Economy of Hyderabad

The economy of Hyderabad, the capital of Telangana, India, is based on traditional manufacturing, the knowledge sector and tourism.[1] Starting in the 1990s, the economic pattern of the city changed from a primary service hub to a more diversified economy,[2] but the service industry still remains a major contributor.[3] As of 2006, the largest employers of Hyderabad are the governments of Andhra Pradesh and India, with 113,000 and 85,000 employees, respectively.[4][5]

Since its inception in 1591, Hyderabad has been a global trade center in multiple areas, including its status as the world's only diamond market. City-based handicrafts were sold in the Middle East and Western countries. During the rule of the Nizam's in the 1930s, industrial growth started with the establishment of a diversified industrial zone, which grew in parallel with traditional manufacturing.

In the 1930s and 1940s, city-based industries started importing technology from the western world for industrial manufacturing. With the introduction of the railways, the city became well connected with the port cities of Bombay (now Mumbai), Madras (now Chennai), Calcutta (now Kolkata), and Karachi (now in Pakistan).[6][7] During the 1950s and 1960s, most of the Indian premier public enterprises—BHEL, NMDC, HMT, BEL, IDPL, ECIL, DRDO, and HAL—were established in Hyderabad, changing the economical pattern of the city from a traditional manufacturing to a cosmopolitan industrial service sector.[8]

Hyderabad, being the capital of Telangana, is the largest contributor to the state's GDP (Gross domestic product) and state tax.[9] In 2011, Hyderabad generated revenues of ₹700,000 million (US$8.4 billion) and contributed a third of the state's tax revenue.[10] In 2011, the GDP (PPP) was US$74 Billion, placing the city sixth in India and 93rd in the world.[11][3] Hyderabad and its suburbs house the highest number of special economic zones among India's cities.[12]

In the 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.[8][13][14] Since the 1990s, the economic patterns of the city have changed it from a primary service hub to a more diversified spectrum,[2] with the growth of IT enterprises, biotech, insurance, and financial institutions, and a strong employment base in ancillary activities such as trade and commerce, transport, storage, communication, real-estate and retail, which employ three times more people than the IT industries.[7] As of 2022, Hyderabad has 7,78,121 employees in the IT/ITES sector, working in more than 1500 companies.[15][16][17][18] The service industry in this arena remains dominant, with 90% of the workforce.[14][19] As of 2005, out of every 1000 people of working age, 770 males and 190 females are employed.[20]

  1. ^ "Travel, tourism fair begins". The Hindu. Chennai, India. 9 July 2011. Retrieved 19 June 2017.
  2. ^ a b Rao, Nirmala (2007). Cities in transition. Routledge. pp. 117–140. ISBN 978-0-203-39115-0.
  3. ^ a b "GDP: The top 10 cities in India". Rediff.com. 23 April 2010. Retrieved 21 October 2011.
  4. ^ "Employee census 2006". Directorate of Economics and Statistics, Andhra Pradesh Government. 2006. Archived from the original on 26 December 2010. Retrieved 17 May 2010.
  5. ^ "Census of central government employees" (PDF). Ministry of Labour, Government of India. 2003. Archived from the original (PDF) on 21 August 2010. Retrieved 17 May 2010.
  6. ^ "Other Albion CX19". Albion CX19 Restoration Project. Retrieved 18 June 2012.
  7. ^ a b Economy, population and urban sprawl (PDF). Urban Population, Development and Environment Dynamics in Developing Countries. 13 June 2007. pp. 7–19. Retrieved 18 June 2012.
  8. ^ a b "Brand Hyderabad loss of gloss?". The Times of India. 14 November 2011. Archived from the original on 7 May 2013. Retrieved 18 June 2012.
  9. ^ "India's 25 most competitive cities". Rediff.com. 10 December 2010. Retrieved 10 December 2010.
  10. ^ "Civic infra bodies get a raw deal in Budget". The Times of India. 20 February 2012. Archived from the original on 7 May 2013. Retrieved 18 April 2012.
  11. ^ "Country briefing: India–economy (III-local economy)". Massachusetts Institute of Technology. 1 September 2010. Retrieved 16 May 2012.
  12. ^ "Heat on Hyderabad". The Times of India. 12 July 2011. Archived from the original on 17 July 2011. Retrieved 19 April 2012.
  13. ^ "Hyderabad airport set to become air passenger hub, pips Nagpur". The Indian Express. 4 February 2012.
  14. ^ a b Gopal K, Bhargava; S.C, Bhatt (2006). Land and people of Indian states and union territories. Kalpaz Publication. pp. 330–399. ISBN 81-7835-358-X.
  15. ^ "Lay-offs loom over IT/ ITES sector in Hyderabad, Telangana govt".
  16. ^ "IT staff strength in Telangana to double to 10 lakh in 3–4 years". 15 July 2019.
  17. ^ "Hyderabad overtakes Bengaluru in IT office space occupation". The Hindu. 21 September 2019.
  18. ^ "Hyderabad IT companies told to gradually ramp up operations". 10 May 2020.
  19. ^ "Country briefing:India–economy". Massachusetts Institute of Technology. 1 September 2010. Retrieved 18 June 2012.
  20. ^ "Employment-unemployment situation in million plus cities of India" (PDF). Delhi Government. 2005: 15. Archived from the original (PDF) on 12 August 2011. Retrieved 18 June 2012. {{cite journal}}: Cite journal requires |journal= (help)