India Major Report - Telangana - A Bright Spot in India's Industrial & Warehousing Future September 2021

With the adoption of global and domestic business-focused policies, well-defined thrust sectors and a plethora of infrastructure initiatives; Telangana, the youngest state in India, is emerging as an active player on India’s Industrial & Warehousing (I&W) landscape. It is today one of the fastest growing states in the country, accounting for a share of about 5% in the national GDP. The future prospects of the state are expected to be further driven by growing investments in the I&W sector and promotion of cluster developments in and around its capital - Hyderabad. In this report, we have charted the key emerging trends that are likely to accelerate the I&W sector’s growth in Telangana:

• Favorable regulatory and infrastructure initiatives: Continued focus on policy reforms viz. TS-iPASS and dedicated sectoral policies, etc.; infrastructure initiatives such as the regional ring road, proposed industrial corridors, etc.

• Expansion of the warehousing sector: Growing warehousing demand due to the state’s rapidly expanding industrial base and increasing footprint of e-commerce and 3PL players in Hyderabad.

• Acquiring a tech edge: Tech enhancement of warehousing spaces / supply chain elements to become more widespread through increased application of automation, AI, IoT, etc.