Hyderabad, February 1, 2026 – Finance Minister Nirmala Sitharaman has unveiled the Union Budget 2026-27, bringing a wave of significant announcements that promise to reshape Telangana’s infrastructure and industrial landscape. From the inclusion of Hyderabad in the new High-Speed Rail network to a massive push for Semiconductor manufacturing, the state is poised for a major economic boost.
Hyderabad to Join High-Speed Rail Network
In one of the biggest wins for the state, the Centre has announced the development of seven new High-Speed Rail corridors. Two of these crucial corridors will directly benefit Telangana:
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Hyderabad-Bengaluru Corridor: Set to reduce travel time between India’s two largest IT hubs to under 3 hours.
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Hyderabad-Pune Corridor: Strengthening the commercial link between Telangana and Maharashtra.
Telangana as a Global Semiconductor Hub
With an additional ₹40,000 crore allocated to the Semiconductor Mission 2.0, the Finance Minister highlighted Telangana as a primary beneficiary. The state is expected to receive dedicated support for setting up domestic capital-goods capabilities and strengthening the electronic supply chain, solidifying Hyderabad’s position as a competitor to global tech hubs.
Infrastructure: Metro Rail and Regional Ring Road (RRR)
While the full state-wise breakdown is being analyzed, the Budget’s focus on City Economic Regions (CER)—with an allocation of ₹5,000 crore per city over five years—is expected to provide the necessary funding for the long-awaited Hyderabad Metro Rail Phase-II and the Regional Ring Road (RRR) projects.
Key Highlights for Telangana at a Glance:
| Sector | Key Announcement |
| Transport | Hyderabad-Bengaluru & Hyderabad-Pune High-Speed Rail corridors approved. |
| Technology | Priority state for the ₹40,000 Crore Semiconductor Mission 2.0. |
| Urban Development | Hyderabad to benefit from the new City Economic Regions (CER) fund. |
| Financial Support | Vertical share of tax devolution retained at 41%, ensuring steady fund flow. |
| Education/Health | Boost for Biopharma hubs and new industrial parks for women entrepreneurs. |
Mixed Reactions from State Leadership
While the infrastructure boosts are being welcomed, the Telangana state government continues to seek clarity on the ₹1,800 crore in pending grants and the fulfillment of promises under the AP Reorganisation Act, such as the Bayyaram Steel Plant and the Kazipet Coach Factory.
“The High-Speed Rail is a game-changer for Hyderabad, but we are still waiting for the Centre to address our long-standing requests for the Musi Riverfront and additional irrigation funds,” sources from the state finance department noted.
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