Calendar year 2025 for Telangana from an industries perspective was eventful, marked by several significant, some controversial and arguably a few avoidable developments.
At a broad level, the intent to consolidate and attract investments, be it in manufacturing or the services sectors, was evident with the Telangana Rising Global Summit towards the year-end hitting the crescendo. It was a year when Chief Minister Revanth Reddy’s government found its feet, sought to sharpen focus on industrial growth as a key pathway to achieve accelerated economic development, especially the $1 trillion GDP by 2034 goal, even as some of its own decisions, new tariffs and visa regulations of the U.S., as well as a major industrial accident in Hyderabad’s neighbourhood cast a shadow.
As has become an annual feature, this year too took off with major investment announcements from the World Economic Forum. For the second year on a trot, the CM-led the delegation to the prestigious event in Davos. The team returned with ₹1.78 lakh crore investment commitment on projects with a potential to generate nearly 50,000 jobs. Amazon Web Services, Sun Petrochemicals, Tillman Global Holdings, Jindal, HCL, Infosys and Wipro figured in the list.
This even as several other big names from Eli Lilly to Vanguard choose Hyderabad for establishing global capability centres. GCCs are the latest in the process of offshoring work and unlike the back offices of the past not just help cut cost but also add value with core innovation work, including harnessing Artificial Intelligence. Shaping GCCs into Global Value Centres has become a stated objective of the government as much as its efforts in making firms see value in going to tier II and III locations.
Beyond firming up its reputation as a preferred destination for IT firms, Hyderabad also built on its image as a Life Sciences and Defence and Aerospace hub. Government of India’s emphasis on Make in India as well as indigenisation and self reliance in defence manufacturing besides the peek into future of wars that Operation Sindoor provided only bolstered the case of Hyderabad to take up more work. Vaccine makers and pharma companies continued to chart new territories.
However, for a State whose industrial foundations rest on MSMEs, one of its decisions that stoked controversy and political backlash was Hyderabad Industrial Lands Transformation Policy to relocate industrial units within city limits beyond Outer Ring Road and convert the vacated lands for other uses such as residential, commercial, institutional and recreational purposes in addition to creating space for IT firms. MSME leaders said such move should be preceded by creation of ecosystem from basic roads, transportation to social infrastructure since not just lakhs of people dependent on the units but their families will be also impacted.
The six-month sunset clause in (HILTP) could mean only a few plot holders vacating. But that should be enough to create conditions forcing remaining units to move out in near future.
A sudden, steep increase in electricity bills following change in the billing norm, withdrawal of time-of-day (ToD) power tariff concession, time taken for issue of supporting government orders to implement MSME Policy 2024 guidelines are some other matters of concern for trade and industry. The government is also quiet on the new Life Sciences Policy as well as the proposed Green Pharma villages.
2025 was witness to a devastating industrial accident that many believe could have been avoided with enhanced monitoring, enforcement and compliance. More than 50 people dead and many were injured in the explosion and fire at Sigachi Industries unit, near Hyderabad.
Speedier action is something industry favours, from disbursement of pending incentives to measures to reduce cost of doing business.
While officials spoke of proposed tweaks to TS-iPASS system of approvals and setting up a dry port, it was the Telangana Rising Summit the government choose to unveil medium to long term plans for inclusive, sustainable development. Many were centred around proposed Bharat Future City. It announced a ₹1,000 crore Fund of Funds for startups and how Telangana is poised to become a skill capital on the back of the Young India Skills University. One of the highpoints was companies committing ₹5.75 lakh crore investment.
Published – December 30, 2025 07:42 pm IST
