Hyderabad in Telangana is the IT hub of India, with IT/ ITeS exports reaching Rs. 183,569 crore (US$ 22.95 billion) in FY22, a 26.14% increase YoY.
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 is land locked by (new) Andhra Pradesh to the south and the east, Maharashtra and Karnataka to the west, and Odisha and Chhattisgarh to the north. At current prices, Telangana’s gross state domestic product (GSDP) was estimated at Rs. 13.04 trillion (US$ 167.82 billion) in 2022-23BE. The state’s GSDP increased at a CAGR of 12.33% between 2015-16 and 2022-23BE. Tertiary sector has been the largest sector, growing at a CAGR of 11.70% (in rupee terms) between 2011-12 and 2020-21, accounting for 59.31% share of the overall GSDP.
The capital city of Hyderabad is a hub for information technology (IT) and pharmaceutical sectors. Hyderabad was ranked second among the top 20 global cities in JLL’s City Momentum Index (CMI) 2019.
Hyderabad is emerging as a hotspot in the data centre space and the city’s inventory is set to grow three times by 2023, with 66 MW capacity addition. Of the 66 MW capacity addition to happen by 2023, about 8 MW capacity is expected to be added in 2021, followed by 29 MW capacity each in 2022 and 2023. While the presence of IT, ITeS, pharmaceuticals and cloud solution companies are acting as a demand driver, the city is witnessing large-ticket investments—Amazon Web Services is investing US$ 2.8 billion in a core data centre facility and National Payments Corporation of India (NPCI) is investing US$ 70 million in an own tier-IV data centre in Hyderabad.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019-June 2022, FDI inflow in Telangana stood at US$ 3,994 million. The state ranked 8th in India in terms of FDI inflow.
Note: * - Includes drug formulation, biologicals, residual chemical and allied products, bulk drug and drug immediate, organic chemicals and other miscellaneous chemicals, **- As per 2nd advance estimate