Rajan Advocates Skills Development to Drive Telangana's Economic Growth

Hyderabad: Former Reserve Bank of India Governor Raghuram Rajan has underscored the critical importance of workforce skill enhancement in generating employment across diverse sectors in Telangana.

The economist shared these views during a strategy session on the state's development trajectory, hosted by Chief Minister A. Revanth Reddy at his Jubilee Hills residence.

Rajan emphasized that bolstering worker capabilities would unlock job creation opportunities in multiple industries while simultaneously advocating for tackling malnutrition as a means to fortify the state's human capital base. He also identified the business environment as a determining factor in the state's ability to attract capital, recommending enhanced institutional backing for new enterprises as a lever for economic expansion.

Among his key proposals was the adoption of an industrial framework comparable to Tamil Nadu's model, which he contended would facilitate greater industrial relocation to the state.

During the meeting, Rajan highlighted the transformative potential of artificial intelligence when deployed appropriately across all demographic segments of society. In response to his insights, Chief Minister Reddy requested Rajan's assistance in establishing a dedicated committee to oversee the integration of AI technologies into the education system, spanning primary, tertiary, technical, and medical institutions.

The state has outlined plans to establish both a Skills University and specialized Advanced Training Centres as part of this educational modernization initiative.

Rajan flagged the substantial infrastructure demands associated with data centre development, particularly concerning electricity and water consumption. He indicated his intention to visit Hyderabad in the forthcoming months to further advance these discussions.

Deputy Chief Minister Mallu Bhatti Vikramarka highlighted Telangana's competitive advantages, pointing to its robust industrial infrastructure, available land reserves, and essential facilities. He noted that the government is scaling up electricity generation capacity to accommodate projected future requirements while overseeing major infrastructure projects including airport expansion, the Outer Ring Road, and planned Regional Ring Roads.

The state is simultaneously advancing the development of specialized industrial zones and implementing workforce development initiatives such as the Young India Skills University to enhance employment readiness among young people.

Industries Minister Duddilla Sridhar Babu characterized Telangana as an attractive investment destination, emphasizing that the state's infrastructure ecosystem effectively supports key sectors including pharmaceuticals, information technology, and data centre operations.