Telangana Propels Towards Global AI-MedTech Powerhouse, Targets 100 GCCs

Telangana has firmly set its sights on becoming a global powerhouse for Global Capability Centers (GCCs), with an ambitious target of hosting 100 such centers by the 2025–26 fiscal year. This strategic push is underscored by a significant focus on the MedTech, digital health, and AI-driven life sciences sectors. The state's capital, Hyderabad, has already demonstrated remarkable momentum, witnessing the inauguration of 70 GCCs in the 2024-25 period alone, a figure that surpasses any other state in India.[1][2] This aggressive strategy is not merely about attracting investment but about fundamentally transforming Telangana into a hub of innovation and high-value employment, particularly in technology-driven industries. The government's clear, strategic action plan is designed to build upon its existing strengths and create an unparalleled ecosystem for global enterprises.[1]

The state's IT and Industries Minister, Sridhar Babu Duddilla, has articulated a vision that emphasizes self-improvement over competition with other regions.[1] This approach is backed by a robust and rapidly growing IT sector. In the 2022-23 fiscal year, Telangana's IT exports surged to Rs 2,41,275 crore, a staggering 31.44% increase that significantly outpaced the national average growth rate of 9.36%.[3] This economic expansion has been accompanied by a substantial rise in employment, with the IT sector's workforce growing to 9,05,715 in the same period.[3] The consistent growth has continued, with IT exports for the 2023-24 fiscal year reaching approximately Rs 2.68 trillion, an 11% increase.[4][5] This strong performance serves as a powerful testament to Telangana's emergence as a premier destination for technology and innovation.

A cornerstone of Telangana's ambitious GCC strategy is its pronounced focus on the life sciences and MedTech sectors. The state is already recognized as the "Life Sciences Capital of India" and the "Pharma Capital of the Country," contributing to about one-third of the nation's pharmaceutical production.[6][7] The existing life sciences ecosystem in Telangana is valued at $50 billion, a figure the state aims to double to $100 billion by 2028.[6] This established leadership is being leveraged to attract GCCs specializing in medical technology. The state government is proactively developing world-class infrastructure to support this vision, including the Hyderabad Pharma City, envisioned as the world's largest of its kind, and the Medical Devices Park at Sultanpur.[6][8] The Medical Devices Park, spread over 300 acres, is designed to be more than just a manufacturing site; it is an ecosystem that fosters innovation, research and development, and entrepreneurship.[9][8] This park has already attracted significant investment and is home to dozens of companies.[9][10]

The state's commitment to the life sciences is further solidified by forthcoming policies aimed at fostering growth and innovation.[11][12] A new Life Sciences Policy is expected to be unveiled, which will focus on emerging domains like cell and gene therapy, genomics, and precision medicine.[11] This policy is being designed to create a supportive environment for research and investment in these cutting-edge fields. Furthermore, the government is planning to introduce a dedicated policy for GCCs to streamline processes and attract more global firms.[13] This dual focus on both the broader life sciences industry and the specific needs of GCCs demonstrates a comprehensive and well-thought-out strategy. The recent inauguration of a Global Capability Center by US pharmaceutical giant Eli Lilly in Hyderabad is a significant endorsement of the state's efforts, with the company planning to expand its workforce to 1,500.[2][14][15]

The implications of Telangana's GCC push, particularly its emphasis on MedTech and AI, are profound for the technology industry. The establishment of these centers creates a high demand for skilled professionals in areas such as artificial intelligence, data analytics, blockchain, and cloud computing.[16][15] The presence of major global players like Eli Lilly, which will focus on AI and automation at its Hyderabad center, helps to create a virtuous cycle of talent development and innovation.[17][7] The government's strategic initiatives, such as the establishment of an AI City across 200 acres and the hosting of the AI Global Summit, are designed to position Telangana as a global leader in artificial intelligence.[16] This focus on emerging technologies not only supports the MedTech sector but also has a ripple effect across the entire IT ecosystem, fostering a culture of research and development and creating opportunities for startups and established companies alike. The formation of a Life Sciences & Healthcare GCC Consortium, with 40 global healthcare firms, further exemplifies the collaborative and innovation-driven environment that Telangana is cultivating.[18]

In conclusion, Telangana's target of attracting 100 GCCs by 2025–26 is a bold but achievable goal, underpinned by a strategic focus on the MedTech sector and a robust, rapidly growing IT industry. The state's proactive governance, coupled with its investment in world-class infrastructure and a forward-looking policy framework, has already made Hyderabad a magnet for global enterprises.[19] The emphasis on AI and other emerging technologies is not only fueling the growth of the MedTech sector but is also positioning Telangana at the forefront of the global innovation landscape. By creating a synergistic ecosystem where industry, academia, and government collaborate, Telangana is not just chasing numbers but is building a sustainable and high-value economic future. The success of this strategy will have far-reaching implications, solidifying the state's reputation as a global hub for technology, innovation, and life sciences.