Hyderabad has been projected as one of India’s fastest-growing cities by 2035, according to the Economic Survey 2025–26. With an estimated GDP growth rate of around 8.5%, the city continues to strengthen its position as a major economic powerhouse, driven by robust performance in services, industrial manufacturing, and technology-led startups.

Strong Economic Momentum

The Economic Survey highlights Hyderabad’s consistent economic expansion, placing it ahead of many metropolitan peers. The city’s diversified economic base has insulated it from sector-specific slowdowns, enabling sustained growth even during global uncertainties. Hyderabad’s rise reflects a balanced mix of traditional industries and modern innovation-led sectors.

Services Sector Leading Growth

The services sector remains the backbone of Hyderabad’s economy. IT and IT-enabled services (ITeS), financial services, healthcare, education, and hospitality contribute significantly to gross value addition. Global technology companies continue to expand their operations in the city, reinforcing Hyderabad’s reputation as a preferred destination for outsourcing, software development, and digital innovation.

Industrial and Manufacturing Strength

Alongside services, industrial growth has played a crucial role in the city’s economic trajectory. Pharmaceuticals, biotechnology, electronics manufacturing, aerospace, and defense production have seen notable investments. Industrial corridors, special economic zones (SEZs), and policy support from the Telangana government have improved ease of doing business and attracted domestic as well as foreign investors.

Thriving Startup and Innovation Ecosystem

Hyderabad has emerged as a leading startup hub, particularly in health tech, fintech, agri-tech, and deep-tech segments. The city benefits from strong institutional support, incubators, accelerators, and access to skilled talent. Startup-friendly policies and increasing venture capital inflows have positioned Hyderabad as a key innovation center outside Bengaluru.

Infrastructure and Urban Development Push

Rapid infrastructure development is another factor driving Hyderabad’s growth. Investments in metro rail expansion, road connectivity, logistics parks, and digital infrastructure are improving urban mobility and productivity. Planned urban expansion and smart city initiatives are expected to support sustainable growth through 2035.

Outlook Towards 2035

With sustained GDP growth of approximately 8.5%, Hyderabad is poised to play a vital role in India’s long-term economic development. Its strong fundamentals, diversified economy, and future-ready infrastructure make it a strategic hub for businesses, investors, and skilled professionals alike.

As India moves toward becoming a $5 trillion economy, Hyderabad’s rise underscores the growing importance of tier-1 cities beyond traditional metros, positioning it as a key contributor to national growth in the decades ahead.