Telangana’s growth engine

The city will have its winning streak if it continues to provide industry the ecosystem it needs to thrive.

AuthorPublished: 4th Mar 2017  2:37 amUpdated: 3rd Mar 2017  9:57 pm

Hyderabad is becoming a major investment destination across sectors. The city has attracted many global and Indian companies to set up their manufacturing, research and development and clinical research facilities. While Hyderabad was known for decades for its pharmaceuticals prowess, information technology has given a new direction and dimension to its growth. it is seeing increasing investments in these two crucial sectors while also attracting companies from aerospace, agriculture, electronics, energy, infrastructure, healthcare and transportation. However, IT continues to be the growth driver. The city has already attracted major investments from the likes of Microsoft, Apple, Facebook, Google and Uber. German automotive engineering company ZF is the latest to join the investment bandwagon. The city has India’s largest incubator ‘T-Hub’, focusing on niche industries such as gaming and animation and has thus made it attractive for startups too across verticles. There has been a surge in office space in the last few years while retail occupancy rates are showing healthy signs of growth. Swedish furniture retailer Ikea is making a significant investment in the city and opened its first India store here. Many others are exploring opportunities to set up shop in the coming years.

The world has always been competitive. Nations, States and cities are charting plans and policies to attract investments and boost the economy of the region. Telangana, often referred to as a startup State, realised on day one that investments will come in if the desired ecosystem is created for industry. This approach is helping the State derive outcomes. Telangana topped the 2016 Ease of Doing Business while Gujarat slipped to the third position in the list prepared by the World Bank and the Centre’s Department of Industrial Policy and Promotion. The State performed better in reforms on 58 regulatory processes, policies, practices, or procedures spread across 10 reform areas spanning the lifecycle of a typical business. Its single window clearance system for fast-track project approvals, tax reforms, labour and environment reforms, dispute resolution and construction permits have placed the State in a different league. Hyderabad’s listing at fifth position among the world’s 30 most dynamic cities in the JLL’s City Momentum Index 2017 shows that the efforts of the government, industry and all the stakeholders are in the right direction. Companies are opting for Hyderabad to set up their operations owing to government support, availability of talent pool, infrastructure, air connectivity and the presence of potential partners and clients. The city will have its winning streak if it continues to provide industry the ecosystem it needs to thrive.