By Ananya Singh
Telangana’s economic growth has surpassed the national average, yet again. With a policy focused on boosting investments, the state recorded a growth rate of 10.1% in 2016-17 against the national average of 7.1%. The IT Minister of State, K T Rama Rao, attributed this rapid growth to measures undertaken by the Telangana government to boost the state’s economy.
Attracting investors requires a well-rounded policy framework. States must strive to understand the role infrastructure plays in development. As Telangana’s ‘Socio Economic Outlook 2017‘ states, “The government is giving highest priority to irrigation, electricity and transportation infrastructure.” The industrial policy of Telangana has also achieved international acclaim. Swift processing and competent management of project proposals have attracted domestic and global investors alike.
Boosting investment through Ts-iPASS
The most notable measure employed to promote investment remains the Telangana State Industrial Project Approval and Self-Certification System (Ts-iPASS) Act 2014. It employs a model that ensures adequate regulation of the business environment. The Act brings under its purview all departments concerned with the establishment of enterprises. It streamlines the process of setting up industries through a single application form. Further, departments must inform industrialists of any reasons for a delay, thereby increasing transparency.
Investors can acquire project clearances within set time limits. Mega projects exceeding Rs 200 crores will be cleared within 15 days, whereas others have a deadline of 30 days. A delay in clearance will result in penalties. The Act also provides for automatic approval through self-certification. Through the first online approval system in India, the clearance mechanism has been restructured to achieve maximum efficiency. This move allows the state to attract large-scale investments, increasing accountability in the process.
Apart from creating an investor friendly environment in the state, the Telangana government also introduced schemes to stimulate investments. These incentives target different sections of industrialists.
T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) encourages new entrepreneurship by providing special incentives to businessmen and women. The scheme aims to diffuse risk associated with setting up a new enterprise. Likewise, T-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) develops opportunities among lower caste communities.
Telangana’s policy speaks of inclusive growth. Agriculture, being the primary sector provides employment to the rural population. To improve infrastructure and productivity, the government undertook various major and medium irrigation projects. They also introduced ‘Mission Kakatiya’ to undertake repair work on irrigation tanks.
The state undertook a 100% electrification project. It also increased power generation capacities to meet electricity demands. The state’s solar power policy aims to harness energy from non-conventional sources. It encourages dispersed solar energy generation and boosts investment in solar power plants. The Telangana government has also focused on infrastructural development. Repair of around 4,000 km of roads in the state is underway. To ease traffic congestion, the Metro rail project has picked up pace. The government also aims to improve road connectivity and convert state highways to national highways.
Telangana is a major exporter of information technology enabled services. The government introduced Telangana IT Policy, 2016 to enhance the industry’s performance by providing state-of-the-art infrastructure. While other states suffered under the demonetisation drive, Telangana managed to survive the storm by adapting to the new digital economy. They introduced “T-Wallet” which serves as the official portal for both government and private transactions.
Administering rapid growth
After its formation, Telangana has focused on regaining and amplifying its growth momentum. The government has been proactive in launching an industrial policy. The Ts-iPASS Act has increased investor confidence. It has also created a regulatory framework that encourages entrepreneurship.
Further, the government has reformed infrastructure in the state. These developments heighten various benefits to investors. An increase in transparency and generation of employment opportunities have catalysed the state’s growth.
Policies can produce results only through responsible action taken by the administration. Securing a double-digit growth rate has established Telangana as a hub of business activity on the country map.
Featured Image Source: Visual Hunt
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