Telangana region sans Hyderabad has better industry income: Srikrishna report

The sectoral gross district domestic product or GDDP growth in Telangana has a relative advantage over the two other regions (Rayalaseema and coastal Andhra) in income generation from both industrial and services sectors, the Srikrishna Committee report on the Telangana issue has said.

Outlining the widespread economic implications of the proposed split of the region, the report has stressed that “it is the Telangana region excluding Hyderabad which has better income generation from industrial sector (30%) and possibly better employment as well and these have improved over time for better. It has added that Hyderabad draws most (82%) of its income from services followed by the industrial sector.

Coming to foreign investment, the Srikrishna report has said that Andhra Pradesh has attracted only Rs12,421 crore in foreign direct investment (FDI).

Of this, Rs6,490 crore of investment has taken place in Telangana (including Hyderabad), but with very high concentration in Hyderabad city/district.

Interestingly, the Telangana region, excluding Hyderabad, has received only Rs1,658 crore compared with Rs5,499 crore FDI in coastal Andhra.

Rayalaseema has received just Rs732 crore of FDI investments so far.
“Telangana receiving relatively lower amounts of FDI is chiefly due to the concentration of investments in Hyderabad city,” the report said.

Among other economic indicators, the report has focused on bank transactions played out in Telangana, coastal Andhra, Rayalaseema and Hyderabad. Andhra as a whole has registered an outstanding transaction of Rs2.29 lakh crore through the scheduled commercial banks as on March 2009.

The report has highlighted that Hyderabad has recorded the highest concentration of 211 bank account holders per 1,000 population, followed by 159 in Rayalaseema, 154 in coastal Andhra and 113 in Telangana (excluding Hyderabad).

An analysis of growth of credit amount and also credit per account (non-agricultural) of scheduled commercial banks suggest robust growth in the last 12 years or so in Hyderabad.

The report has pointed out that the Telangana area experienced considerable progress during 2001-04, but thereafter, there was a decline.

As for sales tax, the figure is pegged at just over Rs22,000 crore for 2008-09 in Andhra Pradesh — almost 75% of it collected from Hyderabad alone.

Excluding Hyderabad city, the business activity is concentrated in coastal Andhra, where just about 15 % of all sales tax collection takes place. Tax collection in Telangana is about 8% and Rayalaseema is just about 3%.