Services sector blooms in Telangana
The CAGR of GVA by the services sector in the State was 12.81% between 2014-15 and 2022-23, 2.36 percentage points higher than the All-India average of 10.45%.
Hyderabad: The services sector remained a dominant sector in Telangana’s economy, with a share of 62.8% in the Gross State Value Added (GSVA) at current (2022-23) prices, according to the Telangana Socio Economic Outlook 2023.
The Compounded Annual Growth Rate (CAGR) of Gross Value Added (GVA) by the services sector in Telangana was 12.81% between 2014-15 and 2022-23, 2.36 percentage points higher than the All-India average of 10.45%. The services sector includes trade, repair, hotels, and restaurants, transport, storage, communication, broadcasting, transport, financial services, real estate, and others.
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The ‘real estate, ownership of dwelling and professional services’ is the most dominant sub-sector in the State. It contributed more than one-third (33.2%) of the GVA at current (2022-23) prices. It is also the largest sub-sector (20.85%) of the state’s total GVA.
More than one-third (33.2%) of total workers in Telangana are employed in the services sector. At the all India level, this is 29.64%. Within the services sector, more than one-third of total workers (39.75%) are employed in the ‘trade, hotels and restaurants’ sub-sector. About 21% workers are employed in the ‘transport, storage and communication’ sub-sector, together accounting for 60.79% of the employment in the services sector.
Between 2014-15 and 2021-22, the IT exports from Telangana grew at a CAGR of 15.6%. During this period, the IT exports from Telangana were Rs 66,276 crore, which almost tripled to Rs 1,83,569 crore by 2021-22. The total employment in the IT sector increased from nearly 3.7 lakhs to 7.7 lakh during this period.
The Telangana Government, through its Growth in Dispersion (GRID) policy, provides special incentives to the companies that expand or set up their units beyond the western part of Hyderabad. IT parks in Uppal, Pocharam, Kompally, Kollapur, and Shamshabad are under development and two electronic manufacturing clusters are under development at Maheshwaram and Raviryal.
The IT Towers (Phase-I) in Warangal and Karimnagar and Khammam are operational. As of July 2022, Telangana had 35 operational SEZs, 57 notified SEZs and 64 formally approved SEZs.
The Technology Hub (T-Hub), innovation intermediary and business incubator, has impacted over 2,500 startups, conducted over 1,000 events and created over 12,000 jobs. The Women Entrepreneurs Hub (WE-Hub), launched in March 2018, has incubated 2,194 startups and created 2,823 direct and indirect employment, the report said.
T-Works, India’s largest prototyping centre, facilitated over 250 startups and 15 MSMEs to build prototypes and products. The ‘Proto.tworks’ platform has shipped over 700 products and prototypes.
The demand for gig workers was up 45% in Hyderabad. For Mumbai, it was 45.45%, Delhi 32%, Bengaluru 25%, and Chennai 23.4%.
Telangana witnessed an increase in domestic tourists from 3.2 crore in 2021-22 to 6.07 crore in 2022-23, an increase of 89.84%. During this period, foreign tourists increased from 5,917 to 68,401, an increase of 1056.01%.
