The IT sector, a pivotal engine of growth for Hyderabad and the state of Telangana, is witnessing a worrying downturn. After years of unprecedented growth during the tenure of former CM KCR and former minister KTR, the latest figures reveal a significant decline in both IT/ITES exports and job creation.
In the fiscal year 2022-23, Telangana made a remarkable achievement with IT and ITES exports recording a growth of Rs. 57,706 crores, marking a robust growth rate of 31.4%. However, the 2023-24 fiscal year tells a different story. IT and ITES exports growth plummeted to Rs. 26,948 crores, resulting in a mere 11.2% growth rate.
Equally concerning is the sharp decline in IT employment growth. The sector, which had created 1,27,594 new jobs in 2022-23, saw this number dwindle to just 40,285 new jobs in 2023-24, a mere one-third of the previous year’s figures.
Telangana’s IT exports – employment
- 2023-24: Rs. 2,68,223 cr – 9,46,000
- 2022-23: Rs. 2,41,275 cr – 9,05,715
- 2021-22: Rs. 1,83,569 cr – 7,78,121
- 2020-21: Rs. 1,45,522 cr – 6,28,615
- 2019-20: Rs. 1,28,807 cr – 5,82,126
- 2018-19: Rs. 1,09,291 cr – 5,43,033
- 2017-18: Rs. 93,422 cr – 4,75,308
- 2016-17: Rs. 85,470 cr – 4,31,891
- 2015-16: Rs. 75,070 cr – 4,07,385
- 2014-15: Rs. 66,276 cr – 3,71,774
- 2013-14: Rs. 57,258 cr – 3,23,396
During the BRS tenure, Telangana’s IT sector thrived, driven by innovative policies and initiatives such as the TS-iPASS single-window system, which streamlined processes and attracted significant investments. The sector’s growth not only bolstered the economy but also established Hyderabad as a premier IT hub in the country.
Industry experts and stakeholders are now urging the Congress government to prioritize the IT and ITES sector to sustain this growth trajectory. There is a pressing need for policy continuity to maintain investor confidence and attract new investments. Support for young entrepreneurs and startups is also essential to foster innovation and drive future growth.
Reacting to this decline, former minister KTR said, “Incessant Infrastructure upgradation and the strict maintenance of law and order play an important role in sustaining the growth of the IT sector in the state. The Congress government needs to focus on these two areas, which seem to have taken a back seat since Congress assumed office.”
The IT sector’s decline is a wake-up call for the Congress administration. The future of Hyderabad’s economy and the livelihoods of thousands depend on the IT sector.