12 Best Businesses to Start In Telangana in 2024 ✓ Top Picks

Are you considering starting a business in Telangana, one of the fastest-growing states in India? Did you know that Telangana has emerged as a major economic and technological hub, with a diverse range of industry sectors driving its economic growth.

Telangana's government has implemented various policies and incentives to promote entrepreneurship and ease of doing business. The state's strategic location, skilled workforce, and investor-friendly policies have attracted both domestic and international investments, further bolstering its economic growth

With a gross state domestic product (GSDP) of $169.59 billion in 2023-24, Telangana has experienced a compound annual growth rate (CAGR) of 10.23% between 2018-19 and 2023-24. The state's capital, Hyderabad, is a hub for IT and pharmaceutical sectors, contributing significantly to the state's GDP, employment generation, and export earnings.

So, are you ready to explore the best businesses to start in Telangana and take advantage of the numerous opportunities this vibrant state has to offer? Let's dive into the top 12 profitable business ideas in Telangana and discover how you can achieve success in this thriving business landscape.

12 Profitable Business Ideas in Telangana

1. Information Technology

Hyderabad, the capital of Telangana, is a major IT hub in India, housing the largest campuses of tech giants like Google, Facebook, Microsoft, Amazon, and Apple outside of the US. The city is known for the HITEC City or Cyberabad, which is India's second-largest information technology exporter and a major global IT hub.

To start an IT business, you need to identify a niche, create a business plan, register your business, and hire a skilled team. You can also consider joining a startup incubator or accelerator in the city for support and mentorship.


  • High demand for IT services
  • Supportive government policies
  • Thriving startup culture


  • High competition
  • High setup and operational costs

2. Pharmaceuticals and Healthcare

Telangana is a hub for pharmaceutical manufacturing, with opportunities in contract research, medical transcription, and telemedicine services. The state is home to many pharmaceutical companies, and the industry is expected to grow at a CAGR of 9%-12% between 2018 and 2022, reaching US$ 26-30 billion.

To start a business in this sector, you need to understand the regulatory landscape, create a business plan, secure funding, and hire skilled personnel. You may also need to invest in equipment and facilities.


  • Established industry
  • Government support for research and development
  • The rise of e-pharmacy


  • Heavily regulated sector
  • High initial investment

3. Food Processing

Telangana is known for its agricultural sector, and the food processing industry offers a promising business opportunity. The state provides a conducive business environment for establishing food processing units, with support from the Small Farmers' Agri-Business Consortium (SFAC) for qualifying projects.

To start a business in this sector, you need to understand the agricultural landscape, create a business plan, secure funding, and establish connections with farmers and suppliers. You may also need to invest in equipment and facilities.


  • Abundant resources
  • Government support for organic farming and horticulture exports


  • Seasonal variations and weather conditions can affect business
  • Market fluctuations can affect profitability

4. Textiles and Apparel

Telangana is a thriving hub for the textile and apparel industry, with a rich history of textile sector operations, including 50,000 power looms and 17,000 handlooms. The state, being the 3rd highest cotton producer in India, offers a profitable opportunity for starting a textile business.

The process involves conducting market research, deciding the type of business (manufacturer or retailer), and calculating the investment for location, machinery, and raw materials. However, it requires a significant initial investment and maintaining quality control can be challenging.


  • Access to skilled workers
  • High-quality raw materials
  • Strong domestic industry


  • High initial investment
  • Quality control challenges

5. Automobile and Auto Components

Telangana offers various opportunities in the automobile and auto components sector. Major players in the market include Ashok Leyland, Mahindra & Mahindra, and Honda Motorcycle & Scooter India Pvt Ltd. The auto components industry in India has grown significantly, with a turnover of $69.7 billion in FY 2022-23.

Starting a business in this field involves identifying the specific area of focus, such as auto parts manufacturing, used car dealership, or export of automotive parts and tools.


  • Growing presence of global OEMs
  • Localization of components
  • 100% FDI allowed under the automatic route


  • High competition
  • Capital-intensive industry

6. Renewable Energy

Telangana has a vast solar potential estimated at 20.41 GW and a wind energy potential of 4.2 GW. The renewable energy sector offers opportunities in solar panel manufacturing, EPC services, O&M services and rooftop solar installations. Leveraging government policies and entering partnerships can aid profitability.

To start a renewable energy business, conduct market research, choose the appropriate technology, procure reliable equipment, and obtain necessary licenses and approvals. There are numerous innovative renewable energy companies and startups in Hyderabad, such as Cygni Energy and Greatpelican Digital Systems Pvt Ltd.


  • Government support and incentives
  • Growing interest in renewable energy solutions
  • High solar potential in Telangana


  • High initial investment
  • Technological advancements and competition
  • Dependence on weather conditions for optimal performance.

7. Tourism

Telangana, with its rich history and cultural heritage, offers a plethora of opportunities in the tourism sector. The state is home to several tourist attractions, including the Charminar, Golconda Fort, and the Ramoji Film City, which is the world's largest film studio complex.

Starting a business in the tourism sector could involve developing tourist circuits, organizing pilgrimage tours, or operating tour services. Tourism creates employment, boosts local businesses and preserves cultural heritage. The state government aims to position Telangana as a top tourist destination and has provided support by launching initiatives like the “Visit Telangana” campaign to boost tourism.


  • High influx of tourists
  • Government support for the tourism sector


  • Seasonal demand
  • High competition

8. Hotels, Resorts, Restaurants

The hospitality industry in Telangana is thriving due to the increasing number of tourists and the growing IT sector, which brings in a large number of business travellers. The state's capital, Hyderabad, is particularly known for its cuisine, offering opportunities for restaurants.

The hospitality sector generates employment and spurs growth of local enterprises. The state government provides incentives to boost hospitality infrastructure.


  • Rising demand from business and leisure travellers
  • Renowned food culture


  • High competition
  • High setup and operational costs

9. Real Estate and Construction

The real estate sector in Telangana, particularly in Hyderabad, has been booming due to the growing IT sector and the increasing urban population. There are opportunities in real estate development, housing projects, building materials, and construction equipment.

Starting a business in this sector can be profitable as it supports economic growth and job creation. The state aims to improve housing and infrastructure to enhance liveability for citizens.


  • High demand for real estate and construction services
  • Government support for the real estate and construction sector


  • High competition
  • High setup and operational costs

10. Retail Business

Retail businesses are a popular choice for entrepreneurs in Telangana, particularly in the bustling city of Hyderabad. This sector includes a wide range of businesses, from small boutique stores to large supermarkets. The state has witnessed a surge in both brick-and-mortar stores and e-commerce ventures, catering to the growing consumer demand.

Telangana's retail sector has attracted both domestic and international investments, further bolstering its economic growth. It can contribute to the local economy by creating jobs and providing goods and services to the local population.


  • High consumer demand
  • Multiple channels of sale
  • Government support through favorable policies and 100% FDI under the automatic route


  • Intense competition
  • High initial investment for physical stores

11. Education and Training

The education and training sector is another profitable business idea in Telangana. Telangana is home to various premier educational institutions and research organizations, making it an ideal location for education and training businesses. The education sector in India is expected to reach $225 billion by 2025.

The state government has conducted 24 programs to support student entrepreneurs and foster innovation and entrepreneurship among students.


  • High demand for quality education and training
  • Government support and initiatives
  • Presence of premier educational institutions


  • Competition from established institutions
  • Regulatory requirements and approvals

12. Food and Beverage Industry

The food and beverage industry in Telangana is a rapidly growing sector, with numerous opportunities in restaurants, cloud kitchens, food trucks, catering services, bakeries, and confectioneries. The state has a rich agri-based economy, providing ample raw materials for food processing businesses.

The food processing industry in Telangana processes around 25% of agri and allied output by value and adds 12.5% in value.


  • Growing consumer demand for diverse food options
  • Availability of raw materials
  • Government support for food processing industry


  • High competition
  • Strict food safety regulations and licensing requirements

Telangana: Business Growth and Challenges

As one of the fastest-growing states in India, Telangana offers numerous growth opportunities for businesses across various sectors such as IT, pharmaceuticals, agriculture, and manufacturing. However, there are challenges that businesses need to overcome to succeed in this thriving environment.

Some of the challenges include regional inequality in growth, attracting investments, and ensuring a skilled workforce. For instance, while some districts have attracted significant investments, others have lagged behind.

Despite these challenges, Telangana's government has taken several initiatives to improve the ease of doing business and attract foreign direct investments. The state's focus on infrastructure development, progressive policies, and support for key industries has contributed to its growth as a business hub. To capitalize on the growth opportunities in Telangana, businesses must navigate these challenges and adapt to the dynamic economic landscape.

Top FAQs on Best Businesses to Start In Telangana

What is the expected growth of the retail sector in India?

The retail sector in India is expected to reach $1.1 trillion by 2026.

What factors make Telangana a promising location for starting a business?

Telangana's advantageous climate, thriving technology ecosystem, and diverse population create a conducive environment for starting a business.

What are the key sectors driving economic growth in Telangana?

Key sectors driving economic growth in Telangana include information technology, pharmaceuticals, agriculture, and manufacturing.

What government incentives are available for starting a business in Telangana?

The government of Telangana has implemented various policies and incentives to promote entrepreneurship and ease of doing business.

Can an industry be set up under self-employment in Telangana?

Yes, a small-scale industry or a tiny unit can easily be set up for self-employment in Telangana.


In conclusion, Telangana's thriving economy offers immense potential for business growth across various sectors. The government's proactive role in easing regulatory policies and promoting industries further enhances the state's appeal as a business destination.

So, are you ready to seize these opportunities and start your entrepreneurial journey in Telangana? What business idea resonates with you the most? Remember, the right business idea coupled with strategic planning can pave the way for your success in Telangana's vibrant business landscape.

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