Telangana raises FDI from US to the tune of Rs 31,500 Cr

Chief Minister A. Revanth Reddy recently concluded a highly successful business tour to the United States, securing investment deals worth Rs 31,500 crore. This substantial financial commitment is expected to generate over 30,750 new jobs in the state, marking a significant stride in its economic development.

The Chief Minister’s visit, which concluded on Sunday, August 11, was hailed by the state government as a highly successful business tour. The delegation, which included IT and Industries Minister D. Sridhar Babu, held over 50 business meetings and three roundtable conferences in major American cities including New York, Washington, Dallas, and California.

The delegation’s agenda was not limited to securing financial commitments. They also sought to position Telangana as an attractive investment destination for American businesses. The team pitched the state as the Future State and its capital, Hyderabad, as Hyderabad 4.0. This strategic positioning was aimed at showcasing the state’s potential for accelerated partnerships and innovation in sectors like Artificial Intelligence (AI) and Future City projects.

The delegation’s efforts were met with significant support, particularly for the Chief Minister’s initiatives such as the creation of a Future City and an AI City, the rejuvenation of the Musi River, and the zealous pitch to shape Telangana as the right fit for the quest of America, Inc. for a China plus one alternate.

The investment deals spanned across various sectors, including IT, Global Capability Centers (GCC), Lifesciences, Pharma, Data Centres, AI, Cloud and Data Centres, Electric Vehicle and batteries, green energy, Fast-Moving Consumer Goods (FMCG), and manufacturing. Notable announcements included the establishment of a GCC by Charles Schwab, one of America’s leading financial sector corporations, and a significant expansion by global IT major Cognizant and Arcesium, reinforcing Hyderabad’s edge in the IT/GCC space.

The pharma/life sciences sector also saw fresh investments from nearly a dozen American companies. The Memorandum of Understanding (MoU) with Corning on skilling and flow chemistry reiterates the company’s commitment to grow in Telangana and also reinforces the city’s R&D capabilities. The announcement by Amgen, a top biotech company, to set up a new R&D tech facility is a major breakthrough for Hyderabad. A new GCC by Zoetis Inc, the leader in the animal health sector, and significant expansions by HCA and Thermofisher are set to give a further boost to the life sciences ecosystem of Telangana.

In the realm of data centres, Amazon announced significant expansions in their data centre presence in Hyderabad, intending to use the city as a hub to drive their India presence. Aurum Equity also announced plans to set up an AI-powered green data centre, adding to the state’s growing reputation as a hub for high-end manufacturing.

The delegation’s engagements extended to tech giants like Apple and Google, and academic institutions like Stanford University. These interactions are expected to further strengthen Telangana’s position as a leading investment destination in several sectors.

This successful tour is reminiscent of similar initiatives by Indian states in the past. For instance, in 2015, the then Chief Minister of Andhra Pradesh, N. Chandrababu Naidu, embarked on a similar tour to the US, securing investment commitments worth $1.3 billion. These historical precedents underscore the potential of such diplomatic initiatives in fostering economic development.

The Chief Minister’s US visit marks a significant milestone in Telangana’s journey towards becoming a global investment destination. The secured investments and the potential job creation are expected to spur economic growth and development in the state. As the delegation moves on to South Korea, hopes are high for similar success in securing further investments. The tour has not only opened up new avenues for economic growth but also positioned Telangana as a promising destination for global investors.