Trade Analytics
Telangana

Industrial Development & Economic Growth in Telangana

Latest update: December, 2019

Economic Snapshot
Per capita Income

 

Last Updated: December, 2019

Telangana state was formed in June 2014 post the split of erstwhile Andhra Pradesh. The earlier capital city of Hyderabad is part of Telangana. The state holds an advantage as it possesses readymade capital with necessary infrastructure and ecosystem. Hyderabad was ranked second among the top 20 global cities in JLL’s City Momentum Index (CMI) 2019.

The capital city of Hyderabad (also the capital for earlier larger Andhra Pradesh state) is a hub for information technology (IT) and pharmaceutical sectors. IT and ITeS exports from Telangana grew at a CAGR of 10.55 per cent to Rs 1,09,219 crore (US$ 15.63 billion) in 2018-19.

Between 2011-12 and 2018-19, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 13.40 per cent (in Rupee terms) to Rs 8.67 trillion (US$ 126.81 billion) whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 13.49 per cent to Rs 7.89 trillion (US$ 115.35 billion).

In 2018, domestic tourist arrivals in the state were 92.8 million and foreign tourist arrivals had crossed over 0.32 million.

As of November 2019, the total installed power capacity of Telangana state was 15,855.97 MW. Out of this, 8,103.65 MW was contributed by state utilities, 5,637.37 MW by private utilities and 2,114.85 MW by central utilities. Thermal power was the largest contributor in the state’s total installed capacity with 9,209.89 MW, followed by hydropower with a contribution of 2,479.93 MW, renewable energy with 4,017.32 MW and nuclear power with 148.73 MW. State has the highest installed solar capacity of 3,621 MW in the country and plans to install 5000 MW in 2020-21.

As of November 2019, Telangana had 30 operational SEZs, 56 notified SEZs and 63 formally approved SEZs.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow** in Telangana from April 2000 to September 2019, totalled US$ 18.98 billion. Total merchandise exports from the state stood at US$ 7.23 billion during 2018-19. The exports stood at US$ 3.65 billion during April-September 2019. In 2019 (up to October 2019), 55 investment intentions with proposed investments worth Rs 2,853 crore (US$ 551.3 million) were filed in the state.

Some of the major initiatives taken by the government to promote Telangana as an investment destination are:

  • During 2018-19, Telangana State Innovation Cell (TSIC) launched ‘Startup India Telangana Yatra’ with an attempt to promote entrepreneurship in Tier II and Tier III cities
  • In October 2019, Hyderabad Metro Rail crossed significant milestone with the number of passengers travelling on trains crossing the four-lakh mark for the first time.
  • In September 2019, TSIIC launched the Pharma City project at Mucherla village in Ranga Reddy district, spread across 19,000 acres and the Medical Devices Park located at Sultanpur village of Sangareddy district.
  • The state government has launched Telangana Municipal Development Project (TMDP) with financial assistance from the World Bank. Preparation of GIS Base Maps for 37 urban local bodies in Phase-I and 22 urban local bodies in Phase-II is currently underway.
  • The state government introduced IOT (Internet of Things) Policy in October 2017 to create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the state.
  • The state government is setting up the Hyderabad Pharma City, which will be the first of its kind, smart ecosystem creating a new international benchmark for Sustainable Industrial cities. The project will be developed over an area of 19,000 acres and is expected to attract Rs 64,000 crore (US$ 993.02 million).
  • Telangana is pharmaceutical manufacturing hub in the country attracts over Rs 10,000 crore (US$ 1.49 billion) investments in the life sciences sector in the past four years. Pharmaceutical exports also have a majority share in the total merchandise exports from the state. During 2019-20 (up to September) pharmaceutical products exports from the state stood at US$ 2.29 billion.

** - Including Andhra Pradesh

Indian Telangana Industry Report (December, 2019)
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Click to access the Telangana Industry Archived Report

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