Formation and Geographic Profile of Telangana

The Telangana economy is a distinctly state-specific topic in the TS Inter II year Economics course, because Telangana is one of India's youngest states with an economic story of its own. Telangana was formed on 2 June 2014 as the 29th state of India. It was carved out of the north-western part of the erstwhile united Andhra Pradesh under the Andhra Pradesh Reorganisation Act, 2014, following a long-standing statehood movement. Hyderabad became the capital of the new state.

Geographically, Telangana lies on the Deccan Plateau in the semi-arid interior of southern India. Much of the land is undulating plateau country with red and black soils, and large parts of the state historically depended on the monsoon and on tanks (small reservoirs) rather than on perennial canal networks. This geography shaped its economy: agriculture faced recurring water stress, while the capital city grew into a major national centre for information technology and pharmaceuticals.

Understanding the Telangana Intermediate commerce syllabus's treatment of the state economy means looking at four things together — its natural resources, its agriculture and irrigation, its industry and services, and the welfare programmes through which the state has tried to raise living standards. Each is examined in the sections that follow.