Telanganas gross value added (GVA) through service sector grew at a rate of 1.5 to 2 times between 2014-15 and 2020-21 with real estate a major contributor to this Growth. Real estate, dwellings and professional Services were the main drivers of the services sector, accounting for nearly 35 per cent of its GVA in 2020-21 the state GVAs single-largest sub-sector.
The GVA of real estate sector is expected to reach Rs 1.85 lakh crore in 2020-21, up from Rs 96,912 crore in 2014-15. Since then, the value of GVA increased by roughly Rs 15,000 to Rs 20,000 crore year-on-year. Lockdowns and slowing down of activities had no effect on service sector growth; Hyderabad plays a significant part in this.
The GVA of trade, repair, hotels and restaurants rose by a factor of two between 2014-15 and 2020-21. This, despite the Covid-19 pandemic. The GVA of this sub-sector is also expected to reach Rs 1.36 lakh crore this year.
According to experts, the states robust GVA in any area particularly the services sector represents a healthy trend. The states GST receipts are indicative of the trend but we should also look at the number of dwellings sold, not only income receipts, said A Nakula Reddy, director of Andhra Mahila Sabha College for Women and former professor at Osmania Universitys department of economics.
Between 2015-16 and 2020-21, Gross State Value Added (GSVA) which reflects the supply or production side of the economy grew at an annual Average rate of 11.6 per cent in , compared to national average of 7.8 per cent at current prices. Telanganas overall GSVA increased by 2.9 per cent in 2020-21 (PE), outpacing Indias GVA growth of 5.9 per cent.