Hyderabad expands IT grid, boosts industrial growth
HYDERABAD: The Telangana government has prioritised industrial development by increasing allocations for industries and information technology (IT) in the 2026–27 budget.
It has proposed ₹3,490 crore for the industries department and ₹875 crore for the IT department. While the industries allocation is slightly lower than ₹3,527 crore last year, IT spending has increased from ₹774 crore.
The government said about 20% of India’s Global Capability Centres (GCCs) are located in Hyderabad. More than 706 new GCCs were set up in 2024–25. Google has also established a safety engineering centre in the city.
To expand IT beyond western Hyderabad, the government plans a distributed IT grid across the city.
Exports record sharp growth
Telangana’s industrial exports rose from ₹1,16,182 crore in 2023–24 to ₹1,61,843 crore in 2024–25, marking a 39.30% increase, according to the budget.
The state accounts for 4.37% of India’s exports and ranks seventh nationally.
Aircraft and spacecraft components, pharmaceuticals, organic chemicals, electrical and engineering equipment are the main exports. Ranga Reddy, Medchal–Malkajgiri, Sangareddy, Hyderabad and Mahbubnagar districts together contribute 90.10% of exports.
The United States accounts for 28.61% of exports, followed by the United Arab Emirates (11.74%), Saudi Arabia (6.74%) and China (3.63%). Exports also reach France, the United Kingdom, Türkiye, the Czech Republic, Bangladesh and Kuwait.
Digital infrastructure and IT growth
The government said Telangana’s IT sector continues to expand, with exports reaching ₹3.18 lakh crore and generating employment for over 9.33 lakh people.
Under the T-Fibre initiative, fibre connectivity has been provided to 8,888 gram panchayats across 124 mandals and 4,800 government institutions. The target is to extend this to 50,000 institutions by year-end.
₹100 crore has been allocated for modernising the state data centre.
Long-term industrial strategy
The government aims to develop Telangana into a global industrial hub by 2047. Hyderabad is being positioned as a leading aerospace and defence hub, integrating over 1,500 micro, small and medium enterprises (MSMEs) with global original equipment manufacturers.
A Life Sciences Policy for 2026–30 will shift focus from volume to value. Genome Valley will be expanded by over 300 acres.
Industrial parks and regional expansion
Kodangal in western Telangana is set to emerge as a major industrial centre. Land will be acquired near the proposed Regional Ring Road (Radial Road-2) for large industrial parks, including a multi-purpose industrial park in Kodangal.
The Zaheerabad Industrial Smart City project, spread over 3,215 acres, is being developed with central government support under the National Industrial Corridor programme.
The budget proposes ₹241.96 crore for rural small-scale industries, ₹173.16 crore for the Unity Mall in Hyderabad, ₹655 crore for industrial incentives, and ₹146.50 crore for new industrial corridors in nine districts outside Hyderabad.
Under the MSME Policy 2024, 10 specialised industrial parks will be developed. The government also plans to establish plotted factory complexes in all 119 constituencies to promote women entrepreneurs.
