The latest RBI data reveals Telangana maintained rapid, diversified economic expansion in 2025-26, driven by a strong services sector and infrastructure growth, with real output rising by 8.8%.
Telangana’s economy posted another year of broad-based expansion in 2025-26, with the latest Reserve Bank of India handbook pointing to gains across services, industry and allied activities. The data, compiled by the National Statistics Office and published in the RBI’s Handbook of Statistics on the Indian Economy 2025-26, suggest the state continued to outpace many peers on both nominal and real measures of growth.
According to the report, net state domestic product at current prices rose to ₹16.15 lakh crore in 2025-26 from ₹14.58 lakh crore a year earlier, a jump of about 10.8%. At constant prices, which strip out inflation, NSDP increased from ₹7.23 lakh crore to ₹7.86 lakh crore, indicating real growth of 8.8%.
The strongest momentum came from a diversified mix of sectors rather than from a single driver. Trade, hotels and restaurants recorded a sharp rise, while manufacturing, construction, transport and storage, financial services and real estate all advanced. The services economy remained the state’s central pillar, reinforcing Telangana’s reputation as one of India’s more urbanised and service-led economies.
The report also showed steady gains in agriculture and related activities, even if their share remains smaller than that of services. At current prices, agriculture, livestock, forestry and fishing rose modestly, while mining and utilities also improved. In real terms, agriculture and manufacturing both expanded, alongside construction and trade, suggesting the growth was not only nominal but also reflected higher output.
Per-capita income climbed as well. Telangana’s per-capita NSDP at current prices rose from ₹2,25,734 in 2020-21 to ₹4,18,931 in 2025-26, an increase that the report said exceeded ₹38,900 in the latest year alone. On constant-price terms, per-capita NSDP reached ₹2,04,022, underscoring a sustained rise in economic capacity over several years.
The longer trend is equally striking. Current-price NSDP has nearly doubled since 2020-21, while constant-price NSDP has risen sharply over the same period, according to the RBI’s figures. Taken together, the numbers point to an economy that is not only expanding quickly but also broadening its base, with services, manufacturing and infrastructure-related activity all contributing to the pace of growth.
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