HYDERABAD: Demonstrating steady performance among emerging export hubs, Telangana secured the eighth rank among all states in export preparedness with a score of 57.14. In 2023–24, Telangana exported goods worth Rs 1.17 lakh crore to various countries.
On Wednesday, Niti Aayog released the Export Preparedness Index 2024 report. According to the report, Telangana’s export growth was led by high-value sectors such as aerospace and pharmaceutical products. Despite a challenging global trade environment in 2023–24, Telangana recorded export growth of 22.9%, reaching Rs 1.17 lakh crore from Rs 95,000 crore in 2022–23, it said.
The report further stated: “The state ranked ninth in merchandise exports, driven by its leadership in drug formulations and biologicals, which accounted for 35.2% of its merchandise exports. Telangana also performed well in services exports, accounting for 10% of India’s IT and ITeS exports, reflecting its strength in manufacturing and technology-driven sectors.
Despite being a key driver of economic growth and employment in Telangana, the MSME sector faces persistent challenges, particularly in formalisation and scaling operations. About 65.7% of MSMEs in Telangana remain informal, reflecting hurdles in transitioning to a formal structure.”
Balanced strategy
The report said that to achieve the target of increasing Telangana’s export value to Rs 5.4 lakh crore by 2030, the state must implement a balanced strategy focusing on product and market diversification, strengthening infrastructure, and capacity building. It added that Telangana is beginning to diversify through exports of pepper and capsicum, vaccines and microbial cultures, mobile phones, and semi or wholly milled rice.
Telangana could expand its presence in these sectors by investing in cold chain logistics, testing and certification facilities, and export marketing for specialty crops such as Deccan chilli and turmeric, the report suggested.
Meanwhile, Niti Aayog noted that Telangana’s industrial strength is anchored by its pharmaceutical hubs, established industrial clusters, skilled workforce, and start-up ecosystem. At the same time, the report said that despite export growth, Telangana faces structural challenges that limit its potential.
Land acquisition issues, including regulatory delays, legal complexities, and local resistance, have slowed projects such as Pharma City, affecting investor confidence, it added.