Through the "China +1" strategy, the government aims to transform Telangana into a global manufacturing hub for pharmaceuticals, biotechnology, EVs, and renewable energy
Published Mar 19, 2025 | 10:05 PM ⚊ Updated Mar 19, 2025 | 10:05 PM
Synopsis: The service sector is the largest employer in Telangana, contributing 34.8 percent of the workforce, with Hyderabad leading in IT, fintech, logistics, and tourism. Despite this, the government has allocated only ₹774 crore for the IT department. In 2024-25, the service sector drives 66.3 percent of the state’s Gross State Value Added, while agriculture supports 42.7 percent of the workforce
The service sector remains the largest employment provider in the state, accounting to 34.8 percent of the total workforce. Hyderabad has emerged as a leader in the IT sector, significantly contributing to employment growth, particularly in software services, fintech, logistics, and tourism.
However, the government has allocated a very small amount of money for the budget. The government has allocated ₹ 774 crore for the Information Technology Department.
In 2024-25, Telangana’s Gross State Value Added (GSVA) is primarily driven by the service sector, which contributes 66.3 percent, followed by the agriculture and allied sectors at 17.3 percent and industrial sector at 16.4 percent.
Although the agriculture and allied sectors contribute a smaller share to the GSDP, they provide employment to 42.7 percent of the total workforce in the state.
“Government initiatives such as free electricity, Rythu Bharosa, farm loan waivers, and investments in irrigation projects have boosted farmers’ confidence and strengthened the agricultural sector. At the same time, to further enhance the agriculture sector, we are actively promoting horticulture, animal husbandry, and aquaculture, ensuring diversified and sustainable growth for farmers,” said Telangana Deputy Chief Minister Mallu Bhatti Vikramarka who presented ₹3,04,965 crore state budget.
The government has allocated ₹24,439 crore for agriculture, and ₹23,373 crore for the irrigation in the state which directly impacts the agriculture and ally sector.
The industrial sector in Telangana provides employment to 22.5 percent of the workforce. By adopting the “China +1” strategy, the government aims to develop Telangana into a global manufacturing hub in key sectors such as pharmaceuticals, biotechnology, electric vehicles, and renewable energy.
The government has allocated ₹3,527 crore for the industries, while ₹371 crore for the handlooms.
“Recognising the key challenges faced by Micro, Small, and Medium Enterprises (MSMEs), the Telangana government has introduced the MSME Policy 2024 to drive growth and sustainability in the sector. Over the next five years, the government plans to invest ₹4,000 crore in MSME development, with a target of establishing over 25,000 new MSME industries across the state,” said the deputy chief minister.
The government also announced to promote inclusive industrial growth, the government has decided to allocate 5 percent of plots in new industrial parks to women entrepreneurs and 15 percent to SC/ST entrepreneurs.
Additionally, SC/ST entrepreneurs will receive a land cost subsidy of up to 50 percent, subject to a maximum limit of ₹50 lakh, to encourage their participation in the industrial sector.
To further support private factory complexes, the government is offering stamp duty reductions, electricity tariff concessions, and land cost subsidies.
To achieve widespread industrial growth across Telangana by 2050, the government has introduced the Mega Master Plan – 2050. The core objective of this policy is to decentralise industrial development, ensuring that Hyderabad is not the sole hub of industrial progress, but that all regions of the state experience balanced and sustainable growth, announced the deputy chief minister.
“As part of this initiative, the government is establishing sector-specific industrial clusters across Telangana in key industries such as IT, pharmaceuticals, healthcare, food processing, sports, automobiles, garments, metalware, handlooms, and jewellery manufacturing, among others,” announced the minister.
(Edited by Ananya Rao)
