New Policy Set to Add Momentum To Industrial Growth in Telangana

By: Sunitha Natti

Traditionally, Telangana has been a service-oriented economy contributing a lion’s share of over 60 per cent, followed by industry and agriculture.

But this proportion is set to change, thanks to the state government’s recently launched industrial policy framework, which experts say will spur industrial growth, which has been lagging at just over 4.1 per cent in FY15 as against service sector’s 10 per cent.

Currently, industry comprising manufacturing, construction, mining and quarrying, electricity, gas and water supply, contributes just over 24.3 per cent to the Gross State Domestic Product (GSDP) during FY15. On the other hand, services contribute 62.9 per cent.
Owing to global economic slowdown and political unrest over bifurcation, industrial sector was badly hit in the past few years. For instance, the sector registered an all-time low of 0.13 per cent growth in FY14 from a healthy double digit growth of 17.1 FY07. During the past decade, it grew at an average 7.8 per cent.

“The state undoubtedly has a very good industrial policy, but much work is needed to boost the manufacturing industry. For instance, more clusters need to be created for electronics manufacturing to provide the required infrastructure and ecosystem to the players in that area. Currently, we have two electronic manufacturing clusters, where the government should focus on bringing in an anchor customer,” said BVR Mohan Reddy, chairman, Cyient, formerly known as Infotech Enterprises.

According to ministry of statistics and programme implementation, the number of factories in TS increased to 13,656 in FY13 (employing 7,01,110) from 9,005 in FY12. Over the past 15 years, 40,894 MSMEs were set up with an investment of Rs 22,520.63 crore and employ employment 5,65,496. Similarly, 2,091 large industrial units were established with an investment of Rs 45,393.33 crore and have created over 6,67,499 jobs.

“The government is being extremely responsive to the industry needs, for both operational and policy support and on the other end is also extremely receptive to proposals and inputs to grow the industry and the innovation environment,” said Safir Adeni, president, TiE, Hyderabad chapter.

In FY15 nearly 1,496 entreprenuers applied for clearances under the Single Window System, of which 1,173 clearances were issued.

Telangana is ranked 6th in terms of industries across the country, but as per industry analysts, this will improve going further.

Currently, Hyderabad occupies the highest position followed by Rangareddy and Medak and together, the three districts account for about 45 per cent of the state’s economy registering an average 10 per cent growth over the past 10 years. The remaining 7 districts account for about 55 per cent. “But through a broad-based growth-oriented industrial policy, the government is aiming to develop all districts simultaneously based on inherent strengths,” said C Shekar Reddy, MD, CSR Estates.

Source: The New Indian Express

Leave a Reply

Your email address will not be published. Required fields are marked *