9th July 2022 | Structure and Growth of Telangana economy: Sectoral trends in GSDP; Per capita income; Income inequalities and Poverty

Number of questions- Mains: 02, Prelims – 10

Mains Questions of the day:  

1.Examine the performance of Telangana state in economic development over other States. 

Introduction:

Briefly mention the economic condition of Telangana State in different sectors.

Body:

Mention the major reasons that contribute for economic development in Telangana state.

Conclusion:

• Per capita income helps determine the average income of a person and also evaluate the standard of living of a people. 
• Telangana has outperformed in economic development.
• This success has been due to targeted policies of Telangana government to transform the agricultural sector and simultaneously boost the growth for the IT and the pharma sectors.
• The state Government is running schemes like:

• Rythu Bandhu focused on farmers 
• world’s largest lift irrigation project Kaleshwaram aimed at providing water to the fields of Telangana and 
• Arogya Laxmi that ensures the provision of basic and supplementary food and nutrition to pregnant and lactating women.

Content:

• Telangana has outperformed in economic development.
• The Gross State Domestic Product (GSDP) recorded around 19% growth over the previous financial year at current prices in 2022. 
• The per capita income of Telangana increased by 125% in the previous seven years 
• The 130% in GSDP increased from 2014 to 2021.
• As per MOSPI data 2022, Telangana secured top position among major States in per capita income.
• Telangana’s achievement was despite massive hurdles like bifurcation blues, demonetisation, Corona pandemic.
• The GSDP of any state is measured in terms of the economic contributions made by three key sectors

• Agriculture & Allied Sectors 
• Industries (including mining and quarrying) and 
• Services. 

• Since state formation, the Services sector has been the highest contributor to Telangana’s Gross State Value Added (GSVA), followed by the Industries and Agriculture and allied sectors. 
• The share of the Agriculture and allied sectors in the total GSVA of the State increased from around 16% in 2014-15 to around 18% in 2021-22. 
• The Government implemented numerous schemes for: 

• the welfare and development of farmers and 
• the increase of production in agriculture sector. 

• The State has emerged as the largest cultivator of cotton crop.
• The second-largest producer and purchaser of paddy in the country. 
• The State government spent more for the construction of various irrigation projects and also improved electricity infrastructure apart from providing uninterrupted free power to all agricultural connections. 
• Further, the government revived tanks under Mission Kakatiya which ensured adequate irrigation water to farmlands.
• Money has been deposited into the bank accounts of farmers under Rythu Bandhu scheme and farm loans have been waived off. 
• Due to all these efforts, the agriculture sector has progressed and resulted in an increase of the per capita income.
• Besides providing adequate seeds and fertilizers in advance through Primary Agricultural Cooperative Societies (PACS), Telangana is the only State to invoke PD (Preventive Detention) Act against suppliers of spurious seeds. 
• The State government was also providing farm equipment and machinery at subsidised prices and also increased the go-down for storage capacity. 
• The State government is also promoting alternative crops including oil palm cultivation to increase the farmers’ income.
• The Industrial sector contributes less to Telangana’s economy than it does to India’s economy. However, the Industrial sector in the State is very vibrant. 
• As the Telanagana Government recognizes that industrial development is crucial to job creation and increasing productivity in other sectors, it has taken up several measures to ensure sustained growth of the Industrial sector. 
• This includes business reforms like TS-iPASS, schemes for entrepreneurship like T-IDEA and T-PRIDE, and multiple initiatives for the MSME sector including Industrial Health Clinics, TS-Globalinker, and partnerships with private companies like SAP and Sapio Analytics. 
• The positive impact of the investments being made by the Government towards strengthening of the Industrial sector will start producing results in coming years and the benefits will continue to accrue. 
• The Services sector accounted for around 61% in 2021-22, is one of the most important sectors in Telangana’s economy. Its share in the State’s nominal GSVA (around 61%) is larger than the share of this sector in India’s nominal GVA (around 52%).

2.Explain the major poverty alleviation programs of Telangana.  

Introduction:

Mention the present condition of Telangana in poverty.

Body:

Mention the measures that are taken by Telangana Government to alleviate poverty.

Conclusion:

• The Government’s sustained commitment to the welfare of the citizens is evident by the schemes and programmes it has continued to implementing in 2021- 22 such as Dalit Bandhu and SC and ST Special Development Funds. 
• The initiatives of Government are important for alleviating poverty and developing a futuristic developmental state.
• These initiatives provide economic growth with equitable distribution of its benefits to the Telangana people.
• Which in turn provides social protection to the Telangana people.

Content:

• Poverty Alleviation program is to address the poverty and its determinants which has been one of the main focus areas of the Telangana Government. 
• Since formation of Telanagana State, the Government has revamped the existing poverty alleviation programmes, especially the Public Distribution System (PDS) and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the 100% subsidised 2-BHK Housing Scheme. 
• Further, State level societies such as Society for Elimination of Rural Poverty (SERP) and Mission for Elimination of Poverty in Municipal Areas (MEPMA) are: 

• helping to build and nurture women led Self Help Groups (SHGs) and 
• implementing poverty alleviation programmes in rural and urban areas. 

• Importantly, the Government expanded the focus of poverty alleviation by working to eradicate multidimensional poverty. 
• As per NITI Aayog’s Multidimensional Poverty Index (MPI) baseline report 2021: 
• It has three equally weighted dimensions—Health, Education, and Living Standards
• one in four individuals in India is multidimensionally poor, but in Telangana one out of seven individuals is multidimensionally poor. 
• Since the state formation, the Government has made targeted interventions for marginalised groups in domains such as: 

• Health (KCR Kits, Aarogya Lakshmi, Giri Poshana, improving the Public Health Infrastructure etc.,) 
• Education (revamping school infrastructure through Mana Ooru Mana Badi) and 
• Living Standards (housing, skill development, asset creation, free electricity, etc.). 
• Aasara Pension: 

• As part of its welfare and social safety strategy, the Government has introduced the “Aasara’’ pension scheme in 2014 in order to support the most vulnerable sections of the society. 
• The scheme is meant to protect different sections of society. 
• Since 2014, an average around 38 lakh beneficiaries have been covered annually under this scheme. 
• Public Distribution System (PDS):

• The Government is distributing essential commodities and food grains to priority households at subsidised prices. 
• The Government has been implementing the Public Distribution System (PDS). 
• The Government of Telangana has extended the PDS coverage to an additional 96 lakh people over and above the prescribed coverage. 
• Along with additional beneficiary coverage the Government has also enhanced the scale of distribution of rice. 
• Along with Food Security, the State has facilitated Gas Connections to poor and marginalised households under the DEEPAM Scheme. 

Prelims questions of the day:

1.What is Telangana’s rank in terms of contribution to the national nominal GDP amongst the 14 General Category States 2020-21? 

1. 5th
2. 6th
3. 4th
4. 3rd

Answer: B

Explanation: 

In the year of State formation, Telangana contributed roughly 4.1% to the national GDP. In 2020-21, the State became the 6th highest contributor to the national nominal GDP amongst the 14 General Category States with data availability.

2.Consider the following 

1. Electricity
2. Mining and Quarrying
3. Manufacturing

Which of the above sectors are part of the Index of Industrial Production (IIP)?

1. 2 and 3
2. 1 and 2
3. All of them 
4. Only 3.

Answer: C

Explanation: 

All three are part of the Index of industrial production.

The Eight Core Industries comprise 40.27 % of the weight of items included in the Index of Industrial Production (IIP). These industries are: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.

3.Consider the following statements: 

1. The mission for Elimination of Poverty in Municipal Areas (MEPMA)is the State Nodal Agency for implementing the Poverty Alleviation Programs in all urban areas of Telangana State.
2. Society for Elimination of Rural Poverty (SERP) plays a role in building Self Help groups.

Which of the above statements are correct?

1. Only 2
2. Only 1
3. Both of them
4. None of them.

Answer: C

Explanation:

• The mission for Elimination of Poverty in Municipal Areas (MEPMA)is the State Nodal Agency for implementing the Poverty Alleviation Programs in all urban areas of Telangana State.
• SERP is a sensitive and supportive structure to facilitate the social mobilisation of poor rural women in the rural areas of the 32 districts in the state, except in the urban district of Hyderabad. It plays a key role in SHG establishment.

4.Which district has registered the lowest Gross District Domestic Product at Current Prices in 2020-21?

1. Mulugu
2. Kumuram Bheem 
3. Narayanpet
4. Wanaparthy

Answer: A

Explanation:

 5.Consider the following statements: 

1. Every district in the Telangana State had a higher Per capita income(PCI) than the country’s average PCI in 2020-21.
2. The PCI of Rangareddy the district has the highest PCI in the State in 2020-21.

Which of the above statements are incorrect?

1. 2 only
2. Only 1
3. Both of them
4. None of them

Answer: D

Explanation: 

Even though there was variation between the PCI of the 33 districts, every district in the State had a higher PCI than the country’s PCI (Rs. 1,26,855) in 2020-21. The PCI of Rangareddy (Rs. 6,58,757), the district with the highest PCI in the State in 2020-21, was 5.2 times the national PCI in that year.

6.Consider the following statements 

1. The service sector growth rate at current prices has registered negative growth in the 2020-21 financial year.
2. The Agriculture and allied sector’s growth rate at current prices have registered negative growth in the 2020-21 financial year.

Which of the above statements is/are correct?

1. 2 only
2. Only 1
3. Both of them
4. None of them

Answer: D

Explanation: 

7.What is Telangana’s nominal Per Capita Income in 2021-22?

A.3.79 lakh

B.2.79 lakh

C.2.59 lakh

D.3.59 lakh

Answer: B

Explanation: 

In the year 2021-22, Telangana’s nominal Per Capita Income had increased to Rs. 2.79 lakh.

8.Consider the following pairs 

1. Growth curve -Indication
2. V shape recovery -Speedy recovery
3. U shape recovery -Quick recovery with jerks
4. K shape recovery -Uneven recovery across sectors

How many pairs matched correctly?

1. Only one
2. Only two
3. Only three
4. None of them

Answer: B

Explanation: 

• V-Shaped recovery is characterized by a sudden economic decline followed by rapid economic growth.
• U-shaped recoveries happen when a recession occurs and the economy does not immediately bounce back, but tumbles along the bottom for a few quarters.
• A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.

9.Consider the following statements:

1. Telangana’s GSDP at constant prices has been consistently increasing in the past five years
2. Telangana’s GSDP at current prices has been consistently increasing in the past five years

Which of the above statements is/are incorrect?

1. 2 only
2. Only 1
3. Both of them
4. None of them

Answer: C

Explanation:

20.Which of the following dimension has the highest weightage in NITI Aayog’s Multidimensional Poverty Index (MPI)? 

1. Health
2. Education
3. Living standards
4. None of the above

Answer: D 

Explanation: 

The Multidimensional Poverty Index (MPI) is based on three dimensions — health, education, and standard of living — with each having a weightage of one-third in the index. These dimensions are further based on 12 segments — nutrition, child and adolescent mortality, antenatal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.