In December 1953, the States Reorganization Commission was appointed to prepare for the creation of states on linguistic lines. The States Reorganization Commission (SRC) was not in favour of an immediate merger of Telangana region with Andhra state, despite the common language between the two.

Para 382 of States Reorganization Commission Report (SRC) said "opinion in Andhra is overwhelmingly in favour of the larger unit, public opinion in Telangana has still to crystallize itself. Important leaders of public opinion in Andhra themselves seem to appreciate that the unification of Telangana with Andhra, though desirable, should be based on a voluntary and willing association of the people and that it is primarily for the people of Telangana to take a decision about their future". The concerns of Telanganas were numerous. The region had a less developed economy than Andhra, but with a larger revenue base (mostly because it taxed rather than prohibited alcoholic beverages), which Telanganas feared might be diverted for use in Andhra. They also feared that planned dam projects on the Krishna and Godavari rivers would not benefit Telangana proportionately even though Telanganas controlled the headwaters of the rivers. Telanganas feared too that the people of Andhra would have the advantage in jobs, particularly in government and education.

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In the following years after the formation of Andhra Pradesh state, however, the Telangana people had a number of complaints about how the agreements and guarantees were implemented. Discontent with the 1956 Gentleman's agreement intensified in January 1969 when the guarantees that had been agreed on were supposed to lapse.

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Centuries of independent existence has given Telangana its own distinctive culture and identity. The Telugu language spoken here has evolved into a new dialect with a liberal mixture of words from Urdu and Marathi. Festivals: Diwali, Dassera, Eid-ul-Fitr and Ugadi are prominent festivals in Telangana. The region celebrates distinctive festivals like Bathukamma, and Bonalu. The other festivals, such as, Deepawali, Holi, Rakhi, Moharram and Vinayaka Chaturthi are also celebrated with equal enthusiasm as in northern India. The national festival Sankranti is also celebrated in the beginning of harvest season on 14 January every year.

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