2 Months of Deflation in TG Dangerous

BRS leader and former minister Harish Rao has said that the two-month deflation in Telangana is dangerous for the state economy. He was reacting to a national daily report stating that Telangana became the first state to record negative inflation for two consecutive months in 2025. Sharing his views on X, he expressed concern over the figures.

According to official data, rural and urban inflation in Telangana stood at -0.44% in June, compared to India’s 2.10%. In July, it fell further to -0.93% against the national average of 1.55%. Harish Rao said Chief Minister Revanth Reddy was doing little to address the issue, calling it an economic red alert. Citing economist John Keynes, he said deflation leads to a downward spiral that hurts businesses, kills jobs and destroys investments.

He explained that government spending had collapsed in both welfare and capital projects, leaving people with no money to spend and causing a demand crash. Policy mistakes, he added, had crippled agriculture, real estate and small businesses, while schemes like Mahalakshmi, Dalit Bandhu and Aasara remained unfulfilled.

The BRS leader further said that capital investment in Telangana was in free fall, with declining government investment starving infrastructure and industry of growth. Projects such as Musi and HYDRAA had weakened the real estate market, resulting in job losses. He warned that two months of deflation should be treated as a wake-up call, urging the government to inject money into the economy to prevent recession.

Harish Rao concluded by urging Revanth Reddy to focus on public welfare and end vendetta politics, stressing that immediate action is necessary to protect the people and the economy.