MSME Sector In Telangana
Industrial sector contributes around 24% to the State GDP providing employment opportunities to 17.8% of the Work Force. It has diversified industrial base with thrust on high tech sectors including Nano-technology, bio-technology and Electronic Hardware manufacturing. At the core of its policy is manufacturing and developing Brand Telangana streaming to Make-in –India.
Manufacturing sector contributes to 55% in the total industrial sector of GVA in the state. At 2011-12 constant prices, the industrial growth recorded 9.5% in 2015-16. We hope to reach 10% in the current year and would have exceeded but for the demonetization affecting the MSMEs most.
It is important to note that the State has preponderance of the corporate sector – 89% of the net value addition is in corporate sector. This is the main reason for a specific focus on the MSME Sector. The cursed NPAs in the sector mounting to Rs.50000cr at the end of December 2016 are no less concern than those of their elder brothers. Unhealthy corporate sector and healthy MSME sector can hardly co-exist in a growing economy.
Ecosystem for growth has stabilized in the State with the Ease of Doing Business getting topmost attention of the Government. The State took pride of place in EODB, ranking number one in the country within just one year graduating from the 13th rank. The State is not complacent. It is committed to enhancing the facilitation to entrepreneurs, particularly in the rural areas. The State is predominantly rural and also industrially backward and therefore, it is rightly focusing on the core manufacturing sector.
Industrial licenses are cleared the fastest – 30 days for MSMEs through TSiPASS and 15 days for the large industries. Industrial Guidance Cell and Facilitation Cell in the CoI office and chasing cell in the CMO ensure speed of delivery with no speed money tag.