The Telangana Budget 2025-26 has allocated Rs 3,527 crore for the state’s Industries Department. The budgetary allocation for industries is 0.218% of the gross state domestic product (GSDP) and 1.16% of the total budget for 2025-26.
In his budget speech on Wednesday, March 19, Finance Minister and Deputy Chief Minister Bhatti Vikramarka highlighted the Congress government’s decision to introduce a policy governing the Micro, Small, and Medium Enterprises (MSME) in the state. “Over the next five years, the government plans to invest Rs 4,000 crore in MSME development, with a target of establishing over 25,000 new MSMEs across the state,” he said.
The MSME policy has been an often discussed part of the Congress government’s plans for the IT and Industries sector. In January 2025, Telangana Director of Industries G Malsur had stated that incentives for MSMEs would be rolled out soon. He added that the incentives due to industries in Telangana since 2016 is around Rs 4,250 crore.
The Deputy CM also announced that the state would support private factory complexes by offering stamp duty reductions, electricity tariff concessions, and land cost subsidies. Additionally, he announced a Capital Investment Subsidy Scheme as well.
Bhatti also said that the Telangana government secured Rs 1.78 lakh crore in investment agreements with 16 world renowned companies across critical sectors such as technology, green energy, defense, and data infrastructure. “CM Revanth Reddy facilitated Rs 14,900 crore in additional investments for the state, through his visits to the United States of America, South Korea, and Singapore,” the Minister said.