       • ’s Gross State Domestic Product (GSDP) expanded to US$ 62.9 billion Economic growth driven between 2004-05 and 2013-14. by service sector • In 2013-14, the services sector’s contribution to the state’s GSDP at current prices went up to 56 per cent.

• Expansion plans of IT majors like Microsoft, Google, and Amazon are likely to add 40,000 Hyderabad – The IT direct jobs, in addition to indirect employment to several thousands. hub of the state • The state government plans to set up a central authority to look into the issues faced by the state’s IT sector.

• Hyderabad accounts for approximately 20 per cent of ’s total pharma exports, most of Pharma to be the the players opt for Hyderabad due to its better connectivity. backbone of state • The state government plans to set up a pharma city and promote public private development partnership to develop the state’s pharma sector. • Currently, there are 412 pharma companies and 173 bulk drug units in Telangana state.

• The state has been ruled by many dynasties like Sathavahanas, Chalukyas, Kakatiyas, Promoting tourism & Mughals, Qutubshahis and Asafjahis. historical past • The state government recently proposed setting up a separate company named Telangana State Tourism Development Corporation Limited (TSTDC) to promote tourism.

Source: Telangana State Statistical Abstract May 2014; Aranca Research, News articles *Growth rate in Rupee terms GrowingGrowing economy demand and Rich labour pool improving infrastructure • Most of the leading educational universities and institutions in the • Telangana’s GSDP expanded at a state are located in Hyderabad that CAGR of 17.3 per cent between offers a vast pool of labour that can 2004-05 and 2013-14. fuel state development. • Expected to clock an average growth th • The state government has announced of 10.2 per cent during 11 plan scholarships to attract more youth to • The state government plans to these institutions. construct more airports in the state to improve connectivity.

Advantage Telangana Availability of Policy and readymade capital institutional support

• Telangana holds an advantage of • The central government recently easy access to capital and announced formation of an Information infrastructure vis-à-vis Seemandhra. Technology Investment Region (ITIR) • Large multinational companies near Hyderabad. already have a base in Hyderabad. • The state government is designing a • Information technology and comprehensive pharma and pharmaceutical sectors are likely to biotechnology policy and plans to act as the backbone of the state’s announce incentives and tax economic development. exemptions for pharma companies.

Source: Planning Commission Databook, October 2013, GSDP: Gross State Domestic Product • To make Hyderabad a slum free • Plans to make Telangana a international city. power surplus state within the • Effective implementation of next three years. welfare schemes.

• Plans to announce industrial Quality of life Power • Ensure people centric, policy to encourage transparent and corruption of people investments in state. free development. • Setting up of faster Promoting • To take steps to eradicate clearances, a single window corruption. system. investments Governance Vision

• Waiver of agricultural loans • No compromise on Agriculture Law & order up to Rs 1 lakh. maintaining law & order in • Use of modern methods and state. • Encouraging people friendly technology in agriculture. Promoting Infrastructure police officials. • Government to encourage research research in agricultural • Installing CCTV cameras for universities. better vigilance.

• To make Telangana the Seed • Hyderabad to have most Bowl of India as the state is advanced infrastructure facilities. best suited for growing seeds. • To have two new airports in • Promoting greenhouse Hyderabad, near Shamirpet, technology and pilot projects. Jawaharnagar and Ghatkesar.

Source: Aranca Research Telangana has 10 districts: Mahaboobnagar, Ranga Reddy, Hyderabad, Medak, Nizamabad, Adilabad, , Warangal, Khammam and Nalgonda.

The key cities in the state include Hyderabad, Secunderabad and Warangal.

Parameters Telangana Capital Hyderabad Geographical area (sq km) 114,840 Administrative districts (No) 10 Population density (persons per sq km) 307 Source: Maps of India Total population (million) 35.2

Telangana, the 29th state of India, was formed on 2 June Male population (million) 17.7 2014, with Hyderabad as its capital. Female population (million) 17.5

The state is land locked by to the south Sex ratio (females per 1,000 males) 998 and east, Maharashtra and Karnataka to the west, and Literacy rate (%) 66.5 Odisha and Chhattisgarh to the north.

Telugu is the commonly spoken language in the state. Source: Population Census 2011, Hindi, Urdu and English are also widely spoken. Telangana State Statistical Abstract May 2014 Parameter Telangana All states Source

Economy 2013-14 2013-14

Planning Commission Databook, 2013-14, GSDP as a percentage of all states’ GSDP 3.6*^ 100.0 current prices Planning Commission Databook, November Average GSDP growth rate (%)* 4.8 11.54 2014, current prices Planning Commission Databook, December Per capita GSDP^ (US$) 1,545.3 1,833.24 2014, current prices

Physical Infrastructure

Installed power capacity (MW) 9555.3^^ 258,701.45 Central Electricity Authority, as of January 2015

Telecom Regulatory Authority of India, as of Wireless subscribers (No)^ 67,192,201 930,200,000 September 2014 Telecom Regulatory Authority of India, as of Broadband subscribers (No)^ 1,342,750** 75,730,000 September 2014

National Highway length (km)*** 2,423 96,260 National Highway Authority of India

Airports (No) 6 133 Telangana State Portal, AAI

^For undivided state, *Calculated in Indian Rupee terms from 2004-05, **As of December 2011, ***-For 2013-14, ^*As of November 2014, ^*^As of December 2014, *^For 2012-13 Parameter Telangana All states Source

Social Indicators

Literacy rate (%) 66.5 74.0 Planning Commission Databook, June 2014

SRS Bulletin (www.censusindia.gov.in), Birth rate (per 1,000 population)^ 17.5 21.6 October 2013 Investment

Department of Industrial Policy & Promotion, FDI equity inflows (US$ billion)^ 9.83* 238.6 April 2000 to December 2014

Outstanding investments (US$ billion)^ 198.1 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 29 1,339 www.pppindiadatabase.com, PPP Cell

SEZs (No) 36 392 Notified SEZ, www.sezindia.nic.in

^For undivided state, PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, *Data shared by RBI Hyderabad At current prices, Telangana’s GSDP was estimated at US$ GSDP of Telangana at current prices 62.9 billion over 2013-14. (in US$ billion)

Between 2004-05 and 2013-14, the average annual GSDP growth rate stood at 17.3 per cent*. 61.7 62.9 63.1 CAGR 57.9 17.3%* 41.0 42.9 37.9 28.1

20.1 24.5

2012-13 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2013-14

Source: Telangana state portal, *In Indian Rupee terms, Socio Economic Outlook 2013-14 At current prices, Telangana’s net state domestic product NSDP of Telangana at current prices (NSDP) was estimated at US$ 56.1 billion over 2013-14. (in US$ billion)

CAGR 56.2 54.9 56.1 Between 2004-05 and 2013-14, the average annual NSDP 51.5 growth rate was about 17.4 per cent*. 17.4%* 36.7 38.2 33.6 24.9 21.8

17.8

2004-05 2005-06 2006-07 2007-08 2008-09

2011-12 (E) 2011-12 2009-10 (E) 2009-10 (E) 2010-11 (E) 2012-13 (E) 2013-14

Source: Telangana state portal, *In Indian Rupee terms, E - Estimates, Socio Economic Outlook 2013-14 Telangana’s per capita GSDP^ increased to US$ 1,724.3 GSDP per capita of Telangana at current during 2012-13 from US$ 623.7 over 2004-05. prices (in US$)

Average per capita GSDP rose at a CAGR of 16.3 per cent* 1,788.2 between 2004-05 and 2012-13. CAGR 1,661.8 1,724.3 16.3%* 1,210.8 1,249.4 1,131.5 752.9 851.8

623.7

2007-08 2004-05 2005-06 2006-07 2008-09 2009-10 2010-11 2011-12 2012-13

Source: Telangana state portal, *In Indian Rupee terms ^Calculated based on population growth between 2001 and 2011 census figures Telangana’s per capita NSDP grew from US$ 554.1 during NSDP per capita of Telangana at current 2004-05 to US$ 1,534.7 over 2012-13. prices (in US$)

Average per capita NSDP increased at a CAGR of 16.3 per CAGR cent* between 2004-05 and 2012-13. 1,591.5 1,534.7 16.3%* 1,479.0 1,112.0 1,003.6 1,081.3 754.5

554.1 669.2

2004-05 2005-06 2006-07 2007-08 2008-09

2009-10 (E) 2009-10 (E) 2010-11 (E) 2011-12 (E) 2012-13

Source: Telangana state portal, *In Indian Rupee terms, E- Estimates Per capita calculated based on population growth between 2001 and 2011 census figures The state’s per capita income was estimated at US$ 1,545 Per capita income of Telangana at current prices in 2013-14 compared to US$ 544.7 during 2004-05. (US$)

Per capita income increased at a CAGR of 16* per cent CAGR 1,577 1,529 1,545 1,468 between 2004-05 and 2013-14. 16.0%* 1,096 985 1,064

739

545 657

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11 (E) 2010-11 (E) 2011-12 (E) 2012-13 (E) 2013-14

Source: Socio Economic Outlook 2013-14 Current prices CAGR: Compound Annual Growth Rate *In Indian Rupee terms At a CAGR of 17.7 per cent, services has been the fastest Percentage distribution of GSDP growing sector among agriculture, industry and services (Current prices) from 2004-05 to 2013-14. CAGR* The industry sector increased at a CAGR of 17.0 per cent between 2004-05 and 2013-14, followed by agriculture 53.8% 17.7% 55.3% (CAGR of 16.8 per cent).

In 2013-14, the services sector contributed 55.3 per cent to 17.0% the state’s GSDP at current prices. It was followed by the 28.3% 27.5% industry sector (27.5 per cent) and agriculture sector (17.2 16.8% per cent). 17.9% 17.2%

2004-05 2013-14**

Agriculture Industry Services

Source: Telangana State Statistical Abstract May 2014, Socio Economic Outlook 2013-14, Current prices, CAGR: Compound Annual Growth Rate, *In Indian Rupee terms, **Estimates Telangana is predominantly a rain fed state and Annual production of key crops experiences uneven distribution of rainfall.

The state is expected to be a leading producer of cotton, Annual production (2012-13) Crop paddy and maize, with 81 lakh ha of area under cultivation (‘000 tones) of kharif crops. Rice 4,648 Maize is grown over an area of 4.4 lakh ha, marginally less than the total cultivation in the US (5.08 lakh ha). Cereals & millets 7,751

Telangana grows pulses in 5.10 lakh ha of land of the total Pulses 491 7.75 lakh ha area in the undivided state of Andhra Pradesh. Coarse grains are also grown in 5.50 lakh ha as against the Oil seeds 807 total area of 7.46 lakh ha in the combined state. Cotton 4,057 Thus, after the bifurcation, the state is expected to hold a leading position in pulses and coarse grains production. Source: Telangana State Statistical Abstract May 2014, The state’s agriculture benefited during 1993 to 2011 due to News articles Ha: Hectare introduction of High Yielding Variety (HYV) seeds and increased dependence on borewells for irrigation. During 2010-11, nearly 70 per cent of the irrigation in the state was depended on ground water, nearly 17 per cent on Jalayagnam project status - May 2014 canal water and more than 10 per cent on tank water. Major irrigation Area covered Numbers The undivided state has embarked on water projects called projects (million acres) Jalayagnam with an estimated cost of nearly US$ 20 billion. Completed 4 23.3

This water management program was introduced in 2009 to Ongoing 11 16.9 bring a larger parcel of land in the undivided Andhra Pradesh under irrigation. Contemplated 5 49.0

Medium irrigation Area covered Currently, of the 20 major irrigation projects in Telangana, 4 Numbers projects (million acres) are completed and 11 are ongoing. Moreover, of the 48 medium irrigation projects, 32 are completed and four are Completed 32 0.4 ongoing. Ongoing 4 0.04 Adoption of SRI technologies is going to further contribute towards growth in irrigation. Contemplated 12 0.1

Restoration of 45,300 tanks in five years is also on the agenda for further growth in irrigation. Source: Telangana state portal Being landlocked, road and rail infrastructure forms an important part of state transportation.

As per the Telangana Bill, the Union Government plans to construct rapid rail and road connectivity from Hyderabad to the new capital of Andhra Pradesh.

Indian Railways is expected to examine the feasibility of constructing a rail coach factory in Telangana and improve rail connectivity in the state.

National Highways Authority of India (NHAI) will take measures to improve road connectivity in the backward regions of Telangana.

Metro rail project in Hyderabad is expected to be completed by 2017; phase 1 of the project is anticipated to be operational by March 2015.

The GMR group is eyeing to bag any new project by Telangana government including construction of more Source: Telangana State Statistical Abstract May 2014, airports in Hyderabad. News articles

The state aims to fast track pending rail projects and upgrade train stations. The government also plans to set up rail lines: Manoharabad-Kothapalli and Peddapalli- Nizamabad. The total installed capacity of APGenco is 8,924.86 MW. Of Per capita power consumption by district this, about 54 per cent (4,825 MW) is located in Telangana, (all categories) (KWh) while 46 per cent is in the Seemandhra region.

Fifty-two per cent of the total capacity in Telangana is Adilabad 502 hydropower, which is dependent on reservoirs receiving Khammam 522 good water inflows, while just 48 per cent is available through power plants. Nizamabad 655

Currently, APGenco is building power plants having a Warangal 655 capacity of 3,210 MW. Of these, 70 per cent (2,250 MW) is located in coastal Andhra and 30 per cent (960 MW) is Karimnagar 673 coming up in Telangana. Mahaboobnagar 896 In July 2014, NTPC has agreed to set up a 4,000 MW power generation plant at in Telangana. The Ranga Reddy 1,205 construction work on the proposed site would commence immediately and the first unit is expected to be ready within Hyderabad 1,293 39 months. Nalgonda 1,310 Telangana government is now also placing its bet on solar power by going ahead with a proposal to set up a 500 MW Medak 1,415 solar power plant in Adilabad district. 0 500 1000 1500 Singareni Collieries Company to set up two thermal power stations of 600 MW in Adilabad district Source: Telangana State Statistical Abstract May 2014, News articles APGenco: Andhra Pradesh Power Generation Corporation Limited, NTPC: National Thermal Power Corporation Limited Distribution of hydropower plants Distribution of thermal & solar power plants

Source: Telangana State Statistical Abstract May 2014 Under Project cost Project name Sector Stage government (US$ million)

Business District & Trade Towers Tourism State 833.3 Bidding

Hyderabad-Vijaywada Section Roads Central 290.0 Construction

Development of Bus Terminal - Hyderabad Urban development State 78.5 Construction

Hyderabad Metro Rail (MRTS) Project Urban infrastructure State 2,355.3 Construction

Hyderabad International Airport Civil aviation Central 413.0 Operational

Mind Space Project, Hyderabad Others State 333.3 Operational

Golf Course & Convention Centre Tourism State 101.5 Operational

Integrated Solid Waste Management Urban development State 121.2 Operational

FAB CITY, Hyderabad Others State 25.0 Operational

Source: Public Private Partnership in India Database PPP: Public - Private Partnership, As of March 2014, Converted using flat exchange rate of INR 60 / US$ Industrial Infrastructure Corporation is responsible for supervision and execution of SEZs in the state.

As of December 2014, the state had 26 operational SEZs across diversified sectors, which include aviation, gems & jewellery, pharmaceuticals, aerospace & precision engineering industries and IT/ITeS, among others.

Some operational SEZs in Telangana

Name/Developer Location Primary industry

Andhra Pradesh Industrial Infrastructure Corporation Ltd Nanakramguda IT/ITeS Andhra Pradesh Industrial Infrastructure Corporation Ltd, Pollepally Village, Jedcharla Mandal Pharma Jedcharla CMC Limited Hyderabad IT/ITeS

DLF Commercial Developers Ltd Hyderabad IT/ITeS

Hyderabad Gems SEZ Ltd Hyderabad Gems and jewellery

Fab City SPV(India) Pvt Ltd Ranga Reddy District Semiconductors

WIPRO Limited Gopannapally IT/ITeS Andhra Pradesh Industrial Infrastructure Corporation Ltd, Aerospace and precision engineering Ranga Reddy District Ibrahimpatnam industries GMR Hyderabad International Airport Ranga Reddy District Aviation

Infosys Technolgies Ltd Ranga Reddy District IT/ITeS

Sundew Properties Pvt Ltd Ranga Reddy District IT/ITeS

Source: www.sezindia.nic.in, Aranca Research SEZ: Special Economic Zone According to the Telecom Regulatory Authority of India BSNL plans to concentrate on expanding its base in (TRAI), undivided Andhra Pradesh had nearly 67.2 million Telangana. wireless subscribers and 2.0 million wireline subscribers as of May 2014. Airtel is planning to launch 4G services in Telangana and residual Andhra Pradesh by the end of this financial year According to the Department of Telecommunications, with a special focus on Hyderabad, Vijayawada and Government of India, the undivided state had 4,266^ Visakhapatnam. telephone exchanges and 130,282^ Public Call Offices (PCOs) as of March 2012. Telecom infrastructure (as of November 2014) The overall teledensity in undivided Andhra Pradesh stood at 79.4^ per cent as of May 2014. Wireless subscribers^ 70,088,345

Wireline subscribers^ 1,927,343 Optical fibre cable networks of BSNL with 44,500^ km, Reliance with 6,000^ km, Bharat with 3,450^ km and Tata Broadband subscribers^ 1,342,750* with 1,700^ km provide a wide range of communication networks to Andhra Pradesh. Telephone exchanges^ 4,266**

As of July 2014, there were 16,161^ post offices in the Public Call Offices (PCOs)^ 130,282** undivided state.

BSNL announced that there will be no charge on interstate Source: Telecom Regulatory Authority of India, Department of Telecommunications, Annual Report 2011-12, roaming between Telangana and Seemandhra until 2024. Ministry of Communications & Information Technology, India Post *As of December 2011, In 2024, when the license of spectrum ends, a new **As of March 2012, spectrum auction would be conducted for the two states and ^For undivided Andhra Pradesh as of November 2014, the norms would be set for interstate roaming. BSNL: Bharat Sanchar Nigam Limited Telangana’s share in educational institutions includes: Literacy rates (%) Three central universities located in Hyderabad: Literacy rate 66.5 University of Hyderabad, English and Foreign Languages University and Maulana Azad National Male literacy 74.9 Urdu University. Female literacy 57.9 Technological institutes such as IIT, IIIT and NIT.

Source: Planning Commission Databook 2013; Nalsar Law University, Indian School of Business as Human Resource Development Department, well as private institutes such as Symbiosis and http://www.telangana.com/education.htm TISS are located in the vicinity of Hyderabad. IIT: Indian Institute of Technology, IIIT: International Institute of Information Technology, NIT: National Institute of Technology, The Telangana government announced fee reimbursements TISS: Tata Institute of Social Sciences, Telangana Education Statistics 2013-14 for native students and students belonging to low income families. In the academic year 2014-15, the state’s spend on fee reimbursement and scholarships is expected to be approximately US$ 417.0 million. Primary education statistics (%)

Primary schools: 95.3 Gross enrollment ratio (2013-14) Upper primary schools: 95.4 Primary schools: 1:33.0 Teacher/Student ratio (2012-13) Upper primary schools: 1:28.3

Total (I–X) drop out rate (2013-14)

53.21 47.28 43.03 42.22 42.12 34.81 32.05

28.10 26.02 28.42

Medak

Adilabad

Warangal Nalgonda

Khammam

Hyderabad

Nizamabad

Karimnagar

Ranga Reddy Ranga Mahaboobnagar

Source: Telangana State Statistical Abstract May 2014, Telangana Education Statistics 2013-14 Telangana contributes to one-third of the country’s pharma production; the state government plans to enhance it further Health infrastructure (2012-13) by promoting a pharma city. Total hospitals 205

General hospitals 84 Some of the initiatives by the state government to promote the healthcare sector are as follows: Hospitals for women & children 12 Dispensaries 75 To double the budget allocation for the healthcare sector from the present 2 per cent and increase Primary health centres 613 public health delivery services. Doctors (regular + contract) 3,819 + 894 Setting up primary health centres and area hospitals Total beds available 20,450 in every mandal and taluqa headquarters, respectively.

Health indicators^ (2012) Supporting private players willing to invest in the healthcare sector. Birth rate (per thousand persons) 17.5 Death rate (Per thousand persons) 7.4 Setting up a super speciality hospital on the same lines as Nizam's Institute of Medical Sciences Infant mortality rate* 41 (NIMS) at Hyderabad in each district.

Source: SRS Bulletin, September 2013, Telangana plans to double its healthcare spending Telangana State Statistical Abstract May 2014, News articles in its budget allocation to provide a further stimulus. *Per thousand live births, ^Represents information for combined state of Andhra Pradesh before bifurcation Distribution of district hospitals, area Total number of hospitals hospitals & CHCs in Telangana by district

Karimnagar 14

Nalgonda 15

Khammam 17

Ranga Reddy 19

Mahaboobnagar 20

Adilabad 21

Medak 21

Nizamabad 21

Warangal 21

Hyderabad 36

0 10 20 30 40

Source: Telangana State Statistical Abstract May 2014 CHC: Community Health Centres Telangana holds an advantage as it possesses readymade Distribution of industrial parks in Telangana capital with necessary infrastructure and ecosystem.

The industrial sector contributed 27.5 per cent to the state’s GSDP in 2013-14.

The Telangana government plans to promote an industrial corridor between Hyderabad and Warangal, which would also boost employment opportunities in the state.

The state government is formulating policies and a single window clearance system among others for attracting investments, thereby enhancing the industrial infrastructure in Telangana.

Multinational companies are expected to invest in enhancing the infrastructure in Hyderabad city.

The Telangana state is expected to invest in power plants in a big way to support its industrial infrastructure.

Source: News articles, Telangana State Statistical Abstract May 2014 Recently, the government introduced a new industrial policy framework to develop 6 industrial corridors with focus on core manufacturing sectors with life sciences, IT and hardware being the major benefactors. The Information Technology (IT) and pharmaceuticals manufacturing sectors are expected to act as the Key industries in Telangana backbones of the Telangana economy. • Information technology The government has announced to offer special status to • Pharmaceuticals manufacturing pharmaceuticals and IT industries in the state. Special • Tourism attention would be provided to develop the poultry, • Textile agriculture and real estate sectors. • Mines and minerals

The state government is in talks with Steel Authority of India (SAIL) for setting up a steel factory involving an investment worth US$ 5 billion on the Khammam-Warangal border.

The state government plans to develop cotton rich Warangal, the second biggest city after Hyderabad, in all aspects especially by setting up of textile parks similar to those in Tirupur in Tamil Nadu.

The state targets setting up of industries across Telangana rather than confining them to any particular city.

Single window clearance system will be implemented across all three levels- Mega projects, other large industries and SMEs. Considering that the uncertainty over formation of Telangana state is over, the region is expected to attract more investments in the IT sector as per Telangana Information Technology Association.

Experts are anticipating the need to develop tier-II cities such as Warangal and Karimnagar as IT centres.

The central government has announced the formation of an Information Technology Investment Region (ITIR) near Hyderabad.

The total investment for the ITIR is around US$ 36.5 billion, of which IT/ITeS is projected to attract investments of US$ 19.7 billion, and the EHM sector would attract investments worth US$ 16.8 billion.

With the setting up of the ITIR, the new government plans to create 1.5 million direct and 3.5 million indirect jobs in the IT sector over the next five years.

Hyderabad alone accounts for nearly 90 per cent of the total US$ 8.7 billion IT exports from Andhra Pradesh during 2013.

Global IT majors such as Facebook, Google, IBM and Microsoft have offices in Hyderabad. Expansion plans of these IT majors are likely to add 40,000 direct jobs in addition to indirect employment of several thousands.

Cognizant to invest US$ 83 million to expand its operations in Hyderabad.

Source: News articles IT/ITeS: Information Technology/ Information Technology enabled Services Sector, EHM: Electronic Hardware Manufacturing Google • Google’s Hyderabad office played a pivotal role in the development of the firm’s key products such as Gmail, Chrome, Calendar and Docs. • The engineers at Hyderabad customise Google products for local markets and managing systems for offices in India and other Asia Pacific markets. • Google Hyderabad was named the best place to work in India by the Great Place to Work Institute in 2010 and 2011.

Microsoft • In July 2014, Microsoft announced its plans to expand operations in Hyderabad. The state government has assured land and other facilities required for the expansion project. • Microsoft’s CEO Satya Nadella visited Hyderabad in September 2014, and there are chances of talks with the state government regarding expansion of the IT industry in Hyderabad.

Amazon • Amazon plans to set up a 1.6 million square foot campus at Nanakramguda SEZ in Hyderabad. • The upcoming campus would be the first dedicated and owned facility of Amazon after Seattle, US. The construction is expected to be completed in three years. • Amazon intends to increase its employee base by more than three fold from the current 4,000 to 13,500 in phases.

Facebook • Facebook is a US-based online social networking service company with operations in India. • The office in Hyderabad was the first office for the company in Asia. • The company’s investments in the region rose three folds to US$ 9.6 million in 2013 from US$ 3.8 million in 2012. • During 2013, the company’s Indian operation posted 62.7 per cent rise in profits to US$ 1.6 million, driven mainly by India’s booming online advertising market. Hyderabad accounts for almost 20 per cent of pharma exports from India, making the city a hub for the drug industry.

Telangana contributes to almost one-third of the total pharma production in the country.

The state government announced setting up of a Pharma City to boost the pharmaceutical industry in Telangana.

This would come up on 1,000-2,000 acre land in Kazipally and Bolarum, which adjoins the Outer Ring Road, north of Hyderabad.

At present, there are 412 pharma companies and 173 bulk drug units in Telangana.

The Pharmaceutical Association of Telangana (TPA) has asked the state government to design a comprehensive pharma and biotechnology policy and announce incentives and tax exemptions for pharma companies.

TPA is planning to promote PPP programmes to attract investments and retain existing companies in the state.

Companies such as Dr Reddy’s and Aurobindo have plans to increase capacities during 2014 and have already lined up huge investments for the same.

Total R&D by pharmaceutical companies has risen by more than 20.6 per cent in 2014, showcasing the potential it has for Telangana.

Source: News articles Dr Reddy’s • Dr Reddy’s started its business operations as an Active Pharmaceutical Ingredients (API) manufacturer in 1984 and added formulations operations in 1987. • The company went to international markets in 1991. • Currently, the company works with 50 R&D partners across the world, with the three major clusters being the US, Western Europe and India.

Aurobindo Pharma • Aurobindo Pharma was founded in 1986 and became a public listed company in 1995. • The company exports its drugs to 125 countries and derives more than 70 per cent of its total revenues from international operations. • The company has a team of over 650 scientists who are involved in research and product development.

Divi's Laboratories • Divis Laboratories, established in 1990, produces APIs & intermediates. • The company has 500 acres of 13 multi-purpose production blocks in Hyderabad and a plant in Seemandhra. • During the first half of 2014-15, the company reported consolidated revenues of US$ 238 million.

• Granules India is an Indian pharmaceutical company with manufacturing facilities spreading Granules India Ltd across India and China. • The company serves customers across 60 countries with four facilities in India, which include Hyderabad, and a facility in Jingmen, China. The company recently acquired Auctus Pharma and is looking to expand its business through organic as well as inorganic routes. Telangana was ruled by many great dynasties such as Sathavahanas, Chalukyas, Kakatiyas, Mughals, Key tourist spots Qutubshahis and Asafjahis. Monuments Hyderabad, the capital of Telangana, is known for • Charminar Charminar, Golconda Fort, pearls and biryani. • Golconda Fort

• Qutb Shahi Tombs The Kakatiya circuit with Warangal as the hub and the • Chowmahalla Palace adjacent Karimnagar are popular with tourists. • Falaknuma Palace Lesser known places include Jinnaram near Kawal Tiger • Bhongir Fort Sanctuary and the lake resorts at Kadem (Adilabad) and • Ramoji Film City Alisagar Lake (Nizamabad). Religious Tourism • Thousand Pillar Temple Among the new destinations, the state has developed • Bhadrachalam Temple jungle resorts on the Telangana-Maharashtra border. • Nelakondapalli

The state government has proposed registration of a new • Dhulikatta Phanigiri public limited company, Telangana State Tourism • Kolanpaka Development Corporation Limited (TSTDC), under the • Mecca Masjid Companies Act 2013 to promote tourism. Others • Kuntala waterfall The state celebrates different festivals. Recently, the state • Pochera waterfalls government decided to declare Bathukamma Panduga as the state festival considering the importance of this festival • Nirmal Paintings celebrated across Telangana.

Source: News articles Telangana is rich in mineral resources, which include granite, coal, lime stone, bauxite and mica. Minerals Availability across districts

The state accounts for nearly 20 per cent of the country's Manganese ore Adilabad and Nizamabad coal deposits used for industrial purposes and in thermal power stations. Majority of the state’s coal is spread across Mica Khammam Adilabad, Karimnagar, Khammam and Warangal districts. Karimnagar, Khammam,

Steatite/talc Mahabubnagar, Medak and The state is rich in limestone deposits, which cater to the Nizamabad various cement factories in the region. Copper Khammam The state’s leading mining districts are Karimnagar, Khammam and Adilabad, which contributed more than 50 Graphite Karimnagar and Khammam per cent of mining revenue of undivided Andhra in 2010-11.

The district of Karimnagar is rich in granite reserves due to the availability of a variety of granites such as Tan Brown, Source: Indian Mineral Scenario – States, Ministry of Mines website, www.mines.nic.in Maple Red and Coffee Brown granite.

According to the Department of Mines and Geology, there are 426 colour granite quarries and six black granite quarries in the district.

Khammam is emerging as the new growth engine with around 15,000 acres of land being freed by the state government in the district. Except for Hyderabad and Nizamabad, cotton is grown Handloom and textile exports for undivided across the districts of the state. Andhra Pradesh (in US$ million)

1,100.0 The undivided Andhra government identified the textile 1,002.0 sector as one of the long term growth engines. To utilise the 1,000.0 900.0 potential of this sector, the government has established few 793.0 800.0 Apparel Export Parks (AEPs) and textile parks. CAGR 700.0 36.6%* 600.0 Telangana state government has recently proposed to set 490.0 up two textile parks in the state under the scheme of 500.0 404.0 Integrated Textiles Park; one is proposed in Warangal and 400.0 340.0 272.0 the other in Sircilla, Karimnagar district. 300.0 151.0 148.0 200.0 According to the scheme, the government will fund 40 per 100.0 cent of the project cost with an upper limit of US$ 6.7 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 million.

Source: Andhra Pradesh Socio-Economic Survey 2012-13, Both the parks are proposed to be developed on the lines of Socio Economic Outlook 2013-14, Telangana State Portal, the existing textile park at Tirupur in Tamil Nadu. News articles *In Indian Rupee terms List of approvals and clearances required Department

Incorporation of company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, industrial licences

Permission for land use Commerce and Industries Department

Allotment of land

Site environmental approval Telangana Pollution Control Board No-objection Certificate and consent under Water and Pollution Control Act

Registration under States Sales Tax Act and Central and State Excise Act Excise Department Commercial taxes

Sanction of power

Power feasibility Energy and Power Department

Power connection

Approval for construction activity and building plan Public Works Department

Water and sewerage clearance Water Security & Public Health Engineering Water connection Department Agency Contact information

6th Floor, Parisrama Bhavan, Fateh Maidan Road, Basheerbagh, Hyderabad – 500 004, Telangana, India Ph: +91-40-23237625, 23237626 Industrial Infrastructure Corporation Fax: +91-40-23240205, 23241385 Website: http://telangana.apiic.in/ email: [email protected]

Vidyutsoudha, Khairatabad, Hyderabad-500 082, Andhra Pradesh Power Generation Corporation Andhra Pradesh, India (APGENCO) Phone: 040-23499000/39839000 Fax: 040-23499101 email: [email protected]

Telangana Pollution Control Board Payavaran Bhawan, A-III, Industrial Estate, Telangana Pollution Control Board Sanath Nagar, Hyderabad - A.P. Website: http://appcb.ap.nic.in email: [email protected] Parameter Cost estimate

Land price (US$ per sq m) 3.6–254.6

Labour cost (minimum wages per day) US$ 2.9–22.7

Commercial lease rent (US cents per sq ft per month) 5.4–714.3

Commercial: 9.0–18.4 Electricity (US cents per kWh) Industrial: 7.7–11.3

Residential rent (US cents per sq ft per month) 6.7–40.0

Five-star hotel room (US$ per night) 58–330

Industrial: 0.8-3 per 1,000 litres Water cost (US$) Commercial: 0.7-3 per 1000 litres

Source: www.hyderabadwater.gov.in, Southern Power website, labour.nic.in, Property sites, News articles, Travel sites Information and Communications Technology (ICT) Policy 2010–15

Objectives To make undivided Andhra Pradesh one of the fore runners in the IT sector in the country The objective would be achieved through the following initiatives: • Provision of congenial, industry-friendly and proactive climate for IT companies to locate, grow and sustain their operations in a most competitive and hassle-free environment. • Creation of employment opportunities for the educated youth of all sections of the society across regions. • Achieving higher levels of exports, resulting in enhanced productivity and augmentation of GSDP. • To spread IT to every nook and corner of the state. • Leverage IT as a tool for the socio-economic development of the state. Read more

Industrial Investment Promotion Policy (IIPP) 2010–15

• To build a strong and vibrant industrial economy that spins off large capital formation in the state Objective and advances inclusive development of all sections of the population and industry that creates increasing employment opportunities, and raises wage incomes to higher levels through skill upgradation to improve the quality of life of citizens of the state. Read more Tourism Policy 2010

• To position the state competitively for attracting private sector investments in the tourism and Objectives hospitality sectors. • To target the incentives to the private sector better as per the state government's priorities in terms of geographical areas and tourism products. • To focus on maximum generation of employment in the sector through development of human resources by capacity building. Read more

Biotechnology Policy 2001

Objective • To undertake a detailed inventory evaluation of bio-resources in the state for encouraging Research and Development (R&D), developing high quality infrastructure and providing special incentives to the biotech industry. Read more

Electronic Hardware Policy 2012-17

Objective • To provide special incentives and facilities for the electronic hardware sector in line with the present ICT policy. The policy would cover areas such as industrial electronics, communication & broadcast equipments, computers & peripherals and strategic electronics & components (semiconductors, solar & displays). Read more Average exchange rates

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.6

Source: *Average of first three quarters India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF.

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