Ready to raise the game to compete with other states?

Telangana State competes for investments, infrastructure, and quality of life, focusing on attracting investment and improving governance.

Indian States are no longer isolated entities. They are competitors. They compete for investments, infrastructure, talent, job creation and quality of life. So, how does Telangana State compare with others in terms of allocation to key sectors to make it an attractive business and employment destination, at the same time improving the quality of life for its citizens? 

Focusing on attracting more investment, the government has promised continuity in regulations and has taken steps to improve the industrial environment, one of the steps is in setting up a Skill University to ensure a steady flow of trained workforce.

The single biggest change from the earlier regime is the focus on democracy. There have been protests on the streets of Hyderabad and otherr cities of Telangana showing a major change in governance pattern. Group-I exam aspirants could march from Ashok Nagar to Secretariat raising slogan without being bundled into police vans. There were protests by farmers and others fearing displacement in Lagcherla against an industrial unit and the State dropped the project. 

If Telangana has to benchmark quality of life in comparison to other States it has to bring in more transparency. This has been partially achieved as the various government orders (GOs) are accessible. But, not all the RTIs are being replied and there is no full-time Information Commissioner. However, ministers and officials are once again accessible as part of Praja Vani.

In 2023-24, Telangana’s budgetary allocation was a measly 7.6% in comparison to the national average of 14.7%, where the Delhi State is allocating 24.3% of its budget on education. This does not factor in the anomaly that Delhi doesn’t have to spend on irrigation, and its Police department is with the Union government. Telangana’s outlay for education appears low because a sizeable part of the allocation for BC Welfare includes theTelangana Social Welfare Residential Educational Institutions Society (TSWREIS) which runs the institutions where children from marginalised sections get education. This is one of the reasons why Telangana has one of the highest welfare budgets in comparison to other States at 13.3% while the national average is a mere 3.5%. After the Congress government took over, the Education budget was increased by 11.5% to ₹21,292 crore.

While the focus on Musi Riverfront Development Project and HYDRAA appeared to be out of the blue, the Congress government had made its intentions clear from day one. The urban budget outlay set the tone for it. From revised estimates of ₹4093 crore in 2023-24, the Congress government increased it by 161% to ₹10,670 crore. This investment rectifies the lopsided development where Telangana spent only 2.8% of its budget on urban areas and 3.6% on rural development at a time when the country is rapidly urbanising. The national average budget outlay on urban development is 3.4% with even a large State like Gujarat spending 6.6% on it.

At a recent workshop on the Musi project, one of the participants shared how quality of life is going to be a key benchmark for the next generation to choose where to live and where to work. “The internet and technology have flattened everything. The only difference between Gurugram and Hyderabad will be quality of life. Now people want quality of life that includes environment, night life, educational institutions and a fostering urban ecosystem,” he said sharing how investment in urban areas is important.