in the economy of Telangana, employing about 62% of the state's workforce. The state is known for its rich soil and diverse agro-climatic conditions, making it suitable for a wide range of crops. Some of the major crops grown in Telangana include paddy, maize, cotton, sugarcane, groundnut, and vegetables.

Irrigation facilities in Telangana have improved significantly in recent years. The state has implemented various irrigation projects to ensure a regular supply of water for agriculture. The two major irrigation projects in Telangana are the Kaleshwaram Lift Irrigation Project and the Pranahitha-Chevella Lift Irrigation Project.

Despite these initiatives, farmers in Telangana face several challenges. One of the main challenges is the lack of access to credit facilities, which makes it difficult for them to purchase inputs such as seeds, fertilizers, and pesticides. Farmers also face the risk of crop failure due to factors such as droughts, floods, and pests.

To address these challenges, the Telangana government has implemented several initiatives to promote agriculture. The Rythu Bandhu scheme is one such initiative, under which the government provides financial assistance to farmers for the purchase of inputs. Another initiative is the Rythu Bima scheme, which provides insurance coverage to farmers against crop failure due to natural calamities.

The government has also established the Telangana State Seed and Organic Certification Authority (TSSOCA) to promote the production and distribution of high-quality seeds. The state government has also taken steps to improve the marketing of agricultural produce, such as setting up Rythu Bazars (farmer markets) in various parts of the state.

In conclusion, agriculture is an important sector in the economy of Telangana, and the state government has implemented several initiatives to support and promote the sector. However, more needs to be done to address the challenges faced by farmers, particularly with respect to access to credit and incentives for the farmers in Telangana State.



The industrial sector plays a crucial role in the economy of Telangana, with a range of industries contributing to the state's growth and development. Some of the major industries in Telangana include pharmaceuticals, IT, textiles, and food processing.

Pharmaceuticals:

The pharmaceutical industry is one of the largest contributors to the industrial sector in Telangana. The state has a large number of pharma companies, including multinational giants like Novartis, Pfizer, and Dr. Reddy's Laboratories. The state government has taken several initiatives to promote the growth of the pharmaceutical industry, such as the establishment of the Hyderabad Pharma City, a dedicated pharma cluster.

Information Technology (IT):

The IT industry is another major contributor to the industrial sector in Telangana, with Hyderabad being one of the major IT hubs in the country. The state government has taken several steps to promote the growth of the IT industry, such as the establishment of the T-Hub, a startup incubator, and the Hyderabad Information Technology and Engineering Consultancy City (HITEC City).

Textiles:

The textile industry is also an important contributor to the industrial sector in Telangana. The state has a rich tradition of handloom weaving and has several textile clusters, such as the Pochampally Handloom Park and the Gadwal Handloom Park. The state government has taken several initiatives to promote the growth of the textile industry, such as the establishment of the Textile and Apparel Park.

Food processing:

The food processing industry is another important contributor to the industrial sector in Telangana. The state has a rich agricultural base, with a range of crops grown across the state. The state government has taken several initiatives to promote the growth of the food processing industry, such as the establishment of the Mega Food Park.

Challenges faced by the industrial sector in Telangana:

Despite the growth and development of the industrial sector in Telangana, there are several challenges that need to be addressed. Some of the major challenges include a lack of skilled manpower, inadequate infrastructure, and bureaucratic delays.

Government initiatives to promote industrial growth:

The Telangana government has taken several initiatives to promote the growth of the industrial sector in the state. Some of the major initiatives include the establishment of dedicated industrial parks and clusters, such as the Hyderabad Pharma City, the Textile and Apparel Park, and the Mega Food Park. The government has also implemented several policies to attract investments and promote ease of doing business in the state.


The service sector is an essential part of the economy and includes a wide range of industries that provide intangible goods and services to consumers. In Telangana, India, the service sector plays a crucial role in the state's economy, contributing significantly to its GDP and employment. Let's take a closer look at the major service industries in Telangana.

In conclusion, the service sector is a crucial component of the Telangana economy, with the IT industry, tourism industry, healthcare industry, and education industry being the major players. The state government has been taking many initiatives to promote these sectors' growth and attract more investments and businesses to the state.


Infrastructure is a critical component of any economy and plays a significant role in facilitating economic growth and development. In Telangana, the government has been taking several initiatives to improve the state's infrastructure. Let's take a closer look at the major infrastructure sectors in Telangana.

In conclusion, infrastructure is an essential sector in Telangana, and the government has been taking many initiatives to improve road, rail, and air connectivity, power supply, and water supply. These initiatives are aimed at promoting economic growth, attracting more investments and businesses, and improving the quality of life for residents.


Human development is an essential aspect of any economy and refers to the overall well-being of individuals and communities. In Telangana, the government has been taking several initiatives to improve human development in the state. Let's take a closer look at the major human development sectors in Telangana.

In conclusion, human development is a critical aspect of the Telangana economy, and the government has been taking many initiatives to improve education, health, social welfare, and women's empowerment in the state. These initiatives are aimed at improving the overall well-being of individuals and communities, promoting inclusive growth, and ensuring sustainable development.


Fiscal policy refers to the government's use of taxation, spending, and borrowing to influence the economy. In Telangana, the state government has been adopting various fiscal policies to promote economic growth and development. Let's take a closer look at the major aspects of fiscal policy in Telangana.

In conclusion, fiscal policy is an essential aspect of the Telangana economy, and the state government has been adopting various fiscal policies to promote economic growth and development. The government has been focusing on improving revenue generation, reducing the debt burden, and promoting fiscal discipline to ensure sustainable development and inclusive growth in the state.


Monetary policy refers to the actions taken by the central bank to regulate the supply of money in the economy and control inflation. In Telangana, the Reserve Bank of India (RBI) is responsible for implementing monetary policy. Let's take a closer look at the major aspects of monetary policy in Telangana.

In conclusion, monetary policy is an essential aspect of the Telangana economy, and the RBI is responsible for implementing monetary policy in the state. The RBI uses various tools, including interest rates, open market operations, and reserve requirements, to regulate the supply of money in the economy and control inflation. By maintaining price stability and ensuring adequate money supply, the RBI contributes to the overall economic growth and development of the state.