GOLKONDA FORT NEAR HYDERABAD, TELANGANA

TELANGANA
PHARMACEUTICAL HUB OF INDIA

For updated information, please visit www.ibef.org May 2018

Table of Content

Executive Summary .…………….….…….3

Introduction …….…...…..………………….4

Economic Snapshot ……………………….9

Physical Infrastructure …….…….………14

Social Infrastructure ……....………...……21

Industrial Infrastructure ............................24

Key Sectors ……..……….........................26

Key Procedures and Policies ………...….33

Annexure …….………...............................40
 EXECUTIVE SUMMARY

Economic growth  At current prices, Telangana’s GSDP was estimated at US$ 113.68 billion during 2017-18.
driven by service sector  Services sector is the major contributor in the GSDP of Telangana.

 Hyderabad is the major IT hub of the state across the country. During 2016-17, the value of IT exports from
Hyderabad – The IT the state of Telangana was recorded at US$ 13.27 billion. The launch of T-Hub in November 2015 has
hub of the state created most energetic community of entrepreneurs across the world for boosting the success stories of the
start-ups in India.

Growth in annual  In Budget 2018-19, total expenditure of the state increased 22.42 per cent to Rs 1,74,48,228.34 lakh (US$
budget 27.07 billion).^

 In September 2017, Telangana received eight national awards for promotion of tourism and cleanliness. Out
Promoting tourism &
of these eight awards, five were won by the state’s tourism department while the rest were awarded to public-
historical past private enterprises.

Note: ^From Revised Estimate of 2017-18

Source: Telangana State Statistical Year book,2015, MOSPI, Budget 2018-19

3 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

INTRODUCTION
 ADVANTAGE: TELANGANA

Growing economy and improving infrastructure Rich labour pool

 Telangana’s GSDP grew at a CAGR of 12.60 per cent  Majority of the prominent educational universities and
(in Rupee terms) between 2011-12 and 2017-18. institutions Telangana are located in Hyderabad. These
 The state government plans to build more airports in institutions provides a massive pool of labour which
the state to improve connectivity. acts as a catalyst in the development of the state.
 The state government has announced scholarships to
attract more youth to these institutions.

Advantage
Telangana
Availability of Policy and
readymade capital institutional support

 Telangana accounts for easy access to capital along  Under the Department of Information Technology,
with infrastructure which is benefiting the state. Electronics & Communications, the Government of
Telangana introduced three new policies in 2016,
 Majority of the multinational companies holds namely, Telangana IT Policy, 2016, Telangana
production base in Hyderabad. Electronics Policy, 2016 and Telangana Innovation
 Information technology and pharmaceutical sectors are Policy, 2016.
the fastest growing sector of the state and driving the
economic development of Telangana.

Note: E - Estimate
Source: Telangana State Statistical Year Book, 2015, GSDP: Gross State Domestic Product, Central Electricity Authority

5 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA VISION

 To develop Hyderabad as a slum free  In next three years, Telangana is

city. expected to be developed as a
 Effective implementation of welfare power surplus state
schemes.

Quality of life of
 Plans to announce industrial policy to Power  Ensure people centric,
people
encourage investments in state. transparent and corruption free
 Setting up of faster clearances, a development.
single window system.  To take steps to eradicate
Promoting
investments Governance corruption.

Vision
 No negotiation on maintaining
 Waiver of agricultural loans up to Agriculture Law & order law & order in the state.
Rs 1 lakh.
 Encouraging people friendly
 Technological advancement in police officials.
agriculture Promoting
research Infrastructure  Installing CCTV cameras for
 Government to encourage research
better vigilance.
in agricultural universities.

 Aim to make Telangana the Seed  Hyderabad to have most advanced

Bowl of India. Telangana is highly infrastructure facilities.
suitable for the growth of seeds.
 To have two new airports in
 Endorsing greenhouse technology Hyderabad, near Shamirpet,
and pilot projects. Jawaharnagar and Ghatkesar.

Source: Telangana Government

6 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA FACT FILE

 Hyderabad, Secunderabad and Warangal are the key cities in the

state.

Parameters Telangana

Capital Hyderabad

Geographical area (lakh sq. km) 114,840

Source: TS Portal
Administrative districts (No) 31
 In June 2014, Telangana was introduced as the 29th state of the
India, Hyderabad is the capital of the state. Population density (persons per sq. km) 312

 Telangana is situated on the Deccan Plateau. It is home to three

Total population (million) 35.2
national parks and eight wildlife sanctuaries.

 It is surrounded by Andhra Pradesh from the south and east end, Male population (million) 17.7
Maharashtra and Karnataka from the west, and Odisha and
Chhattisgarh from the north end. Female population (million) 17.5
 Telugu is the generally spoken language in the state. Hindi, Urdu and
Sex ratio (females per 1,000 males) 988
English are also usually spoken.

Literacy rate (%) 66.5

Source: Population Census 2011, Telangana State Statistical Abstract, May 2015

7 TELANGANA For updated information, please visit www.ibef.org

 HARYANA IN FIGURES

Telangana’s Contribution to Indian Economy (2017-18) Physical Infrastructure in Telangana

Parameter Telangana India Parameter Telangana India

GSDP as a percentage of all
4.38 100.0 Installed power capacity
states’ GSDP 15,087.13 343,898.39
(MW) (May 2018)
GSDP growth rate (%) 14.1 9.8
Wireless subscribers (Mn)
Per capita GSDP* (US$) 3,000.93 1,975.05 85.63 1,183.41
(as of March 2018)

Social Indicators Internet subscribers (Mn)

10.65 445.96
(as of December 2017)
Parameter Telangana India
National highway length
Literacy rate (%) 66.5 73.0 3,786 122,432
(km)
Birth rate (per 1,000
17.5 20.4 Airports (No) 8 125
population) (2017)

Industrial Infrastructure Investments (as of December 2017)

Parameter Telangana India Parameter Telangana India

Operational PPP projects (No) 14 737 1
Cumulative FDI equity inflows
74.15 367.93
Operational SEZs (No) 30 221 since April 2000 (US$ billion)

Note: GSDP, per capita GSDP figures are for 2017-18 taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For source refer to Annexure, 1Includes Andhra
Pradesh

8 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

ECONOMIC SNAPSHOT
 ECONOMIC SNAPSHOT – GSDP

GSDP of Telangana at current prices GSDP per capita of Telangana at current prices

120.00 CAGR (in Rs) 12.60% 8.00 3500.00 CAGR (in Rs) 11.49% 250000

113.68
7.00 3000.00

7.33
100.00 200000

3,000.93
6.00

6.42
95.69
2500.00

193,410.15
2,551.40
80.00

86.06
5.63

171,173.18
5.00
82.72
150000

2,317.58
2,249.98
2000.00
5.06

151,708.95
74.96

74.64

2,100.78
73.75

2,050.53
2,046.47

137,586.08
60.00 4.00
4.52

124,057.03
1500.00
4.02

100000

111,430.08
3.59

3.00

100,732.58
40.00 1000.00
2.00 50000
20.00 500.00
1.00

0.00 0.00 0.00 0

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18
2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

US$ Rs
US$ billion Rs trillion

 At current prices, Telangana’s GSDP stood at Rs 7.33 trillion  Telangana’s per capita GSDP^ increased to Rs 1,93,410.15
(US$ 113.68 billion) in 2017-18. (US$ 3,000.93) during 2017-18 from Rs 1,00,732.58 (US$
2,100.78) in 2011-12.
 Between 2011-12 and 2017-18, GSDP of the state grew at a
CAGR of 12.60 per cent.  Average per capita GSDP rose at a CAGR of 11.49 per cent
between 2011-12 and 2017-18.

Source: Telangana Socio Economic Outlook 2018

10 TELANGANA For updated information, please visit www.ibef.org

 ECONOMIC SNAPSHOT – NSDP

NSDP of Telangana at current prices NSDP per capita of Telangana at current prices

120.00 CAGR (in Rs) 12.66% 7.00 3000 200000

CAGR (in Rs) 11.55%
180000

6.65
6.00

2,723.57
100.00 2500

175,534.00
160000

103.17
5.80
5.00

154,734.00
2,306.36
80.00 140000

5.08
2000

86.50

2,091.43
136,905.00
2,029.50
120000
4.56

77.66
4.00

1,900.33
74.62

124,104.00
1,855.04

1,853.92
4.08
67.81

60.00
67.48
66.86

1500 100000

112,162.00
3.64

101,007.00
3.00
3.25

80000

91,121.00
40.00 1000
2.00 60000
20.00 40000
1.00 500
20000
0.00 0.00
0 0
2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18
US$ billion Rs trillion US$ Rs

 At current prices, Telangana’s net state domestic product  Telangana’s per capita NSDP grew from Rs 91,121.00 (US$
(NSDP) was estimated at Rs 6.65 trillion (US$ 103.17 billion) in 1,900.33) during 2011-12 to Rs 1,75,534.00 (US$ 2,723.57)
2017-18. over 2017-18.

 Between 2011-12 and 2017-18, the average annual NSDP  Average per capita NSDP increased at a CAGR of 11.55 per
growth rate was about 12.66 per cent. cent between 2011-12 and 2017-18.

Source: Telangana Socio Economic Outlook 2018

11 TELANGANA For updated information, please visit www.ibef.org

 ECONOMIC SNAPSHOT – PERCENTAGE
DISTRIBUTION OF GSDP

 At a CAGR of 15.99 per cent, tertiary has been the fastest growing Percentage distribution of GSDP (Current prices)
sector in the state between 2011-12 and 2017-18.
100%
 The primary sector increased at a CAGR of 10.59 per cent between 49.41% CAGR (in Rs) 59.03%
90%
2011-12 and 2017-18, followed by secondary sector (CAGR of 2.63
per cent). 80% 15.99%

70%
 In 2017-18, the tertiary sector contributed 59.03 per cent to the
state’s GSDP at current prices. It was followed by the primary sector 60%

(16.40 per cent) and secondary sector (14.80 per cent). 50%
25.81%
40%
2.63%
30% 14.80%

20%
18.27% 16.40%
10%
10.59%
0%
2011-12 2017-18

Primary Sector Secondary Sector Tertiary Sector

Source: Directorate of Economics & Statistics of Telangana, Central Statistics Office

12 TELANGANA For updated information, please visit www.ibef.org

 ECONOMIC SNAPSHOT – INVESTMENTS & EXPORTS

Investment intentions in terms of IEMs filed, LOIs/DILs issued

 Telangana is one of the leading exporters of IT services in India. In
in Telangana
2016-17, the overall IT exports from Telangana were valued at US$
13.27 billion. 3500

3,294.06
 According to the Department of Industrial Policy & Promotion (DIPP), 3000
cumulative FDI inflows(1) in Telangana from April 2000 to December
2017, totalled US$ 14.524 billion. 2500

2,503.71
 24 investment intentions with proposed investments worth Rs 1,740

2,267.90
2000

2,090.90
crore (US$ 269.98 million) were filed up to April 2018.

1,822.20
1500

1,591.43
1,307.60
1000

1,032.70

269.98
500
176 132 132 134 117 145 139 114
24
0

2018*
2010

2011

2012

2013

2014

2015

2016

2017
Number of Investment Intentions
Proposed Investments (US$ Million)

Note: (1) Including Andhra Pradesh, IEMs – Industrial Entrepreneur Memoranda, LOIs – Letters of Intent, DILs – Direct Industrial Licences, 2018* - up to April 2018
Source: Department of Industrial Policy & Promotion, Government of India, Ministry of Commerce & Industry, Government of India

13 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

PHYSICAL
INFRASTRUCTURE
 PHYSICAL INFRASTRUCTURE – ROADS

 Telangana is surrounded by Andhra Pradesh from the south and Road Network of Telangana (as of 2016-17)
east end, Maharashtra and Karnataka from the west, and Odisha
and Chhattisgarh from the north end. As of February 2018, the state
Road type Road length (km)
was home to 18 national highways with total length of 3,786 km. The
overall road length for Telangana state was around 123,572 km as
National highways 3,786*
of 2016-2017.

 In order to fulfil the purpose of laying double lane and four lane State highways 2,731
roads from Mandal headquarters to district headquarters and for
linking every headquarter to Hyderabad, the department of R&D has Major district roads 13,058
taken up widening of 139 roads from single lane to double lane.

Other district roads 9,161

 An allocation of Rs 5,575 crore (US$ 8.65 billion) was made in State
Budget 2018-19 for Telangana roads and buildings Department.
Total 123,572
 The state government started a process to monetise toll-operate-
transfer asset projects. The process to monetise the Nehru Outer
Ring Road (NORR) has also been initiated. The project is expected
generate a significant amount of extra-budgetary resources that can
be used for other infrastructure assets.

Note: *AS of February 2018

Source: Roads & Buildings Department, Government of Telangana, Budget 2016-17

15 TELANGANA For updated information, please visit www.ibef.org

 PHYSICAL INFRASTRUCTURE – RAILWAYS

Rail network across the state

 Telangana is well-connected to other parts of the country through the
rail network. As of 2016-17, the state had a railway network of 1,737
km.

 A rapid metro transit system is being implemented in the state

through public private partnership (PPP) mode. The project is
expected to be completed by November 2018, and as per the budget
2016-17, completion of this metro rail and other strategic plans in the
state would help in minimising traffic congestion across the state.

 The project is made up of two phases. The first phase includes 3

lines covering over 66 kilometres. The state government has
proposed 83 km in five stretches for the second phase.

 In November 2017, the Prime Minister inaugurated a 30 kilometre

long phase of the metro rail project, which is a part of phase 1 of the
project. Work on two stretches is in progress and these are
expected to be commissioned by June 2018.
Source: Maps of India

Source: Telangana State Statistical Yearbook 2015, Telangana Economic Survey, News articles

16 TELANGANA For updated information, please visit www.ibef.org

 PHYSICAL INFRASTRUCTURE – AIRPORTS

Hyderabad passenger traffic (million) Hyderabad aircraft movement (nos.)

160,000
20.00 140,000

149,581
18.00
16.00 120,000

18.16

130,713
14.00 100,000

15.10

105,772
12.00

99,013
80,000

94,057
12.38

90,151
10.00

87,741
82,658
80,016

13,967
10.40
8.00 60,000
8.65
8.44

1.71
8.30

6.00 40,000
7.60
6.51

4.00
2.00 20,000
0.00 0
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18
2018-19*

2018-19*
 Telangana has one operating airport, Rajiv Gandhi International Airport (RGIA), Shamshabad owned and operated by International Airport Limited.

 In October 2017, GMR group decided expansion of Rajiv Gandhi international airport. The airport currently has a capacity of 25 million passengers
and handled 17 million passengers in 2016. To meet the growing needs, capacity expansion in the form of another runway and a new terminal will
be taken up by the group. The project is expected to be completed within the next three years.

 Passenger traffic at Hyderabad airport increased by 20.26 per cent year-on-year to 18.16 million in FY18. Aircraft movement at the airport
increased by 14.43 per cent year-on-year to 1,49,581 in FY18. Passenger traffic and aircraft movement during April 2018 stood at 1.71 million and
13,967, respectively.

 As per statistics of Airports Authority of India, freight traffic at Hyderabad airport increased by 10.10 per cent year-on-year to 134.14 million tonnes
in FY18.

Note: *up to April 2018

Source: Telangana State Statistical Yearbook 2015, Airports Authority of India, News Articles

17 TELANGANA For updated information, please visit www.ibef.org

 PHYSICAL INFRASTRUCTURE – POWER

Thermal Power Projects under construction in Telangana (as of

Installed power capacity (MW)*
February 2018)

20,000 Anticipated
Company Units
18,000 Completion

17,728.42
16,000

16,948.73
14,000 16,094.73 Jan 2020 and Jul

15,087.13
15,035.58

TSTPP 2 X 800 MW
12,000 2020
13,409.40

10,000
11,639.08

11,563.97

11,501.28
8,000

9,469.86
Kothagudem TPS Std - VII 1 X 800 MW July 2018
6,000
4,000
2,000 Bhadadri TPP 4 X 270 MW Jan-Apr 2019
0
2009-10
2008-09

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18
Oct 2020 (2 units)
Yadadri TPP 5 X 800 MW
and Oct 2021

 TSERC is the prime authority for power generation in Telangana. Telangana Power Generation Corporation Limited (TSGENCO) and
Transmission Corporation of Telangana Limited (TSTRANCO) are the generation and transmission entities of the state.

 As of 2017-2018, the total installed power capacity of Telangana state was 15,087.13 MW. Out of this, 7,572.65 MW was contributed by state
utilities, 5,399.63 MW by private utilities and 2,114.85 MW by central utilities. Thermal power was the largest contributor in the state’s total
installed capacity with 8,828.95 MW, followed by hydropower with a contribution of 2,449.93 MW, renewable energy with 3,659.52 MW and
nuclear power with 148.73 MW.

 As of February 2018, four thermal power projects, with a combined capacity of 7,480 MW are under construction in the state. Also, Renovation
and Modernisation (R&M) of two hydro power projects is under implementation and is expected to be completed by 2018-19.
Note: *Data up to 2013-14 includes Andhra Pradesh, TSTPP – Telangana State Thermal Power Project, TPP – Thermal Power Project, TPS – Thermal Power Station
Source: Central Electricity Authority, State Budget 2018-19, Telangana State Statistical Abstract 2017

18 TELANGANA For updated information, please visit www.ibef.org

 PHYSICAL INFRASTRUCTURE – TELECOM

Telecom Infrastructure (As of March 2018)# Performance status of Bharat Net project (as of April 22, 2018)

Wireless subscribers 85,630,559 Total number of GPs 8,759

Wireline subscribers 1,479,737 Cable laid (kms.) 4,489

Tele density (in %) 97.07 GPs for which cable laid 2,042

Mobile Number Portability requests 31,240,032 No. of GPs connected* 87

+ Service Ready GPs^

Internet Subscribers (in million) 34.29 2,042

 According to the Telecom Regulatory Authority of India (TRAI), undivided Andhra Pradesh had nearly 85.63 million wireless subscribers and 1.48
million wireline subscribers as of March 2018. The number of internet subscribers in the state stood at 34.29 million, as of December 2017.

 By the end of March 2018, 31,240,032 subscribers had submitted requests for mobile number portability in Telangana. Moreover, the state of had
a tele-density of 97.07 per cent during the period.

 Under Government of India’s Bharat Net project, 8,729 Gram Panchayats (GPs) have been identified in Telangana. As of March 11, 2018, there
were 2,042 service ready GPs in the state.

Note: #For undivided state, +As of December 2017, *As of January 28, 2018, ^As of March 11, 2018
Source: Telecom Regulatory Authority of India, Ministry of Communications, BBNL

19 TELANGANA For updated information, please visit www.ibef.org

 PHYSICAL INFRASTRUCTURE – URBAN

Funds under Atal Mission for Rejuvenation and Urban

Smart cities in Telangana
Transformation (up to April 2018)

Cities Population Area (sq. km) Literacy rate Allocation US$ million

Total allocation for projects (including

258.54
Karimnagar 261,185 State share)
23.5 85.82%

Committed Central Assistance 129.19

Greater Warangal 811,844 406.87 83.30%

Central Assistance Released 25.84

 Two cities of the state viz. Karimnagar and Greater Warangal have been selected under Government of India’s Smart Cities Mission.

 Also, 12 cities of Telangana have been selected under AMRUT mission. Total allocation of Rs 1,666.26 crore (US$ 258.54 million) has been
made for projects in Telangana.

 The state government has launched Telangana Municipal Development Project (TMDP) with financial assistance from the World Bank.
Preparation of GIS Base Maps for 37 urban local bodies in Phase-I and 22 urban local bodies in Phase-II is currently underway.

 Under State Budget 2018-19, Rs 1,000 crore (US$ 155.16 million) has been allocated for strengthening of urban local bodies.

Source: Ministry of Housing anf Urban Affairs, State Budget 2018-19

20 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

SOCIAL
INFRASTRUCTURE
 SOCIAL INFRASTRUCTURE – EDUCATION

Literacy rates (%) Year-wise Enrolment Details

No. of Total
Literacy rate 66.5 Year Class 6-10 Intermediate
schools Strength

2015-16 182 72,283 13,897 86,180

Male literacy 74.9
2016-17 192 86,827 21,049 1,07,876

Female literacy 57.9

2017-18 194 91,919 33,711 1,25,630

 Telangana’s share in educational institutions includes:

• 3 central universities located in Hyderabad: University of Hyderabad, English & Foreign Languages University & Maulana Azad National Urdu
University.

• Technological institutes such as IIT, IIIT & NIT.

• Nalsar Law University, Indian School of Business as well as private institutes such as Symbiosis & TISS are located in the locality of
Hyderabad.

 Under State Budget 2018-19, allocations of Rs 10,830 crore (US$ 1.68 billion) and Rs 2,448 crore (US$ 379.83 million) were made for school
education and higher education, respectively.

 Government of India released Rs 440.50 crore (US$ 68.35 million) under Sarva Shiksha Abhiyan for Telangana in 2017-18*.
Note: IT- Indian Institute of Technology, IIIT- International Institute of Information Technology, NIT- National Institute of Technology,
Source: Census 2011, Telangana Socio-Economic Survey 2018, State Budget 2018-19, New Articles

22 TELANGANA For updated information, please visit www.ibef.org

 SOCIAL INFRASTRUCTURE – HEALTH

Health infrastructure (as of May 7, 2018) Allocation under National Health Mission (US$ million)

80
Primary health centres 837
78.45
75
Sub centres 4,745
70 72.20

Community health centres 96 65 67.31

65.65

Sub District hospitals 57 60

55
District hospitals 15 2014-15 2015-16 2016-17 2017-18

 Out of the country’s pharma production, Telangana accounted for one-third share; the state government plans to enhance it further by promoting a
pharma city.

 The state government has announced investment of US$ 16.58 billion for establishment of super speciality hospitals in the state, till 2019. The
upcoming hospitals would be based on the same pattern as Nizam's Institute of Medical Sciences (NIMS) of Hyderabad.

 In June 2017, the state government inaugurated the largest dedicated medical devices park of the country. Companies such as Apollo Hospitals,
Cyient Ltd. Sandor Medicaids, and 11 other companies have already been allocated 50 acres in the 250-acre park in Sultanpur.

 As per State Budget 2018-19, the government is conducting free medical tests to prevent diseases. Also, the government will undertake free eye
checkups and provide spectacles free of cost.

Source: Department of Health, Medical & Family Welfare & National Health Mission, Government of Telangana

23 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

INDUSTRIAL
INFRASTRUCTURE
 INDUSTRIAL INFRASTRUCTURE

Sector-wise operational SEZs in Telangana (December 2017) Status of SEZs in Telangana

IT/ITES
1 1 SEZ Number of SEZs
1 Biotech
1
1 Gems & Jewellery
1
Aviation Sector Formally Approved SEZs 64
2
Semiconductors

Aerospace Engineering Notified SEZs 57

Industries
22 Pharmaceuticals

Electronic hardware
and software Operational SEZs 30

 Telangana State Industrial Infrastructure Corporation (TSIIC) is responsible for development of industrial parks in the state. As of March 2018, the
state was home to 170 industrial parks.

 TSIIC has undetaken the task of setting up of a National Investment and Manufacturing Zone (NIMZ) in Telangana. The NIMZ will be set up over
12,635 acres of land. As of May 2018, the state has acquired around 3,000 acres of land out of the 3,500 acres required in the first phase of the
project. The first phase of the project is expected to be completed by 2020.

 As of December 2017, Telangana had 151 SEZs, of which, 30 were operational, 57 were notified and 64 were formally approved.

Note: CETP- Common Effluent Treatment Plants, TSDF- Treatment Storage Disposal Facility, TSIIC-Telangana State Industrial Infrastructure Corporation
Source: Telangana State Statistical Year Book, 2015, Economic Survey

25 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

KEY SECTORS
 IT & ITeS

 Pharmaceuticals

 Agriculture and Allied Industries

 Tourism
 KEY SECTORS – INFORMATION TECHNOLOGY … (1/2)

 Information technology is one of the fastest growing sectors in IT/ITeS exports from Telangana (US$ billion)*
Telangana.
14 CAGR 10.43%
 The central government has declared the realisation of an

12.74
Information Technology Investment Region (ITIR) near Hyderabad. 12
With the establishment of the ITIR, the government plans to generate

11.47
10.84
1.5 million direct and 5.3 million indirect jobs in the IT sector in the 10

9.46
next five years.
8

 IT and ITeS exports from Telangana grew at a CAGR of 10.43 per

cent to US$ 12.74 billion in 2016-17. 6

 As of December 2017, out of the 274 formally approved IT SEZs in 4

India, 22 are situated in Telangana.

2

2013-14

2014-15

2015-16

2016-17
Note: *Exchange rates are average for the year, provided on page
Source: Telangana socio-economic outlook 2018, IT/ITeS: Information Technology/Information Technology enabled Services Sector

27 TELANGANA For updated information, please visit www.ibef.org

 KEY SECTORS – INFORMATION TECHNOLOGY … (2/2)

Google
 Google’s Hyderabad office played a essential role in the growth of the firm’s main products like Gmail, Chrome,
Calendar and Docs. The engineers at Hyderabad make specially Google products for native markets and
handling structures for agencies in India and other Asia Pacific markets. In 2015, Google announced plans to
establish its largest campus in Hyderabad with an investment of US$ 166 million. The campus was inaugurated
in 2016.

Microsoft  One of Microsoft Alum’s accelerator startup has tied up with Telangana Government to launch T-Wallet,
enabling cashless payments for the residents.

 In August 2017, Government of Telangana has adopted Microsoft’s cloud based analytics to provide eye care
screening for children.

Amazon
 In September 2017, Amazon decided to open its largest fulfilment centre in Hyderabad. The centre is
operational and is spread over an area of 400,000 sq ft.

 Facebook is a US-based online public networking provision company with set-ups in India.
Facebook  In December 2016, the company decided that its first office in Asia will be in Hyderabad. Facebook India has
designed a programme to strengthen Digital India and Skills India initiatives of the Government of India.
Facebook’s Small Business Boost initiative was inaugurated by Telangana’s IT Minister K T Rama Rao in
Hyderabad in August 2015. The programme aims to train more than half a million people by 2020. As of
November 2017, the company has already trained more than 60,000 small businesses.

28 TELANGANA For updated information, please visit www.ibef.org

 KEY SECTORS – PHARMACEUTICALS … (1/2)

 Hyderabad accounts for about 20 per cent share in the total export of Pharmaceutical product exports from Telangana (US$ billion)*
pharmaceutical products from India. This is making Hyderabad as a
centre for the drug production. 3 CAGR 10.43%

 Pharmaceutical exports also have a majority share of around 44 per 2.5

2.64
cent of the total merchandise exports from the state.
2
 Telangana backs nearly one-third of complete pharmaceutical

1.96
manufacturing in the country. 1.5

 The state government is setting up the Hyderabad Pharma City,

1
which will be the first of its kind, smart ecosystem creating a new
international benchmark for Sustainable Industrial cities. The project 0.5
will be developed over an area of 19,000 acres and is expected to
attract Rs 64,000 crore (US$ 993.02 million). 0

2015-16

2016-17
Note: *Exchange rates are average for the year, provided on page
Source: Ministry Of Health And Family Welfare, Invest India, News articles, Telangana socio-economic outlook 2018

29 TELANGANA For updated information, please visit www.ibef.org

 KEY SECTORS – PHARMACEUTICALS … (2/2)

Dr Reddy’s  Dr Reddy’s initiated its business processes as an Active Pharmaceutical Ingredients (API) producer in
1984 and added formulations procedures in 1987.
 The enterprise entered in to international markets in 1991. In 2013-14, the company works with 50
R&D associates through out the world, having three major clusters in the US, Western Europe and
India.

 Aurobindo Pharma was established in 1986 and turn into a public listed company in 1995.
Aurobindo Pharma
 The corporation trades its drugs to 125 countries and derives more than 70% of its total returns from
global operations. The company has a group of about 650 scientists who carry out the operations in
research and product development

Divi's Laboratories  Divis Laboratories, started in 1990, produces APIs & intermediates.
 The company has 500 acres of 13 multi-purpose manufacture units in Hyderabad and a plant in
Seemandhra.

Granules India Ltd  Granules India is an Indian pharmaceutical company with manufacturing facilities dispersed across
India and China.
 The company assists clienteles across 60 countries with four facilities in India, which include
Hyderabad, and a facility in Jingmen, China. In 2013, it acquired Auctus Pharma for expansion of
business.

30 TELANGANA For updated information, please visit www.ibef.org

 KEY SECTORS – AGRICULTURE AND ALLIED
INDUSTRIES

Area and production of key crops (2017-18) Production of horticulture crops (million MT)

Annual Area Annual Production

Crop 2.00
(‘000 hectare) (‘000 tonnes)

1.77
2017-18 2017-18 1.50

1.65

1.52

1.44

1.31
Rice 1,972 6,558 1.00

1.20
Cereals & millets 2,653 8,988 0.50

Pulses 534 513 0.00

Production of Fruits Production of Production of
Fruits 164.83 1765.90 Vegetables Plantation Crops
2016-17 2017-18*
Cotton 1903 43.23

 During 2017-18, 606,000 hectares of area was under cultivation of maize, whereas pulses were cultivated over an area of 534,000 hectares, in the
state.

 In 2017-18, Telangana produced 6.56 million tonnes and 513,000 tonnes of rice and pulses, respectively.

 The state government has proposed an amount of US$ 2.45 billion in State Budget 2018-19 for Agriculture and Marketing.

 Production of fruits, vegetables and plantation crops reach 1.77 million tonnes, 1.52 million tonnes and 1.31 million tonnes, respectively, in 2017-
18*.

Note: 2017-18* - As per 1st advance estimates

Source: Telangana Socio Economic Outlook 2018

31 TELANGANA For updated information, please visit www.ibef.org

 KEY INDUSTRIES – TOURISM

Number of domestic tourist arrivals in Telangana (million) Number of foreign tourist arrivals in Telangana (million)

0.800
100.0
0.700

0.75
90.0

95.2
94.5

0.72
91.4

0.70
80.0 0.600
70.0

0.57
0.500

72.3
60.0

0.47
50.0 0.400

54.0
51.5
50.6

50.5

50.4

49.4

40.0 0.300
43.0

0.29
30.0 0.200

0.07
32.1

0.23

0.22
20.0

0.18
0.15

0.14
0.100

2015 0.12
10.0
0.0 0.000

2017^
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2016
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

 Hyderabad, the capital of Telangana, is highly popular for Charminar, Golconda Fort, pearls & biryani. The Kakatiya track with Warangal &
Karimnagar are recognised as highly popular tourist places.

 Jinnaram near Kawal Tiger Sanctuary & the lake resorts at Kadem (Adilabad) & Alisagar Lake (Nizamabad) are places which are extremely
popular. Amongst the new tourist spots, the state has established jungle resorts on the border of Telangana-Maharashtra.

 The total number of tourist arrivals reached 53.5 million, up to October 2017.

Note: 2017^ - up to October 2017

Source: Telangana Socio Economic Outlook 2018

32 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

KEY PROCEDURES
& POLICIES
 KEY APPROVALS REQUIRED

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

Power feasibility Energy and Power Department

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance

Water Security & Public Health Engineering Department
Water connection

34 TELANGANA For updated information, please visit www.ibef.org

 CONTACT LIST

Agency Description

6th Floor, Parisrama Bhavan, Fateh Maidan Road,

Basheerbagh, Hyderabad – 500 004, Telangana, India

Telangana State Industrial Infrastructure Ph: +91-40-23237625, 23237626

Corporation (TSIIC) Fax: +91-40-23240205, 23241385
Website: https://tsiic.telangana.gov.in/
email: hyd@apiic.in

Vidyutsoudha, Khairatabad,
Hyderabad-500 082,

Telangana State Power Generation Telangana, India

Corporation (TSGENCO) Phone: 040-23499000/39839000
Fax: 040-23499101
email: contactus@tsgenco.gov.in

Telangana Pollution Control Board

Payavaran Bhawan, A-III, Industrial Estate,
Telangana Pollution Control Board Sanath Nagar, Hyderabad - A.P.
Website: http://tspcb.cgg.gov.in/default.aspx
email: eew_ss@pcb.ap.gov.in

35 TELANGANA For updated information, please visit www.ibef.org

 COST OF DOING BUSINESS IN TELANGANA

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

Commercial: 9.5–19.4
Electricity (US cents per kWh)
Industrial: 8.1–11.9

Residential rent (US cents per sq ft per month) 6.7–40.0

Five-star hotel room (US$ per night) 58–330

Industrial: 0.8-3 per 1,000 litres

Water cost (US$)
Commercial: 0.7-3 per 1000 litres

Source: Telangana State Electricity Regulatory Commission, Ministry of Labour, Telangana State Portal, Property sites, News articles, Travel sites

36 TELANGANA For updated information, please visit www.ibef.org

 STATE ACTS & POLICIES … (1/3)

Objectives

 To create an atmosphere conducive for IoT specific businesses and manufacturing units to thrive in the State
IOT (Internet of Things)
Policy 2017  To position Telangana as a test bed for IoT solutions
Read more

 To build capacity and protect critical information infrastructure.

Cyber Security Policy
2016  To establish requisite institutions and legal framework to counter cybercrime. Read more

 To promote regionalised and dispersed generation of solar energy.

The Telangana Solar  Effective energy conservation by the stimulation of connected grid and off-grid solar tenders.
Power Policy 2015
 Endorsement of all skills related to solar power generation.
Read more
 Addition of solar parks

Telangana Full Fee  To confirm a uniform scholarship for each category of study, as well as vocational training, which is independent of
Reimbursement Policy the fees charged. To guarantee that fees are lower than the subsidy quantities to help students to meet their living
2015 expenses.
Read more

 To improve 6 industrial corridors with emphasis on main industrialised sectors, with life sciences, IT and hardware
The New Industrial Policy
being the major benefactors.
2014
 To certify viable & comprehensive industrial development. Read more

37 TELANGANA For updated information, please visit www.ibef.org

 STATE ACTS & POLICIES … (2/3)

Objectives

 To create an enabling environment in order to encourage investments in downstream processing activities.

Textile and Apparel
 To support the existing units for their modernization, expansion, and for marketing and promotion activities.
Incentive Scheme 2017
 To encourage new units across the value chain. Read more

E Waste Management  To create a vibrant e-Waste refurbishing and recycling ecosystem in the State.
Policy 2017  To assist the highly unsafe unorganised sector transition into the organised sector through various initiatives.

Read more

Telangana ICT Policy  To make Telangana the most favoured destination for the IT companies. Read more
2016  To position the state among the leading global hubs for innovation and technology entrepreneurship in the country.

Telangana Electronics  To entice US$ 3 billion funds for the Electronics sector through 2020.
Policy 2016  To develop an employment potential of around 160 thousand by 2020. Read more

 To boost the start-ups present across the social & rural enterprises by the provision of additional incentives to
Telangana Innovation them.
Policy 2016
 To endorse the innovative ideas through positive industrial engagement. Read more

 To make Hyderabad the most favored destination for investment in Animation, Visual effects, Gaming & Comics
Gaming and Animation sector
(IMAGE) Policy 2016  To set up a “Center of Excellence” i.e. Telangana Animation and Gaming - IMAGE City, with state-of-the-art
facilities Read more

38 TELANGANA For updated information, please visit www.ibef.org

 STATE ACTS & POLICIES … (3/3)

Objectives

Telangana Excise Policy  To standardise the process of collection of certain fees from suppliers and others.
2017-19  To restructure administrative units due to introduction of new districts in the state. Read more

 To develop capacity for processing major commodities up to international standards

 To build clusters with collaboration between government, industry and academia

Telangana State Food
Processing and  To position Telangana as the agri-food distribution hub for the country
Preservation Policy 2017
 To drive the national objective of doubling farmer incomes by 2022

 To generate employment for 1,25,000 personnel by 2022 Read more

Upcoming Policies:

 Telangana Electric Vehicles Policy

 Telangana Retail Policy

 Short term Agriculture and Allied Industries Policy

 Registration Policy

39 TELANGANA For updated information, please visit www.ibef.org

 TELANGANA

ANNEXURE
 ANNEXURE…(1/2)- SOURCES

Data Sources

GSDP (state) Telangana Socio Economic Outlook 2018

Per capita GSDP figures Telangana Socio Economic Outlook 2018

GSDP (India) Ministry of Statistics and Programme Implementation

Installed power capacity (MW) Central Electricity Authority

Wireless subscribers (No) Telecom Regulatory Authority of India

Internet subscribers (Mn) Telecom Regulatory Authority of India

National highway length (km) NHAI, Roads and Building Department-Government of India

Airports (No) Airports Authority of India

Literacy rate (%) Census 2011

Birth rate (per 1,000 population) SRS Bulletin September 2017

Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion
Operational PPP projects (No) DEA , Ministry of Finance, Government of India

Notified as of December 2017, Ministry of Commerce & Industry, Department of Commerce,

Operational SEZs (No)
December 2017

41 TELANGANA For updated information, please visit www.ibef.org

 ANNEXURE … (2/2) - EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$ Year INR Equivalent of one US$

2004–05 44.95 2005 44.11

2005–06 44.28 2006 45.33

2006–07 45.29 2007 41.29
2007–08 40.24
2008 43.42
2008–09 45.91
2009 48.35
2009–10 47.42
2010 45.74
2010–11 45.58
2011 46.67
2011–12 47.95
2012 53.49
2012–13 54.45
2013 58.63
2013–14 60.50
2014 61.03
2014-15 61.15

2015-16 65.46 2015 64.15

2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

Source: Reserve bank of India, Average for the year

42 TELANGANA For updated information, please visit www.ibef.org

 DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with
IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
reliance placed or guidance taken from any portion of this presentation.

43 TELANGANA For updated information, please visit www.ibef.org