Telangana was formed in June 2014 with Hyderabad as its capital. The state was formed as a result of the split of erstwhile Andhra Pradesh state. 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. Telangana's IT sector exports totalled Rs. 2,68,233 crore (US$ 32.23 billion) in FY24, marking an 11.2% increase compared to the previous year.
At current prices, Telangana’s gross state domestic product (GSDP) was estimated at Rs. 18.0 trillion (US$ 209.10 billion) in FY26BE. The state’s GSDP increased at a CAGR of 11.13% between FY19 and FY26BE.
At a CAGR of 7.98%, tertiary sector has been the fastest-growing sector in the state between 2011-12 and 2024-25.
The government has conducted a study to prepare comprehensive district tourism development plans and identified 477 tourist destinations for upgrading existing tourist amenities/facilities. The erstwhile districts identified with the greatest number of proposed tourist destinations are Hyderabad (41), Rangareddy (26), Nalgonda (23), Adilabad (21) and Suryapet (21). The state government proposed to undertake development of three greenfield airports at Jakranpally (Nizamabad), Palvancha (Bhadradri Kothagudem), Mahabubnagar and three brownfield airports at Mamnoor (Warangal), Basant Nagar (Peddapalli) and Adilabad.
As of September 2025, the total installed power capacity in Telangana was 20,981.30 MW. Of this, 10,363.65 MW was contributed by state utilities, 7,130.77 MW by private utilities and 3,486.88 MW central utilities.
Thermal power was the largest contributor to the state’s total installed capacity with 12,898.80 MW, followed by renewable energy with 5,453.84 MW, hydropower with 2479.93 MW and nuclear power with 148.73 MW.
According to the India Residential Energy Survey 2020, conducted by the Council of Energy, Environment and Water (CEEW), Telangana is one of the eight states in the country that has achieved 100% electrification in households.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), Between October 2019-June 2025, FDI inflow in Telangana stood at Rs. 1,23,057 crore (US$ 13.90 billion).
According to the Telecom Regulatory Authority of India (TRAI), Telangana had about 40.56 million wireless and 1.46 million wireline subscribers as of June 2025. As of June 2025, overall teledensity in the state stood at 109.10%.
Exports stood at Rs. 1,69,269 crore (US$ 19.12 billion) in FY25. Major items exported from Telangana are Engineering Goods, Drugs and Pharmaceuticals, Organic and Inorganic chemicals, and electronic goods.
Some of the major initiatives taken by the government to promote Telangana as an investment destination are:
- On September 27, 2025, the state of Telangana launched a tourism initiative comprising 30 major projects with total investments of Rs. 15,000 crore (US$ 1.69 billion) and projected creation of over 50,000 jobs.
- On October 24, 2025, the Ministry of Railways approved a Rs. 316.07 crore (US$ 35.7 million) project to upgrade the electric-traction system on two key Telangana routes: the 225 km Medchal-Mudkhed section worth Rs. 193.26 crore (US$ 21.8 million) and the 184 km Mahbubnagar–Dhone section worth Rs. 122.81 crore (US$ 13.9 million). The upgrade will convert the current 1×25 kV system to a 2×25 kV system, involving circuit-breaker modifications, switching-station enhancements and additional conductors, aiming to boost operational efficiency, stability and train speed.
- On June 10, 2025, the Central Government announced that railway projects worth Rs. 42,219 crore (US$ 4.77 billion) are currently underway in the state of Telangana, including doubling/tripling of lines, full electrification and station upgrades.
- In March 2024, a 14.5 MW capacity ‘Waste to Energy’ plant utilizing ‘Refuse Derived Fuel’ (RDF) commenced operations in Dundigal. By May 24, 2024, the plant had consumed approximately 0.75 lakh metric tons of RDF and generated about 25.39 MU of electricity. A new 500-ton-per-day capacity C&D waste plant is currently in trial runs at Shamshabad, and another plant is under construction at Thumkunta.
- The government aimed to plant 600 lakh seedlings in the Hyderabad metropolitan area for the 2023 24 season. Of those, 322.25 lakh seedlings have been planted, and 72.50 lakh seedlings have been distributed. Similarly, in the Greater Municipality Area, the target was to plant one crore seedlings, with 72.8 lakh seedlings distributed during the same period.
- Budget allocations under state budget FY26:
- Rs. 8,260 crore (US$ 959.3 million) allocated towards assistance to state discom for agricultural power subsidy.
- Rs. 2,654 crore (US$ 308.2 million) allocated to GHMC for Hyderabad city innovative and transformative infrastructure.
- Rs. 12,601 crore (US$ 1.46 billion) was allocated for primary and secondary education.
- Rs. 1,034 crore (US$ 120.1 million) allocated towards Aarogyasri health care trust.
- Rs. 18,000 crore (US$ 2.09 billion) allocated towards investment support scheme for farmers (Rythu Bharosa).
- The government plans to expand irrigation facilities to an additional 50 lakh acres over the next 2-3 years, complementing the existing 73 lakh acres in 2023 were under irrigation.
- In 2022, domestic tourist arrival in the state stood at 60.8 million, whereas foreign tourist arrival stood at 0.684 million.
- Production of fruits & vegetables reached 2.38 million tonnes and 1.07 thousand tonnes, respectively, in 2023-24. (as per second advance estimates)
- Greater Hyderabad Municipal Corporation (GHMC) has proposed 15 new projects under the Strategic Road Development Plan (SRDP) Phase-2. The corporation has sought administrative sanction of Rs. 3,115 crore (US$ 400.9 million) from the State government for these projects.
- The Telangana government has collaborated with pharma majors such as Dr. Reddy's Laboratories and Laurus Labs as well as academia to set up a one-of-its-kind flow chemistry technology hub (FCTH) at the Dr. Reddy's Institute of Life Sciences (DRILS)
- As per the State government data, Hyderabad has attracted investments nearly worth Rs. 7,500 crore (US$ 965.25 million) in the pharma, biotech and medical devices arenas over the last one year.
- The state’s first women university will be established. An outlay of Rs. 100 crore (US$ 12.87 million) has been proposed for the same. Over the next two years, medical colleges will be established in all districts.
- In FY 2022-23, The Indian Railway Catering and Tourism Corporation (IRCTC) is targeting 200,000 tourists in Hyderabad for projected earnings of Rs. 26 crore (US$ 3.34 million)
- 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 one of India’s fastest-growing states, driven by a strong services-led economy, a vibrant export base and a globally competitive capital city in Hyderabad. With a GSDP of US$ 209.10 billion in FY26 and robust growth in IT, pharmaceuticals, electronics and engineering goods, the state has emerged as a major destination for foreign investment and innovation. Strong digital connectivity, expanding power capacity, large-scale investments in data centres, life sciences and tourism, and sustained policy support for agriculture, urban infrastructure and healthcare position Telangana as a leading hub for technology, pharma manufacturing and high-value services in India.
