HYDERABAD: In a major move to tackle unemployment and equip youth with advanced skills, the Telangana government has announced the establishment of Young India Skill University and an AI City as part of its strategy to create thousands of jobs in emerging sectors. Presenting the 2025-26 budget in the Assembly, Deputy Chief Minister and Finance Minister Bhatti Vikramarka stated that the government is committed to bridging the skill gap and ensuring that Telangana’s workforce is future-ready.
A total of ₹900 crore has been allocated for youth employment initiatives, covering technical training, self-employment schemes, and high-tech skill development programs.
Young India Skill University: Training the Next-Gen Workforce
A key highlight of the government’s plan is the establishment of Young India Skill University in Mucharla, which will be spread across 150 acres. The university aims to train over 30,000 youth annually in collaboration with industry leaders and global training institutes.
• The university will offer specialized courses in high-demand sectors, including artificial intelligence, robotics, fintech, construction, retail, and hospitality.
• Technical education will be aligned with industry needs, ensuring that graduates have job-ready skills.
• The university will partner with the Singapore-based Institute of Technical Education (ITE) to provide international-level training programs.
• Entrepreneurship development will be a key focus, helping students establish their own businesses and startups.
The government envisions Young India Skill University as a leading training center, producing a highly skilled workforce that meets both domestic and global industry demands.
AI City: Telangana’s Leap into Artificial Intelligence
Recognizing the rapid growth of AI-driven industries, the Telangana government has proposed the development of an AI City within its planned Future City project. Spread over 200 acres, AI City will serve as a hub for artificial intelligence research, development, and job creation.
• AI City will feature cutting-edge data centers, high-performance computing labs, and AI-powered innovation hubs.
• The government has partnered with leading tech companies, including Google, Amazon Web Services (AWS), NVIDIA, and Microsoft, to drive AI innovation.
• A dedicated AI University will be set up within AI City to train students, professionals, and government employees in AI applications.
• AI City will attract startups and global AI firms, fostering innovation and employment in machine learning, automation, and big data analytics.
The Telangana government envisions the state as a leading AI hub, creating thousands of high-paying jobs in the technology sector and positioning Hyderabad as India’s AI capital.
Additional Employment Initiatives
Apart from Young India Skill University and AI City, the government has announced several other job creation programs:
• Rajiv Yuva Vikasam Scheme: A self-employment initiative with an initial ₹6,000 crore allocation, offering ₹4 lakh financial assistance to youth from SC, ST, BC, and minority communities.
• Rajiv Gandhi Civil Services Abhaya Hastam: Provides ₹2 lakh financial aid to civil services aspirants, with ₹1 lakh given for clearing prelims and another ₹1 lakh for interview preparation.
• Transformation of 65 Industrial Training Institutes (ITIs) into Advanced Technology Centers in collaboration with Tata Technologies, training 1 lakh youth annually.
• BFSI Training Program: A unique mini-degree course in Banking, Financial Services, and Insurance (BFSI), offered in 38 engineering and degree colleges across Telangana.
Driving Telangana’s Employment Growth
The Labour Force Survey highlighted in the budget speech indicates that Telangana’s unemployment rate has dropped from 22.9% in 2023 to 18.1% in 2024, thanks to government-led skill development programs and job recruitments.
With new-age skill training, AI-driven job creation, and major employment schemes, the Telangana government aims to equip its youth with the capabilities needed for a rapidly evolving job market. The success of Young India Skill University and AI City will determine whether Telangana emerges as a national leader in technology-driven employment and workforce development.
