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 landlocked 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.
As of March 2022, the total installed power capacity in Telangana was 18,069.04 MW. Of this, 8,763.65 MW was contributed by state utilities, 7,129.24 MW by private utilities and 2,176.15 MW by central utilities. Thermal power was the largest contributor to the state’s total installed capacity with 10,481.19 MW, followed by renewable energy with 4,959.19 MW, hydropower with 2,479.93 MW, and nuclear power with 148.73 MW.
The capital city of Hyderabad is a hub for the information technology (IT) and pharmaceutical sectors. Hyderabad was ranked second among the top 20 global cities in JLL’s City Momentum Index (CMI) 2019. IT & ITeS export from Telangana grew at a CAGR of 11.32% from 2013-14, to reach Rs. 145,522 crore (US$ 20.05 billion) in 2021-21. Leading IT companies like Facebook, Google, IBM, and Microsoft hold significant presence in Hyderabad.
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 this, 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.
As of January 2022, Telangana had 35 operational SEZs, 57 notified SEZs and 64 formally approved SEZs.
Hyderabad also accounts for approximately 20% of India's total pharma exports. As a pharma and life sciences hub of the world, Hyderabad is poised to grow to be a US$ 100 billion business generator by 2030, up from US$ 13 billion (2020), as per projections made in the Life Sciences report of the Telangana government. The state government plans to set up a pharma city and promote public private partnership to develop the state's pharma sector.
The Central Government recently announced formation of an Information Technology Investment Region (ITIR) near Hyderabad. With the establishment of the ITIR, the Government plans to generate 1.5 million direct and 5.3 million indirect jobs in the IT sector in the next five years.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Telangana (including Andhra Pradesh) totalled US$ 20.2 billion between April 2000-March 2021. Between October 2019-December 2021, FDI inflow in Telangana stood at US$ 3,124.40 million. The state ranked 7th 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