Hyderabad surging as economic powerhouse of India, says Savills report

The report, highlights the economic growth of the city since the formation of a separate Telangana and the key factors that led to this growth

Hyderabad: In a compelling testimony of Telangana’s evolution into the country’s fastest growing State and its capital’s standing as one of the most dynamic cities in the world, London-based international property consultant Savills on Sunday released a report, ‘Hyderabad: The Sprint’, which states Hyderabad is surging as the economic powerhouse of India.

The report from Savills, which operates in 70 countries, highlights the economic growth of Hyderabad since the formation of a separate Telangana and the key factors that led to this growth.

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What comes as icing on the cake for the efforts of the State government is Savills Global Chief Executive Officer Mark Ridley’s comment.

“I am delighted to have had the opportunity to visit Hyderabad. The city has an enormous focus on innovation, IT, life sciences and infrastructure, driven by a talented workforce and a strong entrepreneurial spirit. Hyderabad has all the characteristics of a Megapolis in the making and the momentum is such, it’s unstoppable,” Ridley says.

A Savills team led by Christian Mancini, CEO Savills (APAC), Anurag Mathur, CEO Savills (India), and others on Sunday presented the report to IT and Industries Minister KT Rama Rao.

“Hyderabad is now the most sought-after gateway city for global corporations cutting across sectors. It provides incomparable value-proposition whether by way of infrastructure, policy support, quality real estate or ease of living. Most companies wish to expand their footprint by increasing their presence in Hyderabad,” the Minister said.

“We remain committed to creating a best in class and exemplary business hub for the next several generations. Telangana is at the forefront in identifying growth sectors and developing enabling policy frameworks to attract newer businesses. This report of Savills accurately identifies the growth drivers and emerging sectors that the Telangana government is working on,” he added.

The economic success story of Hyderabad, according to the report, has been highly based on the four key factors of Policy Push, Infrastructure, Affordability, and Human Capital, with a fifth driver of the momentum also now working at great pace – the pin-sharp Sectoral Focus.

On Policy Push, the report says proactive government policies have powered the growth story of Hyderabad. Investor-friendly policies such as the Information Communication Technology (ICT) Policy 2.0 have contributed significantly to the expansion of MNCs in Hyderabad. The new IT policy focuses on digital empowerment of citizens, innovation, and entrepreneurship. It includes a Start-up Telangana portal which aims to be a one-stop destination for the entire start-up ecosystem of the State. “Other key policy level initiatives in recent times include Telangana Electric Vehicle (EV) and Energy Storage Solution (ESS) Policy, Space-Tech framework, statewide optical fibre network and Growth in Dispersion (GRID) policy. Similarly, TS-ipass, a single window portal for obtaining required permissions within stipulated timelines is a forward-looking initiative,” the report makes a special mention.

The report also notes that Hyderabad has been through a period of high economic growth, when compared with major urban centres of the country, especially towards the end of the last decade. The growth is primarily driven by two key sectors – Information Technology-Business Process Management (IT-BPM) and Pharmaceuticals.

In 2021, the IT sector contributed around 14 percent of the city’s GDP. The success story of Hyderabad is also reflected in its prominent position as the pharmaceutical and vaccine hub of the country. Almost 40 percent of the bulk drug production in the country comes from Hyderabad. This economic acceleration has created opportunities for the growth of several enabling industries including infrastructure and real estate, the Savills report says.

What ‘Hyderabad: The Sprint’ says

“…The old charm of Charminar juxtaposed with post-independence industrialisation in an evenly balanced mix – it was at this juncture that the city began its enchanting rise. A rise so quick that it is hard to find a comparable.”

“In less than two decades, it transformed into one of the largest technology centres, a major life sciences industry hub, attracted major business pursuits from all over the world, had a privately owned greenfield airport that today ranks among the top few globally, and much more. It has sprinted with the energy burst of a short-distance champion…”

Forces behind Hyderabad’s Sprint

• Policy Push: Proactive government policies such as ICT Policy 2.0, Telangana EV and Energy Storage Solution (ESS) Policy, Space-Tech framework, State-wide optical fibre network and Growth in Dispersion (GRID) policy, TS-iPASS

• Infrastructure: Steady infrastructure creation and upgrades, Nehru Outer Ring Road (ORR), Metro Rail, SRDP

• Affordability: “Relatively affordable price points have defined ‘The Hyderabad Opportunity’ to a large extent particularly in the commercial office market

• Human Capital: In FY22, almost 1.5 lakh employment opportunities were realized in the IT/ITeS sector which in turn translated to a phenomenal one-third of the IT related jobs in the country…People are particularly drawn in by the quality of life the city offers to working professionals and students alike

• The Fifth Driver of Momentum: Pin-sharp sectoral focus, which includes Transit Oriented Development (TOD) Approach to address challenges of urban sprawl; Sharp focus sectors such as Life Sciences, Data Centres, EV Ecosystem, AVGC and Aerospace