Hyderabad: Senior BRS MLA and former minister T. Harish Rao has sounded the alarm over Telangana’s economy after the state recorded deflation for the second consecutive month. He said the trend signalled a worrying downturn under Chief Minister A. Revanth Reddy’s leadership.
The Reserve Bank of India targets inflation between 2% and 6% for healthy growth, but Telangana’s rates have fallen below zero. Urban inflation was -0.93% in June and -0.44% in July. Rural inflation dropped from -0.91% in June to -1.54% in July.
Harish Rao warns of Telangana’s economic slide
“This is not good news; it’s a warning sign,” Harish Rao said, citing economist John Maynard Keynes’s view that deflation triggers a cycle of falling prices, hurting jobs, businesses, and investment.
He blamed the slump on reduced government spending, unfulfilled welfare promises, and policy missteps that hit agriculture, real estate, and small businesses. He listed pending commitments, including ₹4,000 Asara pensions, ₹2,500 for the Mahalaxmi scheme, ₹15,000 for farmers, ₹12,000 for farm labourers, ₹5 lakh Vidya Bharosa cards, and ₹12 lakh Dalit Bandhu grants.
“Fulfilling these pledges would have put money in people’s hands and boosted demand,” he said, adding that capital investment cuts had slowed infrastructure and industry growth. He claimed that projects like the Musi Riverfront Development and HYDRAA worsened the real estate slump and cost thousands of jobs.
“Revanth Reddy has pushed Telangana’s economy into decline. This deflation is a verdict on failed governance,” Harish Rao said, urging the CM to set aside political grudges, release funds into the economy, and fast-track major projects to prevent recession.
“Revanth Reddy’s Economic Disaster: Telangana Enters Dangerous Deflation Zone”
Telangana has slipped into deflation for the second consecutive month. This is a rare and dangerous sign of an economy in reverse gear.
The demand is collapsing, and the @revanth_anumula government… pic.twitter.com/Pp2vyvZbx0
— Harish Rao Thanneeru (@BRSHarish) August 14, 2025
