The new chief minister of the just-born state of Telangana, K Chandrasekhar Rao, has an awesome responsibility on his shoulders. He must set the tone for a new political entity. Some new states founder, such as Jharkhand; others prosper, such as Uttarakhand. The difference is entirely one of political leadership. The first and most important step is to recognise that a state must be plugged into the national and global economy, and must not survive on handouts. Equally, the political discourse must evolve beyond whatever sustained it in the run-up to the statehood. Sadly, Mr Rao and his Telangana Rashtra Samithi seem to be failing to do that. Worse, they are setting dreadful precedents for India.

Mr Rao's government has begun by propagating an all-state survey that it intends to conduct on August 19. As many as 400,000 state government employees from across various departments will fan out across the state to enumerate and identify its residents. Many people have panicked - not just those from Rayalaseema or coastal Andhra, long resident in Hyderabad, but also those from Telangana, long resident outside Hyderabad, in towns in Maharashtra and Karnataka in particular. The government insists that there will be no direct proof of "origins" demanded. But there is nevertheless justifiable concern that this survey will be used, effectively, as a basis for a nativist policy that elevates the sons of the soil. There have already been signs of this in Telangana's policy: the government has demanded that recipients of scholarships, for example, prove that their families have been resident in Telangana since at least 1956, the year that Andhra Pradesh was created. Naturally, this is extremely difficult to prove; many deserving local students may lose their benefits. Meanwhile, as part of a proxy war with Andhra Pradesh Chief Minister N Chandrababu Naidu, Mr Rao's first acts as chief minister included ordering the demolitions of possibly illegal construction on land near Hyderabad's HITEC City. Given that the residents, owners and builders of the construction were mainly from the Seemandhra region, Mr Rao's intent was obvious. The precedent of him using law enforcement to carry out a sons-of-the-soil agenda is partly why he is now in the midst of a confrontation with the Centre on whether the governor of Andhra Pradesh and Telangana can have special control over Hyderabad's policing.

Both the Centre and India Inc must take a firm stand against Mr Rao's behaviour, especially if it is seen as impinging on the rights of individuals and corporations from outside Telangana. Indeed there is every reason to suppose that setting up a set of preferences for locals would be unconstitutional. The right to move across state boundaries is essential not just for growth, but for freedom. It is also in Telangana's own interest. The state must not start looking inward, rather than outward - that would destroy its chances, and ruin the great growth potential that the possession of Hyderabad entails. The government itself should not turn to populism - whether of the sons-of-the-soil type, or the more common version that involves fiscal profligacy. In spite of the fact that Telangana is far from bankrupt - it may have a Rs 7,500-crore fiscal surplus this year - Mr Rao intends to wipe that out with imprudent spending, including a Rs 15,000-crore loan waiver. Telangana deserves better.