Telangana to provide ₹4,000 crore to build inclusive businesses, usher in Industry 4.0 

Telangana government allocates ₹4,000 crore for inclusive businesses and Industry 4.0, aiming to boost MSMEs and entrepreneurship.

Telangana government proposes to set aside ₹ 4,000 crore over the next five years to build inclusive businesses and usher in the era of Industry 4.0 in the State, according to its MSME Policy that was launched on Wednesday by Chief Minister A. Revanth Reddy.

Over the next five years, the government proposes to dedicate ₹4,000 crore to build inclusive businesses and usher in the era of Industry 4.0. During the same timeframe, it estimates 25,000 MSMEs to take shape. The aim is also to give wings to 15,000 SC/ST and women entrepreneurs. Another measure proposed in the policy is to establish an MSME wing to provide round-the-clock support to micro, small and medium enterprises. It is poised to be a crucial component of an implementation and monitoring mechanism of the new policy.

A high-level steering committee is also to be established under the State leadership to monitor delivery on commitments and set policy direction. According to the policy document, the government has earmarked ₹600 crore over the next five years to support these initiatives for MSMEs. Among other measures the new policy has proposed include introduction of MSME-focused courses at the upcoming Young India Skills University such as advanced manufacturing techniques, industrial management and operations to address the shortage of skilled manpower for the enterprises.

The State government also proposes to integrate job and apprenticeship opportunities with the Digital Employment Exchange of Telangana platform to reduce search cost of labour. Master plans imposing restrictions on worker hostels in industrial zones will be reviewed and construction of worker hostels will be taken up on a PPP Model. Labour law compliances will be simplified for MSMEs.

The policy document showed that the National Sample Survey in 2015 estimated the number of MSMEs in the State at 26 lakh units. Annual registration of new MSME units on the TG-iPASS (formerly TS-iPASS) portal has risen by 11-15% annually from FY 2014 to FY 2023. The State government plans to pursue various growth targets on the back of the policy document, particularly inclusive employment, equitable growth, technology modernisation and enhanced productivity. It estimates 10% increase in MSMEs contribution to the GSDP and a 15% year-on-year growth in number of such enterprises registered on the TG-iPASS.