The 15th Finance Commission which met the representatives of Trade and Industries bodies has noted that the tertiary sector comprising IT and ITES sectors have been the key drivers of Gross State Value Added (GSVA).
GSVA is the measure of the value of goods and services produced in the sector of an economy and the Telangana’s share is over 10% of country’s IT exports. The share of secondary sector in GSVA in Telangana is the lowest among southern States.
The meeting on Monday discussed the State’s need to provide impetus to the development of manufacturing sector to reduce over dependence on IT/ITES to reduce risk to growth.
The meeting also discussed that out of 33 districts, only four districts — Ranga Reddy, Hyderabad, Medchal-Malkajgiri and Sangareddy — have a per capital income that is above State’s average. These districts were the onces where the industry and service sector activities are concentrated — leaving large areas of under development in the State.
The State did well in GST implementation and the number of dealers post-GST increased by 37.4% and the GST revenue registered 20% growth.
The State did not receive any GST compensation except for initial months, the meeting was informed.