Hyderabad Gets Big Budget Boost As Telangana Backs Industry, IT Growth And Global Capability Centres

Hyderabad

oi-Ashish Rana

The Telangana government has placed industrial growth and information technology at the centre of its 2026-27 budget strategy, outlining a broad push to strengthen exports, expand digital infrastructure and widen industrial activity beyond Hyderabad’s traditional growth corridors.

The latest budget signals a long-term effort to position the state as a stronger manufacturing and technology destination, while also deepening regional industrial development.

For 2026-27, the government has proposed ₹3,490 crore for the industries department and ₹875 crore for the IT department. While the allocation for industries is marginally lower than last year’s ₹3,527 crore, spending on IT has increased from ₹774 crore, underlining the state’s continued emphasis on technology-led growth.

Hyderabad Strengthens Position As GCC And Technology Hub

The government said Hyderabad remains one of India’s most important destinations for Global Capability Centres (GCCs), with around 20% of the country’s GCCs located in the city. It added that more than 706 new GCCs were set up during 2024-25, highlighting the city’s growing importance in global back-office, engineering and innovation ecosystems.

In another major development, Google has established a safety engineering centre in Hyderabad, further reinforcing the city’s status as a preferred location for high-value technology investments.

To ensure that IT growth is not concentrated only in western Hyderabad, the government has also proposed a distributed IT grid across the city. The move is aimed at spreading technology infrastructure and commercial development into newer areas, reducing pressure on existing clusters while encouraging balanced urban expansion.

Telangana Exports Jump Over 39% In A Year

Telangana has recorded a sharp rise in industrial exports, according to the budget. The state’s exports increased from ₹1,16,182 crore in 2023-24 to ₹1,61,843 crore in 2024-25, marking a 39.30% year-on-year increase.

With this, Telangana now contributes 4.37% of India’s total exports and ranks seventh among states nationally. The growth reflects strong performance across key sectors, especially high-value manufacturing and pharmaceuticals.

The state’s leading export categories include aircraft and spacecraft components, pharmaceuticals, organic chemicals, electrical equipment and engineering products. Export activity remains heavily concentrated in a few districts, with Ranga Reddy, Medchal-Malkajgiri, Sangareddy, Hyderabad and Mahbubnagar together accounting for 90.10% of total exports.

The United States remains Telangana’s biggest export destination, accounting for 28.61% of outbound shipments. It is followed by the United Arab Emirates at 11.74%, Saudi Arabia at 6.74% and China at 3.63%. The state’s export network also extends to France, the United Kingdom, Türkiye, the Czech Republic, Bangladesh and Kuwait.

IT Exports, T-Fibre Expansion And Data Centre Modernisation

The budget also highlights continued expansion in Telangana’s IT sector. The government said IT exports have reached ₹3.18 lakh crore, while the sector now provides employment to more than 9.33 lakh people, reinforcing its role as one of the state’s largest economic drivers.

On the digital infrastructure front, the T-Fibre initiative has made significant progress. Fibre connectivity has already been extended to 8,888 gram panchayats across 124 mandals and 4,800 government institutions. The state now aims to scale this up to 50,000 institutions by the end of the year.

To support growing digital demand and improve backend infrastructure, the government has also allocated ₹100 crore for modernisation of the state data centre.

Industrial Parks, MSMEs And Telangana’s 2047 Vision

The Telangana government has set an ambitious target of transforming the state into a global industrial hub by 2047. As part of that roadmap, Hyderabad is being developed as a major aerospace and defence manufacturing centre, with more than 1,500 micro, small and medium enterprises (MSMEs) being integrated with global original equipment manufacturers.

The government also announced that the upcoming Life Sciences Policy 2026-30 will shift the focus from volume-led growth to value-led expansion. As part of this strategy, Genome Valley will be expanded by more than 300 acres to support future growth in biotech, pharmaceuticals and advanced research.

Industrial development is also being planned outside Hyderabad. Kodangal in western Telangana is being positioned as a major industrial centre, with land to be acquired near the proposed Regional Ring Road (Radial Road-2) for large industrial parks, including a multi-purpose industrial park in the area.

The Zaheerabad Industrial Smart City project, spread over 3,215 acres, is also progressing with support from the central government under the National Industrial Corridor Programme.

In terms of specific allocations, the budget has proposed ₹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 across nine districts outside Hyderabad.

Under the MSME Policy 2024, the state will develop 10 specialised industrial parks. In a move aimed at broad-based entrepreneurship, the government has also announced plans to establish plotted factory complexes in all 119 constituencies, with a special focus on supporting women entrepreneurs.