Hyderabad: As of 2023–24, nearly 34.8% of Telangana’s workforce—around 6.2 million people—is employed in the services sector, well above the national average of 29.7%, according to the NITI Aayog’s state-wise service sector highlights report.The report says that both Telangana and Karnataka, despite being major global information technology hubs, employ only about one-third of their respective workforces—between 33% and 34%—in the services sector. This pattern, the report says, reflects a productivity-driven economic model, where output growth outpaces job creation, signalling a shift toward greater efficiency and innovation. Overall, Telangana’s services sector contribution to gross state value added (GSVA) has risen from 52.8% in 2011-12 to 62.4% in 2023-24, significantly outpacing the national average. This steady growth reflects the state’s advances in digital infrastructure, IT exports, and professional services, anchored by the continued expansion of Hyderabad’s Hi-Tec City. To sustain this growth momentum, NITI Aayog recommends that Telangana capitalise on its leadership in information and communication technology by investing in essential infrastructure to drive development in tier-II cities such as Warangal and Karimnagar. Strengthening these regional hubs would not only stimulate local economies but also generate new employment opportunities, contributing to balanced regional growth. The report further advises the state to enhance formal employment avenues within Hyderabad’s tech-driven services ecosystem, which remains a key driver of innovation, exports, and digital transformation. A second recommendation calls for expanding targeted skilling programs through the Telangana Academy for Skill and Knowledge (TASK) to equip youth with relevant industry skills. Such initiatives would ensure equitable employment access, particularly in underserved tier-II and rural areas. NITI Aayog also urged the govt to leverage Telangana’s strategic location and robust logistics infrastructure by accelerating the development of logistics parks and the Hyderabad-Warangal industrial corridor. These projects, it said, would act as catalysts for employment generation across multiple allied sectors, promoting sustainable and inclusive economic growth. The report highlights a 20.8% annual growth in trade and hospitality services during 2023–24, indicating a strong post-pandemic recovery and market expansion. The ‘other services’ segment—covering education, healthcare, and community services—accounts for 12.9% of the sector’s output and plays a crucial role in strengthening the state’s social infrastructure.
