Introduction
The State of Telangana is located in the south of India and is one of the youngest states in India. Telangana was carved out from the State of Andhra Pradesh and came into existence in the year 2014. Telangana is located on the Deccan Plateau and lies in the Southern region of India sharing its borders with the States of Maharashtra to the North, Karnataka to the West, and Andhra Pradesh to the South. The major cities in Telangana State include Hyderabad, Warangal, Mahabubnagar, Karimnagar, Nizamabad, and Khammam.
The total population of the State is about 35 million and the overall population growth rate during 2001 to 2011 was about 13.58% and it is home to 2.7% of the country’s population. The majority of the population in the State reside in rural areas and mainly depend on agriculture for their livelihood and about 39% of the population are living in Urban areas. About 70% of Telangana’s population is in the working age group of 15-59 years. The population size of Telangana is equivalent to that of Morocco. Telugu one of the classical languages of India is the official language of Telangana and Urdu is the second official language of the state. About 75% of the population of Telangana speak Telugu and 12% speak Urdu. Some of the tourist attraction in Telangana are Charminar, Golconda Fort, Ramoji Film City and Hussain Sagar Lake.
The economy of Telangana is the 9th largest economy with an expected GDP of USD 175 billion (equivalent to Euro 154 billions) for the year 2024-25 which is equivalent to the GDP of a small nation in Europe like Hungry. The expected growth rate of Telangana is 11.9%.
Telangana has diversified its industrial base, from high-tech nano-technology, biotechnology and pharmaceuticals to traditional textiles, leather, minerals, and food processing. The State is one the major exporter of Information Technology (IT) services in the country. Hyderabad has become a premier global destination for IT and ITeS.
The State of Telangana has been at the forefront of development with innovative policy initiatives to encourage the establishment of business ventures and investments. The state has consistently been among the top performer state in the ‘Ease of Doing Business’ ranking by the Government of India. Hyderabad, the capital of Telangana, is considered as “the Life Sciences Capital of India” with over 800 life sciences companies.
The state contributes 30% to India’s Pharmaceutical Production and its capital has 19 Life Sciences & MedTech Incubators. As a pharma and life sciences hub, Hyderabad is poised to grow to a USD 100 Billion business generator by 2028, up from USD 13 Billion (equivalent to Euro 11 billion) now.
The growing life sciences & pharmaceutical ecosystem of the state has Pharma City (Hyderabad Pharma City (HPC) is the world’s largest integrated cluster for pharmaceutical industries with a thrust on R&D and manufacturing), Genome Valley, Medical Devices Park & Biopharma-Hub. The state contributes nearly one-third to India’s production and one-fifth to its exports in the pharmaceutical sector.
The state is one of the leading producers and exporters of horticulture crops, including lemons, oranges, and turmeric. Sericulture & Fisheries are other sustainable sectors, with the state having the third largest pool of inland fisheries resources in the country. The state has a large number of manufacturing units in the food processing, non-metallic minerals, plastics and electrical equipment sectors.
Telangana has made key strikes in attracting FDI for the year 2023-24, amounting to inflows of USD 3 billion (equivalent to Euro 2.70 billion) and securing the fifth spot in the rankings.
The state of Telangana recently rolled out various policies and initiatives for the ease of doing business. Some of the major policies are the MSME Policy, Export Policy, New Life Sciences Policy, Revised EV Policy, Medical Tourism Policy, and Green Energy Policy. Over and above the government plans to revise the Industrial Policy Framework for 2014. The revised industrial policy framework will be driven by the slogan “In Telangana—Innovate, Incubate, Incorporate” and the policy framework intends to provide a business regulatory environment where doing business would be as easy. Innovation and technology will drive the industries of the State. You may look for more information at https://startup.telangana.gov.in/government-policies/
The Telangana State Industrial Project Approval and Self-certification System (TS-iPASS) Act in 2014 provides clearances to mega projects within 15 days and projects of other nature within 30 days, i.e., shortest in the country. The state is also the only one in the country to have introduced the ‘Right to Clearance’ for industrialists to get industrial clearances.
As the IT/ITES is the prominent sector in Telangana, most of the prominent multinational companies are located in the capital Hyderabad such as Cognizant Technologies, IBM, Infosys Ltd, Tata Consultancy Services, Google, Accenture etc.
Some of the major manufacturing companies in Telangana are related to pharmaceutical companies such as Aurobindo Pharma Limited, Myland Laboratories, and Dr. Reddy’s Laboratories Limited.
Telangana has the largest land bank of over 1.5 Lakh acres (equivalent to 600 kilometers) earmarked for industries. With ample water supply for harnessing the river waters, the government has undertaken 38 irrigation projects, consisting of 22 major irrigation projects, 13 medium irrigation projects, one flood bank, and two modernizations of existing projects. The government has installed a power capacity of over 16,621 MW; gearing up to increase the total capacity to 28,400 MW over the next 4-5 years. The state has an Outer Ring Road (ORR) or Nehru Outer Ring Road which has a 158-kilometer, 8-lane ring road expressway encircling Hyderabad. The expressway is designed for speeds up to 120 km/hour.
The State has a robust ecosystem of life sciences, pharma, healthcare, IT, electronics, defense and aerospace industry
Telangana has the highest number of operational zones in India. The Telangana State Industrial Infrastructure Corporation (TSIIC) has played a crucial role in driving industrialization in the state, by developing 152 industrial parks on 28,000 acres (equivalent to 113 kilometers) in the last 8 years. At present, there are 19 active industrial parks present in Telangana.
As Telangana lacks a coastal area, therefore, a dry port is planned and necessitates an expressway for connectivity at the Nalgonda District. The government in a bid to connect Andra Pradesh and Telangana intends to expand the national highway connecting Hyderabad and Vijayawada as an eight-lane high-speed corridor to facilitate faster movement of people and goods between the two States.
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