socioeconomic, cultural and demographic impact of bifurcation


  • Andhra Pradesh has been one of the frontrunners among the  progressive states of India.
  • The bifurcation of the state will have significant implications on  resource flow to the two new States – Telangana and new  Andhra Pradesh – and on their  economic development.
  • In the  long run, both of the regions are  likely to benefit. But, both of them  will face considerable uncertainty  in the immediate future.
  • Hyderabad will be the common capital of new Andhra Pradesh and Telangana for an initial period of 10 years,  after which it will be the capital of Telangana.
  • The special position of Hyderabad gives rise to considerable complications in working out both revenues and fiscal transfers for both of the new states.
  • Being the center of economic activities and a source of government finance, it will critically define the fiscal prospects of the two states.


The  Gazette  of  India  No  6  dated  01  March  2014  notified  the  Andhra Pradesh Reorganisation Act 2014 (Act 6 of 2014), upon receiving the President of India’s assent. The Gazette of India No 560 dated 04 March 2014, notified 02 June 2014, as the Appointed Day, the day on which the State of Andhra Pradesh was  bifurcated  into  the  State  of  Telangana  and  the  residuary  State  of  Andhra Pradesh.

Lack  of  adequate  and  serious  consultations  with  the key  stakeholders, absence  of  consensus  amongst  key  political  parties, lack  of  transparency  and cloak and dagger mode of drafting the Bill, the insane pace with which the Bill was  pushed  through  the  State  Legislature  and  the  Parliament,  woefully inadequate  discussion  and  debate  that  characterized the passage  of  the  Bill, albeit with notable exceptions, are well known to the world.

However,  what  is  not  well  known  to  the  public  include  a  number of contradictions, omissions, commissions and inadequacies embedded across the Andhra  Pradesh  Reorganisation  Act  2014  that  have  adverse  impact  on  the health  and  well  being  of  both  successor  States.  The Act,  by  its  conception  and content,  has  created  disequilibrium,  with  negative  consequences  to  the residuary  Andhra  Pradesh.  In  a  tearing  hurry  to  please  and  placate  certain sections  of  the  State,  the government  had  inflicted  a  serious  blow  to  the fiscal health, developmental integrity of Telugu community.

For  a  decade  preceding  the  reorganisation  of  the  State,  the  Andhra Pradesh  citizens  were  subjected  to  an  endless  saga  of  misgovernance, corruption,  lack  of  development,  which  were  further compounded  by  endless procession  of  agitations,  strikes,  and  civil  strife,  all  of  which  caused  a  major setback  to  the  growth  momentum  and  poverty  alleviation  efforts.  The  overall slowdown  in  the  economy,  contraction  of  job  opportunities,  high  levels  of inflation had created a sense of gloom and doom in the minds of Telugu people.





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