Telangana: A Flourishing IT Hub Driven by Generous Exemptions and Support

The Indian IT sector has witnessed phenomenal growth in recent years, and Telangana has emerged as a frontrunner in attracting and nurturing this dynamic industry.

A key factor behind this success is the Telangana government’s strategic approach, which includes offering generous exemptions and a supportive ecosystem for IT and ITES (Information Technology Enabled Services) establishments.

This article delves deeper into the specific exemptions granted, explores the benefits they offer, and examines how they contribute to Telangana’s growing IT prowess.

Unveiling the Exemptions: Flexibility for the IT/ITES Workforce

The Telangana Shops and Establishments Act, of 1988, lays down regulations for working conditions in various sectors.

Recognising the unique demands of the IT/ITES sector, the Telangana government has granted exemptions from certain provisions of this Act, granting these companies greater flexibility in managing their workforces. Let’s explore the core exemptions:

  • Weekly working hours are capped at 48, with overtime pay beyond that.
  • Weekly offs for all employees.
  • Permission for employing young and women employees for night shifts with proper security and transportation.
  • Providing identity cards and welfare measures to employees.
  • Compensatory holidays for working on notified holidays.
  • Pre-employment screening and details of drivers.
  • Supervisory officer’s authority over pickup/drop schedules.
  • Confidentiality of women employees’ contact details.
  • Ensuring equitable treatment of women employees in transportation.
  • Provision of security guards for night shift vehicles.
  • Random checks of vehicles by designated supervisors.
  • Establishment of a control room/travel desk for monitoring.
  • Exemption revocable without notice if conditions are breached.
  • Specified security timings for women employees during cab pickup/drop.
  • Soft copies of statutory registers are accepted for compliance.
  • Exemption will not harm employees’ interests.
  • Compliance with integrated registers and returns per specific government order.

This effectively allows IT/ITES companies in Telangana greater flexibility in scheduling work hours for their employees.

Validity and Conditions

The exemptions are valid for four years, starting from May 30, 2024, subject to certain conditions that may be imposed by the government.


This is not the first time the Telangana government has provided such exemptions. In 2019, a similar exemption was granted for five years, which expired in 2023. The renewal underscores the government’s recognition of the IT sector’s importance to the state’s economy.

Benefits for the Industry

The exemptions offer several advantages to IT/ITES businesses in Telangana:

  • Operational Flexibility: Companies can design work schedules that cater to global project demands and client time zones.
  • Employee Satisfaction: Flexible work arrangements can improve employee morale and work-life balance, potentially leading to increased productivity.
  • Enhanced Competitiveness: The exemptions make Telangana a more attractive destination for IT/ITES companies looking to expand or establish operations.

The Telangana government’s renewed exemptions demonstrate their commitment to creating a supportive environment for the IT sector. This can lead to further growth and development of the industry in the state.

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