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Source: Telangana State Statistical Abstract May 2014; Aranca Research, News articles
*Growth rate in Rupee terms
Economic growth driven
by service sector
• Telangana’s Gross State Domestic Product (GSDP) expanded to US$ 62.9 billion
between 2004-05 and 2013-14.
• In 2013-14, the services sector’s contribution to the state’s GSDP at current prices went
up to 56 per cent.
Hyderabad – The IT
hub of the state
• Expansion plans of IT majors like Microsoft, Google, and Amazon are likely to add 40,000
direct jobs, in addition to indirect employment to several thousands.
• The state government plans to set up a central authority to look into the issues faced by
the state’s IT sector.
Pharma to be the
backbone of state
development
• Hyderabad accounts for approximately 20 per cent of India’s total pharma exports, most of
the players opt for Hyderabad due to its better connectivity.
• The state government plans to set up a pharma city and promote public private
partnership to develop the state’s pharma sector.
• Currently, there are 412 pharma companies and 173 bulk drug units in Telangana state.
Promoting tourism &
historical past
• The state has been ruled by many dynasties like Sathavahanas, Chalukyas, Kakatiyas,
Mughals, Qutubshahis and Asafjahis.
• The state government recently proposed setting up a separate company named
Telangana State Tourism Development Corporation Limited (TSTDC) to promote tourism.
Source: Planning Commission Databook, October 2013,
GSDP: Gross State Domestic Product
Growing demand Growing economy and
improving infrastructure
• Telangana’s GSDP expanded at a CAGR of 17.3 per cent between 2004-05 and 2013-14.
• Expected to clock an average growth of 10.2 per cent during 11th plan
• The state government plans to construct more airports in the state to improve connectivity.
Rich labour pool
• Most of the leading educational universities and institutions in the state are located in Hyderabad that offers a vast pool of labour that can fuel state development.
• The state government has announced scholarships to attract more youth to these institutions.
Policy and
institutional support
• The central government recently announced formation of an Information Technology Investment Region (ITIR) near Hyderabad.
• The state government is designing a comprehensive pharma and biotechnology policy and plans to announce incentives and tax exemptions for pharma companies.
Availability of
readymade capital
• Telangana holds an advantage of easy access to capital and infrastructure vis-à-vis Seemandhra.
• Large multinational companies already have a base in Hyderabad.
• Information technology and pharmaceutical sectors are likely to act as the backbone of the state’s economic development.
Advantage
Telangana
Vision
Agriculture
Quality of life
of people
Power
Infrastructure
Governance Promoting
investments
Promoting
research
• Waiver of agricultural loans
up to Rs 1 lakh.
• Use of modern methods and
technology in agriculture.
• Government to encourage
research in agricultural
universities.
• Plans to make Telangana a
power surplus state within the
next three years.
• To make Hyderabad a slum free
international city.
• Effective implementation of
welfare schemes.
• Hyderabad to have most
advanced infrastructure facilities.
• To have two new airports in
Hyderabad, near Shamirpet,
Jawaharnagar and Ghatkesar.
• Ensure people centric,
transparent and corruption
free development.
• To take steps to eradicate
corruption.
• Plans to announce industrial
policy to encourage
investments in state.
• Setting up of faster
clearances, a single window
system.
• To make Telangana the Seed
Bowl of India as the state is
best suited for growing seeds.
• Promoting greenhouse
technology and pilot projects.
Law & order • No compromise on
maintaining law & order in
state.
• Encouraging people friendly
police officials.
• Installing CCTV cameras for
better vigilance.
Source: Aranca Research
Telangana, the 29th state of India, was formed on 2 June
2014, with Hyderabad as its capital.
The state is land locked by Andhra Pradesh to the south
and east, Maharashtra and Karnataka to the west, and
Odisha and Chhattisgarh to the north.
Telugu is the commonly spoken language in the state.
Hindi, Urdu and English are also widely spoken.
Telangana has 10 districts: Mahaboobnagar, Ranga Reddy,
Hyderabad, Medak, Nizamabad, Adilabad, Karimnagar,
Warangal, Khammam and Nalgonda.
The key cities in the state include Hyderabad,
Secunderabad and Warangal.
Source: Population Census 2011,
Telangana State Statistical Abstract May 2014
Parameters Telangana
Capital Hyderabad
Geographical area (sq km) 114,840
Administrative districts (No) 10
Population density (persons per sq km) 307
Total population (million) 35.2
Male population (million) 17.7
Female population (million) 17.5
Sex ratio (females per 1,000 males) 998
Literacy rate (%) 66.5
Source: Maps of India
Parameter Telangana All states Source
Economy 2013-14 2013-14
GSDP as a percentage of all states’ GSDP 3.6*^ 100.0 Planning Commission Databook, 2013-14,
current prices
Average GSDP growth rate (%)* 4.8 11.54 Planning Commission Databook, November
2014, current prices
Per capita GSDP^ (US$) 1,545.3 1,833.24 Planning Commission Databook, December
2014, current prices
Physical Infrastructure
Installed power capacity (MW) 9555.3^^ 258,701.45 Central Electricity Authority, as of January 2015
Wireless subscribers (No)^ 67,192,201 930,200,000 Telecom Regulatory Authority of India, as of
September 2014
Broadband subscribers (No)^ 1,342,750** 75,730,000 Telecom Regulatory Authority of India, as of
September 2014
National Highway length (km)*** 2,423 96,260 National Highway Authority of India
Airports (No) 6 133 Telangana State Portal, AAI
^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011,
***-For 2013-14, ^*As of November 2014, ^*^As of December 2014, *^For 2012-13
Parameter Telangana All states Source
Social Indicators
Literacy rate (%) 66.5 74.0 Planning Commission Databook, June 2014
Birth rate (per 1,000 population)^ 17.5 21.6 SRS Bulletin (www.censusindia.gov.in),
October 2013
Investment
FDI equity inflows (US$ billion)^ 9.83* 238.6 Department of Industrial Policy & Promotion,
April 2000 to December 2014
Outstanding investments (US$ billion)^ 198.1 2,414.2 CMIE (2013-14)
Industrial Infrastructure
PPP projects (No) 29 1,339 www.pppindiadatabase.com, PPP Cell
SEZs (No) 36 392 Notified SEZ, www.sezindia.nic.in
^For undivided state, PPP: Public-Private Partnership,
SEZ: Special Economic Zone, SRS: Sample Registration System,
*Data shared by RBI Hyderabad
At current prices, Telangana’s GSDP was estimated at US$
62.9 billion over 2013-14.
Between 2004-05 and 2013-14, the average annual GSDP
growth rate stood at 17.3 per cent*.
Source: Telangana state portal,
*In Indian Rupee terms, Socio Economic Outlook 2013-14
GSDP of Telangana at current prices
(in US$ billion)
20.1 24.5 28.1
37.9
41.0 42.9
57.9
63.1 61.7 62.9
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
201
3-1
4
CAGR
17.3%*
At current prices, Telangana’s net state domestic product
(NSDP) was estimated at US$ 56.1 billion over 2013-14.
Between 2004-05 and 2013-14, the average annual NSDP
growth rate was about 17.4 per cent*.
Source: Telangana state portal,
*In Indian Rupee terms, E - Estimates, Socio Economic Outlook 2013-14
NSDP of Telangana at current prices
(in US$ billion)
17.8 21.8
24.9
33.6 36.7 38.2
51.5 56.2 54.9 56.1
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0 (
E)
201
0-1
1 (
E)
201
1-1
2 (
E)
201
2-1
3 (
E)
201
3-1
4 (
E)
CAGR
17.4%*
623.7
752.9 851.8
1,131.5
1,210.8 1,249.4
1,661.8 1,788.2
1,724.3
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1
201
1-1
2
201
2-1
3
Telangana’s per capita GSDP^ increased to US$ 1,724.3
during 2012-13 from US$ 623.7 over 2004-05.
Average per capita GSDP rose at a CAGR of 16.3 per cent*
between 2004-05 and 2012-13.
Source: Telangana state portal,
*In Indian Rupee terms
^Calculated based on population growth between 2001
and 2011 census figures
GSDP per capita of Telangana at current
prices (in US$)
CAGR
16.3%*
554.1 669.2 754.5
1,003.6 1,081.3 1,112.0
1,479.0 1,591.5 1,534.7
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0 (
E)
201
0-1
1 (
E)
201
1-1
2 (
E)
201
2-1
3 (
E)
Telangana’s per capita NSDP grew from US$ 554.1 during
2004-05 to US$ 1,534.7 over 2012-13.
Average per capita NSDP increased at a CAGR of 16.3 per
cent* between 2004-05 and 2012-13.
Source: Telangana state portal,
*In Indian Rupee terms, E- Estimates
Per capita calculated based on population growth between 2001
and 2011 census figures
NSDP per capita of Telangana at current
prices (in US$)
CAGR
16.3%*
The state’s per capita income was estimated at US$ 1,545
in 2013-14 compared to US$ 544.7 during 2004-05.
Per capita income increased at a CAGR of 16* per cent
between 2004-05 and 2013-14.
Per capita income of Telangana at current prices
(US$)
Source: Socio Economic Outlook 2013-14
Current prices
CAGR: Compound Annual Growth Rate
*In Indian Rupee terms
545 657 739
985 1,064 1,096
1,468 1,577 1,529 1,545
200
4-0
5
200
5-0
6
200
6-0
7
200
7-0
8
200
8-0
9
200
9-1
0
201
0-1
1 (
E)
201
1-1
2 (
E)
201
2-1
3 (
E)
201
3-1
4 (
E)
CAGR
16.0%*
At a CAGR of 17.7 per cent, services has been the fastest
growing sector among agriculture, industry and services
from 2004-05 to 2013-14.
The industry sector increased at a CAGR of 17.0 per cent
between 2004-05 and 2013-14, followed by agriculture
(CAGR of 16.8 per cent).
In 2013-14, the services sector contributed 55.3 per cent to
the state’s GSDP at current prices. It was followed by the
industry sector (27.5 per cent) and agriculture sector (17.2
per cent).
Percentage distribution of GSDP
(Current prices)
Source: Telangana State Statistical Abstract May 2014, Socio Economic Outlook 2013-14,
Current prices, CAGR: Compound Annual Growth Rate,
*In Indian Rupee terms, **Estimates
17.9% 17.2%
28.3% 27.5%
53.8% 55.3%
2004-05 2013-14**
Agriculture Industry Services
CAGR*
16.8%
17.7%
17.0%
Source: Telangana State Statistical Abstract May 2014,
News articles
Ha: Hectare
Crop Annual production (2012-13)
(‘000 tones)
Rice 4,648
Cereals & millets 7,751
Pulses 491
Oil seeds 807
Cotton 4,057
Telangana is predominantly a rain fed state and
experiences uneven distribution of rainfall.
The state is expected to be a leading producer of cotton,
paddy and maize, with 81 lakh ha of area under cultivation
of kharif crops.
Maize is grown over an area of 4.4 lakh ha, marginally less
than the total cultivation in the US (5.08 lakh ha).
Telangana grows pulses in 5.10 lakh ha of land of the total
7.75 lakh ha area in the undivided state of Andhra Pradesh.
Coarse grains are also grown in 5.50 lakh ha as against the
total area of 7.46 lakh ha in the combined state.
Thus, after the bifurcation, the state is expected to hold a
leading position in pulses and coarse grains production.
The state’s agriculture benefited during 1993 to 2011 due to
introduction of High Yielding Variety (HYV) seeds and
increased dependence on borewells for irrigation.
Annual production of key crops
During 2010-11, nearly 70 per cent of the irrigation in the
state was depended on ground water, nearly 17 per cent on
canal water and more than 10 per cent on tank water.
The undivided state has embarked on water projects called
Jalayagnam with an estimated cost of nearly US$ 20 billion.
This water management program was introduced in 2009 to
bring a larger parcel of land in the undivided Andhra
Pradesh under irrigation.
Currently, of the 20 major irrigation projects in Telangana, 4
are completed and 11 are ongoing. Moreover, of the 48
medium irrigation projects, 32 are completed and four are
ongoing.
Adoption of SRI technologies is going to further contribute
towards growth in irrigation.
Restoration of 45,300 tanks in five years is also on the
agenda for further growth in irrigation. Source: Telangana state portal
Jalayagnam project status - May 2014
Major irrigation
projects Numbers
Area covered
(million acres)
Completed 4 23.3
Ongoing 11 16.9
Contemplated 5 49.0
Medium irrigation
projects Numbers
Area covered
(million acres)
Completed 32 0.4
Ongoing 4 0.04
Contemplated 12 0.1
Being landlocked, road and rail infrastructure forms an
important part of state transportation.
As per the Telangana Bill, the Union Government plans to
construct rapid rail and road connectivity from Hyderabad to
the new capital of Andhra Pradesh.
Indian Railways is expected to examine the feasibility of
constructing a rail coach factory in Telangana and improve
rail connectivity in the state.
National Highways Authority of India (NHAI) will take
measures to improve road connectivity in the backward
regions of Telangana.
Metro rail project in Hyderabad is expected to be completed
by 2017; phase 1 of the project is anticipated to be
operational by March 2015.
The GMR group is eyeing to bag any new project by
Telangana government including construction of more
airports in Hyderabad.
The state aims to fast track pending rail projects and
upgrade train stations. The government also plans to set up
rail lines: Manoharabad-Kothapalli and Peddapalli-
Nizamabad.
Source: Telangana State Statistical Abstract May 2014,
News articles
The total installed capacity of APGenco is 8,924.86 MW. Of
this, about 54 per cent (4,825 MW) is located in Telangana,
while 46 per cent is in the Seemandhra region.
Fifty-two per cent of the total capacity in Telangana is
hydropower, which is dependent on reservoirs receiving
good water inflows, while just 48 per cent is available
through power plants.
Currently, APGenco is building power plants having a
capacity of 3,210 MW. Of these, 70 per cent (2,250 MW) is
located in coastal Andhra and 30 per cent (960 MW) is
coming up in Telangana.
In July 2014, NTPC has agreed to set up a 4,000 MW
power generation plant at Ramagundam in Telangana. The
construction work on the proposed site would commence
immediately and the first unit is expected to be ready within
39 months.
Telangana government is now also placing its bet on solar
power by going ahead with a proposal to set up a 500 MW
solar power plant in Adilabad district.
Singareni Collieries Company to set up two thermal power
stations of 600 MW in Adilabad district Source: Telangana State Statistical Abstract May 2014, News articles
APGenco: Andhra Pradesh Power Generation Corporation Limited,
NTPC: National Thermal Power Corporation Limited
1,415
1,310
1,293
1,205
896
673
655
655
522
502
0 500 1000 1500
Medak
Nalgonda
Hyderabad
Ranga Reddy
Mahaboobnagar
Karimnagar
Warangal
Nizamabad
Khammam
Adilabad
Per capita power consumption by district
(all categories) (KWh)
Distribution of hydropower plants Distribution of thermal & solar power plants
Source: Telangana State Statistical Abstract May 2014
Project name Sector Under
government
Project cost
(US$ million) Stage
Business District & Trade Towers Tourism State 833.3 Bidding
Hyderabad-Vijaywada Section Roads Central 290.0 Construction
Development of Bus Terminal - Hyderabad Urban development State 78.5 Construction
Hyderabad Metro Rail (MRTS) Project Urban infrastructure State 2,355.3 Construction
Hyderabad International Airport Civil aviation Central 413.0 Operational
Mind Space Project, Hyderabad Others State 333.3 Operational
Golf Course & Convention Centre Tourism State 101.5 Operational
Integrated Solid Waste Management Urban development State 121.2 Operational
FAB CITY, Hyderabad Others State 25.0 Operational
Source: Public Private Partnership in India Database
PPP: Public - Private Partnership,
As of March 2014, Converted using flat exchange rate of INR 60 / US$
Source: www.sezindia.nic.in, Aranca Research
SEZ: Special Economic Zone
Name/Developer Location Primary industry
Andhra Pradesh Industrial Infrastructure Corporation Ltd Nanakramguda IT/ITeS
Andhra Pradesh Industrial Infrastructure Corporation Ltd,
Jedcharla Pollepally Village, Jedcharla Mandal Pharma
CMC Limited Hyderabad IT/ITeS
DLF Commercial Developers Ltd Hyderabad IT/ITeS
Hyderabad Gems SEZ Ltd Hyderabad Gems and jewellery
Fab City SPV(India) Pvt Ltd Ranga Reddy District Semiconductors
WIPRO Limited Gopannapally IT/ITeS
Andhra Pradesh Industrial Infrastructure Corporation Ltd,
Ibrahimpatnam Ranga Reddy District
Aerospace and precision engineering
industries
GMR Hyderabad International Airport Ranga Reddy District Aviation
Infosys Technolgies Ltd Ranga Reddy District IT/ITeS
Sundew Properties Pvt Ltd Ranga Reddy District IT/ITeS
Some operational SEZs in Telangana
Industrial Infrastructure Corporation is responsible for supervision and execution of SEZs in the state.
As of December 2014, the state had 26 operational SEZs across diversified sectors, which include aviation, gems &
jewellery, pharmaceuticals, aerospace & precision engineering industries and IT/ITeS, among others.
Telecom infrastructure (as of November 2014)
Wireless subscribers^ 70,088,345
Wireline subscribers^ 1,927,343
Broadband subscribers^ 1,342,750*
Telephone exchanges^ 4,266**
Public Call Offices (PCOs)^ 130,282**
Source: Telecom Regulatory Authority of India,
Department of Telecommunications, Annual Report 2011-12,
Ministry of Communications & Information Technology, India Post
*As of December 2011,
**As of March 2012,
^For undivided Andhra Pradesh as of November 2014,
BSNL: Bharat Sanchar Nigam Limited
According to the Telecom Regulatory Authority of India
(TRAI), undivided Andhra Pradesh had nearly 67.2 million
wireless subscribers and 2.0 million wireline subscribers as
of May 2014.
According to the Department of Telecommunications,
Government of India, the undivided state had 4,266^
telephone exchanges and 130,282^ Public Call Offices
(PCOs) as of March 2012.
The overall teledensity in undivided Andhra Pradesh stood
at 79.4^ per cent as of May 2014.
Optical fibre cable networks of BSNL with 44,500^ km,
Reliance with 6,000^ km, Bharat with 3,450^ km and Tata
with 1,700^ km provide a wide range of communication
networks to Andhra Pradesh.
As of July 2014, there were 16,161^ post offices in the
undivided state.
BSNL announced that there will be no charge on interstate
roaming between Telangana and Seemandhra until 2024.
In 2024, when the license of spectrum ends, a new
spectrum auction would be conducted for the two states and
the norms would be set for interstate roaming.
BSNL plans to concentrate on expanding its base in
Telangana.
Airtel is planning to launch 4G services in Telangana and
residual Andhra Pradesh by the end of this financial year
with a special focus on Hyderabad, Vijayawada and
Visakhapatnam.
Telangana’s share in educational institutions includes:
Three central universities located in Hyderabad:
University of Hyderabad, English and Foreign
Languages University and Maulana Azad National
Urdu University.
Technological institutes such as IIT, IIIT and NIT.
Nalsar Law University, Indian School of Business as
well as private institutes such as Symbiosis and
TISS are located in the vicinity of Hyderabad.
The Telangana government announced fee reimbursements
for native students and students belonging to low income
families. In the academic year 2014-15, the state’s spend
on fee reimbursement and scholarships is expected to be
approximately US$ 417.0 million.
Source: Planning Commission Databook 2013;
Human Resource Development Department,
http://www.telangana.com/education.htm
IIT: Indian Institute of Technology,
IIIT: International Institute of Information Technology,
NIT: National Institute of Technology,
TISS: Tata Institute of Social Sciences, Telangana Education Statistics 2013-14
Literacy rates (%)
Literacy rate 66.5
Male literacy 74.9
Female literacy 57.9
Primary education statistics (%)
Gross enrollment ratio (2013-14) Primary schools: 95.3
Upper primary schools: 95.4
Teacher/Student ratio (2012-13) Primary schools: 1:33.0
Upper primary schools: 1:28.3
Source: Telangana State Statistical Abstract May 2014, Telangana Education Statistics 2013-14
Total (I–X) drop out rate (2013-14)
53.21 47.28
43.03 42.22 42.12
34.81 32.05 28.10 26.02 28.42
Ma
ha
bo
obn
ag
ar
Me
da
k
Wa
ran
gal
Nalg
on
da
Ad
ilab
ad
Hyde
raba
d
Niz
am
ab
ad
Kh
am
ma
m
Ran
ga
Re
dd
y
Ka
rim
nag
ar
Source: SRS Bulletin, September 2013,
Telangana State Statistical Abstract May 2014, News articles
*Per thousand live births, ^Represents information for combined
state of Andhra Pradesh before bifurcation
Health indicators ̂(2012)
Birth rate (per thousand persons) 17.5
Death rate (Per thousand persons) 7.4
Infant mortality rate* 41
Health infrastructure (2012-13)
Total hospitals 205
General hospitals 84
Hospitals for women & children 12
Dispensaries 75
Primary health centres 613
Doctors (regular + contract) 3,819 + 894
Total beds available 20,450
Telangana contributes to one-third of the country’s pharma
production; the state government plans to enhance it further
by promoting a pharma city.
Some of the initiatives by the state government to promote
the healthcare sector are as follows:
To double the budget allocation for the healthcare
sector from the present 2 per cent and increase
public health delivery services.
Setting up primary health centres and area hospitals
in every mandal and taluqa headquarters,
respectively.
Supporting private players willing to invest in the
healthcare sector.
Setting up a super speciality hospital on the same
lines as Nizam's Institute of Medical Sciences
(NIMS) at Hyderabad in each district.
Telangana plans to double its healthcare spending
in its budget allocation to provide a further stimulus.
Source: Telangana State Statistical Abstract May 2014
CHC: Community Health Centres
36
21
21
21
21
20
19
17
15
14
0 10 20 30 40
Hyderabad
Warangal
Nizamabad
Medak
Adilabad
Mahaboobnagar
Ranga Reddy
Khammam
Nalgonda
Karimnagar
Total number of hospitals
by district
Distribution of district hospitals, area
hospitals & CHCs in Telangana
Telangana holds an advantage as it possesses readymade
capital with necessary infrastructure and ecosystem.
The industrial sector contributed 27.5 per cent to the state’s
GSDP in 2013-14.
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.
Multinational companies are expected to invest in
enhancing the infrastructure in Hyderabad city.
The Telangana state is expected to invest in power plants in
a big way to support its industrial infrastructure.
Recently, the government introduced a new industrial policy
framework to develop 6 industrial corridors with focus on
core manufacturing sectors with life sciences, IT and
hardware being the major benefactors.
Source: News articles, Telangana State Statistical Abstract May 2014
Distribution of industrial parks in Telangana
The Information Technology (IT) and pharmaceuticals
manufacturing sectors are expected to act as the
backbones of the Telangana economy.
The government has announced to offer special status to
pharmaceuticals and IT industries in the state. Special
attention would be provided to develop the poultry,
agriculture and real estate sectors.
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.
The state government plans to develop cotton rich
Warangal, the second biggest city after Hyderabad, in all
aspects especially by setting up of textile parks similar to
those in Tirupur in Tamil Nadu.
The state targets setting up of industries across Telangana
rather than confining them to any particular city.
Single window clearance system will be implemented
across all three levels- Mega projects, other large industries
and SMEs.
Key industries in Telangana
• Information technology
• Pharmaceuticals manufacturing
• Tourism
• Textile
• Mines and minerals
Source: News articles
IT/ITeS: Information Technology/ Information Technology enabled Services Sector,
EHM: Electronic Hardware Manufacturing
Considering that the uncertainty over formation of Telangana state is over, the region is expected to attract more
investments in the IT sector as per Telangana Information Technology Association.
Experts are anticipating the need to develop tier-II cities such as Warangal and Karimnagar as IT centres.
The central government has announced the formation of an Information Technology Investment Region (ITIR) near
Hyderabad.
The total investment for the ITIR is around US$ 36.5 billion, of which IT/ITeS is projected to attract investments of US$ 19.7
billion, and the EHM sector would attract investments worth US$ 16.8 billion.
With the setting up of the ITIR, the new government plans to create 1.5 million direct and 3.5 million indirect jobs in the IT
sector over the next five years.
Hyderabad alone accounts for nearly 90 per cent of the total US$ 8.7 billion IT exports from Andhra Pradesh during 2013.
Global IT majors such as Facebook, Google, IBM and Microsoft have offices in Hyderabad. Expansion plans of these IT
majors are likely to add 40,000 direct jobs in addition to indirect employment of several thousands.
Cognizant to invest US$ 83 million to expand its operations in Hyderabad.
Microsoft
Amazon
• Google’s Hyderabad office played a pivotal role in the development of the firm’s key products
such as Gmail, Chrome, Calendar and Docs.
• The engineers at Hyderabad customise Google products for local markets and managing
systems for offices in India and other Asia Pacific markets.
• Google Hyderabad was named the best place to work in India by the Great Place to Work
Institute in 2010 and 2011.
• In July 2014, Microsoft announced its plans to expand operations in Hyderabad. The state
government has assured land and other facilities required for the expansion project.
• Microsoft’s CEO Satya Nadella visited Hyderabad in September 2014, and there are chances of
talks with the state government regarding expansion of the IT industry in Hyderabad.
• Amazon plans to set up a 1.6 million square foot campus at Nanakramguda SEZ in Hyderabad.
• The upcoming campus would be the first dedicated and owned facility of Amazon after Seattle,
US. The construction is expected to be completed in three years.
• Amazon intends to increase its employee base by more than three fold from the current 4,000 to
13,500 in phases.
Facebook • Facebook is a US-based online social networking service company with operations in India.
• The office in Hyderabad was the first office for the company in Asia.
• The company’s investments in the region rose three folds to US$ 9.6 million in 2013 from US$
3.8 million in 2012.
• During 2013, the company’s Indian operation posted 62.7 per cent rise in profits to US$ 1.6
million, driven mainly by India’s booming online advertising market.
Source: News articles
Hyderabad accounts for almost 20 per cent of pharma exports from India, making the city a hub for the drug industry.
Telangana contributes to almost one-third of the total pharma production in the country.
The state government announced setting up of a Pharma City to boost the pharmaceutical industry in Telangana.
This would come up on 1,000-2,000 acre land in Kazipally and Bolarum, which adjoins the Outer Ring Road, north of
Hyderabad.
At present, there are 412 pharma companies and 173 bulk drug units in Telangana.
The Pharmaceutical Association of Telangana (TPA) has asked the state government to design a comprehensive pharma
and biotechnology policy and announce incentives and tax exemptions for pharma companies.
TPA is planning to promote PPP programmes to attract investments and retain existing companies in the state.
Companies such as Dr Reddy’s and Aurobindo have plans to increase capacities during 2014 and have already lined up
huge investments for the same.
Total R&D by pharmaceutical companies has risen by more than 20.6 per cent in 2014, showcasing the potential it has for
Telangana.
Dr Reddy’s
Aurobindo Pharma
• Dr Reddy’s started its business operations as an Active Pharmaceutical Ingredients (API)
manufacturer in 1984 and added formulations operations in 1987.
• The company went to international markets in 1991.
• Currently, the company works with 50 R&D partners across the world, with the three major
clusters being the US, Western Europe and India.
• Aurobindo Pharma was founded in 1986 and became a public listed company in 1995.
• The company exports its drugs to 125 countries and derives more than 70 per cent of its total
revenues from international operations.
• The company has a team of over 650 scientists who are involved in research and product
development.
Divi's Laboratories • Divis Laboratories, established in 1990, produces APIs & intermediates.
• The company has 500 acres of 13 multi-purpose production blocks in Hyderabad and a plant in
Seemandhra.
• During the first half of 2014-15, the company reported consolidated revenues of US$ 238
million.
Granules India Ltd • Granules India is an Indian pharmaceutical company with manufacturing facilities spreading
across India and China.
• The company serves customers across 60 countries with four facilities in India, which include
Hyderabad, and a facility in Jingmen, China. The company recently acquired Auctus Pharma
and is looking to expand its business through organic as well as inorganic routes.
Source: News articles
Telangana was ruled by many great dynasties such as
Sathavahanas, Chalukyas, Kakatiyas, Mughals,
Qutubshahis and Asafjahis.
Hyderabad, the capital of Telangana, is known for
Charminar, Golconda Fort, pearls and biryani.
The Kakatiya circuit with Warangal as the hub and the
adjacent Karimnagar are popular with tourists.
Lesser known places include Jinnaram near Kawal Tiger
Sanctuary and the lake resorts at Kadem (Adilabad) and
Alisagar Lake (Nizamabad).
Among the new destinations, the state has developed
jungle resorts on the Telangana-Maharashtra border.
The state government has proposed registration of a new
public limited company, Telangana State Tourism
Development Corporation Limited (TSTDC), under the
Companies Act 2013 to promote tourism.
The state celebrates different festivals. Recently, the state
government decided to declare Bathukamma Panduga as
the state festival considering the importance of this festival
celebrated across Telangana.
Key tourist spots
Monuments
• Charminar
• Golconda Fort
• Qutb Shahi Tombs
• Chowmahalla Palace
• Falaknuma Palace
• Bhongir Fort
• Ramoji Film City
Religious Tourism
• Thousand Pillar Temple
• Bhadrachalam Temple
• Nelakondapalli
• Dhulikatta Phanigiri
• Kolanpaka
• Mecca Masjid
Others
• Kuntala waterfall
• Pochera waterfalls
• Nirmal Paintings
Telangana is rich in mineral resources, which include
granite, coal, lime stone, bauxite and mica.
The state accounts for nearly 20 per cent of the country's
coal deposits used for industrial purposes and in thermal
power stations. Majority of the state’s coal is spread across
Adilabad, Karimnagar, Khammam and Warangal districts.
The state is rich in limestone deposits, which cater to the
various cement factories in the region.
The state’s leading mining districts are Karimnagar,
Khammam and Adilabad, which contributed more than 50
per cent of mining revenue of undivided Andhra in 2010-11.
The district of Karimnagar is rich in granite reserves due to
the availability of a variety of granites such as Tan Brown,
Maple Red and Coffee Brown granite.
According to the Department of Mines and Geology, there
are 426 colour granite quarries and six black granite
quarries in the district.
Khammam is emerging as the new growth engine with
around 15,000 acres of land being freed by the state
government in the district.
Source: Indian Mineral Scenario – States, Ministry of
Mines website, www.mines.nic.in
Minerals Availability across districts
Manganese ore Adilabad and Nizamabad
Mica Khammam
Steatite/talc
Karimnagar, Khammam,
Mahabubnagar, Medak and
Nizamabad
Copper Khammam
Graphite Karimnagar and Khammam
Except for Hyderabad and Nizamabad, cotton is grown
across the districts of the state.
The undivided Andhra government identified the textile
sector as one of the long term growth engines. To utilise the
potential of this sector, the government has established few
Apparel Export Parks (AEPs) and textile parks.
Telangana state government has recently proposed to set
up two textile parks in the state under the scheme of
Integrated Textiles Park; one is proposed in Warangal and
the other in Sircilla, Karimnagar district.
According to the scheme, the government will fund 40 per
cent of the project cost with an upper limit of US$ 6.7
million.
Both the parks are proposed to be developed on the lines of
the existing textile park at Tirupur in Tamil Nadu.
Source: Andhra Pradesh Socio-Economic Survey 2012-13,
Socio Economic Outlook 2013-14, Telangana State Portal,
News articles
*In Indian Rupee terms
Handloom and textile exports for undivided
Andhra Pradesh (in US$ million)
151.0
272.0
148.0
340.0 404.0
490.0
793.0
1,002.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1,000.0
1,100.0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
CAGR
36.6%*
List of approvals and clearances required Department
Incorporation of company Registrar of Companies
Registration, Industrial Entrepreneurs Memorandum, industrial licences
Commerce and Industries Department Permission for land use
Allotment of land
Site environmental approval Telangana Pollution Control Board
No-objection Certificate and consent under Water and Pollution Control Act
Registration under States Sales Tax Act and Central and State Excise Act Excise Department
Commercial taxes
Sanction of power
Energy and Power Department Power feasibility
Power connection
Approval for construction activity and building plan Public Works Department
Water and sewerage clearance Water Security & Public Health Engineering
Department Water connection
Agency Contact information
Industrial Infrastructure Corporation
6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad – 500 004, Telangana, India
Ph: +91-40-23237625, 23237626 Fax: +91-40-23240205, 23241385 Website: http://telangana.apiic.in/
email: [email protected]
Andhra Pradesh Power Generation Corporation
(APGENCO)
Vidyutsoudha, Khairatabad, Hyderabad-500 082,
Andhra Pradesh, India Phone: 040-23499000/39839000
Fax: 040-23499101 email: [email protected]
Telangana Pollution Control Board
Telangana Pollution Control Board Payavaran Bhawan, A-III, Industrial Estate,
Sanath Nagar, Hyderabad - A.P. Website: http://appcb.ap.nic.in email: [email protected]
Parameter Cost estimate
Land price (US$ per sq m) 3.6–254.6
Labour cost (minimum wages per day) US$ 2.9–22.7
Commercial lease rent (US cents per sq ft per month) 5.4–714.3
Electricity (US cents per kWh) Commercial: 9.0–18.4
Industrial: 7.7–11.3
Residential rent (US cents per sq ft per month) 6.7–40.0
Five-star hotel room (US$ per night) 58–330
Water cost (US$) Industrial: 0.8-3 per 1,000 litres
Commercial: 0.7-3 per 1000 litres
Source: www.hyderabadwater.gov.in, Southern Power website, labour.nic.in,
Property sites, News articles, Travel sites
Industrial Investment Promotion Policy (IIPP) 2010–15
• To build a strong and vibrant industrial economy that spins off large capital formation in the state
and advances inclusive development of all sections of the population and industry that creates
increasing employment opportunities, and raises wage incomes to higher levels through skill
upgradation to improve the quality of life of citizens of the state.
Read more
Objective
Information and Communications Technology (ICT) Policy 2010–15
To make undivided Andhra Pradesh one of the fore runners in the IT sector in the country The
objective would be achieved through the following initiatives:
• Provision of congenial, industry-friendly and proactive climate for IT companies to locate, grow
and sustain their operations in a most competitive and hassle-free environment.
• Creation of employment opportunities for the educated youth of all sections of the society across
regions.
• Achieving higher levels of exports, resulting in enhanced productivity and augmentation of
GSDP.
• To spread IT to every nook and corner of the state.
• Leverage IT as a tool for the socio-economic development of the state. Read more
Objectives
Biotechnology Policy 2001
Read more
Objective
Tourism Policy 2010
Read more
Objectives
Electronic Hardware Policy 2012-17
• To provide special incentives and facilities for the electronic hardware sector in line with the
present ICT policy. The policy would cover areas such as industrial electronics, communication &
broadcast equipments, computers & peripherals and strategic electronics & components
(semiconductors, solar & displays). Read more
Objective
• To position the state competitively for attracting private sector investments in the tourism and
hospitality sectors.
• To target the incentives to the private sector better as per the state government's priorities in
terms of geographical areas and tourism products.
• To focus on maximum generation of employment in the sector through development of human
resources by capacity building.
• To undertake a detailed inventory evaluation of bio-resources in the state for encouraging
Research and Development (R&D), developing high quality infrastructure and providing special
incentives to the biotech industry.
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15 60.6
Average exchange rates
Source: *Average of first three quarters
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