Hyderabad has unveiled a comprehensive and ambitious roadmap for Telangana's economic future, named the 'Telangana Rising-2047' vision. This blueprint is not just aspirational but is firmly grounded in extensive global research, utilizing data from the prestigious Penn World Table (PWT). The PWT is a globally recognized database of national accounts, developed and maintained by scholars worldwide, providing a robust foundation for the state's long-term planning.
Research-Backed Ambitious Targets
The vision document sets a strikingly ambitious goal: to achieve a sustained gross domestic product (GDP) growth rate of 11%, aiming to transform Telangana into a $3 trillion economy by 2047. Sources involved in crafting the plan revealed that this target was set after a meticulous analysis of vision plans from various Indian states and other countries, ensuring the outcomes are research-driven and come with a concrete implementation strategy.
The reliance on the Penn World Table is strategic. The PWT, which has undergone several updates, now includes data from 183 countries spanning from 1950 to 2019. This vast dataset offers invaluable insights into critical economic facets like capital formation, productivity, employment, and population dynamics, allowing Telangana's planners to benchmark against global success stories.
Key Strategies: FDI, Municipal Bonds, and Skilling
A central pillar of the plan is to aggressively leverage and boost Foreign Direct Investment (FDI). Currently, Telangana receives a modest $2-3 billion in FDI annually, a figure that pales in comparison to states like Maharashtra, which attract over $15 billion. The vision document notes that FDI constitutes only about 35% of Telangana's GDP, a share that must rise to 52% to meet the ambitious $3 trillion target.
To finance urban development while navigating the Fiscal Responsibility and Budget Management (FRBM) Act constraints, the plan suggests creatively using municipal bonds. Telangana's municipalities, which currently enjoy a clean financial track record and an AA+ credit rating, are seen as having significant untapped potential. By enhancing transparency and operational efficiency, these local bodies could unlock substantial funding for infrastructure projects.
Recognizing the gap between ambition and current capacity, the plan strategically prioritizes skilling, education, and innovation. Sources highlighted that while countries like China and Japan achieved high growth with savings rates near 50%, Telangana's economy is more consumption-driven, with a savings rate around 30%. Therefore, enhancing labour productivity, human capital, and overall capital efficiency becomes paramount.
Sectoral Focus and Realistic Projections
Beyond traditional sectors, the tourism industry has been identified as a promising avenue for generating substantial revenue and creating numerous job opportunities. The role of alumni networks and educators is also earmarked for special attention in this transformative journey.
The vision document presents a sobering yet motivating projection. Under a steady business-as-usual growth scenario, Telangana could reach a GDP of $1.3 trillion by 2047. However, the 'Rising-2047' vision emphatically states the necessity to strive for the more ambitious $3 trillion target. These forecasts, as sources concluded, are derived without factoring in potential variables like the depreciation of the Indian rupee or global dedollarisation trends, indicating the scale of effort required.
The Telangana Rising-2047 plan represents a bold, data-informed attempt to catapult the state into the league of global economic powerhouses, with its success hinging on strategic investments, institutional reforms, and a massive upliftment of its human capital.
