Telangana, A Favoured Destination For Start-ups

According to Ernst & Young's white paper, Telangana, India's youngest state, is a top destination for start-ups and becoming the country's central business hub.

Telangana, India’s youngest state, is becoming a major investment destination for large companies and a hotbed for start-ups. The state has created several promoters for aiding and promoting start-ups, including the creation of business incubators such as T-WORKS, T-HUB, RICH, T-Fibre and TASK.

Telangana has emerged as a preferred destination for large corporations also as the state aims to provide transparent tax policies and approve projects quickly. Major players in the e-commerce, retail and aviation industries have set up facilities or announced plans to expand their operations in the state.


The government strongly stimulates production, facilitates project approval and promotes a culture of entrepreneurship. The Telangana State government acts as a catalyst in creating a stimulating environment for innovators and start-ups.

According to the E&Y white paper on “Hyderabad-The emerging Startup Hub in India”, the state has a unique business model that can develop a robust business environment and foster an innovation-driven economy. It also highlighted that Telangana is working hard to maintain a solid entrepreneurial ecosystem built over the years and looks forward to consolidating its current position as the country’s preferred destination for start-ups. 

Telangana’s state-of-the-art resources for budding entrepreneurs

Hyderabad has a first-rate infrastructure for incubation and co-working spaces. The second phase of the famed T-Hub will cover 3,000,000 square meters, with two levels dedicated to supporting a socially innovative ecosystem for more than 200 start-ups. The state government plans to set up separate social innovation outposts in Nizamabad, Warangal, Karimnagar, Mahbubnagar, and Khammam. The outreach to these tier-II cities will ensure that urban and rural institutions can jointly benefit from the network of Telangana’s service ecosystem.

Multi-channel and wide-ranging scope for all entrepreneurs

Telangana has conceptualised InnoLabs as a place where individuals and organisations can work together to overcome the social challenges of entrepreneurship. InnoLabs will provide the infrastructure for meetings and collaborations of different outlooks from the industry. The state government is also planning to create a Telangana Social Startups Network to encourage all key stakeholders such as start-ups, incubators and accelerators to share information and jointly develop innovative solutions.

The state has set up incubators WEHub and T-Hub, and has a robust intellectual property (IP) support system to help start-ups. Its blockchain policy has made Hyderabad one of the top ten blockchain cities in the world. The state has also launched a leading investment fund called the Telangana Innovation Fund (T-Fund). In addition, it has created a T-SEED Fund worth Rs. 250 crores to finance start-ups and unique private sector initiatives. 

Small businesses and entrepreneurs can take benefit of this rising business ecosystem

Hyderabad has about 183 fintech companies, making it the fourth-largest fintech ecosystem in India after Bangalore, Mumbai and New Delhi. The city accounts for 42% of the total fintech in India and is mainly engaged in financing solutions, P2P lending, financial planning, credit scoring systems and billing solutions.

Tech entrepreneurs and business enthusiasts from all walks of life should take advantage of these state benefits to operate their company vehicles. Potential entrepreneurs, especially those in the fintech sector, can take advantage of fledgling support systems such as the Hyderabad FinTech Forum (HFF), including start-ups, incubators, corporations, regulators and investors. All start-ups and small businesses in Hyderabad enjoy government support alongside the presence of the best IT talents. This certainly bridges the financing gap conceivable in India’s current economy and gives companies a platform to succeed.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alumnus of Delhi University, he is assistant editor at Dutch Uncles.

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