Telangana Drives Hyderabad to Become India's First Quantum-AI City

Leveraging deep-tech investments, AI synergy, and global collaborations, Hyderabad plans to lead India's quantum revolution and economic growth.

December 5, 2025

Telangana Drives Hyderabad to Become India's First Quantum-AI City
In a landmark move solidifying its ambition in the deep-tech sector, the Telangana government has unveiled a comprehensive strategy to establish Hyderabad as a globally recognized 'Quantum City'.[1] This initiative, the first of its kind for any Indian state, aims to create a robust ecosystem for quantum technologies, positioning the state as a national and international hub.[1][2] The strategy underscores a long-term vision to emerge as a world leader not just in quantum, but also in symbiotic fields like artificial intelligence and advanced digital systems.[3][1] Officials believe that quantum technology holds the potential to be as transformative in the current century as electricity and the internet were in previous eras, fundamentally reshaping economies, national security, and scientific discovery.[1][3] The plan aligns with the state's broader "Telangana Rising 2047" vision, which targets growing into a $3 trillion economy.[3][4]
At the core of this ambitious agenda is the establishment of a dedicated Centre of Excellence (CoE) in Quantum Technologies.[3] This center is envisioned to serve as a national benchmark for cutting-edge research, testing, innovation, and the development of high-end skills crucial for the burgeoning field.[2][1] The CoE will be instrumental in fostering deep industry-academia collaborations, a key component of the state's strategy.[5] To this end, the government is actively partnering with premier local research and academic institutions, including the International Institute of Information Technology, Hyderabad (IIIT-H), IIT-Hyderabad, and the C.R. Rao Advanced Institute of Mathematics, Statistics and Computer Science.[5] Further bolstering this collaborative approach is a partnership with the Quantum Ecosystems Technology Council of India (QETCI).[5] In a significant step towards global collaboration, the government has also signed a letter of intent with QuantumBasel, Switzerland's leading quantum and AI innovation hub, to establish India's first Quantum Hub in Hyderabad, which will focus on mentorship for research and startups.[6][7]
Recognizing that innovation thrives on entrepreneurial energy, the Telangana government is launching a multi-pronged effort to support the startup ecosystem. A cornerstone of this financial scaffolding is a 'Fund of Funds' designed to back deep-tech startups and emerging technology enterprises, set to launch in the next financial year.[3][8] This fund is expected to accelerate the lab-to-market transition for quantum innovations and spur wider industrial adoption.[2][3] In addition to this, the state is also establishing a substantial Young India Startup Fund of Rs 1,000 crore, which will have a special focus on quantum and AI startups.[9][4] To ensure a direct and responsive line of communication with the industry, the government is institutionalizing an 'Industry Day' program.[8][10] This initiative will involve weekly interactions between senior government officials and industry representatives, supplemented by monthly consultations with ministers, to proactively resolve operational hurdles and co-create sector-specific growth strategies.[10][11]
The strategic push into quantum computing is deeply intertwined with Hyderabad's established strength in Artificial Intelligence. The convergence of these two frontier technologies presents transformative opportunities, particularly in the realm of quantum machine learning (QML), which can significantly enhance AI algorithms.[12] Quantum computing has the potential to supercharge AI systems, enabling them to process and analyze vast datasets far more efficiently, which is critical in sectors like life sciences, finance, and logistics.[12][7] This synergy is a stated focus of the Telangana Quantum Strategy (TQS), which aims to leverage quantum for breakthroughs in life sciences innovation and the development of next-generation cybersecurity and cryptographic systems.[2][8] By building a world-class infrastructure and a skilled workforce in quantum, the state aims to create a powerful feedback loop where advancements in quantum fuel new possibilities in AI, and vice-versa, solidifying Hyderabad's status as a hub for futuristic technologies.[7][2]
Ultimately, Telangana's quantum strategy is a forward-looking roadmap designed not just for the state but as a directional guide for India's broader engagement with the technology.[1][8] The initiative is aligned with the National Quantum Mission, which aims to position India as a global leader rather than a consumer of technologies developed elsewhere.[5][13] The plan focuses on achieving integrated goals across research, skills development, infrastructure, and cybersecurity.[3] By cultivating a powerful ecosystem where academia, startups, industry, and government work in partnership, Telangana is making a calculated bid to lead India's quantum leap.[4] This concerted effort is expected to attract global investment, accelerate innovation, and play a pivotal role in driving economic growth, ensuring that Hyderabad becomes a key player in the global quantum landscape.[5][6]

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