Telangana, anchored by Hyderabad’s dynamic tech ecosystem, is rapidly emerging as a leading hub for Artificial Intelligence (AI) innovation in India. With forward-thinking policies, a skilled workforce, and a thriving startup landscape, the state is fostering AI-driven advancements across industries such as healthcare, finance, and logistics.
The 2024 Global AI Summit helped Telangana chart a roadmap to establish Hyderabad as an AI hub. The state plans to boost AI-driven healthcare and Life Sciences startups through a Fund of Funds of $2.4 billion (₹20 billion), a Health Data Exchange, subsidized computing infrastructure, expanded data centers, and access to government hospitals for pilot projects.
In October 2024, Telangana unveiled plans for a 200-acre AI City in Hyderabad, designed to house AI-based product companies, startups, Global Capability Centers, and research and development units to create a comprehensive ecosystem that fosters innovation and attracts tech professionals. Hyderabad accounted for 21% of India's total Global Capability Centers leasing (~53 million sq. ft.), reflecting the state's ability to attract multinational corporations and global real estate investors.
Hyderabad saw a remarkable 160% increase in tech startup funding in 2024, reaching $571 million across 81 rounds, up from $220 million in 2023. This surge was primarily driven by substantial investments in the Healthtech and Fintech sectors. The Fintech sector demonstrated robust growth, attracting $105 million in funding, a 91% rise compared to 2023. Hyderabad-based startup Zaggle Prepaid Ocean Services raised approximately $68 million ( ₹5.9 billion) through Qualified Institutional Placement, highlighting the city's expanding influence in enterprise Fintech.
