For years, Bengaluru held the title of India’s undisputed tech capital. But winds of change are sweeping through the Deccan Plateau, and Hyderabad is fast emerging as the country’s next major technology and innovation hub. With a compelling mix of strategic planning, futuristic infrastructure, robust investments, and a pro-business government, Hyderabad is positioning itself at the epicentre of India’s next digital revolution.
A City on the Rise
Hyderabad has always been known for its blend of history and modernity. But in recent years, it’s the city’s transformation into a technology development hotspot that’s grabbing national and global attention. The numbers speak for themselves:
- Telangana topped all Indian states in attracting investments, worth Rs 1.78 lakh crore, stated by Chief Minister Revanth Reddy, while addressing the gathering after inaugurating the new facility in May 2025.
- Over 9,800 new jobs were announced on Day 1 of BioAsia 2025 alone, where pharma and biotech companies inked MoUs worth Rs 5,445 crore.
- Major IT giants like HCLTech and Infosys announced new campuses, projecting 22,000 new IT jobs.
- In June 2025, Google opened its Google Safety Engineering Centre, India (GSEC India) in Hyderabad, its first in Asia-Pacific. It focuses on AI safety, cybersecurity, and digital literacy.
A Quantum and AI Leap
Beyond conventional IT growth, Hyderabad is also pioneering in emerging technologies:
- Telangana, in partnership with QuantumBasel, launched India’s first quantum technology hub in January 2025.
- In April 2025, a Hyderabad-based startup unveiled India’s first human-like AI, showing the city’s prowess in artificial intelligence.
- Startups like N-Space Tech, which recently onboarded a DRDO veteran, are driving innovation in defense-tech, AI, and aerospace.
Startup Energy and Industry Backing
The entrepreneurial energy in Hyderabad is infectious. The city has seen a rise in high-performing startups across aerospace, biotechnology, and AI.
- Notable names include Skyroot Aerospace, Axial Aero, and Autocracy Machinery, all of which are putting Telangana on the global innovation map .
- Hyderabad also saw Lenskart break ground for what will be the world’s largest eyewear manufacturing plant, reinforcing the city’s edge in high-tech manufacturing.
Tech Meets Infrastructure
Tech growth is only sustainable with strong infrastructure. Recognizing this, the Hyderabad Metropolitan Development Authority (HMDA) has aggressive plans to bolster urban development:
- Raising Rs 20,000 crore (approx. USD 2.5 billion) for infrastructure projects to transform Hyderabad into a next-gen smart city.
- A strategic masterplan unveiled in March 2025 outlines Hyderabad’s roadmap toward becoming a smart, sustainable metropolis with AI-driven urban services, green mobility corridors, and climate-resilient zones.
- CapitaLand has committed Rs 450 crore to develop a 1 million sq. ft. IT park, further expanding the commercial ecosystem.
Demographic Dividend and Ecosystem Synergy
Hyderabad’s workforce is another key enabler. The city boasts a young, tech-savvy population, supported by premier educational institutes like IIIT-Hyderabad, ISB, and BITS Pilani-Hyderabad. The city’s cosmopolitan culture, affordable living (compared to other metros), and expanding metro network make it an attractive base for tech professionals.
According to the Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS), more than 4,500 projects were approved in FY 2024-25, generating significant employment and reinforcing Hyderabad’s ease-of-doing-business narrative.
The Ripple Effects: Infrastructure, Economy, and Employment
The multi-sectoral growth in Hyderabad is catalyzing a broader economic transformation:
- Infrastructure: The influx of global investments is accelerating real estate development, expanding metro lines, modernizing airports, and boosting green urban planning. Residential demand in IT corridors like Gachibowli and Nanakramguda has surged over 30% in the past year alone.
- Employment: With over 30,000 new jobs already projected in 2025 and thousands more expected from under-construction projects, Hyderabad is emerging as one of India’s top employment-generating cities. The mix spans IT, biotech, manufacturing, AI, and quantum computing.
- GDP Contribution: Telangana’s GSDP has been growing at a rate of 10.7% CAGR over the past five years. With Hyderabad contributing nearly 70% of the state’s economic output, these developments are poised to take its GDP share even higher, making it a critical driver of India’s $5 trillion economy vision.
- Startup Valuations and FDI: Hyderabad startups have seen increased VC traction and valuation boosts. The city is also drawing higher FDI inflows across IT, life sciences, and real estate sectors, reflecting global investor confidence.
What Lies Ahead
Hyderabad isn’t just replicating the success of older tech cities, it is redefining what it means to be a digital-first, inclusive, and globally competitive tech hub. With strong leadership, a supportive regulatory framework, and a growing international footprint, the city is poised to drive India’s $5 trillion digital economy ambitions.
Hyderabad is no longer just catching up. It is leading.
