Irrigation, industry push Telangana’s growth arc: Economic Survey
HYDERABAD: The Centre’s Economic Survey 2025–26 has mapped Telangana’s growth trajectory across agriculture, industry and services, pointing to a sharp expansion in irrigated area, strong industrial depth and rising productivity during the former Bharat Rashtra Samithi government’s tenure.
A key takeaway is the significant increase in cultivated area, which expanded from 1.31 crore acres in 2014 to 2.20 crore acres by FY 2023, bringing nearly 90 lakh additional acres under cultivation. The growth has been attributed primarily to large-scale irrigation initiatives such as the Kaleshwaram Lift Irrigation Project, Mission Kakatiya, and other major and minor irrigation works.
The survey said improved irrigation coverage, better alignment of crops with natural resources, and the adoption of climate-resilient, high-yield seed varieties played a critical role in boosting agricultural productivity. These measures helped insulate farmers from rainfall volatility, particularly in regions once considered drought-prone.
NDSA flags concerns
The survey’s endorsement of irrigation-led agricultural expansion comes amid concerns over the structural stability and utility of the Kaleshwaram barrages. Recently, the National Dam Safety Authority flagged safety issues at the Medigadda, Annaram and Sundilla barrages, noting that the Medigadda structure, in particular, requires reconstruction after a portion sank.
On the macroeconomic front, the survey tracked improvements in price stability. Telangana’s inflation rate, which stood at 8.5% a few years ago, declined to 2.6%, reflecting easing price pressures.
Industry and services drive growth
Beyond agriculture, the Economic Survey highlighted Telangana’s broader economic footprint. Despite accounting for less than 3% of India’s population, the state contributes around 5% of the country’s manufacturing employment, placing it among the top seven manufacturing states alongside much larger peers.
The survey also noted that Telangana is among India’s top four contributors to the services sector, with growth driven by information technology and digital services, finance, and professional services. The state has five institutions featured in India’s top 100 higher education list, reinforcing its role as a services and skills hub.
