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Sectoral Thrust Areas

The Telangana State Government has conducted detailed studies and consulted experts to identify the competitive advantages the state can have, given its geographical location, available resources and skill-base, raw material availability, existing manufacturing practices and expertise, and opening up of new opportunities. Accordingly, the Telangana State Government recognizes the following 14 sectors as thrust areas, investments in which will be accorded a higher priority over others.

Life Sciences

Including, bulk drugs, formulations,vaccines, nutraceuticals, biologicals, incubation centers, R&D facilities and medical equipment Hyderabad is the bulk drug and vaccine capital of the country. However, in the past 8-10 years the sector has stagnated. While the leadership in formulations and bulk drugs has to be maintained, new opportunities like life-saving drugs, new vaccines and biologicals have emerged. There is an urgent need to encourage this sector, especially in the emerging life sciences areas.

IT Hardware including bio-medical devices, electronics, cellular communications, FAB

Telangana has a robust IT Software sector which will complement IT Hardware. The Government of India has approved and IT Investment Region for Hyderabad as well as two Electronic Manufacturing Clusters. The large health industry in Telangana will support bio-medical devices and medical electronics

Precision Engineering, including aviation, aerospace, defence Hyderabad is home to a large number of defence aero-space and defence research laboratories like DRDO, DRDL, RCI, BDL, MDN, Ordnance Factory, DMRL etc. In addition to the 5 large Tata investments in aero-space, there is also the GMR MRO. A group of innovative aero-space SMEs also exist in Hyderabad which has supplied components to the Chandrayan and Mangalyan initiatives. GOI has also announced 49% FDI in defence sector creating huge investment opportunities.

Food processing and nutrition products including dairy, poultry, meat and fisheries

Telangana is a large producer of agro-products like cereals, pulses, oilseeds, fruits and spices. It is also the market leader in the poultry and seed business. There is potential expand into greenhouse and exotic vegetable cultivation. To add value to agro-products and to maintain and expand the existing strengths as well as to partner with the national Food Processing Mission, there is a need to encourage this sector.

Automobiles, Transport Vehicles, Auto-components, Tractors and Farm Equipment

The automobile industry is an important sector for any State. The upstream and downstream supplier opportunities will boost the engineering SME sector also. The M&M tractor plant in Telangana and the auto-component SMEs will be the anchor around which the future growth and investments in the automobile sector will emerge

Textiles and Apparel

Textiles and Apparel, Leather and leather value added products like shoes, purses, bags, artificial material infused and coated textiles, paper and paper products industry.

There is tremendous potential for paper and paper products industry in the state due to the growing demand for such products.

Plastics and Polymers, Chemicals and Petro-chemical, glass and cerami

The former combined state of Andhra Pradesh had a PCPIR sanctioned by the GOI. This has gone to the residual State. Plastics, polymers and downstream petro-chemical industry are predominantly in the MSME sector with huge employment potential. The products of this sector are consumed on a daily basis all over the country. This sector is critical for a large number of MSMEs

FMCG and Domestic Appliances

The growth rates of the Fast Moving Consumer Goods and Domestic Appliances sector has been phenomenal, even when the country’s economy was slow. Telangana is centrally located in India and for the FMCG and Domestic appliances sectors, transportation costs are very critical. It is important to take advantage of the locational advantage of the state especially for this sector.

Engineering and Capital Goods, including castings, foundry and Ferro-alloys and other metallurgical industries

This sector is very important if the State has to capture the entire value chain of the automobile, aero-space, petro-chemicals, domestic appliances, and paper and textile sectors. The thrust areas in this section will provide the supply chain to the other thrust area sectors.

Gems and Jewellery

Hyderabadi pearls and lacquer bangles made by local artisans are known all over the world. Value-addition to these traditional products and diversification into other gems and jewellery items will provide the much needed relief to local artisans and craftsmen.

Waste Management and Green Technologies

This is the sector that will become mandatory for all industry. Green initiatives can be shown to be profitable. The Telangana State has functional models of SPV/JV efforts of waste management. This sector has tremendous growth potential.

Renewable Energy and Solar Parks

This sector is a priority all over the world. The State of Telangana has large extents of land eminently suitable for non-conventional and renewable energy installations.

Mineral-based and wood-based Industries

Much of the minor mineral wealth of the State like granite, quartz and silica-sand is exported in raw form with minimal processing within the State. Similarly, bamboo and other MDF-suitable plant material also need to be exploited so that sustainable incomes are generated and the regular the forests trees can be saved.

Transportation/Logistic Hub/Inland Port/Container Depot

The State of Telangana is land-locked; yet it hopes to become a major destination for international investors. In addition it is centrally located and has the potential to become a major transit and logistic hub.


Each of the above thrust areas will have its own sectoral policy and a structure of incentives. High level advisory panels with private sector and academia experts will be constituted for each of the sectors. An inter-departmental task force for each sector chaired by Special Chief Secretary/Principal Secretary of Industries and Commerce Department will also be in place to achieve the required coordination. Frequent thrust area sector-centric investor meets will be organised to showcase the advantages the state of Telangana offers for that sector. Thrust area sector-centric industrial parks with well-developed infrastructure required for that particular sector will be developed at appropriate locations in the state.

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