Hyderabad: A reply to a question in Parliament on Monday revealed that Telangana is one of only three states in India to record over 80% growth in per capita income (PCI) for two consecutive years in span of over a decade at constant prices, using the base years of 2013 and 2014. Compared to 2013, Telangana achieved an impressive 84% growth in PCI by 2024 and an even higher increase of 85% by 2025 when compared to 2014. These figures indicate impressive rise in people’s purchasing power in the state during the said period.Constant prices refers to value of goods and services adjusted for changes in price level over time, providing a clearer picture of real income growth as opposed to nominal increases. This adjustment allows for meaningful comparisons of income over different years without the distortion that inflation can introduce. The data provided in the reply indicates that, at constant prices, the PCI increased from 96,039 in 2013 to 1,77,000, and from 1,01,424 in 2014 to 1,87,912 in 2025.Karnataka and Odisha are the other two states that have also witnessed more than 84% growth in PCI during the same period. In fact, Karnataka achieved over 90% growth in PCI between 2014 and 2025.Rise in avg real incomesAccording to experts, when income is analysed at constant prices, any reported increase signifies a true enhancement in people’s purchasing power, rather than an elevation solely driven by inflationary pressures. For instance, an impressive 85% increase over a decade indicates not just growth, but a substantial rise in average real incomes, reflecting a strengthening economy.PR Madhusoodanan, a distinguished professor and director at the Centre for Economics and Finance at the Administrative College of India (ASCI), emphasised on the importance of analysing per capita income at constant prices. “A reasonable and consistent growth rate in per capita income from a defined base year clearly indicates that the economy is thriving, supported by a rising Gross State Domestic Product (GSDP),” he said. “In dynamic states such as Telangana, this GSDP growth is predominantly fuelled by the booming service sector, with Hyderabad standing out as a key contributor, driving economic activities and opportunities.”
