Trade Analytics

Industrial Development & Economic Growth in Telangana

Latest update: April, 2018

Economic Snapshot
Economic Snapshot


April, 2018

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.

Between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 10.50 per cent to US$ 101.56 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.56 per cent to US$ 92.19 billion.

The Telangana State Industrial Infrastructure Corporation is responsible for supervision and execution of special economic zones (SEZ) in Telangana.

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

  • Under the Department of Information Technology, Electronics & Communications, the Government of Telangana has introduced Telangana IT Policy, 2016 in April 2016 for the uplifting the performance of the sector in the state.
  • The Telangana government has undertaken various steps for renovation and repairing of about 4,000 km roads in the state. Further, for the upliftment of roads and bridges, the state government has proposed an amount of US$ 556.28 million in State Budget 2017-18.
  • As of June 2017, three thermal power projects, with a combined capacity of 2,680 MW are under construction in the state. Also, Renovation and Modernisation (R&M) of two hydro power projects is under implementation and is expected to be completed by 2018-19.
  • With the launch of the Industrial policy in the state, all clearance certificates are being easily issued to around 1,609 units in the state involving an investment of US$ 5.06 billion.
  • 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.
  • In June, 2015, the Government of Telangana introduced a new industrial policy to attract domestic as well as international investments in the industrial sector of the state, with emphasis on core manufacturing sectors.
  • The Telangana government plans to promote an industrial corridor between Hyderabad and Warangal, which would also boost employment opportunities in the state.
  • The state government is formulating policies and a single window clearance system among others for attracting investments, thereby enhancing the industrial infrastructure in Telangana.
  • The state government is in talks with Steel Authority of India (SAIL) for setting up a steel factory involving an investment worth US$ 5 billion on the Khammam-Warangal border.
  • Telangana government also released a Solar Power Policy 2015 to promote regionalised and dispersed generation of solar energy.
  • In January 2018, the state government held talks with Japan International Cooperation Agency (JICA) and South Korea for investments in the second phase of Hyderabad Metro, Pharma City, Kakatiya Textile Park.
  • The state is aiming to achieve a power generation capacity of 28 GW. In November 2017, the state government announced it is planning to invest around US$ 14 billion to make the state a ‘power surplus’ state.
Telangana State Presentation

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Telangana Map