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 Hyderabad is the capital of the southern Indian state of Telangana and de jure capital of Andhra Pradesh . Occupying 650 square kilometres (250 sq mi) along the banks of the Musi River, it has a population of 6.7 million and a metropolitan population of 7.75 million .  Hyderabad was historically known as a pearl and diamond trading centre . Special economic zones dedicated to information technology have encouraged companies from across India and around the world to set up operations . With an output of US$74 billion, Hyderabad is the fifth-largest contributor to India's overall gross domestic product .  Hyderabad is 1,566 kilometres (973 mi) south of Delhi, 699 kilometres (434 mi) southeast of Mumbai, and 570 kilometres (350 mi) north of Bangalore by road . It lies on the banks of the Musi River, in the northern part of the Deccan Plateau . The city has 140 lakes and 834 water tanks (ponds)