Hyderabad, India - Economy

Economy

Main article: Economy of Hyderabad, India See also: Industries in Hyderabad, India, Biopharmaceutical industry of Hyderabad, India, List of companies based in Hyderabad, India, List of tourist attractions in Hyderabad, and Software industry in Andhra Pradesh

Of all the cities of Andhra Pradesh, Hyderabad is the largest contributor to the state's GDP, tax and other revenues. Its per capita annual income in 2011 was 44,300 (US$806.26). As of 2006, the largest employers in the city are the governments of Andhra Pradesh (113,098 employees) and of India (85,155). In 2009 the World Bank Group ranked the city as the second best Indian city for doing business. In 2010, the economic analysis group GaWC ranked Hyderabad in its third tier (Gamma+) of world cities. The city and its suburbs contain the highest number of special economic zones of any Indian city. Hyderabad's $74 billion gross domestic product makes it the fifth-largest contributor to India's overall GDP.

Hyderabad is known as the "City of Pearls" on account of its role in the pearl trade. Until the 18th century the city was the only global trading center for large diamonds. Many traditional and historical bazaars are located in the city. The Laad Bazaar and nearby markets have shops that sell pearls, diamonds and other traditional ware and cultural antiques. Hyderabad's commercial markets are divided into four sectors: central business districts, sub-central business centres, neighbourhood business centres and local business centres. Several central business districts are spread across the city. According to a survey by Cushman & Wakefield, Hyderabad's retail industry and traditional markets were growing in 2007.

Industrialisation began under the Nizams in the late 19th century, helped by railway expansion that connected the city with major ports. From the 1950s to the 1970s, Indian enterprises were established in the city, such as Bharat Heavy Electricals Limited (BHEL), National Mineral Development Corporation (NMDC), Bharat Electronics (BE), Electronics Corporation of India Limited (ECIL), Defence Research and Development Organisation (DRDO), Hindustan Aeronautics Limited (HAL), Andhra Bank (AB) and State Bank of Hyderabad (SBH). Thus Hyderabad evolved from a traditional manufacturing city to a cosmopolitan industrial service centre. Since the 1990s, the growth of information technology (IT), IT-enabled services, insurance and financial institutions has expanded the service sector, and these primary economic activities have boosted the ancillary sectors of trade and commerce, transport, storage, communication, real estate and retail. The service industry remains dominant in the city, and 90% of the employed workforce is engaged in this sector. According to a government survey, 77% of males and 19% of females in the city were employed in 2005.

Hyderabad is known as "India's pharmaceutical capital" and as the "Genome Valley of India" because of its many pharmaceutical and biotechnology industries. It is a global centre of information technology, for which it is known as Cyberabad (Cyber City). During 2008–09, Hyderabad's IT exports reached US$ 4.7 billion, and 22% of the NASSCOM's total membership is from the city. The development of HITEC City, a township with extensive technological infrastructure, prompted multinational companies to establish facilities in Hyderabad. The city is home to more than 1300 IT firms, including global conglomerates such as Microsoft (operating its largest R&D campus outside the US), Google, IBM, Yahoo!, Dell, Facebook, and major Indian firms including Mahindra Satyam, Infosys, TCS, Genpact and Wipro.

Like the rest of India, Hyderabad has a large informal economy that employs 30% of the labour force. According to a survey published in 2007, it had 40–50,000 street vendors, and their numbers were increasing. Among the street vendors, 84% are male and 16% female, and four fifths are "stationary vendors" operating from a fixed pitch, often with their own stall. Most are financed through personal savings; only 8% borrow from moneylenders. Vendor earnings vary from 50 (US$0.91) to 800 (US$14.56) per day. Other unorganised economic sectors include dairy, poultry farming, brick manufacturing, casual labour and domestic help. Those involved in the informal economy constitute a major portion of urban poor.