HYDERABAD: The Union Budget’s proposal for City Economic Regions (CERs) is expected to give a fresh push to urbanisation and regional growth in Telangana, with Tier-2 and -3 cities such as Warangal, Karimnagar, Nizamabad and Khammam likely to benefit.
Presenting the Budget in the Lok Sabha, Union Finance Minister Nirmala Sitharaman described cities as India’s ‘engines of growth, innovation and opportunity’ and announced a framework to develop select urban clusters through targeted infrastructure investments. Each CER will receive Rs 5,000 crore over five years, allocated through a competitive challenge mode.
Urban policy experts said the move aligns with Telangana’s strategy of decentralising growth beyond Hyderabad. “With planned urbanisation, industrial corridors and improved connectivity, the CER model can accelerate economic activity in secondary cities by integrating housing, transport, logistics and employment hubs,” urban studies expert K Ramachandra Reddy told TNIE.
He said temple towns such as Yadadri and Vemulawada could also benefit through improved civic infrastructure while preserving heritage, boosting tourism-linked economies.
The finance minister said the urban push builds on a decade of infrastructure expansion.
Experts, however, cautioned that challenge-mode funding will require strong Centre–state coordination and robust city-level planning, with urban local bodies needing technical support. If executed well, analysts said, the CER framework could drive balanced growth, improve liveability and create jobs beyond Hyderabad.