Telangana has grown exponentially since its formation in 2014, claims the CREDAI-ANAROCK report "Telangana: A State On The Move".
Telangana has grown exponentially since its formation in 2014, claims the CREDAI-ANAROCK report "Telangana: A State On The Move".
A vibrant IT/ITeS sector and robust infrastructure development are the prime growth drivers in the state, according to the report.
With a strong presence of large IT/ITeS companies, the state witnessed IT exports worth INR 1.5 lakh crore in FY 2020-21 - a 12.98% rise over the preceding year, the report says.
The growth was 2.21 times the national average. And more than 6.3 lakh employees are currently working in the state's IT/ITeS sector.
Many IT/ITeS companies are also now casting their nets beyond Hyderabad, exploring Tier II cities including Warangal, Karimnagar and Nizamabad as alternate IT/ITeS hubs, the report claims. 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 offices in Warangal.
Prashant Thakur, Senior Director & Head - Research, ANAROCK group, said, "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 decentralization 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.
"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 potential of new markets and cities."
D Murali Krishna Reddy, President - CREDAI Telangana, added, "Telangana's real estate market is set for growth on the back of sectoral development across the state. Demand and supply have already attained equilibrium in Hyderabad. The state's strong fundamentals and robust infrastructure support the immense potential of the sector. The planned Regional Ring Road and the industrial corridors will unlock new land parcels in the adjoining districts and boost overall economic development.
"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.
"Backed by robust infrastructure, this sector will create abundant direct and indirect employment opportunities, and thereby generate demand for affordable and mid-segment housing across the state."