Telangana’s IT exports have touched ₹3.13 lakh crore in 2024-25, reflecting a robust 16.6 per cent 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 pc 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 ₹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 pc 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 space. The NASSCOM India Generative AI Start-up Landscape 2025 report noted the state hosts about 7 pc of India's total GenAI start-ups, ranking fourth behind Karnataka (39 pc), Maharashtra (14 pc) and Delhi (9 pc).
"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 Deputy Chief Minister Mallu Bhatti Vikramarka said while presenting the state budget in the assembly last week.
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," the Deputy CM said.
The budget has earmarked ₹875 crore to the Information Technology Department.
"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," the state IT minister D Sridhar Babu said.
Telangana, he said, was 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 Bharat Rashtra Samithi (BRS) working president KT Rama Rao questioned the employment figures. "The 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 have stated this first in the Governor's address on 16th March and reiterated the same in last week’s Budget speech of the Deputy CM. Wonder if this was an effect of AI or it’s just plain inefficient Congress administration," KTR posted on social media.
Also read: Telangana debt touches ₹8 lakh crore: Govt report
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