Amidst an uproar, the Indian Parliament passed a Bill approving the formation of a new state of Telangana. Andhra Pradesh will now be reorganized Telangana, which literally means the ‘land of Telugus’.
Here are a few facts about the impact of the new state:
• The nine districts of Telangana, which includes Hyderabad, account for 60% of the tax revenue of undivided Andhra Pradesh. These districts have a per capita income of Rs 69,000 per year. The growth in the gross domestic product (GDP) of the nine districts was 7% between 2007-08 and 2011-12.
• In contrast, people in the other 13 districts of Andhra Pradesh earn lesser than those in Telangana at Rs 65,000 per year. The growth too is slower at 6.8%. This means Telangana is better off financially.
• Hyderabad will be the joint capital of the two new states for 10 years. With a high per capita income of Rs 3.4 lakh per year, Hyderabad’s economy grew 10.2% between 2007 and 2012.
• Andhra Pradesh will have to build a new capital.