Telangana’s IT sector is set to pivot from a traditional coding powerhouse to a hub of innovation and product development. The state’s information technology minister, Duddilla Sridhar Babu, emphasized this new direction during a recent interview. With an eye on helping India achieve its goal of becoming a $10 trillion economy, Babu outlined several strategic initiatives that aim to leverage the state’s technological prowess.
For years, Hyderabad has been a global player in the tech industry, contributing significantly to the coding work of giants like Microsoft, Google, and Amazon. However, the time has come for the city to evolve beyond its coding roots. “We are not only for coding but also for product development,” Babu stated, highlighting the state’s talent for creating high-quality products.
Babu is currently in the United States, engaging with industry leaders to attract investments. He noted that while Hyderabad has historically been a significant contributor to global tech advancements, the focus has been too narrow. “High-finished products are made in the US and sent back to India at a higher cost. It’s time to change that dynamic,” he asserted. Telangana aims to use its IT sector’s strengths to boost both the state and national economies.
A cornerstone of this strategic shift is the development of an AI city on 200 acres dedicated to infrastructure for research, development, and company offices. “We aim to harness the vast data generated by our population to build a robust Artificial Intelligence (AI) ecosystem,” Babu explained. Recognizing the critical role of AI in future technological landscapes, he stressed the importance of not missing out on this opportunity, drawing parallels to India’s missed chance in the semiconductor industry decades ago.
During his US visit, Babu focused on renewing ties with key industry figures, particularly those with operations in Hyderabad. “The purpose of my visit is to reconnect with IT and pharma industry leaders and those in other core sectors,” he said. This effort aims to renew their engagement with Telangana, reinforcing the state’s commitment to economic progress.
Hyderabad is already known for its strategic location, skilled workforce, and efficient governance, making it a pivotal economic hub. However, Babu emphasized that the state’s industrial development strategy extends beyond the capital. “Our industrial development strategy focuses not just on Hyderabad but the entire state,” he noted. The government aims to replicate Hyderabad’s success in tier-2 and tier-3 cities by fostering a conducive ecosystem for investors at the district and village levels, ensuring balanced growth.
A significant element of Telangana’s growth strategy is embracing new technologies, particularly AI. Babu shared news of Coca-Cola’s commitment to investing in a new plant in Peddapalli, estimated at Rs 700 crore. He also mentioned ongoing discussions with life sciences and IT companies about establishing Global Capability Centres (GCCs) in Telangana. “In defence and aerospace, many companies are interested in Hyderabad due to the ecosystem we have created,” he added.
When asked about the competition between Bangalore and Hyderabad, Babu highlighted Hyderabad’s numerous advantages, including a strategic location, ease of doing business, and a high quality of life. While Bangalore faces issues like mobility, water scarcity, and high living costs, Hyderabad offers affordable living, reliable infrastructure, and ample space for expansion. Additionally, the government is focused on developing tier-2 and tier-3 cities to ensure balanced growth across the state.
The Telangana government is also actively engaging with the Telugu diaspora in the US, seeking their contributions in terms of intellectual property, expertise, and financial support. Babu emphasized the creation of a platform where diaspora members can give back to their regions with proper audit and accountability. “Their involvement will supplement the state’s efforts in education, healthcare, and infrastructure development,” he said.
Reflecting on recent political changes, Babu expressed hope for cooperation and support from the central government under Prime Minister Narendra Modi. He believes that with the Centre’s support, Telangana can significantly contribute to India’s economy, particularly in IT and new technologies. “Telangana has immense talent and potential. We seek cooperation and funding for initiatives like the semiconductor mission,” he stated.
Envisioning Telangana as a leading economic powerhouse in India, Babu concluded by emphasizing the state’s commitment to creating a conducive environment for investment and innovation. “Telangana is poised for significant growth. We are committed to creating a conducive environment for investment and innovation,” he said.
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