Going beyond coding, Hyderabad will focus on innovation: T’gana IT Minister

Telangana aims to leverage the strengths of its booming IT sector to help India achieve its goal of becoming a $10 trillion economy, said the state’s Information Technology Minister Duddilla Sridhar Babu.

Over time, our industry and information technology expertise has grown. We deal not only with coding, but also with product development. We also have a talent for creating great products based on our base stations. So, it’s time to leverage this advantage, Babu, who also holds the post of Telangana’s Industry, Commerce and Legislative Affairs, told PTI in an interview.

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The senior minister is currently on a trip to the United States to engage with industry leaders and attract investment from the United States.

He highlighted that Hyderabad has been a major contributor to global technological progress in the past with most of the coding work for tech giants like Microsoft, Google and Amazon coming from the city, while Telangana’s top IT minister said that the state government is focusing currently on innovation and product development.

Throughout all these years, most of the software focused on coding, back in India, in Hyderabad. High quality products are manufactured in the USA and shipped to India and all other countries. It’s like sending dough to the United States and all other European markets and getting the bread back at a higher price, Babu said.

He assured that Telangana intends to leverage the strengths of its IT sector to help India achieve its goal of becoming a $10 trillion economy, with the state’s economy growing to $2-3 trillion.

A key initiative is the development of an AI city, which has been allocated 200 acres to provide the necessary infrastructure for research, development and corporate offices.

“We want to leverage the massive data generated by our population to build a robust artificial intelligence (AI) ecosystem,” he explained.

Artificial intelligence will play a major role in the times to come. So we can’t miss this bus just like we missed the solid state bus. Our late leader Indira Gandhi started a chip manufacturing company in Chandigarh in the 1970s, before China and Taiwan even thought about the semiconductor industry. For some unknown reason, the factory was burned down and the management also put it aside.

Since that era, semiconductor and chip manufacturing has taken place in Chandigarh. If we can imagine the strength of the economy today, it would be many times greater – 20 times greater than today. So we cannot miss this AI opportunity now, Babu said.

During his visit to the US, Babu focused on reconnecting with established companies in the industry, especially those with significant operations in Hyderabad.

“The purpose of my visit is to reconnect with people, especially leaders in the IT and pharma industries, as well as with people from other key sectors,” he said, adding that the aim is to broadly and significantly renew their cooperation with Telangana, strengthening the state’s involvement in economic progress.

Already known for its strategic location, skilled workforce and effective management, Hyderabad remains a key economic hub. However, the minister emphasized that the state’s industrial development strategy goes beyond the capital.

“Our industrial development strategy is not just focused on Hyderabad but across the state,” he noted.

The government aims to replicate the success of Hyderabad in all districts, including tier two and three cities. By fostering a conducive ecosystem for investors at the district and village levels, the Telangana government is striving to ensure sustainable growth.

“We will create the necessary infrastructure to enable businesses to thrive across the state,” he assured.

Babu said that an important element of Telangana’s development strategy involves the use of new technologies, especially artificial intelligence.

During its trip to Atlanta, Coca-Cola agreed to invest in a new plant in Peddapalli district at an estimated cost of Rs 700 crore. Discussions are also underway with life sciences and IT companies to set up Global Capability Centers (GCCs) in Telangana.

“In the field of defense and aerospace, many companies are interested in Hyderabad because of the ecosystem we have created,” he added. The goal is to expand their presence and attract more investment. In Washington, he met with representatives of companies such as Boeing and Raytheon.

Replying to a question on competition between Bangalore and Hyderabad, the minister said the Telangana capital has many advantages over its counterpart in Karnataka. This includes a strategic location, ease of doing business and high quality of life.

While Bangalore struggles with issues such as mobility, water scarcity and high cost of living, Hyderabad offers affordable living, reliable infrastructure and ample room for expansion. Babu further said that the government is focusing on developing tier-2 and tier-3 cities to ensure sustainable growth across the state.

The Telangana government is also actively engaging with the Telugu diaspora in the US, seeking their contribution in the form of intellectual property, expertise and financial support.

He emphasized the creation of a platform where members of the diaspora can give back to their regions by ensuring proper control and accountability. “Their involvement will complement the state’s efforts in education, health care and infrastructure development,” he said.

Asked about the election results thrown out by the coalition government backed by the Telugu Desam Party, the ruling party of Andhra Pradesh, Babu expressed hope for cooperation and support from the central government under the leadership of Prime Minister Narendra Modi.

He believes that with the Centre’s support, Telangana can make a significant contribution to the Indian economy, especially in the field of IT and new technologies. “Telangana has enormous talent and potential. We are looking for cooperation and financing for initiatives such as the semiconductor mission,” he said.

The state’s expertise and ecosystem in semiconductor design position it well for future growth in the sector, he said.

Babu said viewing Telangana as India’s leading economic powerhouse, focusing on new technologies, infrastructure expansion and engaging global and local stakeholders, the state aims to drive significant growth in the IT and industrial sectors.

“Telangana is poised for significant growth. We want to create an environment conducive to investments and innovations,” he concluded.