Telangana’s Gross Value Added (GVA) through service sector grew at a rate of 1.5 to 2 times between 2014-15 and 2020-21 with real estate a major contributor to this growth. Real estate, dwellings and professional services were the main drivers of the services sector, accounting for nearly 35 percent of its GVA in 2020-21 — the state GVA’s single-largest sub-sector.
The GVA of real estate sector is expected to reach Rs 1.85 lakh crore in 2020-21, up from Rs 96,912 crore in 2014-15. Since then, the value of GVA increased by roughly Rs 15,000 to Rs 20,000 crore year-on-year. “Lockdowns and slowing down of activities had no effect on service sector growth; Hyderabad plays a significant part in this,” a top official said.
The GVA of trade, repair, hotels and restaurants rose by a factor of two between 2014-15 and 2020-21. This, despite the Covid-19 pandemic. The GVA of this sub-sector is also expected to reach Rs 1.36 lakh crore this year.
According to experts, the state’s robust GVA in any area — particularly the services sector — represents a healthy trend. “The state’s GST receipts are indicative of the trend but we should also look at the number of dwellings sold, not only income receipts,” said A Nakula Reddy, Director of Andhra Mahila Sabha College for Women and former professor at Osmania University’s department of economics.
Between 2015-16 and 2020-21, Gross State Value Added (GSVA) — which reflects the supply or production side of the economy — grew at an annual average rate of 11.6 percent in Telangana, compared to national average of 7.8 percent at current prices. Telangana’s overall GSVA increased by 2.9 percent in 2020-21 (PE), outpacing India’s GVA growth of 5.9 percent.
Sribala Vadlapatla, TNN, Hyderabad