Telangana IT exports hit Rs. 3.13 Lakh crore amid services sector surge

Telangana's IT exports soared to Rs. 3.13 lakh crore in 2024-25, reflecting a robust 16.6% growth over 2023-24. The state's Socio-Economic Outlook, released by the planning department, reported IT employment at 9.39 lakh for the year.

Hyderabad is home to over 1,500 IT/ITES companies and nearly 20% of India's Global Capability Centers (GCCs). By October 2025, as per the official data the city had attracted 40 new GCCs, the highest in the country. Over the past one to two years, Telangana has drawn significant greenfield investments and major GCC expansions across sectors.

The services sector, which dominates the state's GSDP with IT as a key driver, saw its Gross State Value Added (GSVA) rise from Rs. 9,96,293 crore in 2024-25 (First Revised Estimates) to Rs. 11,30,596 crore in 2025-26 (Provisional Actual Estimates), recording the highest growth rate of 13.5%.

The services sector forms the bedrock of Telangana's economy, contributing 68.6% of the state's GSVA in 2025-26. A NITI Aayog report on GVA Trends and State-level Dynamics 2025 highlighted that Telangana, alongside Karnataka, Maharashtra, and Tamil Nadu, accounts for nearly 40% of India's total services output.

Telangana is also carving a niche in Generative AI. The NASSCOM India Generative AI Startup Landscape 2025 report noted the state hosts about 7% of India's total GenAI startups as of H1 CY2025, ranking fourth behind Karnataka (39%), Maharashtra (14%), and Delhi (9%).

"There is no doubt that the progress we are achieving in the IT sector has become a model for the entire country. The state has more than 1,500 IT/ITES companies. To promote growth, attract investments, and create employment, the Telangana government has launched its first and second ICT policies. In addition, the government is bringing in an Electronics Policy and an IMAGE Policy.

The state's IT exports have reached Rs. 3.13 lakh crore, generating employment for over 9.39 lakh people. Global tech giant Google has set up the Google Safety Engineering Centre in Hyderabad.

To ensure IT is not confined to the western part of Hyderabad, the government is promoting the 'GRID' (Growth in Dispersion) policy to expand IT around the city," said Telangana Deputy Chief Minister Mallu Bhatti Vikramarka while presenting the state budget in the assembly on Friday.

The budget allocated Rs. 875 crore to the IT Department. State IT Minister D Sridhar Babu recently emphasized Hyderabad's rise as a global hub for AI-driven financial technology.

"Hyderabad has built one of the world’s strongest financial technology ecosystems, with global financial majors such as Vanguard, UBS, Wells Fargo, Bank of America, MassMutual, Franklin Templeton, JPMorgan Chase, Goldman Sachs, and Citigroup operating large technology and analytics centres in the city. Hyderabad currently hosts nearly 400 Global Capability Centres, employing more than three lakh professionals, while Telangana’s technology sector generates over $40 billion in IT exports," he said in a recent meeting.

The state is now focusing on the next growth phase through initiatives like AI City, Future City, and AIKAM to build a robust AI ecosystem, expand digital infrastructure, and develop talent for an AI-driven economy.

However, former IT Minister and opposition BRS working president KT Rama Rao questioned the employment figures. "Telangana Government has admitted twice in a week that IT sector jobs in Hyderabad have come down from 9.46 lakh jobs in 2023 to 9.39 lakh jobs in 2026!! Shocking to say the least. They’ve stated this first in Governor's address on 16th March and reiterated the same in yesterday’s Budget speech of Deputy CM. Wonder if this was an effect of AI or it’s just plain inefficient Congress administration," KTR posted on social media.