2024 · Paper IV · 10 marks

"Structural changes are reflected in trends of sectoral shares in gross state value added (GSVA)." Examine this in the context of trends in GSVA of Telangana since 2014.

In short

Telangana's GSVA trends since 2014 show a clear services-led structural shift, with agriculture's share shrinking and industry rising only moderately. In 2025-26 services contribute 68.6% of GSVA, industry 16.3% and agriculture 15.1%, though agriculture still employs 41.5% of the workforce.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Since its 2014 formation, Telangana has undergone structural economic changes reflected in GSVA trends, with a 10.7%1 projected GSDP growth for 2025-26, outpacing India.
Structural Changes in Telangana’s Economy
•

Agricultural Modernization and Diversification

Schemes like Rythu Bharosa2 and Mission Kakatiya improved irrigation and farmer support, yet agriculture’s GSVA share declined to 15.1% by 2025-26, despite employing 41.5% of the workforce, indicating underemployment.

•

Industrial Expansion and Urbanization

The secondary sector grew at 9.4%, contributing 16.3%3 of GSVA, driven by Hyderabad’s industrial clusters and the Singareni coal belt; however, governance gaps4 in SPSEs limit industrial potential.

Trends in Sectoral Shares of GSVA
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Declining Agricultural Share Amid Employment Persistence

Agriculture’s GSVA share fell from over 17% to 15.1%, but it still employs a large workforce, highlighting structural imbalance.

•

Gradual Industrial Share Increase

Industrial GSVA share rose moderately but remains below national averages5 due to underdeveloped MSMEs and limited value chain deepening.

Linking Structural Changes to GSVA Trends
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Agricultural Reforms and GSVA Decline

Direct benefit transfers like Rythu Bharosa and tank restoration under Mission Kakatiya improved farm conditions but did not halt agriculture’s GSVA decline.

•

Digital and Service Sector Ecosystem

Hyderabad’s IT hubs, including HITEC City, and initiatives like WE Hub have driven the services sector to 68.6% GSVA share with 13.5% growth, reflecting a shift to knowledge-based economy.

Way Forward
•

Enhance Agricultural Productivity

Strengthen irrigation and diversification under Mission Kakatiya to boost incomes and reduce underemployment.

•

Revitalize Industrial Governance

Address SPSE inefficiencies to unlock industrial sector growth.

Conclusion
Telangana’s GSVA trends illustrate a structural shift from agriculture to services, with industrial growth constrained by governance challenges.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Telangana GSVA by sector, 2025-26. Telangana GSVA by sector, 2025-26. Diagram (tree): Telangana GSVA by sector, 2025-26; Telangana GSVA; Agriculture: 15.1%, grows 1.4%; Industry: 16.3%, grows 9.4%; Services: 68.6%, grows 13.5%; Farms still employ 41.5%
Diagram: Telangana GSVA by sector, 2025-26

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This chapter in the exam

Telangana economy: Hyderabad State, united AP, GSDP, poverty3 questions

Asked in 2 of 2 sittings since 2016

2016
1
2024
2

Most tested: Fiscal and structural analysis of Telangana’s economy in relation to united Andhra Pradesh and post-2014 state performance.

Question from the official TGPSC Group-I Mains 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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