Telangana

Recent Development in Key Sectors

• In January 2026, Rashmi Group signed a memorandum of understanding (MoU) with the Government of Telangana to establish a steel manufacturing plant in the state with an investment of Rs. 12,500 crore (US$ 1.36 billion). The proposed project is expected to generate around 12,000 direct and indirect employment opportunities and strengthen Telangana’s position as a key manufacturing and industrial investment destination.
• Agriculture and allied sector accounts for 66.15% of rural employment and 47.34% of overall workforce participation. On September 27, 2025, the state of Telangana launched a tourism initiative comprising 30 major projects with total investments of Rs. 15,000 crore (US$ 1.69 billion) and projected creation of over 50,000 jobs.
• In FY26, drugs and pharmaceutical exports from the state stood at Rs. 49,275 crore (US$ 5.57 billion).
• The government plans to expand irrigation facilities to an additional 50 lakh acres over the next 2-3 years, complementing the existing 73 lakh acres in 2023 were under irrigation.
• As of April 2026, the total installed power capacity in Telangana was 21,809.64 MW. Of this, 11,111.74 MW was contributed by state utilities, 7,211.02 MW by private utilities and 3,486.88 MW central utilities.
• Thermal power was the largest contributor to the state’s total installed capacity with 13,636.30 MW, followed by renewable energy with 5,544.68 MW, hydropower with 2479.93 MW and nuclear power with 148.73 MW.
• Budget allocations under state budget FY27:
  • Rs. 10,056 crore (US$ 1.09 billion) was allocated towards assistance to the Transmission Corporation of Telangana Limited (TGTRANSCO) for agricultural power subsidy.
  • Rs. 2,654 crore (US$ 288.5 million) was allocated under the Hyderabad Core Urban Infrastructure and Transformation Initiative (H-CITI) for Hyderabad's urban infrastructure development.
  • Rs. 15,954 crore (US$ 1.73 billion) was allocated towards primary and secondary education, including Rs. 6,837 crore (US$ 743.2 million) for primary education and Rs. 9,117 crore (US$ 991.0 million) for secondary education.
  • Rs. 1,143 crore (US$ 124.2 million) was allocated towards the Rajiv Aarogyasri healthcare scheme to improve access to healthcare services.
• In FY26, Telangana's horticulture sector recorded a production of 42.22 lakh metric tonnes across 13.0 lakh acres, driven by strong output from fruits, vegetables, spices and oil palm cultivation. Fruit production stood at 21.06 lakh metric tonnes from 4.56 lakh acres, accounting for nearly half of the state's total horticulture output.
• The Telangana government has collaborated with pharma majors such as Dr. Reddy's Laboratories and Laurus Labs as well as academia to set up a one-of-its-kind flow chemistry technology hub (FCTH) at the Dr. Reddy's Institute of Life Sciences (DRILS)
• Microsoft will invest Rs. 15,000 crore (US$ 1.93 billion) over the next 15 years in Hyderabad to set up its largest Data Centre in the country.
• As per the State government data, Hyderabad has attracted investments nearly worth Rs. 7,500 crore (US$ 965.25 million) in the pharma, biotech and medical devices arenas over the last one year.
• Swiss major Ferring Pharmaceuticals has commenced operations in Hyderabad after the inauguration of world class manufacturing facility at Genome Valley. The company has invested around 30 million euros (US$ 31.3 million) for this facility.
• Granules India said it will invest Rs. 400 crore (US$ 51.48 million) over next 2 years to backward integrate its key products and set up a greenfield formulation facility near Hyderabad.
• The State Government has undertaken the task of establishing Hyderabad Pharma City which will be the first of its kind, smart ecosystem creating a new international benchmark for sustainable industrial cities.
• As per the State government data, Hyderabad has attracted investments nearly worth Rs. 7,500 crore (US$ 965.25 million) in the pharma, biotech and medical devices arenas over the last one year. In FY21, there were 311 investment proposals in life sciences sector worth Rs. 6,734.56 crore (US$ 919.43 million).
• Hyderabad also account for approximately 20% of India's total pharma export. As a pharma and life sciences hub of the world, Hyderabad is poised to grow to a US$ 100 billion business generator by 2030, up from US$ 13 billion (2020), as per projections made in the Life Sciences report of the Telangana government.
• The state government plans to set up a pharma city and promote public private partnership to develop the state's pharma sector.

Telangana is one of India’s fastest-growing states, driven by a strong services-led economy, a vibrant export base and a globally competitive capital city in Hyderabad. With a GSDP of US$ 209.10 billion in FY26 and robust growth in IT, pharmaceuticals, electronics and engineering goods, the state has emerged as a major destination for foreign investment and innovation. Strong digital connectivity, expanding power capacity, large-scale investments in data centres, life sciences and tourism, and sustained policy support for agriculture, urban infrastructure and healthcare position Telangana as a leading hub for technology, pharma manufacturing and high-value services in India.