CHAPTER – 4

PROFILE OF THE STUDY AREA

The previous chapter has given clear picture of the financial inclusion in
India. The successful implementation of financial inclusion plans has far reaching
consequences, which can help many people come out of abject poverty conditions.
Financial inclusion provides formal identity, access to payments system & deposit
insurance. In this chapter the research will give profile of the study area and current
status of financial inclusion. A researcher has to know the profile of the study with
geographical and socio-economic conditions of the study area and has to know the
environmental situation of the study area. Thus, it is appropriate to present the focus
of study on understanding its development potentials and detailed information about
the emphasis on the socio-economic profile of the study area. This chapter has two
sections, the first section deals with the overview of Andhra Pradesh in general and
the second section particularly the District of Srikakulam, Vijayanagarm and
Mahbubnagar, their social composition as an introduction to the study area.

4.1 An Overview of Andhra Pradesh

Andhra Pradesh (AP) is one of the biggest states in India. A.P is 8.4% out of
India’s total geographical area and 7.1% of population, ranking fourth in terms of
geographical area and fifth in terms of population among the Indian states. It is
India's fourth largest state by area and fifth largest by population. Its capital and
largest city by population is Hyderabad. The density of population at 308 per square
km is lower than the density 382 at all-India level. The Scheduled Castes and
Scheduled Tribes account respectively for 16.2% and 6.6% of the total population in
the state. The State has the second-longest coastline of 972 km. (604 mi) among all
the States in India. The primary official language of Andhra Pradesh is Telugu;
Urdu is the secondary official language in some places and other languages spoken in
Andhra Pradesh are Hindi, Marathi, Tamil, Kannada, and Oriya. According to 2011
census, at least 10281 persons have declared English as their first language in Andhra
Pradesh. In the state one-tenth of the state population is belongs to religious minority
community. Together, the population belonging to disadvantaged castes and minority
communities accounts to about one-third of the state population. About one-third of

136
the state population is living in urban areas and the rest is in the rural areas of the
state. Andhra Pradesh is predominantly agricultural, with more than three fourths of
its workforce engaged directly in agriculture sector (CESS, 2012)178.

Andhra Pradesh is situated at the southeastern coast of India. It had spread

with 23 districts; see the map of Andhra Pradesh.

Figure 4.1: Map of Andhra Pradesh

Andhra Pradesh lies between 12°41' and 22°N latitude and 77° and 84°40'E
longitude, and is bordered by Maharashtra, Chhattisgarh, and Orissa in the north,
the Bay of Bengal in the East, Tamil Nadu to the south and Karnataka to the west.
Andhra Pradesh has the name of “Rice Bowl of India", the total rice produced is
17,796,000 tonnes in 2006. In the state there are two major rivers, the Godavari and
the Krishna, running across the state. The small enclave 30 square kilometers
(12 sq mts) of Yanam, a district of Pondicherry, lies in the Godavari Delta in the
northeast of the state. Andhra Pradesh was formed on November 1 st, 1956, as per

178
CESS, Approach to the 12th Five Year Plan of Andhra Pradesh , published by Centre for
Economic and Social Studies, Hyderabad.2012,
http://www.cess.ac.in/cesshome/pdf/Draft_Approach_to_12th_Plan_for_discussion.pdf

137
the States Reorganization Act, by merging Telugu-speaking areas of Hyderabad
State and the already existing Andhra State (Wikipedia, 2009)179.

Andhra Pradesh is the third largest economy in India in terms of GSDP.

The total GDP of Andhra Pradesh is $100 billion which is ranked third among all
states in India. Andhra Pradesh’s economic growth path has been commendable
especially during the last three decades. Starting from a relatively lower per capita
income, Andhra Pradesh has surpassed the national average about a decade ago.
Although the state’s performance is impressive in terms of economic growth when
compared to its past and when compared to rest of the states in India, its overall
development is judged as moderate. It performance in terms of social sector indicators
such as literacy and skills has not been impressive enough on a comparative scale
(CESS, 2012).

A. Languages – are common integrating factors of the people. Telugu is the official
language of the state, spoken by 83 per cent of the population. Major linguistic
minority groups include Urdu (8.63 per cent), Hindi (3.23 per cent),
and Tamil (1.01 per cent). Other languages spoken in Andhra Pradesh by less than
1.00 per cent each are Marathi (0.80 per cent), Kannada (0.74 per cent),
and Oriya (0.44 per cent). The different languages spoken by less than 0.20 per
cent of the population include the following known dialects as: Malayalam (0.08
per cent), Gujarati (0.06 per cent); Bengali (0.05 per cent) Gokhale / Nepali (0.03
per cent), Punjabi (0.01 per cent) and Sindhi (0.01 per cent). The main ethnic group
of Andhra Pradesh is the Telugu people, who are primarily Dravidians. Andhra
Pradesh ranks tenth compared to all Indian States in the Human Development
Index scores with a score of 0.416.

179
Wikipedia, Geography of Andhra Pradesh, 2012 retired
http://en.wikipedia.org/wiki/Geography_of_Andhra_Pradesh

138
 Figure: 4.2 Languages of Andhra Pradesh in 2011

8.36% 2.77% 1.13%

84.77%

Telugu Urdu Hindi Tamil

Telugu (84.77%) Urdu (8.36%) Hindi (2.77%) S Tamil (1.13%)

Source: Wikipedia, 2011

B. Population Status in Andhra Pradesh:

At present, Andhra Pradesh is the most populated state in India with 8.47 crores.
Following are the important statistics of Census 2011 (India Sanitation Portal,
2012)180. Most interesting facts reveal that:

A. Male population raises 17.20 per cent to 624m Female population raises by 18.10 per
cent to 899.5m.

B. 2001-2011 is the first decade (with the exception of 1911-1921) when population has
grown less than in previous decade. The following are top 5 states in terms of
population: 1. Uttar Pradesh (199.6m) 2. Maharashtra (112.4m) 3. Bihar (103.8m) 4.
.West Bengal (91.3m) 5. Andhra Pradesh (84.7m)

Table: 4.1 Population Trends in Andhra Pradesh

Census 1961 1971 1981 1991 2001 2011

Population 35,983,000 43,503,000 53,550,00 66,508,00 75,727,000 84,655,533
% or ± - 20.90% 23.10% 24.20% 13.90% 11.80%
Source: Census of India, 2011

180
India sanitation portal, Census of India 2011: Impact, Indian,

139
 Table: 4.2 Andhra Pradesh District wise populations

Population
Growth in
S.No. State / District Population 2011
Percentage
(2001-20011)

Urban
Rural
Total
Total Rural Urban
1. Andhra Pradesh 84,665,533 56,311,28,78 28,353,745 11.1 2 36.3
2. Adilabad 21,737,738 1,979,912 757,826 10 8 15
3. Nizamabad 2,552,073 1,964,273 587,800 9 2 38
4. Karimnagar 3,811,738 2,817,507 994,231 9 0 46
5. Medak 3,031,877 2,303,756 728,212 14 1 90
6. Hyderabad 4,010,238 0 4,010,238 5 0 5
7. Rangareddy 5,296,396 1,572,032 3,724,364 48 -4 92
8. Mahabubnagar 4,042,191 3,435,765 606,423 15 9 63
9. Nalgonda 3,483,648 2,821,905 661,743 7 0 53
10. Warangal 3,522,644 2,524,498 998,146 9 -4 60
11. Khammam 2,798,214 2,142,540 655,674 9 4 28
12. Srikakulam 2,699,471 2,263,124 436,347 6 0 57
13. Vizianagaram 2,341,868 1,852,446 490,422 4 1 19
14. Visakhapatnam 4,288,133 2,250,655 2,037,458 12 -2 33
15. East Godavari 5,151,549 3,836,952 1,341,597 5 2 14
16. West Godavari 3,934,782 3,126,191 808,591 3 2 8
17. Krishna 4,529,009 2,672,718 1,857,291 8 -6 38
18. Guntur 4,889,230 3,232,485 1,656,745 10 1 29
19. Prakasham 3,392,765 2,730,648 662,116 11 5 42
Sri. Potti
20. Sriramulu 2,966,082 2,103,773 8,623,309 11 2 44
Nellore
21. Y.S.R 2,884,524 1,900,788 988,736 11 -562 67
22. Kurnool 4,046,601 2,902,877 1,143,724 15 7 40
12.1
23.
Anantapur 4,083,315 2,936,359 1,146,956 6 8 25
24. Chittoor 4,170,468 2,941,581 1,228,887 11 0 52
Source: Census of India, 2011

4.2 Macroeconomic Scenario of AP

Andhra Pradesh had the experience in the implementation of the economic

reforms for the economic development performance. Andhra Pradesh was the early
adopter of green revolution among other states; it has been dynamically pursuing
economic reforms since the mid 1990s to step up economic growth and alleviating
poverty. In the state the Information Technology (IT) sector has been commendable,

140
making it one of the leading states in the country. And also significant strides have
been made in the areas of Self-Help Groups, participatory managements of
infrastructure, resources like water, land and forests. From the starting, from a
relatively lower per capita income, AP has surpassed the national average per capita
income and continued its upswing.
4.2.1 The Growth Experience
The Andhra Pradesh state had the growth experience in the recent past, when
compared to previous decades; the last decade’s average growth rate of the state
economy being substantially higher. The economy is growing at an average rate of
8.2% during last decade, 2002- 2012. The last two year’s average growth at 8.4% is
even higher, but it is noteworthy that the state growth performance was better than
that of national average during both the 10th and the 11th Plan particularly in
agriculture and industry sectors
According to 12th five year plan report (2012), the Gross State Domestic Product
(GSDP) of Andhra Pradesh is growing at an average rate of 8.2% per annum, since
the 2002-2012. There are major sectors - agriculture, industry, and services – recorded
strong performance since the last decade. Therefore, the average growth rate in the
10th five year plan was 8.1% as against the national average of 7.6%. Global recession
and drought brought down the GSDP growth from 12.0% in 2007-08 to about 6.9%
during 2008-9 and to 6.0% during 2009-10.
Table 4.3 Growth in Real Gross Domestic Product of Andhra Pradesh and
All India by Major Sectors

141
 And also the Industrial growth rate in Andhra Pradesh was 7.1% in 2008-09,
and showed a further decline to 6.4% in the following year. It slowed down during
2011-12, the terminal year of 11 th Plan because, global crisis effected negative growth
owing to unfavorable weather conditions, floods and drought in 2011-12. However,
final performance result showed that the Andhra Pradesh economy could attain an
average growth rate of 8.3% during the 11th Plan which is marginally higher than that
achieved during the 10th Plan. The A.P state growth performance was better than that
of national average during both the 10th and the 11th Plan particularly in agriculture
and industry sectors However, due to fluctuations in the growth rates -sectoral as well
as overall- have sharply declined over the years. It saw negative GSDP growth rate,
which occurred almost twice in every decade till 1980s, and it has been absent after
1997-98 (Fig 5.1.1) (Centre for Economic and Social Studies, 2012)181.
Figure: 4.3 Annual Growth Rates of GSDP of Andhra Pradesh

Source: AP Report, 2012

4.2.2 per Capita Income

The per capita income in the state has remained somewhat higher than the
national average since 2000-01. The per capita GSDP steadily rose during the last two
plan periods and reached Rs. 47950 by the terminal year of the Eleventh Plan, 2011-
12. The ratio of the state per capita GSDP to the national average, fluctuated during
the late 1990s and early 2000s and the state per capita income was to 3% higher than
the national average till 2003-04. The ratio rose further in subsequent years to reach
10% more than national average in 2008-09. It declined to 8% in 2009-10 but rose
again to reach 11% in the following years (Figure 2.1.1) (S. Mahendra Dev, 2007)182.

181
Centre for Economic and Social Studies, Approach to the 12 th Five Year Plan of Andhra
Pradesh, published by Centre for Economic and Social Studies, Hyderabad, 2012
182
S. Mahendra Dev, Inclusive Growth in Andhra Pradesh: Challenges in Agriculture,
Poverty, Social Sector and Regional Disparities, published by Centre for Economic and
Social Studies, Hyderabad, 2007.

142
 Figure 4.4 Per Capita GSDP of Andhra Pradesh as a percentage of All-India

Source: DES.
4.2.3 Inter-District Variations
As in other parts of India, there exist substantial variations in the levels of
development across districts of Andhra Pradesh. Figure 2.1.2 shows the districts
arranged by average per capita income during 2007-10. Srikakulam and Mahbubnagar
were at the bottom end by per capita income while Hyderabad and Visakhapatnam
were at the top end during this period (S. Mahendra Dev, 2007)183.
Average Per Capita Income across districts during 2007-10 arranged in ascending
order and exponential growth rates during 1993-2000 and 2001-09
Figure: 4.4 per capita Income across districts

Note: Per capita DDP is three year average.

Figure 4.2.3 also shows the growth rates recorded by the various districts
during 1993-94 to 2000-01 and 2001-02 to 2009-10. Hyderabad district and
Visakhapatnam districts have grown at a high rate for both the periods. Nalgonda and
Kadapa recorded the highest growth at 12.6% and 12.0% per annum respectively
during 2001-09. A notable feature is that the district Kurnool which was at the bottom

183
abid….

143
during 1993-2000 in terms of growth rate recorded one of the highest the growth rate
of 10 percent during 2001-09.
In the recent decade Andhra Pradesh performance was better towards
reducing poverty particularly in rural areas. According to NSS survey estimates based
on household consumption data indicate that poverty in AP has always been lower
than the national average and not only reduction in poverty but also faster than that of
all India. The poverty head count ratio in Andhra Pradesh has declined from 44.6% to
29.9% during 1993-94 to 2004-05.

4.2.4 Employment
Andhra Pradesh had an embedded objective of the economic development that is
to provide people opportunities for meaningful employment. It has have the highest
(around 47.6%) work participation rate (WPR) duly contributed by higher female
work participation in the state. A.P is the second highest female work participation
rate (36.8%) among the major Indian states, then next to Himachal Pradesh. However,
the majority of the population in Andhra Pradesh is found to be working in one or the
other economically gainful activity. The overall working population is 83.6 million in
the state for the year 2009-10, (A.P Goverment, 2007)184.

Table: 4.4 Work Participation Rate (WPR) in Andhra Pradesh and India by Gender
and Location

Source: Report on employment & Unemployment Survey 2009-10,

According to the Ministry of Labour & Employment report (2009-10) the cause
of the concern is declining WPR and decline in growth of employment. The decline in
female WPR is significantly higher than that of males in the recent times. The growth
of employment during 2004-05 and 2009-10 turned out to be negative, and it raises
the policy concern because when the state economy is on the high growth path, its
employment growth turned negative. Herein three important explanations one can pin

184
A.P Government, Human Development Report, published by Government of Andhra
Pradesh,
http://www.aponline.gov.in/Apportal/HumanDevelopmentReport2007/APHDR_2007_Chapte
r4.pdf

144
down are as follows. The demographic transition and consequent declining growth of
population in the state will act as a limiting factor for the growth of labour force
unless the WPR increases (Government of India Ministry of Labour & Employment,
2010)185.
Another concern is structure of employment by sectors. The share of
agriculture in GDP has been falling sharply (below 15% at national average and
below 20% in Andhra Pradesh), the decline in the share of employment has been very
slow (still above 55%). The performance of the state in terms of change in the
structure of employment during 1980s is impressive. Nevertheless the share and rate
of increase in the non-agricultural workforce in the state was relatively lower than that
of the national average (A.P Goverment, 2007)186.
Table: 4.5 Growth of Employment in Andhra Pradesh by Sectors

Source: Computed based on NSSO data for Employment and DES data for GSDP.

The performance of sub-sectors in terms of sector specific growth of

workforce has shown a negative growth in agriculture. As a matter of fact Andhra
Pradesh is the only major Indian state that has experienced such a situation. In non-
agriculture growth of employment was 3.2% per annum between 1993-94 and 2004-
05 and but thereafter it declined to 0.47% pa between 2004-05 and 2009-10.

185
Government of India Ministry of Labour & Employment, Report on employment &
Unemployment Survey 2009-10, published by Government of India
Ministry of Labour & Employment, New Delhi, 2010.
http://labourbureau.nic.in/Final_Report_Emp_Unemp_2009_10.pdf
186
A.P Government, Human Development Report, published by Government of Andhra
Pradesh,

145
4.2.5 Poverty and Inequality
In Andhra Pradesh the poverty head count ratio declined from 44.6% to
29.9% during 1993-94 to 2004- 05 at a rate of 1.3 percentage points per annum. And
also during the same period all India poverty ratio fell from 45.3 to 37.2% at a rate of
0.7 percentage points per annum. Therefore, there is acceleration in the pace of
reduction of poverty especially in the state between 2004-05 and 2009-10. Estimates
for 2009-10 indicate a further decline in poverty to 19% in the state from 30% in
2004-05 in AP while it fell to 32% from 37% at all India level during the same period
(FISME, 2007)187.
Table: 4.6 Poverty Ratios in Andhra Pradesh and for All India

Source: Planning Commission (2010)

Planning Commission report (2010) indicated that the Rural Poverty in
Andhra Pradesh had been reduced by more than half from 48% in 1993-94 to 21% in
2009-10. And also the urban poverty in the state declined considerably to 15% in
2009-10 from 35% in 1993-94. However, during this period, rural poverty at all India
level declined from 50% to 36% and urban poverty from 32% to 21%. Thus, AP’s
growth process seems to be wide spread enough to benefit the poor. See the table: 4.8
Number of poor in Andhra Pradesh.
Table: 4.7 Numbers of Poor in Andhra Pradesh and in India

187
FISME, Exclusive Growth – Inclusive Inequality, published by Federation of Indian
Micro and Small & Medium Enterprises (FISME), New Delhi, 2007.
http://www.fisme.org.in/document/FISME_occassional_paper_1.pdf

146
 Sources: Planning Commission report (2010)

The clear analysis of the poverty trends showed the in the state the absolute
number of poor is also declining faster than what was observed at all India level. The
overall total number of poor in the state declined by nearly half from 31 million in
1993-94 to 16 million in 2009-10, whereas the size of poor at all India level declined
by only about 9% from 405 million to 370 million during this period. Though, the
bulk of the poor in the state live in rural areas, their share in total poor is reducing
overtime because of rapid urbanization and migration. The share of urban poor in the
total poor of the state increased from 21% to 26% between 1993-94 to 2009-10.

Figure: 4.6 Share of Andhra Pradesh in Number of Poor at all-India

Elasticity of poverty with respect to GDP as implied by the ratio of rate of poverty
reduction and per capita GDP growth rate has been higher for the state compared to
the national average. For the period 1993-94-2004-05, the elasticity of poverty was -
0.74 and -0.41 for the state and all India respectively. This was the period when the
consumption inequalities have increased in state as well as in India. The Gini
coefficient of inequality for rural areas of the state increased from 0.25 to 0.27
whereas at all India level it increased 0.26 to 0.28. In urban areas the inequalities rose
sharply from 0.30 to 0.36 in the state and from 0.32 to 0.36 in India. In this period, the
rural areas in the state as well as in India experienced lower growth than the urban
areas. The differential growth together with the rising inequalities has blunted the
poverty reducing effect of growth.

147
4.2.6 Welfare of Socially Disadvantaged Sections

In the state of Andhra Pradesh the social groups such as SCs, STs, OBCs and
Minorities have historically been disadvantaged and vulnerable. All these
disadvantaged communities are considered to be marginalized in the development
process. Though there has been a progress in the development of these communities
when compared to their past, they are not yet on an equal footing with the mainstream
society on any development indicator. However, the majority of these social groups
have been subjected to social exclusion and discrimination, because the
development/deprivation divides social groups. The Government of Andhra Pradesh
was proposed in the twelfth plan that there should be more faster, inclusive, and
sustainable growth that should reach socially disadvantage sections.

a. Scheduled Caste(SC)

According to 2011 census report showed that the SC population has been
increasing over the period, but the majority of the proportion of SCs is still living
in rural areas. It can be observed that a sizeable Scheduled Caste population in
1991 was 10.6 million constituting 15.9 per cent of the total population of the state.
While in 2001, SC population is 2.3 million constitute 16.2 per cent of the total
population of the state. Whereas in 2001 census, the percentage of SCs in the total
population was high in the district of Nellore (22.5 per cent) followed by Prakasam
(21 per cent) and Chittoor (18.7 per cent) in the state of Andhra Pradesh (A.P
Goverment, 2007)188.

b. Literacy and Education Status

According Census data, the overall literacy rate in the state from 29.9 per cent
in 1981 to 60.5 per cent in 2001. The literacy level among SCs has increased from
17.7 per cent in 1881 to 53.6 per cent in 2001. But there is huge gap in literacy
between general population literacy and SCs. SCs female literacy increased over the

188
.P Government, Human Development Report, published by Government of Andhra
Pradesh,

148
period at a slower rate. And also there was huge gap between SC female literacy (43.4
in 2001) and overall female literacy rate (50.4 per cent in 2001).
Table: 4.8 I-XII class (All) and SC dropouts

Source: SSA report 2011

Though the percentage of dropouts of boys and girls of SCs has been
decreasing gradually, it was still 69 per cent in 2007-2008. The dropout rate of girls is
higher than boys among the SCs. The dropout rates of both boys and girls are higher
than state average.

C. Occupation

According to Labour Minister Report the major percentage SC population

depended only as wage labours, and agriculture labours. This is not much of self-
employment among SCs population. Though the agricultural labour and self
employment in agriculture is decreasing, the share of agriculture sector of SCs is
dominating with 63 per cent for their livelihood. The predominant occupation of SCs
continues to be agricultural labourers (Venkatanarayana, 2011)189.

Table: 4.9 Distribution (%) of Population by Occupation of Household across Social

Groups

Source: M. Venkatanarayana (2011

189M. Venkatanarayana (2011) “Socio-Economic Conditions of Scheduled Castes (SCs) and

Tribes (STs) in Andhra Pradesh”, Manuscript, Centre for Economic and Social Studies,
Hyderabad.

149
D. Poverty Level
According to the Lakadawala Committee based estimates, the rural and urban
poverty ratio among SCs 50.6 per cent in 1983 and 2004 37.4 per cent respectively.
On the basis of the new official estimates of Tendulkar Committee poverty among
SCs in 2009-10 was 23.5 per cent in rural areas, and 17.4 per cent in urban areas.

B. Scheduled Tribes
1. Population Profile
According to 2001 census, it has increased to 50.24 lakhs constituting about
6.59% of the total population of the state. While the ST population was growing at 3.9
per cent per annum, it is the highest population growth followed by other social
groups. There was a wider variation in distribution of ST population across districts in
Andhra Pradesh. They are more concentration in the hilly and forest areas. According
to 2001 census, the percentage of the ST population is high in Khammam (26.50%)
while lowest is registered with Kadapa (2.40%).

2. Literacy and Educational Status

The literacy ratio of STs in 1981 26.1 per cent and in 2001 37.1 per cent, it had
increased from 7.8 per cent in between 1981 to 2001. However, the female literacy
rate has increased from 20.4 per cent in 1981 to 26.1 per cent in 2001. Still, there is
huge gap in literacy between general population literacy and STs. There is need to
reduce the gap which increased over decade from 22.1 per cent in 1981 to 23.4 per
cent in 2001. STs Female literacy increased over the period at a slower rate. The gap
between general population literacy and STs Female literacy is also increased over
period from 16.9 per cent in 1981 to 24.3 per cent in 2001. There is need to reduce
this gap between general population literacy and ST population literacy (CESS,
2012)190.
Table: 4.10 I-XII class (All) and ST dropouts in Andhra Pradesh

Source: SSA, 2011

190
Centre for Economic and Social Studies, Approach to the 12 th Five Year Plan of Andhra
Pradesh, published by Centre for Economic and Social Studies, Hyderabad, 2012

150
 Though the percentage of dropouts of boys and girls of STs decreasing
gradually, it is still 82.26 per cent in 2007-2008. The dropout rate of girls is higher
than boys among the SCs. The drop-out rates of both boys and girls are higher than
state percentage. (SSA, 2011)191

3. Occupation: The majority of the ST population depended on only agriculture and

stay in rural areas. The sources of self-employed in agriculture as livelihood of STs,
was declined from 45 per cent in 1993-94 to 41.6 per cent in 2009-10. Urban ST
population was working as Labour from 26 per cent in 2009-10. Most of STs are
working as self employed in agriculture and regular wage or salaried in urban.

Table: 4.11 Distributions (%) of Population by Occupation of Household across

Social Groups

Source: M. Venkatanarayana (2011)

4. Poverty Level:

According Tendulkar Committee estimates of poverty among STs in 2009-

10 was 39.3 per cent in rural areas, and 14.9 per cent in urban areas. But, Lakadawala
Committee estimates reveal that urban poverty of STs is higher than rural poverty
ratio while Tendulkar Committee estimates reveal that rural poverty is higher than
urban poverty ratio.

C. Other Backward Classes (OBCs)

1. Population Profile

In India Backward Classes population falls under 135 communities pursuing

traditional activities such as cattle and sheep rearing, toddy tapping, earth workers,
191
SSA, Inclusive Education for All, published by Rajiv Vidya mission, SSA, Hyderabad,
2011. http://ssa.ap.nic.in/IED1.html

151
fishing, weaving, goldsmith, blacksmith, brass smith, carpentry, stone carving,
laundry, pottery, oil pressing, hair dressing, tailoring and dyeing etc, In the report on
Social, Economic and Educational status of the Muslims community of India, by
chairmanship of Rajindar Sachar committee (2006), estimated that OBCs constituted
49.4 percent population living in rural areas in 1999-2000, whereas OBCs population
engaged 50.2 percent to state total population in 2004-05 (Anees Chishti, 2006)192.

2. Occupation

The majority percentage of OBC’s was self-employed in non-agriculture and

agriculture in rural areas. Among those dependent on agriculture sector, OBCs
dominated with 60 per cent for their livelihood. But in urban area, the percentage of
the self employment is 152 in agriculture and casual labours decreased from 2004-05
to 2009-2010. In response to this, the proportion of regular wages and salaried
increased from 2004-05 to 2009-10

Table: 4.12 Distributions (%) of Population by Occupation of Household across

Social Groups

Source: M. Venkatanarayana (2011)

3. Poverty Level

The Tendulkar Committee estimates reveal that rural poverty was 22.2 per cent
and urban poverty ratio was 15.7 per cent in 209-10. The Lakadawala Committee
estimates reveals that urban poverty ratio of OBCs is higher than rural poverty ratio.
Lakadawala Committee reveals that poverty ratio of OBCs was 8.60 per cent in rural

192
Anees Chishti, Sachar Committee Report : A Review,
http://www.mainstreamweekly.net/article95.html

152
and 28.7 per cent (urban) in 2004-05 respectively while Tendulkar Committee
estimates reveals that rural poverty (Planning Commission , 2009)193

D. Minorities
1. Population Profile

Andhra Pradesh State Minorities Commission reported that according to the

census 2001, the proportion of minority population was 10.99 per cent and it was
11.59 per cent in 1961. The proportion of minority population has been declined over
period in the state. The majority of minorities Muslims was registered high percentage
(89.1 per cent) in the state. Their proportion has increased over period from 7.55 per
cent to the population in 1961, 8.47 per cent in 1981, and 9.17 per cent in 2001. The
other minorities such as Sikhs constituted 0.04 per cent, Buddhists 0.04 per cent, Jains
0.05 and other 0.01 to the state’s total population in 2001 (APSMFC, 2010)194.

4. Literacy and Educational Status

Among all religions, the literacy rate was high (82 .61 per cent) in Jains
followed by Sikhs (68.9 per cent) and Christians (66.03 per cent). While the results of
the 2001 census show that gender difference in literacy rate among different
religions, Buddhists female literacy rate was lowest (36.65 per cent ) followed by
Sikhs (40.67 per cent). Highest female literacy rate (47.39 per cent) accounted in
Christians. Similarly, highest male literacy (63.35 per cent) reported in Buddhists
followed by Sikhs (59.35 per cent). The literacy rate of Muslims female is particularly
low (42.62) in 2001.

Table: 4.13 Distribution (%) of Population by Occupation

of Household across Religious

193
Planning Commission, Report of the Expert Group to Review the Methodology for
Estimation of Poverty, published by Planning Commission, New Delhi,, New Delhi,2009.
194
APSMFC, Minority Population Census: Statement As Per 2001 Census
http://www.apsmfc.com/ministry-population-cenus.html

153
 Sources: Religion Census, 2001
The table 4.13 shows the percentage of total workers (45.79 per cent to total
population) is less than total non-workers (54.21 per cent) in 2001. Lowest percentage
of total workers accounted in Jains (30.44 per cent) followed by Muslims (33.79 per
cent) and Sikhs (37.24 per cent). However, the percentage of other worker was high in
all most all minority communities.

3. Occupation: Cultivators are high (12.15 per cent) in Buddhists followed by

Christians with (29.2 per cent). Agricultural workers are high (17.18 per cent) in
Buddhists community followed by the Christians with (16.54 per cent). Most of
Minorities are engaged in non-agricultural occupations, sales persons, shop assistants,
tailors, Machinery fitters. Muslims have traditionally been engaged in skilled
occupations like weaving, spinning, artisanship and large proportion of them are street
venders (CESS, 2012)195.

SECTION-II
4.3 Status of Financial Inclusion in Andhra Pradesh
Reserve Bank of India had directed all state governments that Lead Bank
should constitute a Sub Committee of District Consultative Committees (DCCs) and
to draw a road map by March, 2010 to provide banking services through a banking
outlet in every village have a population of over 2000. Therefore, all the banking
outlets may not be necessarily extended through brick and mortar branch but can be
provided through any of the various forms of ICT – based strategies, including
through BCs. Convenor Bank for State Lead bank Committee (SLBC) of Andhra
Pradesh. Finally all the banks have advised all the DCCs to constitute Sub
Committees and complete the preparation of Road maps in the districts. Then all the
DCCs have constituted Sub Committees and completed the allocation of villages
among banks. The Banks in Andhra Pradesh have to provide banking services in 6699
villages by the end of March, 2012 as advised by RBI (AP LEAD Bank, 2011)196.

195
Centre for Economic and Social Studies, Approach to the 12 th Five Year Plan of Andhra
Pradesh, published by Centre for Economic and Social Studies, Hyderabad, 2012
196
AP Lead Bank, Financial Inclusion: Implementation of Financial Inclusion plan by AP
Lead bank http://www.slbcap.nic.in/pages/financialinclusion.aspx

154
 Table: 4.14 Banking Category in Andhra Pradesh
S.No Category Number of Branches

1 Rural 3057

2 Semi Urban 2203

3 Urban 2046

4 Metro 1148

5 Total 8484

The table 4.14 above indicates the overall scenario of the Andhra Pradesh in banking
sector. There are total braches 8484, among these 3057 branches are in rural areas of
Andhra Pradesh, 2203 branches in semi Urban and 2046 branches are 11Urban and
only 1148 branches are in Metro, as follows:
Table: 4.15 Financial Statuses in Andhra Pradesh
Particulars Amount
Total deposits in the State 3,08.248
Total Advances in the State 3,48,764
Credit Deposit Ratio (RBI norms of 60%) 113.14%
Total Priority Sector Advances 1,62,915
% of Priority Sector Advances to Net Bank 49.78
Credit (RBI Norm 40%)

The table 4.15 indicates that overall scenario of financial status in Andhra Pradesh,
the majority Rs. 3, 08,248 of total deposits in the State, total advances in the state
Rs. 3,48,764 and Credit Deposit Ratio (RBI normal of60%) Rs. 113.14 per cent
whereas total priority sector advances 1, 62,915 per cent and 49.78 per cent under
priority sector advances of net bank credit(RBI Norm 40) in the state of Andhra
Pradesh.
Table: 4.16 Outstanding Priority Sector Advances (Rs. In Crores)
Agricultural Advances % of Agri. Adv. to NBC (RBI 90,654 (27.70%)
norm 18%)
Non Farm Sector (% to Net Banking Credit) 27,244 (7.81%)
Other Priority Sector Advances (% to Net Banking Credit) 45,017
(12.91%)
Total Priority Sector Advances 1, 62,915(5,519%)
Of which Educational Loans Housing Loans SHGs 26,702 (13,153%)

Sources: SLBC Report, 2012

155
 The key point is that of the 10.752 million BC accounts; 4.4 million are in
Andhra Pradesh alone. Similarly, of the 13, o77 points of presence established by Bes,
55.4 per cent (7.250) are in Andhra Pradesh. So, it would not be wrong to assume that
financial reforms seem to be happening largely in one state. In the other states, there
is not a compelling business case. Andhra Pradesh is the only state government
paying a 2 per cent transaction fee on EBT, of which 1.75 per cent goes to the BC and
0.25 per cent to the Bank. The RBI has requested other states to emulate the AP
model, but there are few takers.

156
 Table: 4.17 Cost of No-frill account

Over 2 years (April1, 2007 to May Smart Card Based Scale roll-out in
30,2009) pilot Projects Andhra Pradesh
covering 28 locations using plastic
cards
Number of BC operated No-frill accounts 150000 2930000
Number of Active accounts 375000 278350
Average No. of transactions per account- 1.42 2.432
Yr1+Yr2
Average No. of transactions per live 5.30 25.60
account Yra+Yr
Technology+ BC payout per account Yr1+ 210 30.944
Yr2
Back end cost per account Y r1+ Yr2 I 25.94 14.88
Cost per account Yrs+ Yr2 I+II# 235.94 45.82
Technology + BC payout per live account 840.00 326.73
III
Back end cost per live account D 103.76 156.63
Cost per live account- III+D 943.76 483.37
Per Transaction Cost (Technology + BC) A 147.89 12.72
Back end cost per transaction B. 18.27 6.12
Total per transaction cost A+B 166.15 18.84
Per Transaction Cost (Technology + BC) 158.49 12.97
life account C
Total per transaction cost-life account C+D 262.25 169.60
Sources: SLBC Report, 2012

The accounts in Andhra Pradesh comprised 30 per cent pension accounts and
70 per cent NREGA accounts. Therefore the usage pattern is higher (2.43) despite the
lower per cent of active accounts when compared to pilots (1.42). Smart card based
payouts seem to have now stabilised at Rs. 145 per account for Year 1(Rs 80
technology cost+ Rs 65 servicing cost) and Rs 65 for year2. In Andhra Pradesh, the BC
is using plastic card largely as proof of photo ID, so the technology and account
servicing cost is much lower at Rs. 30.94 ( it is further to be noted that in AP the BC is
paid servicing charges only for active account unlike in the smart-card based pilots)
(Kocheer, 2012)197

197
Sameer Kocheer, Speeding Financial Inclusion, published by Skoch Foundation, New
Delhi, 2012

157
4.4 Demographic Profile of Selected Districts

A. Srikakulam District
Srikakulam district occupies an area of 5,837 square kilometers (2,254 sq mi).
Srikakulam district can be divided into two main distinct natural divisions. A portion
of Srikakulam district is plain terrain with intense agriculture and another portion of
the district is rocky and hilly terrain covered with forests. Some extent of
Mahendragiri hills also covers Srikakulam district. Most of the forest area of the plain
terrain has been damaged by intense agriculture. Kotthuru. Hiramandalam,
Pathapatnam, Kalingadal reservoir and some other areas are still covered with dense
forests. Srikakulam district has the longest coast line about 193 km (120 mi) in the
state of Andhra Pradesh. It is bordered by Orissa on the north, Vizianagaram
district on the west and south, Bay of Bengal on the east (Wikipeida)198.

According to the 2011 census Srikakulam district has a population of 2, 699,

and 471, roughly equal to the nation of Kuwait or the US state of Nevada. This gives
it a ranking of 147th in India (out of a total of 640).The district has a population
density of 462 inhabitants per square kilometre (1,200 /sq mi). Its population growth
rate over the decade 2001-2011 was 6.38%. Srikakulam has a sex ratio of
1014 females for every 1000 males, and a literacy rate of 62.3%. (Srikakulam,
2012)199

198
Wikipeida, Srikakulam district, http://en.wikipedia.org/wiki/Srikakulam_district
199
Srikakulam, Srikakulam district details, http://srikakulam.nic.in/dist_info_home_page.htm

158
 Table: 4.18 Population Assembly Constituencies wise population

Name of Const'. Mandals Population SC ST

1.Srikakulam
Assembly Srikakulam, Gara, Srikakulam Town. 262,149 19,438 1,009
Constituency
2.Etcherla Ranastalam, Laveru, Etcherla, G.Sigadam. 281,908 32,005 1,412
Rajam, Santakaviti, R-Amadalavalasa,
3.Rajam 264,867 31,303 2,998
Vangara.
4.Amadalavalasa Amadalavalasa, Sarubujjili, Burja, Ponduru 231,602 22,509 2,586
Palakonda, Seetampeta, Bhamini,
5.Palakonda 230,814 32,207 61,140
Veeragattam.
Narasannapeta, Polaki, Jalumuru,
6.Narasannapeta 249,001 14,906 6,944
Saravakota.
Pathapatnam, Meliaputti, Hiramandalam,
7.Pathapatnam 243,092 27,937 36,850
Kotturu, L.N. Peta.
Tekkali, Nandigam, Santabommali,
8.Tekkali 258,815 14,906 6,944
Kotabommali.
9.Palasa Palasa, Mandasa, V.Kotturu.naupada NWP 233,650 12,638 13,469
10.Ichapuram Ichapuram, Kanchili, Kaviti, Sompeta 281,679 9,995 16,600

Figure: 4.7 Srikakulam Map with Revenue Mandals

Source: Srikakulam district Website

159
There are three revenue divisions and 38 mandals in the Srikakulam district. The
revenue divisions are Srikakulam, Tekkali and Palakonda.

Table: 4.19 Srikakulam district Divisions

Srikakulam Division Tekkali Division Palakonda Division

1.Veeraghattam 2.Vangara 3.Regidi Amadalavalasa

4.Rajam 5.Ganguvari Sigadam 6.Laveru

7.Ranastalam 8.Etcherla 9.Ponduru

10.Santhakavati 11.Burja 12.Palakonda

13.Seethampeta 14.Bhamini 15.Kothuru(Srikakulam)

16.Hiramandalam 17.Sarubujjili 18.Amadalavalasa

19.Srikakulam 20.Kalingapatnam 21.Polaki

22.Narasannapeta 23.Jalumuru 24.Saravakota
25.Pathapatnam 26.Meliaputti 27.Tekkali
28.Kotabommali 29.Santhabommali 30.Nandigam
31.Vajrapu Kotturu 32.Palasa 33.Mandasa
34.Sompeta 35.Kanchili 36.Kaviti
37.Ichchapuram 38.Lakshminarasupeta

B. Vijayanagarm district profile:

Vijayanagarm is located within the geographical co-ordinates of 17- 15’

and 19 – 15’ of the northern latitudes and 83- 00’ and 83-45’’ of the eastern
longitudes. It occupies an area of 6,539 square kilometers (2,525 sq mi).
Vijayanagarm district can be divided into two distinct natural divisions i.e. plains and
hilly regions. The hilly agency area covers Pachipenta and
Gummalaxmipuram mandals, and Salur, Makkuva, Komarada and mandals partly.
Rest of the area is plain. Vijayanagarm district was mostly consists of hills covered by
the Eastern Ghats which run parallel to the Coast from the North-East to South-West.
The average height of these hills is over 914 meters, although there are several peaks
of 1,219 meters high.
In Pravathipuram division, the hills are lower than elsewhere and consist
of steep and rugged lines devoid of plateaus. Vizianagaram district have main towns

160
were Pravathipuram on the north, Cheepurupalli on the east, Vizianagaram on the
south and S.Kota on the west, remaining main towns Bobbili and Salur in the center
of the district (Wikipedia, 2011)200.

The principal rivers flowing in the district are River Nagavali,

Suvarnamukhi, Vegavathi, River Champavathi, River Gosthani and Kandivalasa. The
main soils are red soils, sandy loams and sandy clay, which constitute 96% of the total
area. The predominant soils are loamy with medium fertility. There are red loamy
soils in dry lands and clay loamy in wet lands. The soils at some places are as thick as
4 meters, probably represents alluvium along the valleys.

The climate of Vizianagaram district is characterized by high humidity nearly

all-round the year with oppressive summer and good seasonal rainfall. The summer
season from March to May is followed by South West monsoon season, which
continues up to September. October and November constitute the retreating monsoon
season. The climate of the hilly regions of the district receives heavier rainfall and
cooler than the plains. The maximum temperature recorded during 2004 is 39.6 O C
during May and the minimum temperature is 17.1O C during December.

The normal rainfall of the district for the year is 1,131.0 MM as against the
actual rainfall of 740.6 MM received during 2002-03. The district gets the benefit of
both the South -West and North- East monsoon. There is a coast line of 28 kilometers
in the district on the east facing Bay of Bengal. There are 8 villages and 16 hamlets
consisting of 6,993 fishermen. They are situated in Pusapatirega and
Bhogapuram mandals.

According to the 2011 census Vizianagaram district has a population of

2,342,868; this gives it a ranking of 193rd in India (out of a total of 640). The district
has a population density of 358 inhabitants per square kilometer
(930 /sq mi). Its population growth rate over the decade 2001-2011 was
4.16%.Vizianagaram has a sex ratio of 1016 females for every 1000 males, and
a literacy rate of 59.49%.
The district had a population of 9, 58,778 in 1901. The total population of
district increased to 22, 49,254 as per 2001 census. They consists of 11, 19,541 males
and 11, 29,713 females. There are 1009 females per 1000 males in the district. The
total area is 6,539 square kilometers. The population density is 344 persons per km².
200
Wikipedia, Vijayanagarm district, http://en.wikipedia.org/wiki/Vizianagaram_district

161
The increase in population during the decennium from 1991 to 2001 is 6.55 percent
for the district as against 14.6 percent for the Andhra Pradesh State (Wikipedia) 201.

The Scheduled Caste population is 2, 38,023 and Scheduled Tribe population

is 2, 14,839 which comes to 10.58% and 9.55% respectively to the total population of
the district. The rural population of the district is 18.37 lakhs which comes to 82% of
the total population and the urban population is 4.12 lakhs which comes to 18% of the
total population. Vizianagaram Town with a population of 1, 95,801 is the only Class-
I town in the district. There are twelve towns in the district; Vizianagaram, Cheep-
urupalli, Gajularega, Kanapaka, Bobbili, Parvathipuram,Salur,
Sriramnagar, Nellimarla, Kothavalasa, Chintalavalasa, Jarjapupeta and Gajapathinaga
ram. All the towns are in plain areas of the district (Vijayanagram, 2012)202.

1. Divisions:
There are 12 assembly and 2 parliamentary constituencies in Vizianagaram district.
The parliamentary constituencies are Vizianagaram and Pravathipuram. The assembly
constituencies in Vizianagaram district are Bhogapuram, Bobbili Cheepurupalli,
Gajapathinagaram,
Nagur, Parvathipuram, Salur, Nellimarla, Srungavarapukota, Uttarapalli and
Vizianagaram. There are 2 revenue divisions, 34 Mandals, 935 Panchayats and 1,551
revenue villages in Vizianagaram district. The revenue divisions
are Parvathipuram and Vizianagaram.

201
abid…
202
Vijayanagarm, Vijayanagarm district profile, http://vizianagaram.nic.in/AboutVZM.html

162
Table: 4. 20 Divisions of Vijayanagarm district Profile

Vizianagaram Division Pravathipuram Division

Bhogapuram Badangi
Bondapalli Balijipeta
Cheepurupalli Bobbili
Dattirajeru Garugubilli
Denkada Gummalaxmipuram
Gajapathinagaram Jiyyammavalasa
Gantyada Komarada
Garividi Kurupam
Gurla Makkuva
Jami Pachipenta
Kothavalasa Pravathipuram
Lakkavarapukota Ramabhadrapuram
Mentada Salur
Merakamudidam Seethanagaram
Nellimarla Therlam
Pusapatirega
Srungavarapukota
Vepada
Vizianagaram

163
 Figure: 4.8 Map of Vijayanagaram distinct

2. Economy of the District:

Indian government named Vizianagaram one of the country's 250 most backward
districts (out of a total of 640). It is one of the thirteen districts in Andhra Pradesh
currently receiving funds from the Backward Regions Grant Fund Programme
(BRGF).

a. Agriculture

Vizianagaram district is predominantly an agricultural district as 68.4% of the

workers are engaged in Agriculture and about 82% of the population is living in rural
areas and depend on Agriculture for their livelihood. In this district 80% of the
cultivation is purely under rain fed conditions Even though, the majority of the
forming community was depend on the rainfall. Therefore, the majority of crops
grown are dry crops. But the Paddy crop is cultivated mainly during Kharif season
with 80% of the area is under Tanks which in turn depend on the rainfall. With the

164
average crop yields the major crops grown is Paddy, Mesta, Groundnut, Ragi,
Bajra, Cotton, Sugarcane, and Pulses.
There are only very few irrigation projects in the district, namely called
the Denkada Anicut, Thatipudi Reservoir, Andra Reservoir Project, Vegavathi
Anicut, Surapadu Anicut, Seethanagaram Anicut, Peda AnkalamAnicut, Vottigedda
Reservoir Project, Paradi
Anikut, Thotapalli Regulator, and Vengala Raya Sagaram Project are the medium
irrigation projects. These projects covering the total irrigated area and also there are
the other minor projects are about 285,077 acres (1,154 km2). The Jhanjavati
Project is constructed in 2005 in Komarada mandal on river Jhanjavati, a tributary
of River Nagavali. It is a rubber dam first of its kind in India and the biggest in Asia.
These 12 medium irrigation projects will cover the total area of 439.84 km².
Vijayanagram district have not only irrigation projects, but also there are 1,065 Minor
irrigation sources with an Ayacut of 512.15 km² and 8,616 minor irrigation Tanks
(Panchayat Raj) with an ayacut of 721.12 km² (District Statistical report, 2011)203

a. Industry

The industrial development in the district generally agriculture based and consists of
Jute mills, Sugar factories, Rice and Oil mills and Tiles manufacturing units. The
mineral deposits are utilized by the FACOR and other industries. There are
520 factories registered under the Factories Act in 2005 in the district employing
about 27,800 workers (males and females) (MSME, 2012)204.

b. Banking and finance

Nationalized Banks and private and cooperative banks operate in the district from 148
branches. State Bank of India with 29 branches and Andhra Bank 14 branches are the
leading banks in the district. S.V. Grameena Bank with 56 branches and
Vizianagaram district Cooperative Central Bank are the leading cooperative banks
(Lead Bank, 2012)205(District Lead bank).

203
District Statists, Vijayanagarm district statistical report 2011-12, district planning
department, 2012
204
MSME, Brief Industrial Profile of Vizianagaram District, published by MSME-
Development Institute e (Branch), Visakhapatnam, 2012.
205
District Lead Bank, Consolidated Statement Of Bank Wise
http://www.slbcap.nic.in/pages/financialinclusion.aspx

165
C. Mahaboobnagar District Profile

Mahabubnagar district has been identified as one of the backward districts of

Andhra Pradesh State by the Planning Commission and the Ministry of Panchayat
Raj, Government of India. Education, drinking water, health, and sanitation are found
to be the major priority sectors that need immediate attention. Govt. of India has
planned to revive and invest on priority sectors for the development of the district
with BRGF funds (BRGF, 2010) 206.

1. Brief History

The District derived its name Mahbubnagar from the Nawab Mir Mahabub
Ali Khan, the VI Nizam of Hyderabad. The district boundaries are Ranga Reddy
district in the North, Nalgonda, and Guntur districts in the East, the rivers
Krishna/Tungabhadra in the South, Raichur, and Gulbarga districts of Karnataka state
in the west. Mahaboobnagar formerly known as Palamooru is a district in the Andhra
Pradesh state of India in the Telangana region. It is named after its largest city and
district headquarters, Mahbubnagar. It is the second largest district in the state by
area, located 100 kilometers (62 mi) from the state capital of Hyderabad. There are
hill ranges extending from North to South of Atchempet, mostly flat topped. The
district is located between 15055’ and 170 20’North Latitude and 770 15’ and 790 15’
East Longitude. The largest towns in the district are Mahabubnagar, Narayanpet,
Atmakur, Atchempet, Gadwal,Wanaparthy,
Jadcherla, Kalwakurthy, Shadnagar,Kodangal, Amarchintha, Makhtal, Alampur, Nag
arkurnoor.

206
BRGF, Manual for Integrated District Planning, published by Planning Commission, New
Delhi, 2010

166
 Table: 4.21 Geographical Information

Geographical information
Latitude Between 15 ° 55’ and 17 °29’ N
Longitude Between 77°15 ’ and 79 °15 ’E
Area 18,432 sq.km
Elivation 498 m(1,634ft)
Headquarters Mahbubnagar
Boundaries
East Guntur district A.P.
West Gulbarga and Raichur district of Karnataka
North Ranga Reddy & Nalgonda district of AP
South Kurnool district of A.P

2. Demography:
According to the 2011census, Mahbubnagar district has a population of
4,042,191 roughly equal to that of Liberia or the US state of Oregon. This gives it a
ranking of 55th most populous in India (out of 640) the district has a population
density of 219 inhabitants per square kilometre (570 /sq mi). Its population growth
rate over the decade 2001–2011 was 15.03% Mahbubnagar has a sex ratio of
975 females for every 1000 males and a literacy rate of 56.06%. The primary
languages spoken in the district are Telugu, Urdu, and Hindi.
3.Divisions

It has 1553 Revenue Villages, 1347 Grama Panchayatis, 64 Mandals, and

five Revenue Divisions. Mahabubnagar district also has 14 Assembly Constituencies
and two Parliamentary Constituencies.

167
 Figure: 4. 9 District Map with Mandals

Table: 4.22 District Mandals with codes

Mandal Mandal Mandal

Mandal Name Mandal Name Mandal Name
Code Code Code
1 Kodangal 23 Jadcherla 45 Amrabad
2 Bomraspeta 24 Bhoothpur 46 Balmoor
3 Kosgi 25 Mahbubnagar 47 Lingal
4 Doulatabad 26 Addakal 48 Peddakothapalle
5 Damaragidda 27 Devarkadara 49 Kodair
6 Maddur 28 Dhanwada 50 Gopalpeta
7 Koilkonda 29 Narayanpet 51 Wanaparthy
8 Hanwada 30 Utkoor 52 Pangal
9 Nawabpet 31 Maganoor 53 Pebbair
10 Balanagar 32 Makthal 54 Gadwal
11 Kondurg 33 Narva 55 Dharur
12 Farooqnagar 34 Chinna Chinta Kunta 56 Maldakal
13 Kothur 35 Atmakur 57 Ghattu
14 Keshampeta 36 Kothakota 58 Aiza
15 Talakondapalle 37 Peddamandadi 59 Waddepalle
16 Amangal 38 Ghanpur 60 Itikyal
17 Madgul 39 Bijinapalle 61 Manopadu
18 Vangoor 40 Nagar Kurnool 62 Alampur
19 Veldanda 41 Tadoor 63 Veepangandla
20 Kalwakurthy 42 Telkapalle 64 Kollapur
21 Midjil 43 Uppununthala
22 Thimmajipeta 44 Achampeta

168
4.Economy

In 2006 the Indian government named Mahbubnagar as one of the country's 250 most
backward districts (out of 640 total). It is one of 13 districts in Andhra Pradesh
currently receiving funds from the Backward Regions Grant Fund Programme
(BRGF).

5. Agriculture

Agriculture is the most important occupation of the people of the district

with total main workers dependent on it as cultivators and agricultural labourers
(Statistical Abstract of Govt. of A.P. 2007). The prominent crops cultivated are rice,
sorghum, Bajra, maize, pigeon pea, horse gram, groundnut, castor, sunflower, cotton,
and chilies. The district ranks first in area of the state for castor; second for sorghum,
pigeon pea; third for Bajra, maize, Ragi, total oilseeds; fourth for horse gram,
sunflower, onions; fifth for groundnut; and sixth for total food grains, chilies and
green gram. The district stands first in the production of pigeon pea and castor, second
in maize, green gram; third in terms of production of sorghum, Bajra, Ragi, horse
gram, total oilseeds; fourth in the contribution of groundnut, onions and fifth inters of
total pulses, sunflower and chilies(District Statistical Report, 2011)207

7. Banking facilities
One hundred and ninety two scheduled banks are functioning in the district
accounting for 3 percent of the state total. Credit-Deposit ratio (C.D ratio) of the
district was worked out to be 0.80 as against 0.87 of the state level. There is need to
enhance the deposits in the district by increasing the level of income.

4.5 Chapter summary

Andhra Pradesh is third largest economy in India, in terms of GSDP. Andhra
Pradesh’s economic growth was measurable with comparisons of other states of India
especially during the last three decades. While stating from a relatively lower per
capita income, Andhra Pradesh has surpassed the national average about a decade
ago. Even though, A.P state’s performance is impressive in terms of economic
growth, in terms of social sector indicators such as literacy and skills it has not been
impressive enough on a comparative scale. The Status of financial inclusion in
Andhra Pradesh required a better strategy, for overall growth and to include all sectors
of the societies which are affected by exclusion.

207
District Statistical, Mahabubnagar district Statically report, published by department of
district planning Department, 2011

169