Addressing the joint session of the state legislature, he said in spite of facing several challenges post formation such as inadequate staff and non-availability of senior officers, considerable progress has been made on all fronts.
He said the Gross State Domestic Product (GSDP) growth forecast for 2014-15 is estimated at 5.3 percent as against the growth rate of 4.8 percent in 2013-14.
"The growth shows an encouraging trend in the new state. Despite a decline in the agriculture growth due to adverse monsoon, other allied sectors like livestock, forestry and fisheries have registered a good growth rate," said Narasimhan, who is governor for Andhra Pradesh as well.
He noted that growth momentum in industrial (4.1 percent) and services (9.7 percent) sectors made major contribution to the increase in overall GSDP growth.
The per capital income at current prices during 2014-15 is expected to be Rs.1,03,889 as compared to Rs.95,361 during 2013-14.
The governor's address was marred by noisy protests by opposition Congress and Telugu Desam Party (TDP).
TDP was demanding disqualification of some of its members who defected to the ruling Telangana Rashtra Samithi (TRS).
Raising slogans against the government, some opposition legislators tore the papers of the governor's address and threw them towards the governor. TDP legislator Revant Reddy was seen standing on a bench and throwing pieces of papers towards the governor even as security personnel stood as a wall in between to protect the governor.
The opposition protest even during the playing of the national anthem evoked strong reaction from the ruling party. Even the governor was seen advising the opposition members to maintain calm during the playing of national anthem.
Meanwhile, TDP leader E. Dayakar Rao alleged that two of his party's legislators were attacked by the ruling party members. He told reporters that TDP would not allow the legislature to function till the members involved in the attack are suspended.
Minister for Information Technology and Panchayat Raj K.T. Rama Rao condemned the behaviour of TDP legislators during the joint session.
The assembly was adjourned after the governor's address on the first day of the budget session. This is the first full-fledged budget session of Telangana assembly.
Narasimhan earlier addressed the joint session of Andhra Pradesh legislature. With the budget sessions of both the state legislatures coinciding, the assembly building witnessed hectic activity since morning.
Police made elaborate security arrangements to ensure smooth conduct of the sessions and to manage traffic in and around the assembly premises.
As Andhra Pradesh government and legislature is still operating from Hyderabad, Telangana is sharing the assembly building with Andhra for the sittings of both houses of its legislature.