Rs.600 Cr to be earmarked to support MSMEs in Telangana: Govt.

Explaining in detail the MSMEs growth in Telangana, the government said the MSME sector in Telangana was highly resilient and has shown significant growth. Since 2014, MSMEs in Telangana have shown a positive trend of formalisation as annual registrations on the TG-IPASS portal have increased by 11 to 15 per cent annually.

MSMEs have seen a rise in average investment from Rs.1 crore in 2018 to Rs.2.15 crore in 2022. A highly encouraging social and gender diversity among MSME owners is visible in Telangana compared to other States.

The MSME policy is designed to achieve inclusive and diverse employment, equitable growth, scale-based graduation, technology upgradation, and improved productivity. Through this policy, the government has set out to achieve specific outcomes, along with outlining indicators to measure progress.

The government hopes to develop inclusive businesses that create opportunities for all regardless of identity, integrate technology to usher in the era of 'Industry 4.0', and unlock growth for the MSME ecosystem in the State.

Six thrust areas for improvement:

To accelerate the growth of MSMEs, the government has identified six thrust areas for improvement -Improving availability, accessibility, and affordability of land; facilitating access to finance; ensuring easy access to raw materials; iImproving flexibility in labour markets; encouraging adoption of technology; and enhancing access to markets.

End-to-end support from Startup to Sales:

The policy envisages 40 measures to offer end-to-end support from the startup to sales phase. It is proposed to enhance state infrastructure through dedicated MSME parks and private flatted factories, offer fiscal support especially to SC/ST and women-owned MSMEs by increasing the incentives offered under other industrial policies.

The policy is also aimed at improving access to traditional and alternative sources of credit, develop best-in-class testing centres and warehousing facilities in the state, expand the pool of skilled workforce, earmark a special fund for technology transfer and modernisation in the MSME sector, enhance market access by incentivising local procurement and increased e-commerce participation, and improve ease of doing business in the state.

Effective Implementation and Monitoring Mechanism:

To ensure effective and efficient implementation of the policy, the government has developed implementation and monitoring mechanisms. The government proposes to establish an MSME wing to provide 24X7 dedicated support to MSMEs in the state.

A high-level steering committee will be established under the state leadership to monitor delivery on commitments and set policy direction. The government has earmarked Rs.600 crore over the next five years to support these initiatives for MSMEs.