Hyderabad economic trends

an over view of economic factors influencing Hyderabad.

1. Economy of Hyderabad
Growth trends

2. ECONOMY OF HYDERABAD -INTRODUCTION
:
•Hyderabad is the capital of Telangana
southern Indian state of Telangana
and earlier capital of Andhra Pradesh.
•Occupying 650 square kilometers
(250 sq. mi) along the banks of the Musi
River, it has a population of about 6.7
million and a metropolitan population of
about 7.75 million, making it the fourth
most populous city and sixth most
populous urban agglomeration in India,
and the city is the largest contributor to
the state's GDP (Gross domestic
product) and state tax.
•The economy of Hyderabad is based on
traditional manufacturing, the
knowledgesector, and tourism.

3. •Since its inception in 1591, Hyderabad has been a global trad e center in
multiple areas, including its status as the world's only dia mond market. City-
based handicrafts were sold in the Middle East and Western co untries.
•The city started growing and new CBD “Charminar” area was dev eloped to
reduce congestion and improve economic situations.
•During Nizams rule in the 1930s, industrial growth started with the
establishment of a diversified industrial zone, which grew in parallel with
traditional manufacturing.
HISTORIC EVOLUTION - CHANGE IN ECONOMIC PATTERN:

4. •During the 1950s and 1960s, most of the Indian premier
public enterprises BHEL, NMDC, HMT, BEL, IDPL, ECIL,
DRDO and HAL, were established in the city by the state,
changing the economical pattern of the city from a
traditional manufacturing to a cosmopolitan industrial
service sector.
Map showing various Industrial estates of
Hyderabad within GHMC limits.Source : NRMSH report
MAJOR SHIFT IN IN ECONOMIC PATTERN
:
•In 1970s, the pharmaceutical and electronic industries
were established in the city because of its strategic
location in south-central India, for which it is known
as the gateway to south-central India.
•In this time period most of the industrial development
around Hyderabad happened because of public
investment and the role of expatriate businessmen. This
had no 'local' roots and was not the product of any
agrarian transformation around Hyderabad.
•But, there were so many people who have migrated from
places like Rajhasthan, Calcutta , Bombay,etc due to the
cheaper infrastructure available in the city.
POST INDEPENDENCE
:

5. •The 1990s, the economic patterns of the city have changed it f rom a primarily
service hub to a more diversified spectrum, with the growth o f IT enterprises,
and biotech, insurance, and financial institutions, and a s trong employment
base in ancillary activities such as trade and commerce, tra nsport, storage,
communication, real-estate and retail, which employ three times more people
than the IT industries.
•The service industry in this arena remains a dominant, with 9 0% of the
workforce. As of 2005, out of every 1000 people of working age , 770 males
and 190 females were employed.
•In 2011, Hyderabad generated revenues of ₹700,000 million ( US$11 billion)
and contributed a third of the state's tax revenue.
•Hyderabad is the largest contributor to the gross domestic p roduct (GDP), tax
and other revenues, of Telangana, and the sixth largest depo sit centre and
fourth largest credit centre nationwide, as ranked by the Re serve Bank of
India (RBI) in June 2012.
•The per capita income of Hyderabad was ₹294,000 (US$4,600) i n 2014-15.
MAJOR SHIFT IN IN ECONOMIC PATTERN:

6. Bangle sellers at Charminar area.
Abids junction-shopping arena
Map showing the radial growth pattern of the city a long with various CBD’s in
the MCH area.
•As the industrial estates grew, the settlement pattern of
the city have also changed and the CBD’s of the city also
have become from one to many. The retail industry of
Hyderabad is at its peak since 2007. There are several
business regions spread across the city. Hyderabad’s
commercial market structure is divided into 4 sectors
which include:
1. The Central Business Districts (CBD)
2. The Sub-Central Business Centers
3. The Neighborhood Business Centers
4. Local Business Centers
Koti junction- sultan bazar area

7. HYDERABAD
ECONOMY
RETAIL AND
REALESTATE
TOURISM
BIO-
PHARMACEUTICAL
INDUSTRIES
INFORMATION
TECHNOLOGY
THE CITY’S ECONOMYMAJORYDEPENDS ON:
•BIO-PHARMACEUTICALINDUSTRIES
•INFORMATION TECHNOLOGY
•RETAIL AND REAL ESTATE
•TOURISM
•Recent estimates of the economy of
Hyderabad's metropolitan area have
ranged from $40 billion to $74 billion
(PPP GDP), and have ranked it
either fifth- or sixth- most productive
metro area of India.

8. BIO-PHARMACEUTICAL INDUSTRIES: •The city has already emerged as a pharmaceutical
hub of India. Its bio-pharmaceuticals exports
reached US$3.1 billion in 2008–2009. Due to
abundance of pharma companies, it is also known
as “Genome Valley of India” and India’s
pharmaceutical capital. It supports its economy and
ultimately backs India. Medindia data reveals that
more than 360 major and small pharmaceutical
companies reside in Hyderabad and nearby the city.
Foundation of Pharma Industry
In 1961, the incorporation of Indian Drugs and Pharmaceutic als
Limited (IDPL) took this city’s growth to another level. Lat er in
1990, the expansion in the industry took place with the forma tion
of:
1.National Institute of Pharmaceutical Education and Rese arch
2.Indian Institute of Chemical Technology
3.National Institute of Nutrition
4.The Centre for Cellular and Molecular Biology
Moreover, other regional institutions helped its pharmace utical
and biotechnology industry grow in a better way.

9. •Genome Valley, Nano Technology park, Fab City and Public sec tor
biotechnology establishments added more reasons for the
growth of pharmaceutical industry here. Cooperative exist ence
gave this industry better infrastructure. These factors at tracted
many multinational companies to set up research & developme nt
centers, warehousesand manufacturingunits.
•As per industrial growth policy, the Telangana government h as
declared pharma and IT as the top two priority sectors. To exp and
these industries in better ways, the government has planned to
provide hassle-free environment. It will attract fresh inv estments
from outside. Hyderabad government has already identified the
basic requirements of pharma companies to get benefitted fo r
better expansionand strengthen India’seconomy.
•India’s pharmaceuticals industry accounts for about 10% of the
global pharma industryby volume.
•By 2020, the country is expected to rank amongst the top three
pharmaceutical market
•India, with 20% of global exports, is the largest provider of
generic medicines worldwide.
BIO-PHARMACEUTICAL INDUSTRIES:

10. •Hyderabad is the Pharma capital of India with
about 40% of the world’stotal production.
•With world’s second largest DNA therapeutic
production facility Hyderabad has highest
concentration of biotech companies producing
recombinanttherapeutics.
•Hyderabad is India’s hub for vaccine
production. 33% of global vaccine production
comes from Hyderabad.
•The Genome Valley in Hyderabad is India's
largest biotech cluster housing over 200 life
sciences companies.
•Hyderabad is called the Bulk drug Capital of
India, with nearly one third of India’s total bulk
drug production.
•Hyderabad is also called the Seed Capital of
India.
BIO-PHARMACEUTICAL INDUSTRIES:

11. INFORMATION TECHNOLOGY(IT):
•Hyderabad’s emerging future as one of India’s central Infor mation
Technologyand IT enabledservice hubs.
•To date, many software, business process outsourcing (BPO) , as
well as call center firms have taken up office in Hyderabad. T he city
has become home to American IT giants such as IBM, Dell, Oracl e,
and General Electric. Hyderabad has also become the foremos t
destinationfor Microsoft DevelopmentCenter in India.
•The development ofHITEC City,a township prepped with state of
the art technologies and facilities, also helped prompt sev eral IT
and ITES companies to set up operationsin the city
•More than that, these companies have come to Hyderabad for
two simple reasons: one, India has a huge intellectual talen t and
these are being utlized by these companies in order to mainta in
their global competitiveness.
•The second reason is more long term: the local market. India
also provides cheap labour costs, a relaxed working
environment, and favorable labour standards. All these com bine
to fuel Hyderabad’s place as India’s premiere IT city. In fac t, such
developments have prompted civic boosters to call Hyderaba d
asCyberabad.

12. INFORMATION TECHNOLOGY(IT):
•The Services Sector continues to be the
leading broad sector in economy over the
years. The sector recorded strong annual
average growth rate of more than 9 % in
last decade.
•The increase in ‘Trade, Hotels and
Restaurants’ with 13.1%
•The districts such as Hyderabad and Ranga
Reddy contribute around 26.2% and 17.5%
to total services GSDP respectively during
2013-14.
•Though the share of each sub-sector
reflects their direct contributions to GSDP,
some of them have huge indirect
contributions and multiplier effects. For
instance, “transport and communications”
add to infrastructure, which is crucially
important for any economy.

13. •Between 1995 and 2004, regional political elites in Andhra
Pradesh(then) sought to transform greater Hyderabad into a
dynamic economic region oriented toward global growth sect ors.
•During 2008–09, Hyderabad's IT exports reached US$ 4.7 bill ion,
and 22% of the NASSCOM's total membership is from Hyderabad.
•The IT industry in the State has grown by leaps and bounds in
recent years. There are 1,300 IT units employing as many as 3. 7
lakh professionals in the Hyderabad, with an annual export
turnover of Rs 68,258 crore in 2014-15.
•Hyderabad accounts for nearly 11 % of national IT exports. Th e
sector registered an annual growth rate of 16 % in 2014-15 . Th is is
3 % higher than national average growth.
•HITEC City has residential areas where the IT professionals can live,
as well as convention centers and malls.
•Hyderabad’s restructuring has been done emulating visioni ng
exercises. Urban restructuring have led to development of w orld-
class high-tech and smart enclaves attracting elite housin g.
•With increasing population and limited infrastructure, ur ban
challenges of Hyderabad increased manifold in recent time.
•The changing political economy of the state and resultant ur ban
restructuring and followed by an exploration of emerging ur ban
challenges and socio-spatial complexities of the expandin g metro.
INFORMATION TECHNOLOGY(IT):
Map showing the emergence and densely spread
new residential areas in the Hitech city region.

14. •Currently, Hyderabad is one of the most affordable resident ial
property markets among all of the country's top 7 cities. Real estate
and construction sector together contributes 13% of Telang ana's
GSDPon an average in the recent years.
•In a positive development for Hyderabad real estate, which h as been
facing sluggishness for the past several years(since 2009) , the
residential launches in the city have increased by 30% year- on-year
since the past three years mainly driven by improving infras tructure
in the city. Real Estate, Ownership of dwellings & Business s ervices is
the leading subsector with share of 15.6 % GSDPin the year2014-15.
REALESTATE:
•capital values of 4.82 %, of residential properties
increased by 8-10% y-o-y in the last three years
with revived demand and Hyderabad saw a 6-
10% increase in residentialsales.
•Policy support along with infrastructural
developments like the Hyderabad Metro Rail,
strategic road development and elevated
corridors etc., increased the residential launches
by 30% y-o-y since 2014.

15. •Despite demonetization, the Goods and
Services tax (GST) and Real Estate Regulation
Act (RERA) acted as a brake on the sale of
residential units across the country, Hyderabad
saw an increase in launches.
•Office space absorption set new records and
was at 6.5 million sq ft in 2016. In the major IT
hub the vacancy rate was significantly reduced
to 5-7% and office rents increased by 23%.
•The average office space take up is 40,000-
50,000 sft. whilethe total office space
absorption in 2017, number doubled in the
past 4-5 years.
•Developers attribute it to the growing
confidence in the Hyderabad market and lower
costs as compared to other markets which is
making it attractive.
REALESTATE:

16. Impact on Real Estate market: •InHyderabad, there are many major
residential
projects were coming up along the Outer Ring
Road
(ORR)as well as along the Inner Ring Road (IRR).
•
Similarly, there was immense potential for the
development of such projects along the Regional Ring
Road (RRR) as well. The RRR spans 229 km of roads,
linking many towns around Hyderabad, where the growth
potential is unlimited and needs to be tapped.
• To attract residential projects in these towns, it is
essential that the infrastructure across these towns is
initially development, than waiting for it to happen the
other way round.
• sales of residential property have remained absolutely
steady in the first half of 2017 while prices continue
growing steadily and should increase in the near future
as well.
• A majority of the launches are centered around western
Hyderabad and that too in high priced categories.
Western Hyderabad accounts for around 80% of total
launches in the first half of 2017 and a whopping 69% of
total home sales in this period also took place in this
stretch.

17. Tourism:
•Tourism is an industry with lot of opportunities and
contributes significantly to the socio-economic growth of t he
State. The state offers a number of opportunities for the
tourism industry.
•In March 2012, The Indian Union Tourism Ministry declared
Hyderabad as the first ever "Best Heritage City of India"
•Hyderabad was ranked second among the “Best of the World
- 20 Places You Should see in 2015” list, published in the
annual guideof National GeographicTraveler magazine.
•As of 2011, the city (then AP’s capital) was India's top
domestic tourist destination, received up to 157 million vi sits,
and reached 1.5 million international tourists, which
generatedUS$23 millionin revenue.
•The city houses famous historical sites
including Charminar, UNESCO Asia Pacific Heritage site of
the Chowmahalla Palace, Salar Jung Museum (among the
world's largest private collection museums) as well as art
galleries, libraries, sports complexes, museums and theat res.
The events of Bathukkamma and Bonalu are
promoted as tourist attractions by Telangana
tourism.

18. •Hyderabad offers a variety of tourist places like h eritage
monuments, lakes, parks, museums and many more whic h
allures numerous travelers from across the world.
•The Charminar is the identity of Hyderabad which wa s built by
the founder of Hyderabad i.e. Mohammed Quli Qutb Sh ah in
1591 at the heart of the Hyderabad city. Mecca Masj id,
situated at a distance of a two hundred yards south -west of the
Charminar and it was so named because its bricks we re
brought from Mecca. It was started by Qutb Shahis bu t was
completed by Aurangzeb in 1694.
•Golconda fort is an extraordinary fort which derive d its name
from the Telugu terms “Golla Konda” meaning “Shepher d’s
Hill”. Taramati Baradari, located at Ibrahimbagh, on the Osman
Sagar (Gandipet) road is a heritage monument constru cted by
the Seventh Sultan of Golconda.
•Some other well known centres of attraction of the d istrict are
Birla Mandir, Salar Jung Museum, AP State Archaeologi cal
Museum, Nehru Zoological Park, Hussainsagar Lake, Ni zam’s
Silver Jubilee Museum, Chow Mohalla Palace, etc.
Images showing one of the major
tourist attractions- Hyderabadi pearls
and lack bangles.
Tourism:

19. Birla mandir
Nehru Zoological park Mecca Masjid
Charminar
Salarjung museum
Golconda fort
Qutub shahi tombs
Hitech City
Buddha in tankbund
Tourism:

20. •The Telangana State has been ranked number one in t he latest English news fortnightly India Today’s Be st Economy State rankings and
this speaks about the buoyant economy of the state. There has been a distinct upward shift in the grow th path of the economy of
Telangana since its formation in June 2014.
•The average annual growth of State Domestic Product (GSDP) increased from 4.2% in the two years preced ing the formation of the
state (2012-14) to an impressive growth of 9.5% dur ing the three years following the formation of the State (2014-17), which is much
higher than the national average of 7.4%.
•It is matter of great pride that Telangana achieved double-digit growth of 10.1 % in 2016-17. The high er growth in Telangana was the
result of an improvement in the growth of manufactu ring and the pickup in the services sector.
•There has also been an impressive growth in the per capita income of Telangana. In the three years sin ce its formation (2014-17), the
average annual growth of the per capita income of T elangana has been 11.5% which is higher than the na tional average annual growth
of 9.3 % in the same period. The per capita income of State increased from Rs 1,12,162 in 2013-14 to Rs 1,55,162 in 2016-17.
•Thus, it is higher by Rs 52,393 as compared with the All-India per capita income of Rs 1,03,219. Telanga na is among the top ten States
in India in terms of per capita income. This apart, Telangana State stood first among all the States b y clocking a growth of 21.10% in its
own tax revenue in 2016-17 over 2015-16. As per the pre-actuals for 2016-17, own tax revenue in Telang ana amounted to Rs 48,408
crore that year as compared with Rs 39,975 crore in the previous year.
•Similarly, the state own tax revenue growth rate in 7 months this year compared to the same period las t year is (from Rs 27,082 crore
to Rs 31,285 crore) 17.5%. The overall state’s own r evenue growth rate as of now stands at (from Rs. 28 ,587 crores to Rs. 34,473
crores) 20.58%.
Telanganastate economy:

21. Conclusion:
•Hyderabad contributes to more than 45% of GSDP of T elangana State, which is the major
contributor to the over all development of the stat e.
•In course of becoming a globally developed city, Hy derabad undergoing rapid changes
socially also.
•The growth in industries lead to the densities of t he settlement patterns, which are
inadequate in terms of infrastructure.
•The residential growth patterns along the newer par ts of the city are under rapid growth
when compared to the older parts of the city.
•There is a clear cultural, social and also infrastr uctural difference between the newer part
and the older parts of the city.

22. Web
:
http://www.thecareermuse.co.in/hyderabads-pharma-in dustry-lead/ https://en.wikipedia.org/wiki/Economy_of_Hyderabad https://www.districtsofindia.com/telangana/hyderaba d/economy/index.aspx https://www.datanetindia- ebooks.com/pdf_Samples/district_factbook/Telangana/ Hyderabad.pdf http://www.thehindu.com/news/cities/Hyderabad/hyder abad http://www.telanganatourism.gov.in http://www.thecareermuse.co.in/hyderabads-pharma-in dustry-lead https://www.britannica.com/place/Hyderabad-India Reports:
critical-analysis-of-the-planning-scenario-in-hyder abad-city(Report)
NRMHS-Report
Rangarajan_CapstoneReport_August2014.pdf
Exceptional-growth-of-Telangana-economy References