Telangana has witnessed Rs 1.5 lakh crore worth IT exports in 2020-21, a 12.98 per cent rise against the preceding year. This is 2.21 per cent more growth in IT/ITeS exports compared with the national average, claims the CREDAI-ANAROCK report ‘Telangana: A State on the Move.’
As per the report, the state has grown exponentially since its formation in 2014. With a strong presence of large IT/ITeS companies, the state has more than 6.3 lakh employees presently working in the state’s IT/ITeS sector, added the report.
“Various IT/ITeS companies are casting their nets beyond Hyderabad, exploring Tier II cities like Warangal, Karimnagar and Nizamabad as alternate IT/ITeS hubs. These cities offer cheaper land, sound infrastructure, and a strong talent pool emerging from many professional colleges there. Companies like CYIENT and Tech Mahindra have already opened their offices in Warangal,” noted the report.
Prashant Thakur, Sr. director & head – research, ANAROCK Group says, “Currently, IT/ITeS activities are largely concentrated at Gachibowli, Madhapur, and Nanakramguda in Hyderabad. However, COVID-19 changed the working dynamics for the sector as WFH gained universal acceptance and adoption. This may lead to the decentralisation of IT/ITeS companies from tier I to tier II cities due to the latter’s’ rich talent pools. Various companies are already exploring Warangal, Karimnagar, and Nizamabad as the next IT/ITeS destinations.”
Talking about the public connectivity in the state, the report also adds that another key growth driver in the state is the sustained physical infrastructure development in the past, and multiple upcoming mega projects. These include the expansion of the railway network, greenfield and brownfield airports, industrial corridors, the Regional Ring Road, and Metro rail corridors that will unlock the future potential of new markets and cities, said the report.
“Telangana’s real estate market is set for growth on the back of sectoral development across the state,” says D Murali Krishna Reddy, president – CREDAI Telangana.
The large base of MSMEs provides many opportunities for industrial development. As many as 13,379 MSMEs have been registered in the state since 2014. Medchal-Malkajgiri, Sangareddy, Rangareddy, Karimnagar districts account for most of the state’s MSME units, investments, and employment added the report.