Hyderabad: Telangana entered the World Bank’s upper-middle-income economies category after its estimated per capita income reached ₹4,18,931, or USD 5,407, in 2025-26.
The World Bank classifies economies with per capita incomes between USD 4,636 and USD 14,375 as upper-middle-income. Telangana crossed the threshold and became one of only five Indian states to achieve the milestone.
The state ranked behind Delhi and Karnataka in per capita income. However, it remained ahead of Tamil Nadu and Gujarat, according to the latest estimates.
Since its formation in 2014, Telangana’s per capita income has increased from ₹1.24 lakh in 2014-15 to an estimated ₹4.19 lakh in 2025-26. Meanwhile, the national average stood at nearly ₹1.9 lakh during the same period.
Telangana upper-middle-income growth driven by strong economy
Rangareddy district recorded the state’s highest per capita income at ₹11.29 lakh. Hyderabad followed with ₹4.77 lakh.
Furthermore, Telangana recorded the highest per capita income among major states from 2019-20 to 2024-25. However, Karnataka moved ahead in the 2025-26 estimates.
The state’s Gross State Domestic Product (GSDP) grew at an average annual rate of 12.7 per cent between 2014 and 2023. In comparison, the national average stood at 10.5 per cent.
Additionally, Telangana’s GSDP for 2025-26 reached an estimated ₹17.82 lakh crore. The state’s economy also recorded a growth rate of 10.7 per cent.
Telangana’s share in India’s GDP increased from 4 per cent in 2014-15 to 4.8 per cent in 2022-23. However, the latest indicators suggested that growth moderated recently even as the state remained among India’s leading economies.
