Industrial Development & Economic Growth in Telangana

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.

The capital city of Hyderabad (also the capital for earlier larger Andhra Pradesh state) is a hub for information technology (IT) and pharmaceutical sectors. During 2017-18, export of IT products of Telangana was Rs 93,422 crore (US$ 14.50 billion).

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).

As of May 2019, the total installed power capacity of Telangana state was 15,832.92 MW. Out of this, 8,103.65 MW was contributed by state utilities, 5,614.42 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 3,994.37 MW and nuclear power with 148.73 MW

According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows in Telangana from April 2000 to March 2019, totalled US$ 18.46 billion. Total merchandise exports from the state stood at US$ 6.57 billion during 2017-18. The exports stood at US$ 7.23 billion during 2018-19.

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

• Renovation and Modernisation (R&M) of two hydro power projects is under implementation and is expected to be completed by 2018-19.
• 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.
• TSIIC has undertaken the task of setting up of a National Investment and Manufacturing Zone (NIMZ) in Telangana. The NIMZ will be set up over 12,635 acres of land. As of May 2018, the state has acquired around 3,000 acres of land out of the 3,500 acres required in the first phase of the project. The first phase of the project is expected to be completed by 2020.
• 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.

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