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About Telangana State: Tourism & Agriculture, Industries, Economy Growth Rate

Last updated on Aug, 6 2021

Economic Snapshot
Per capita Income

 

Factfile

  • Capital:Hyderabad
  • Geographical Area (sq km):114,840
  • State Language:Telugu, Hindi and English
  • Literacy Rate:66.5 per cent
  • Key Industries:Information technology, pharmaceuticals manufacturing, tourism, textile, mines and minerals

Telangana State Report | June, 2021

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.

Telangana's Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.10% (in Rupee terms) to reach Rs. 9.78 trillion (US$ 134.78 billion) between 2015-16 and 2020-21. Tertiary sector has been the largest sector, growing at a CAGR of 13.16% (in rupee terms) between 2011-12 and 2020-21, accounting for 60.35% share of the overall GSDP.

As of May 2021, the total installed power capacity in Telangana was 17,224.85 MW. Of this, 8493.6 MW was contributed by state utilities, 6,555.05 MW (private utilities) and 2,176.15 MW (central utilities). Thermal power was the largest contributor to the state’s total installed capacity with 10,211.19 MW, followed by hydropower (2,479.93 MW), renewable energy (4,385.00 MW) and nuclear power (148.73 MW).

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. IT & ITeS export from Telangana grew at a CAGR of 11.32% from 2013-14 to Rs. 1,45,522 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 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.

As of October 2020, Telangana had 34 operational SEZs, 56 notified SEZs and 63 formally approved SEZs.

Hyderabad also account for approximately 20% of India's total pharma export. As a pharma and life sciences hub of the world, Hyderabad is poised to grow to 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 Department for Promotion of Industry and Internal Trade (DPIIT), between October 2019 and March 2021, FDI inflow in Telangana stood at US$ 1,835 million.

Key Sectors:

  • In October 2020, the State Government rolled out 10-year Electric Vehicle (EV) policy with the aim to attract US$ 4 billion investments. The policy will aim to make the state a hub for electric vehicles and energy storage systems, and to create employment for 120,000 people through shared mobility, charging infrastructure development, and manufacturing activities.
  • In December 220, IBM and the Telangana state government announced collaboration to provide curated online courses for the state’s students (to enhance their technical and professional skills).
  • Pharmaceutical exports also have a majority share in the total merchandise exports from the state. In FY21, pharmaceutical* product exports from the state stood at US$ 4.21 billion..
  • The State Government has undertaken the task of establishing Hyderabad Pharma City which will be the first of its kind, smart ecosystem creating a new international benchmark for sustainable industrial cities.
  • Telangana is the pharmaceutical manufacturing hub in the country, attracting over Rs. 10,000 crore (US$ 1.49 billion) in investment in the life sciences sector over the last four years. In FY21, there were 311 investment proposals in life sciences sector worth Rs. 6,734.56 crore (US$ 919.43 million).
  • In 2020, domestic tourist arrival in the state stood at 35.0 million, whereas foreign tourist arrival crossed over 0.05 million.
  • In FY20, Telangana produced 5.3 million tonnes and 7.4 million tonnes of fruits and vegetables, respectively.

* - 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

Factfile

  • Capital:Hyderabad
  • Geographical Area (sq km):114,840
  • State Language:Telugu, Hindi and English
  • Literacy Rate:66.5 per cent
  • Key Industries:Information technology, pharmaceuticals manufacturing, tourism, textile, mines and minerals
Telangana Map

Telangana