Hyderabad: The Union Budget 2025-26 has once again failed to address Telangana’s crucial development projects, raising concerns over the Centre’s continued neglect of the State’s infrastructure and urban expansion needs. Despite repeated appeals from Chief Minister A. Revanth Reddy and his team, no significant allocations have been made, leaving several large-scale projects in limbo.

A Reality Check for Telangana’s Infrastructure Aspirations

Telangana’s ambitious road and metro expansion plans appear to have hit a dead end with the Budget offering no funds for the proposed 350-km-long Regional Ring Road (RRR) or the Hyderabad Metro Rail Phase-II, which requires ₹45,000 crore to expand five key corridors. This lack of funding could slow down the State’s efforts to enhance connectivity and ease urban congestion.

Similarly, the much-anticipated Musi River Front Development project, which aimed to revamp Hyderabad’s river landscape at an estimated cost of ₹14,100 crore, has not been considered. Other projects like the Godavari-Musi river link, the Warangal underground drainage plan, and the Greenfield highway from Bandar port to Telangana have also failed to secure financial backing.

Missed Opportunities in Industry and Agriculture

Beyond infrastructure, Telangana had hoped for support in boosting industrial growth, particularly for projects like the Bayyaram Steel Plant and the Kazipet Coach Factory. However, these remain absent from the Budget, dashing hopes of job creation and economic expansion in these sectors.

On the agricultural front, while the Centre has announced an "Agri Districts" programme, its focus on low-productivity regions means Telangana may not benefit significantly. However, the State could gain from the new National Mission on High Yielding Seeds, particularly in Nizamabad, a hub for seed processing. Additionally, with Telangana being a major producer of cotton and pulses, there is cautious optimism about how the Centre’s support for these crops will translate into tangible benefits for farmers.

Potential Silver Linings for Telangana

Despite its overall disappointment, Telangana could find some relief in the Budget’s focus on the MSME sector. With 22.73 lakh MSMEs in the State, the newly introduced ₹5 lakh credit card facility for micro-enterprises might provide some boost, though it remains unclear how many businesses will qualify under the UDYAM registration process.

Another positive takeaway is the Centre’s push for the toy manufacturing sector, which could help revive the historic Nirmal toy industry. Additionally, the Budget’s emphasis on promoting medical tourism could benefit Telangana’s well-established healthcare sector, potentially attracting more international patients to Hyderabad’s hospitals.

Political Reactions and the Road Ahead

The Telangana Congress has strongly criticized the Union Budget, accusing the BJP-led Centre of deliberately sidelining the State’s needs for the second consecutive year. On the other hand, BJP leaders in Telangana are hailing the Budget as a “game-changer,” highlighting its broader economic policies.

With the Congress government in Telangana yet to formulate its response, all eyes will be on how it plans to navigate these financial setbacks and whether alternative funding sources can be tapped to keep its development agenda on track.