Like Chandrababu Naidu before him, KCR’s Hyderabad ‘jinx’: Capital bagged but rural belts lost

Telangana witnessed robust economic growth under KCR too. Between 2014 and 2023, the state’s GDP grew from Rs 5 lakh crore to over Rs 13 lakh crore and the per capita income of Telangana increased from Rs 1.24 lakh to Rs 3.17 lakh, better than the national per capita income. The HITEC City in Hyderabad, an information technology hub, became the showcase of KCR’s “shining” governance model. Coupled with the state government’s welfare schemes, the BRS considered it a winning formula and even came up with the slogan: “What Telangana does today, India does tomorrow.”

Naidu, during his stint as CM of united Andhra Pradesh, made the state a testing ground for reforms, hailed by the international press as an example to follow. Naidu also convinced big IT companies to invest in Hyderabad by providing a market-friendly environment. Under the Telugu Desam Party (TDP) chief, the Gross State Domestic Product (GSDP) growth of Andhra Pradesh jumped from 5% in the early 1990s to 8% through the early 2000s. Naidu often referred to himself as the “CEO of Andhra Pradesh” and not the CM.

Yet, this robust growth was beset by rural distress, increasing income inequality and growing subaltern unemployment that was reflected in the high number of farmer suicides during his tenure. These, along with an alliance stitched by the Congress — of which KCR’s TRS, as BRS was then known, was a part — were cited as reasons for the TDP’s rout in the 2004 elections, when its tally fell from 180 constituencies to just 47.

Congress leader Y S Rajasekhara Reddy, Naidu’s successor as CM, underlined the phenomenon in an interview saying he extensively toured rural Andhra Pradesh and focused on the rural economy as he did not “want to become another Chandrababu Naidu”.

Two leaders, in parallel
There are quite a few parallels between Naidu’s and KCR’s rise and fall in power. After coming to power riding the wave of the Telangana statehood movement, KCR’s politics followed Naidu’s “focus on Hyderabad” trajectory in terms of economic growth even as he rolled out popular welfare schemes for the rural populace. Much of Telangana’s growth was powered by the services sector, with IT firms in Hyderabad having the biggest share in it.

Yet, there was widespread discontent among the beneficiaries of the BRS government’s multifarious schemes. Rythu Bandhu recipients such as small and marginal farmers who form 72% of the beneficiaries were unhappy that big farmers also benefitted from the scheme. Dalit families who were promised a one-time financial aid of Rs 10 lakh under Dalit Bandhu apart from Rythu Bandhu benefits were among the first to demand change in government as they did not get the benefits.

This widespread dissatisfaction was apparent as the results came in on December 3. The BRS, which had won 88 seats in 2018, saw its tally plunge to 39. The party swept urban constituencies in Hyderabad and Rangareddy districts, with almost half its seats coming from the Hyderabad region. However, it was routed in the rural belts. The Congress, which got just 19 constituencies last time, won 64. It swept rural belts, winning most seats in erstwhile undivided districts of Nalgonda, Warangal, Karimnagar, Nizamabad, Khammam, Mahbubnagar, and Adilabad.