TG-iPASS and Industrial Sector Performance in Telangana: Evidence from Capital Efficiency, Structural Transformation, and Output Co-movement

K Praveen Kumar , Dr. Arati Jadhav

This study examines the impact of the Telangana Industrial Project Approval and Self-Certification System (TG-iPASS) on the state's industrial sector over nine years (2016–17 to 2024–25), using a universe of 22,571 approved industrial units representing ₹92,199 crore in active fixed capital. Employing a sequential quantitative framework comprising descriptive analysis, three macroeconomic diagnostic models — the Incremental Capital Output Ratio (ICOR), Structural Change Index (SCI), and Relative Growth Index (RGI) — and a lagged Spearman Rank-Order Correlation, the study evaluates TG-iPASS across four dimensions: capital efficiency, sectoral modernization, growth velocity, and investment-output temporal alignment. The phase-wise ICOR remained consistently below 1.0 across all computable phases, confirming that every rupee of facilitated capital generated more than one rupee of incremental industrial Gross State Value Added (GSVA). The SCI of 52.24 establishes substantive portfolio-level structural transformation, with Electrical and Electronic Products and Food Processing emerging as Champions, while traditional sectors such as Textiles, Paper and Printing, and Granite and Stone declined in relative weight. The RGI identified five Growth Engines outpacing the state portfolio CAGR of 9.86%, confirming a two-speed industrial landscape. The lagged Spearman Rank-Order Correlation yielded ρs = 0.738 (p = 0.037), statistically validating the temporal alignment between TG-iPASS investment flows and subsequent industrial GSVA. Collectively, these findings compel rejection of the null hypothesis, establishing TG-iPASS as a structurally transformative instrument that has produced measurable gains across capital efficiency, sectoral modernization, growth velocity, and output alignment.

This study examines the impact of the Telangana Industrial Project Approval and Self-Certification System (TG-iPASS) on the state's industrial sector over nine years (2016–17 to 2024–25), using a universe of 22,571 approved industrial units representing ₹92,199 crore in active fixed capital. Employing a sequential quantitative framework comprising descriptive analysis, three macroeconomic diagnostic models — the Incremental Capital Output Ratio (ICOR), Structural Change Index (SCI), and Relative Growth Index (RGI) — and a lagged Spearman Rank-Order Correlation, the study evaluates TG-iPASS across four dimensions: capital efficiency, sectoral modernization, growth velocity, and investment-output temporal alignment. The phase-wise ICOR remained consistently below 1.0 across all computable phases, confirming that every rupee of facilitated capital generated more than one rupee of incremental industrial Gross State Value Added (GSVA). The SCI of 52.24 establishes substantive portfolio-level structural transformation, with Electrical and Electronic Products and Food Processing emerging as Champions, while traditional sectors such as Textiles, Paper and Printing, and Granite and Stone declined in relative weight. The RGI identified five Growth Engines outpacing the state portfolio CAGR of 9.86%, confirming a two-speed industrial landscape. The lagged Spearman Rank-Order Correlation yielded ρs = 0.738 (p = 0.037), statistically validating the temporal alignment between TG-iPASS investment flows and subsequent industrial GSVA. Collectively, these findings compel rejection of the null hypothesis, establishing TG-iPASS as a structurally transformative instrument that has produced measurable gains across capital efficiency, sectoral modernization, growth velocity, and output alignment.

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"TG-iPASS and Industrial Sector Performance in Telangana: Evidence from Capital Efficiency, Structural Transformation, and Output Co-movement ", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.11, Issue 4, page no.c508-c517, April-2026, Available :https://ijsdr.org/papers/IJSDR2604326.pdf

Volume 11 Issue 4, April-2026

Pages : c508-c517

Paper Reg. ID: IJSDR_309382

Published Paper Id: IJSDR2604326

Downloads: 000130

Research Area: Commerce All

Country: Hyderabad, Telangana, India

Published Paper PDF: https://ijsdr.org/papers/IJSDR2604326

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2604326

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

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