Telangana IT exports jump 31% to a new high of ₹2.41 lakh crore in FY-23

The exports of the IT and ITeS sector in Telangana has been growing at an compounded annual rate of 17.31 % says Minister for IT K. T. Rama Rao

Information Technology (IT) and ITeS exports from Telangana increased 31.44% to touch a new high of ₹2,41,275 crore in the financial year ended March 2023.

Compared to the ₹1,83,569 crore exports registered during the previous fiscal, this is an increase of ₹57,706 crore, Minister for IT and Industries K. T. Rama Rao said releasing the annual progress report of the IT, Electronics and Communications department for 2022-23 here on Monday.

The increase in IT exports is more than the total IT exports undivided Andhra Pradesh could register over almost three decades. At the time of Telangana formation in 2014 the IT exports stood at ₹57,258 crore, he said, adding the global recession and slowdown notwithstanding, the State maintained its growth rate as well as surpassed the national average. IT exports from the country increased 9.36% in FY23.

In the nine years since the State came into existence, IT exports more than quadrupled at a compounded annual growth rate (CAGR) of 17.31%. Describing it as an explosive growth and driven by demand from BFSI (Banking, financial services and insurance) industry, Mr. Rama Rao said Telangana’s IT exports came despite little support from the Centre, the State not considered for ITIR and the shadow cast by the COVID-19 pandemic. He said Telangana has consolidated its position as a leading destination for innovation and investment, something evident from the number of globally leading firms who are investing in the State, including setting up their largest technology development centre outside of the their headquarters.

In terms of jobs, the cumulative IT employment in the State in 2022-23 stood at 9,05,715. Compared to 7,78,121 people in FY-22 it is 16.29% more. The net new jobs created during last fiscal was 1,27,594, the Minister said, adding the exports and employment data were provided by the STPI, which is under the Union Ministry of Electronics and Information Technology and Special Economic Zone under the Union Ministry of Commerce.

Seeking to highlight the importance of IT sector from a job creation perspective, Mr. Rama Rao said since the formation of Telangana, 5,82,319 new direct IT jobs have been created. The benefits will be much more considering that for one direct job in IT sector three indirect jobs are created, he said. In FY23, 44% of the 2.90 lakh new IT jobs created in India were in Telangana.

On the road ahead, he said the pace of IT growth necessitates an upward revision of the targets set by the State of ₹3 lakh crore exports and 10 lakh jobs by 2026. “With this pace and positivity, in about 5-10 years, Hyderabad will be the largest IT presence in India and we will compete with the best in the world,” he said.