Telangana Trade and Commerce

Telangana Trade and Commerce

Historic View:-

The British had set up Hyderabad as the largest state in the Indian subcontinent, but left it with a backward economy. The richer agricultural regions which the Nizam had earlier controlled – Berar (Vidarbha) and coastal Andhra-were annexed to British territories.

Based primarily on the Deccan plateau, between the Krishna and Godavari rivers, the state had mainly a dry economy cultivating jawar and bajra and limited rice, wheat and pulses as the main food crops. Irrigation and commercial agriculture did not really become significant until the 1930s when cotton and sugarcane cultivation began on a larger scale. Throughout the period, there was little growth of agriculturally linked trade and business, and little development of roads and other infrastructure. Only minor industry developed in the towns of Hyderabad, Warangal and Aurangabad, with some coal mining in the Telangana region.

Society of the former Hyderabad State was essentially rural-based, as around 88% of the population resided in villages. Poor literacy rate which stood at 70 literates per 1000 persons in 1940-41 remaining lowest not only as compared to British Indian Provinces, but even as compared to some of the Native States.

The Seventh Nizam, Mir Osman Ali Khan was very good administrator who has taken number of steps to improve the administration by studying the problems of debt, tenancy, constitutional reforms and took measures including construction of reservoirs and development of irrigation, establishment of cooperative credit system through organized banks, study of rural and agrarian conditions, indebtedness, tenancy problems, etc.,

In 1920, there were 120 factories in the state, excluding cotton ginning and pressing mills. An industrial alcohol factory (1925), a soap factory (1919), the Shahbad Cement Factory (1925) and the Deccan Glass works (1927) were some of 105 the important units started up to 1930. During the Second World War, two metal factories, two cigarette factories (Charminar and Golconda factories), Nizam Sugar Factory (1939), Praga Tools Corporation (1943) and Allwyn Metal Works (1942) were established. After the War, Sirsilks and Sirpur Paper Mills at Sirpur were established. The expenditure on industries and commerce also gradually increased from 1912-13 onwards.

 

Current Scenario:-

The Industries & Commerce Department is under control of General Administration Department, Government of Telangana, Secretariat, Hyderabad. This Department is looking after the Sections like Mines, Handlooms & Textiles, Industrial Establishment – Sugar Industries & Commerce, Export & Promotion, INF & IP (Infrastructure & Industrial Promotion), MSME-FP- Biotech, Vigilance & IFR & Miscellaneous.

Industries

The development and promotion of industries is an important policy priority of the Government and in the year 2021-22, the sector contributed 20.40% to the state’s Gross Value Added (GSVA) at current prices, besides providing employment to 18.23% of the working population in the state (2019-20). Between 2020-21 and 2021-22, the GVA of the Industrial sector increased by 20.23%.

During 2020-21, Telangana exported merchandise goods worth Rs.64,539 crore. Pharmaceutical goods and Organic Chemicals constituted 65% of the total goods exported. The USA was the largest importer of goods from Telangana, importing over 26.3% of all exports by value.

T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) and T-PRIDE (Telangana State Program for Rapid Incubation Dalit Entrepreneurs incentive scheme) are important components of the state’s industrial policy.

While TS-IDEA is aimed at using subsidies to promote industrial development in Telangana, T-PRIDE is the state’s flagship programme to encourage entrepreneurship among historically marginalised groups like the SC and ST community, women, and specially abled persons.

Telangana was declared the 3rd most attractive destination for Doing Business in India by the World Bank in 2019-20. The state has built itself as a pioneer in the export and manufacturing sector. The Government intends to further strengthen its industry ecosystem through its manufacturing and employment centric approach to industrial development.

Since the formation of Telangana in 2014, several steps have been taken to foster an investor-friendly climate. The introduction of TS-iPASS, the creation of industrial parks with plug and play facilities, provision of competitive concessions to attract and retain investments, and the development of a skilled workforce have been accomplished by pursuance of the industrial policy by the Government.

 

Framework of future policy:-

  1. Enhancing the competiveness of the sector through appropriate policy to make Telangana the most preferred destination for the Industry,
  2. Attracting new investments worth Rupees 20,000 crore (approximately USD 3 billion) in the sector by 2020,
  3. The state proposes to capture 20 percent share of the $100 billion market opportunity of India by 2025 with $13.5 billion share by 2020,
  4. Exports target of Rupees 50,000 crore by 2020,
  5. Creating an additional employment opportunity for 50,000 skilled personnel in the sector,
  6. Promoting applied R&D and innovation through bridging the gap between industry, academia, and R&D institutions
  7. Promotion and strengthening of quality infrastructure,

To achieve these objectives, the Policy will utilize nine specific policy instruments:-

  1. Simplification of regulatory approvals,
  2. Infrastructure
  3. Incubation and Funding
  4. Capacity building
  5. Incentives
  6. Market penetration
  7. Investment promotion
  8. Optimum utilization of government of India schemes
  9. Private sector partnership

 Telangana Export

In 2020-21, Telangana sold Rs. 2,10,081 crore worth of goods and services to the international markets, accounting for 21.4% of the state’s nominal GSDP.

A majority of these originated in the services sector, which made up 69.3% of all exports by value. In addition, Telangana also ranked second among all landlocked states on the Export Preparedness Index compiled by the NITI Aayog in 2020.

During 2020-21, Telangana exported merchandise goods worth Rs.64,539.42 crore. Pharmaceutical goods and Organic Chemicals constituted around 65% of the total merchandise exports

Telangana’s export merchandise is directed towards the USA (26.3%), China (6.8%), and Russia (4.0%).

 

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