In the financial year 2022–2023, telangana has risen to the top among South indian States in terms of a number of economic metrics, solidifying its position as one of the major forces behind India's overall development. The youngest State in the nation has established itself as a significant contributor to the expansion of the country's economy, with karnataka and the three other southern States accounting for more than 30% of India's GDP altogether.
Telangana ranked first in three of the five major factors that define the economic health of a State, according to statistics from the reserve bank of india and economic studies of the five southern States. telangana ranks first in three of five indicators used to gauge the general health of these economies, including per capita income, state debt, tax revenue, interest payment ratio, and fiscal deficit.

Per Capita Income

In the fiscal year 2021–2022, telangana had the highest per capita income at Rs. 2,75,443, followed by karnataka at Rs. 2,65,623. With per capita incomes of Rs. 2,41,131, Rs. 2,30,601, and Rs. 2,07,771, respectively, tamil Nadu, kerala, and andhra pradesh are the three States with the lowest levels. telangana had the highest per capita income in the nation in 2022–2023, at Rs. 3.17 lakh. The average income in the south is higher than the national average of Rs. 1,50,007.

Debt-to-GSDP ratio
The debt-to-GSDP ratio, which assesses an economy's financial stability, is another important metric. telangana continues to have the lowest debt-to-GSDP ratio at 25.3 percent, demonstrating the State's healthier financial situation. karnataka is next with a 27.5 percent ratio, followed by tamil Nadu with a 27.7 percent ratio, andhra pradesh with a 32.8 percent ratio, and kerala with a 37.2 percent ratio.

Revenue for interest payments
Additionally, the ratio of interest payments to income shows how much money is spent on debt servicing. Among the southern States, telangana has the lowest ratio (11.3%), followed by karnataka (14.3%), andhra pradesh (14.3%), kerala (18.8%), and tamil Nadu, which holds the fifth spot with a 21 percent allocation of its earnings for interest payments.

The largest economy in southern India, however, is tamil Nadu, which would have a Gross State Domestic Product (GSDP) of Rs. 24.8 lakh crore at current prices in the fiscal year 2023. With a GSDP of Rs. 22.4 lakh crore, karnataka is closely followed by telangana, andhra pradesh, and Kerala. telangana has a GSDP of Rs. 13.3 lakh crore.

With expected revenues of Rs. 1,26,644 crore for FY22, tamil Nadu takes the lead in terms of State-owned Tax Revenues (SOTR), followed by karnataka (Rs. 1,11,494 crore), telangana (Rs. 92,910 crore), andhra pradesh (Rs. 85,265 crore), and kerala (Rs. 71,833 crore). tamil Nadu's SOTR in 2022–2023 was Rs.1.46 lakh crore, compared to Telangana's SOTR of Rs.1.26 lakh crore. A state's capacity to spend in infrastructure, healthcare, and education is correlated with higher tax revenues.


Find out more: