370 projects under implementation in the state

Telangana state has beaten southern peers by achieving highest growth rate of 79% in terms of attracting investments from both domestic and foreign sources across different sectors between FY12-FY17, according to a recent study.

“Telangana has also surpassed national average growth rate of about 27 per cent in terms of attracting live investments between FY12 and FY17,” noted an analysis-cum-study conducted by apex industry body ASSOCHAM.

“Telangana had attracted total outstanding investments worth about Rs5.9 lakh crore as of FY17 which rose from Rs3.3 lakh crore worth of investments attracted by the region as of FY12,” said the study, ‘Telangana: Analysis of economic growth & investment performance’, which was released on 15 September 2017 in Hyderabad.

The study attributed the success to slew of measures taken by Telangana Government in terms of providing an investor-friendly business environment.

It accounted for 3.3% share in total investments worth over Rs.177 lakh crore and attracted by top industrial states across India as of FY17, highlighted the study.

Investment growth rate in Telangana has been 68.5% in fiscal years 2015-17, which is again more than the national average growth rate of 20.8%.

The state has registered considerable improvement from 0.6% per cent in FY13 and 5.6% in FY14 to about 24% in FY15, over 22% in FY16 and about 12% in FY17.

Over one-fourth of the total investments attracted by Telangana are in irrigation sector (28% share approx.) as of FY17. It is followed by non-financial services (25% approx.), electricity (18.5%) and manufacturing (11%).

The state has 370 projects worth about Rs.4 lakh crore of the total live investments under different stages of implementation.

Electricity sector leads with 85% of projects under implementation followed by non-financial services (76% approx.), mining (72.5%), irrigation (67.5%) and manufacturing (23% approx).

Telangana’s economy accounted for over four per cent share gross value added (GVA) across India as of FY17.

Telangana has also outperformed the national average in terms of economic growth.

“While in terms of year-on-year growth Telangana region’s economy grew from 2.7% in FY12 to reach 8.5% in FY17, the all-India average growth has grown from 5.4% to just 6.6% during the same period.”

Considering that over 55% of state’s total population of 3.5 crore (2011 census) directly and indirectly depends upon agriculture and allied activities for livelihood, the sector recorded about 15% year-on-year growth in FY17 after registering a negative growth of about 10% and over six per cent in FY15 and FY16 on account of deficient rainfall.

In terms of services sector’s performance, the growth has been sustainable i.e. from 8.4% in FY13 it grew to over 10% in FY17.

About 3% of state’s total population is engaged in industrial activity (2011 census) and after registering a negative growth of 7.5% in FY15 there has been considerable improvement as the state recorded industrial growth of about 10% and 4.1% in FY16 and FY17 respectively.

The study suggested that fast-tracking irrigation projects together with improving the productivity and yield in agriculture sector based on a public-private partnership model needs prime focus as a majority of state’s population is dependent upon this sector.

Besides, the state government should also lay more focus on further developing the industrial sector which is also a major avenue for employment generation, it pointed out.

The state government must also design policies to lure private investors in sectors like bio-technology, solar energy, tourism and others in order to generate more employment opportunities for state’s youth population thereby leading to improvement in people’s standards of living as these aspirations have mainly fuelled the formation of India’s 29th state. fii-news.com