Telangana set to witness steep growth in exports

The TRS government has unveiled a new export strategy, which aims to achieve Rs 1,50,000 crore exports by 2019-20 from the estimated present share of around Rs 1,00,000 crore. Setting up of large projects such as Pharma City, Medical Devices Park, Automobile, Textile, Plastic, Spices and Seed Parks etc., as well as framing of conducive policies is expected to unleash the state’s potential for rapid growth in exports and generation of jobs as well

The World Bank's ranking of Indian states on the ease of doing business has sparked an unexpected competition of sorts among the states of India. The Government of Telangana State is determined to create an ecosystem in which the ease of doing business in the state matches and even exceeds the best global standards. It has unveiled a new export strategy, which aims to touch the exports of Rs1,50,000 crore by 2019-20 from the estimated present share of around Rs1,00,000 crore.

Telangana has adopted a proactive policy that enables exports of Rs 2,25,000 crore by 2019-20, and expects to reach Rs 2,00,000 crore comfortably. In view of the ambitious target of doubling exports, state shall unleash intense efforts such as setting up of a few large projects such as Pharma City, Medical Devices Park, Automobile, Textile, Plastic and Spices Parks, etc., and also provide effective regulatory and supportive institutional framework.

Telangana is drawing an ambitious plan to make every exporter fully acquainted with the global export market trends and policies of the various trade partners. It also plans to unveil a new IT policy to make Hyderabad the most attractive IT destination in the country and increase IT/ITES exports, besides creating new jobs. It has unveiled a Seed Export Policy to boost seed industry and establish a ‘seed valley’ to meet the industry needs.

The global seed industry currently stands at $37 billion with conventional seed share at $19 billion and that of the Genetically Modified (GM) seeds at $18 billion. While the domestic market of India stands at $2 billion, exports from India stand at $360 million. The seed export industry is expected to rise to $600 million in the next five years.

Telangana can become the seed export hub of India as it has congenial weather conditions. Telangana plans to establish a seed export promotion council and a seed valley for this purpose, in addition to framing regulations that match the seed demand and regulations of various countries, as GM seed has good potential for export.

In Telangana, temperature and humidity is seed-friendly that would help scaling up the production and field seed production experience among farmers in Karimnagar, Nizamabad and Warangal districts will come as handy in meeting the export market.

The exports of the composite state of Andhra Pradesh, which includes Telangana, in the year 2013-14 stood at Rs1,49,800 crore and the percentage of share of Telangana is estimated at 72% is Rs 1,07,923 crore, of which IT/ITES exports constitute Rs 51,300 crore and drugs and pharma exports Rs 27,972 crore.

The exports from Telangana in 2013-14 clearly point to success of previous strategies and policies. Due to rapid development of Hyderabad and its surrounding areas, Telangana has been at the forefront of IT& ITES, pharma, engineering and gems & jewellery exports. The IT/ITeS exports of Telangana shot up 15.7% in 2014-15 to Rs 66,276 crore from Rs 57,258 crore in the previous year.

IT is one of the fastest growing sectors in Telangana, contributing around 21% share in the total GSDP of the state. The central government has announced setting up of an IT Investment Region (ITIR) near Hyderabad, which has a potential of generating 1.5 million direct and 5.3 million indirect jobs in the next five years.

The state aims to double its IT/ITeS exports in the next five years to around Rs 1.2 lakh crore. IT/ITeS exports growth outstripped the national IT/ITeS exports growth rate of 13%. Interestingly, the IT-BPO sector contributed 21% to the total GDP of Telangana as compared to 8.1% of India's GDP.

On the job front, the IT/ITeS industry added 50,000 direct jobs in 2014-15, taking the total number of jobs to 3,71,774 from 3,23,396 in 2013-14. To boost the growth of the IT/ITeS sector, the state government has already notified two electronics manufacturing cluster- eCity and Maheshwaram electronics manufacturing clusters - close to the Outer Ring Road and Hyderabad international airport.

The state government aims to train 15,000 youth for the ESDM (electronic system design and manufacturing) sector. Besides, it will support entrepreneurs through various initiatives such as T-Hub and Innovation Fund. In the coming days, the state will work towards providing services via mobile governance (m-governance) as against e-governance.

The exports of drugs, pharmaceuticals and allied chemicals along with exports of plastics stood at Rs 29,360crores growing at 42% over previous year. While the sector experienced minor setback in 2009-10 due to global slowdown, the performance bounced back smartly during the subsequent years.

The state accounts for around 25% of the country’s manufacturing and exports of pharmaceutical sector. The sector exports account for nearly 50% of the states IT exports. The sector accounts for 43.4% of the state’s manufacturing sector GDP or 4.79% of the state’s GDP in 2011-12 at factor cost at market prices.

The Telangana government has ambitious plans to produce around Rs 20,000 crore worth fish for local consumption and also for export purposes by restoring about 45,000 tanks under Mission Kakatiya for fish production.

To make Telangana more competitive exporter, GOI has sanctioned a riverine port on the banks of the Godavari at a site that is well-connected to a national highway and the railway routes, from where goods could be sent to the Kakinada port through an inland waterway. (The writer is a deputy statistical officer at the Telangana Secretariat)

By G Rajendera Kumar