India: A Corporate/Commercial: Hyderabad Overview

Why Hyderabad Is the Region to Work, Innovate and Invest in 2026

Long praised for its history, culture and multicultural dynamism, Hyderabad has in the last decade transformed into one of India’s most sophisticated business and innovation ecosystems. Telangana’s sustained emphasis on progressive regulation, large-scale infrastructure, and forward-looking industrial policy has enabled the city to rise as a global centre for technology, life sciences, aerospace, EVs and next-generation industries. In 2026, Hyderabad stands at an inflection point, not only as India’s fastest-growing services economy but also as a destination that global corporations increasingly choose for global capacity centres (GCCs,) R&D centres, data infrastructure and high-value manufacturing.

Recent data underscores this momentum. Telangana recorded the highest services-sector growth in India between 2011 and 2024, with the gross value added from its services sector jumping from 52.8% to 62.4% over the period. This surge is anchored by Hyderabad’s role as the state’s technology, financial and life-sciences capital.

Crucially, this rise is not accidental. It is the product of a governance model that blends regulatory stability, accelerated clearances (TS-iPASS), predictable policy frameworks, and a long-term commitment to innovation.

Telangana’s Emergence as India’s Fastest-Growing Service Economy

Over the past decade, Telangana has deliberately positioned itself as a leader in knowledge-driven services, modern R&D, and technology-enabled manufacturing. The state’s economic model focuses on digital services, aerospace, EVs and other high-tech value chains.

Supporting this transition is large infrastructure that is designed to improve mobility and reduce operating friction for enterprises. The INR608 billion road expansion plan (including the eight-lane Hyderabad–Vijayawada expressway, the Regional Ring Road which will serve the outlying areas of Hyderabad, and new elevated corridors), along with the 415 km metro expansion, reflect one of India’s most aggressive infrastructure pipelines.

The government of Telangana has explicitly targeted Hyderabad as a global innovation hub. In late 2025, the IT Minister announced plans for 120 new GCCs to be established within a year, generating 120,000 jobs in cloud, cybersecurity, AI/ML and data engineering. This expansion is backed by the state’s 2024–29 GCC Policy, which aims to create 500 new GCCs and over 500,000 jobs by 2029. Complementing this is a 200-acre AI City, a INR20 billion fund-of-funds for healthtech/fintech, and dedicated policies for electronics, robotics and emerging technologies.

Hyderabad: A Transformational Phase for GCCs, Data Centres and Quantum Innovation

Hyderabad today hosts over 350 GCCs, employing over 300,000 professionals, representing almost 15% of India’s GCC workforce. The city is now one of the world’s most preferred destinations for engineering, cloud operations, cybersecurity and digital transformation mandates. Global giants such as Vanguard, Amazon, Microsoft, Google and Qualcomm have expanded operations in Hyderabad.

This ecosystem is strengthened by a fast-growing data-centre base. With India’s first dedicated data-centre policy, classifying data centres as “critical infrastructure” and offering guaranteed power, subsidised land and swift approvals.

Hyderabad is similarly taking leadership in quantum and deep-tech research. In 2025, Telangana partnered with QuantumBasel (Switzerland) to set up India’s first Quantum Innovation Hub in the city.

A Commercial Real Estate Market on an Unprecedented Growth Path

The rapid expansion of GCCs, life-sciences R&D, and flexible workspace demand has made Hyderabad one of India’s strongest commercial real estate markets. As per industry projections, Hyderabad’s Grade-A office inventory will exceed 200 million sq ft by 2030, up from approximately 137 million sq ft in 2024.

Hyderabad recorded 12.3 million sq ft of office absorption in 2024, among the highest in the country. GCCs alone accounted for 43% of the city’s annual leasing. Tech occupiers contributed around 31%, while life sciences and flex-workspace operators collectively contributed over 35%, reflecting Hyderabad’s sectoral diversity.

The city’s competitive rents (20–30% lower than Bengaluru), strong GREEN-certified stock, integrated tech parks and large campus-style Special Economic Zones (SEZs) in HITEC City, Gachibowli, Financial District and Kokapet continue to attract global occupiers.

Hyderabad’s Core Competencies

GCCs

With more than 355 GCCs delivering engineering, cybersecurity, automation and cloud transformation, Hyderabad has evolved into a strategic global headquarters hub for many Fortune 500 companies.

Life sciences capital of India

Hyderabad houses over 1,500 healthtech and life sciences companies, with over USD2.7 billion in cumulative venture funding and INR5,400 billion of new investment since 2024. It produces 40% of India’s pharmaceuticals and one-third of the world’s vaccines, making it a top-10 global pharma cluster.

Aerospace and defence manufacturing

The Adibatla Aerospace Park now hosts global OEM facilities, including Tata-Safran’s LEAP engine components plant. Aerospace exports rose from INR1,590 billion (FY24) to INR3,074.2 billion between April and December 2024. Telangana is targeting the title of “Aero-Engine Capital of India” by 2030.

EVs and new mobility

Zaheerabad has become a national EV/R&D hub. Hyundai’s proposed INR852.8 billion investment in a 675 acre global R&D centre (announced in 2025) will generate 4,276 direct jobs, while MG Motor’s EV Park and multiple EV2W/3W incubators anchor a growing mobility ecosystem.

Quality of life and cost competitiveness

Hyderabad continues to rank number one in India in Mercer’s 2024 Quality of Living Index, surpassing Bengaluru, Pune and Mumbai. Its affordability, particularly office rentals, land costs and salaries, remains a significant advantage for businesses.

Why Hyderabad Outperforms Other Cities

Hyderabad’s competitive edge lies in a distinctive combination of affordability, talent availability, infrastructure readiness, and policy efficiency. The city offers the following benefits.

Cost competitiveness

• lower commercial rents;
• lower cost of living; and
• superior per-sq-ft value for office leasing.

Regulatory efficiency

The TS-iPASS single window online clearance mechanism provides transparent and time-bound approvals unmatched by competing metropolitan regions.

Extension of the road network

Highways, urban arterials, logistics corridors, and regional access roads are all planned to be upgraded in a large multi-year capital expenditure programme.

Airport growth

By increasing its ability to handle more than 34 million passengers a year, RGIA Hyderabad is solidifying its position as a major hub for international aviation.

Global Tailwinds: Why 2026 Is Hyderabad’s Moment

With semiconductor, electronics and advanced-manufacturing firms diversifying into India, Hyderabad is emerging as an important investment alternative. The state has already received proposals from global chip/display manufacturers and is building dedicated electronics clusters.

Simultaneously, demand for cloud and localised digital infrastructure is skyrocketing. India’s data-centre capacity is expected to nearly triple by 2027, and Hyderabad is one of the top three destinations shortlisted for hyperscale campuses.

These global shifts, combined with Telangana’s local initiatives, create a rare alignment of supply-side capability and demand-side opportunity.

Conclusion

Hyderabad stands out as India’s most compelling region for investment, innovation and employment in 2026. Its rise is powered by robust fundamentals: world-class infrastructure, a business-friendly state government, a deep talent base, an affordable cost structure, diversified economic strengths, and global momentum favouring India.

With a commercial real-estate pipeline headed toward 200 million sq ft, record GCC and tech-sector expansions, a booming life sciences and aerospace ecosystem, and unparalleled quality of life, Hyderabad has firmly established itself as one of Asia’s most dynamic and future-ready regions.