New Years Eve India Round Up: An Astounding Division and An Explosive Growth of Combined Telugu States Post Bifurcation - A Stronger India Through Division

It has been 3 years 9 months since I last visited India. Leaving other things, in a sense it is deeply disturbing for me. I don’t know about others but as a youngster I am deeply nation-loving and nation-serving and India-first from the bottom of my heart. Destiny has other plans however as I grew older. It occurs if you gradually age these priorities change. But I need to correct my course and navigate in a way that benefits India. It should never happen that you are stuck in a foreign nation for 3.9 years without caring and visiting India or your home nation for as long.  As a youngster, I was asked to pursue Masters in a foreign nation like US or Australia. Fresh legs and fresh out of college, it could have been cake walk at that time if I went ahead. But I refused and prioritized to serve India and took up a job as a fresher instead. I gave my everything in the five years in my first job, for the society, for the state and for the nation. I participated in laying a strong foundation for the home city, state and country. It is after my brother was refused visa two times, I took it up as a challenge to pursue masters in US in 2014, as an alternative plan. It was not before emptying myself for the home nation. I lived with such high standards and patriotism as a youngster. The same youngster will question the older version of the same person of today about the misplaced priorities and lost nationalism. I may cover-up and justify my actions of today but nothing beats living among your own people in your own country. No amount of justification will be enough for causing so much of emotional pain and forgetting the home land for so long. For good and by principle, this is something which has happened  in a dubious way that could have shaped up much better. Simply, I dont have a clear conscience of my younger self to tell myself I didn’t deceive my own self, even if I leave about convincing others. For instance, I could have stayed put in US and visited India once a year to stay in touch with home land. It is true I don’t have finances for all this but I could have planned better. I could stay in foreign nation for very long if the home nation doesn’t need me or feel my absence. It is not the case and ask my lone mother in India. She must be faring better without me but nothing beats living in company with your parents. A man without principles is a ship without a compass — he may move here and there, but he never truly arrives the required place. Well, I may go on and on but let us work towards compensation which can be the least we can realize practically for the past cannot be corrected. 

I know I am more than compensating with my intentions, if not actions. For instance, I am writing every fourth post on India as an India round-up, deeply feeling for a greater nation. The year-end should be ideally rounded up by visiting our home nations and putting our work results at its feet. Let me round off the past year with a post on home land as a first post of a new year. This time, it is for the better telugu states and nation as a whole and let us delve into the same. I may live anywhere but I am deeply connected to Andhra or Telengana.  

Let me make an amazing statement to tell about these Telugu sister states which have travelled along with me in the last 12 years after division. No other state or province anywhere in the world has progressed as much as the Telugu states as a whole after bifurcation. The Telugu states' revenue transformation is staggering: undivided Andhra Pradesh collected ₹1.05 lakh crores in 2013-14, while the combined revenues of Telangana (₹2.90 lakh crores) and Andhra Pradesh (₹2.40 lakh crores) reached ₹5.30+ lakh crores in 2024-25—a remarkable 5x growth in just eleven years. This dramatically outpaces comparable regions globally: major Indian states like Karnataka, Maharashtra, and Tamil Nadu grew only 2.5-2.7x over the same period; China's fastest-growing provinces like Guangdong and Zhejiang achieved merely 1.2-1.4x growth; even rapidly developing nations like Vietnam (2.3x) and Bangladesh (3x) trail significantly behind. Adjusting for inflation, the real growth of 3x+ still positions the Telugu states on top of the world's fastest-growing regional economies of comparable size (100+ million population), surpassing all Chinese provinces, Indian states, and European regions—a testament to how competitive federalism and focused governance can unlock extraordinary economic potential. 

When the combined state revenue is 1 lakh crore in 2014 and reached 5 lakh crore in just 11 years after bifurcation, we can say that division has worked wonders for sister states. This requires a huge pat on the back for the citizens of these two states for participating in such a remarkable transformation in such a short period of time.  

The decade following Andhra Pradesh's 2014 bifurcation offers India's most revealing natural experiment in competitive federalism. Comparing the cumulative growth of the divided Telugu states against unified peer states over the identical 2014-2024 timeframe yields a striking conclusion: bifurcation didn't weaken the Telugu region—it turbocharged it across nearly every measurable parameter. 

Had unified Andhra Pradesh grown at peer rates of 2.5x, its 2024 revenue would be ₹2.6 lakh crores. Instead, the bifurcated states generated ₹5.3 lakh crores—a staggering ₹2.7 lakh crore premium, or 104% above expected trajectory. This isn't marginal outperformance; it's transformational acceleration directly attributable to structural change. 

Economic Output: Faster Growth from Smaller Base 

GSDP comparisons reinforce the pattern. The Telugu region's economy grew 3.36x from ₹6.1 lakh crores to ₹20.5 lakh crores, with 12.2% CAGR exceeding Karnataka (2.72x, 9.9% CAGR), Tamil Nadu (2.59x, 9.4% CAGR), and Maharashtra (2.30x, 8.3% CAGR). Starting with the smallest economy among major states, the Telugu region added ₹14.4 lakh crores—rivaling Tamil Nadu's ₹13.5L despite TN's larger base, and exceeding Karnataka's ₹11.7L. At peer growth rates, combined Telugu GSDP would be ₹15.9L crores; the actual ₹20.5L represents ₹4.6L crores or 29% above expected. 

Per capita income growth proves even more dramatic. From the lowest 2014 base (₹92,000), the Telugu region achieved 2.67x growth reaching ₹2.46L average—exceeding Karnataka (2.46x), Tamil Nadu (2.22x), and Maharashtra (1.78x). Telangana individually posted 3.02x growth, the highest among all major states, catapulting from middle-tier to #3 nationally at ₹2.78 lakh. This represents complete repositioning in India's economic hierarchy within a single decade. 

Sectoral Performance: Outpacing in High-Value Industries 

The IT sector showcases bifurcation's competitive dividend most clearly. Hyderabad's IT exports grew 3.51x from ₹57,000 crores to ₹2,00,000+ crores with 12.7% CAGR—dramatically exceeding Bangalore's 2.43x growth (8.8% CAGR), Pune-Mumbai's 2.40x (8.7% CAGR), and Chennai's 2.31x (8.3% CAGR). Hyderabad's growth rate was 45% faster than Bangalore's, closing the gap from a 1:3.2 ratio to 1:2.25 and positioning Hyderabad to potentially match Bangalore in absolute terms by 2035 at current trajectories. 

Manufacturing and industrial investment show similar acceleration. The Telugu states' 3.33x growth in annual manufacturing investment (₹45,000 crores to ₹1,50,000 crores) exceeded Gujarat (2.59x), Maharashtra (2.53x), and Tamil Nadu (2.46x). While cumulative investments (₹9L crores over the decade) still trail established leaders Gujarat (₹14.5L) and Maharashtra (₹15.8L), the recent acceleration—2020-2024 averaging ₹1.7L crores annually—suggests the Telugu states are approaching peer-level annual run-rates that would make them competitive within 3-5 years. 

Infrastructure: Building Faster and Bigger 

Renewable energy demonstrates the most spectacular relative achievement. From the smallest 2014 base among major states (2,500 MW), the Telugu region's 8.4x growth to 21,000 MW represents national leadership, doubling even aggressive Gujarat's 3.62x growth and tripling Tamil Nadu's 2.50x. The 18,500 MW addition exceeds every other state's absolute contribution. AP's individual target of 38 GW by 2030 would exceed current all-India solar capacity—unprecedented state-level ambition made possible by focused governance post-bifurcation. 

Irrigation expansion tells a similar story: the Telugu states added 1.9 million hectares (40% increase) compared to Karnataka's 15%, Tamil Nadu's 18%, and Maharashtra's 12%. Telangana's Mission Bhagiratha achieved 100% rural piped water coverage—9 million connections across 25,000 villages—making it the first major state reaching universal coverage while Karnataka (68%), Tamil Nadu (72%), and Maharashtra (62%) lag significantly. Hyderabad's metro construction of 72 km in seven years represents the fastest metro development in Indian history, matching or exceeding Chennai and Bangalore despite starting later. 

Innovation Ecosystem: Explosive Entrepreneurship 

The startup explosion quantifies bifurcation's innovation dividend. From just 200 startups in 2014, the Telugu states (primarily Telangana) grew 90x to 18,000+ startups—8-10 times faster than Karnataka (11.4x), Maharashtra (8.9x), or Delhi NCR (9.1x). While absolute numbers trail Karnataka (40,000) and Maharashtra (25,000), the growth rate is unprecedented. Creating eight unicorns from zero in a decade matches what most ecosystems needed 20+ years to achieve. T-Hub's establishment as India's largest state-led incubator proved that purposeful policy can catalyze startup ecosystems even without Silicon Valley heritage. 

Why Bifurcation Delivered: The Structural Advantages 

The Telugu states' cumulative outperformance across revenue (2x faster), GSDP (29% faster), IT (46% faster), renewable energy (180% faster), and startups (800% faster) isn't coincidental. Five structural factors explain why division delivered superior outcomes: 

Competitive Federalism Unleashed: Two states competing for investments, talent, and national recognition drove policy innovation, execution speed, and governance quality that unified AP lacked. Each state watched the other's successes and raced to match or exceed them. Telangana's Rythu Bandhu farmer support pushed AP to create Rythu Bharosa. AP's aquaculture success drove Telangana's agricultural diversification. This competitive dynamic created upward pressure on performance that single unified state governance—subject to internal bargaining and regional balance politics—couldn't generate. 

Administrative Efficiency Improved: Smaller administrative units enable faster decision-making and implementation. Unified AP governed 23 districts serving 84 million people—unwieldy span of control creating bureaucratic slowness. Bifurcation created Telangana with 33 districts serving 40 million and AP with 26 districts serving 53 million—both more manageable. Chief Ministers could personally oversee flagship projects. Bureaucrats could coordinate across fewer stakeholders. Resource allocation decisions that previously required months of negotiation among competing regions could be made in weeks. 

Regional Identity Drove Pride-Based Development: Telangana's distinct linguistic and cultural identity, long feeling economically subordinated to coastal Andhra, channeled into development push proving the region's capability. T-Hub, Mission Bhagiratha, and aggressive IT positioning weren't just policy—they were identity assertion. Similarly, AP's determination to prove viability without Hyderabad drove compensatory investment in Visakhapatnam, industrial corridors, and aquaculture. Both dynamics accelerated investment and innovation beyond what unified governance, requiring regional compromise, could achieve. 

Policy Experimentation Became Possible: Two states could pursue different development models simultaneously. Telangana focused on IT, startups, and urban infrastructure; AP emphasized manufacturing, aquaculture, and renewable energy. Successful experiments could be replicated; failures remained contained. Unified AP's governance paralysis from 2009-2014—as Telangana agitation created policy gridlock—demonstrated how regional tensions in large states prevent decisive action. Bifurcation eliminated this, allowing each state to optimize for its comparative advantages rather than compromise across competing regional interests. 

Transparent Resource Allocation Eliminated Grievances: Pre-bifurcation, Telangana consistently alleged that Hyderabad's revenues disproportionately funded coastal Andhra development. Whether accurate or not, this perception created political paralysis. Bifurcation forced transparent resource division, with each state controlling its tax base and making its own investment choices. This eliminated the debilitating regional grievance politics that consumed unified AP's bandwidth, allowing both governments to focus on development rather than internal distribution fights. 

The Verdict and Vision Forward 

The Telugu states' cumulative performance over 2014-2024—revenue growth double peer states, GSDP acceleration 29% faster, IT growth 46% faster, renewable energy growth 180% faster, and startup explosion 800% faster—provides empirical evidence that thoughtful bifurcation can accelerate development through competitive federalism, administrative efficiency, and focused governance. 

This doesn't advocate indiscriminate division. India cannot and should not create fifty states pursuing marginal differentiation. But strategically bifurcating 3-5 of India's largest, most diverse states—where current unified governance demonstrably fails to deliver adequate development and where successor states would possess economic viability—could unlock similar dividends. Uttar Pradesh, Madhya Pradesh, and Maharashtra present strongest cases based on size, internal diversity, and governance challenges. 

The broader lesson transcends specific states: governance structures matter profoundly. Administrative units exceeding optimal scale—where chief ministers cannot effectively oversee implementation, where regional diversity prevents unified policy, where size creates unaccountable bureaucracy—underperform achievable potential. The Telugu experiment quantified this cost: ₹2.7 lakh crores in excess revenue, ₹4.6 lakh crores in excess GSDP, and 13,500 MW excess renewable capacity directly attributable to structural reform. 

As India pursues its ambition to become a $7-10 trillion economy by 2030, administrative reforms enabling better governance deserve equal priority with policy reforms. The Telugu states demonstrated that sometimes the most powerful development intervention isn't a new program or policy—it's restructuring governance itself to enable competition, focus, and accountability. That's the bifurcation dividend, proven and quantified. The question is whether India has the wisdom and courage to apply these lessons where they could multiply national development outcomes. The numbers suggest it should. When population explodes, bifurcations may reap proven dividends, far above anyone can imagine.