Hyderabad: In a major boost to the Micro, Small, and Medium Enterprises (MSME) sector, the Telangana government has announced an ambitious plan to invest Rs 4,000 crore over the next five years. The announcement came during the unveiling of the "Telangana MSME Policy 2024" by Chief Minister A. Revanth Reddy. The policy aims to accelerate the growth of MSMEs in the state, recognizing their critical role in job creation and economic development.
Key Objectives of the New Policy
The new MSME policy focuses on six key areas identified by the state government as crucial for creating a conducive business environment. These areas are:
1. Improving Availability, Accessibility, and Affordability of Land: The government aims to set up dedicated industrial parks and provide land at subsidized rates to MSMEs, streamlining the land allotment process to promote ease of doing business.
2. Facilitating Access to Finance: The state plans to collaborate with financial institutions to offer hassle-free loans. A dedicated ‘MSME Credit Support Cell’ will provide financial counseling and loan facilitation.
3. Ensuring Easy Access to Raw Materials: To manage raw material costs, the policy will establish bulk purchase programs and raw material depots in key industrial zones.
4. Improving Flexibility in Labour Markets: Labor reforms, including skill development and ease of hiring processes, aim to create a dynamic labor market for MSMEs.
5. Encouraging Adoption of Technology: Subsidies for digital innovation, automation, and e-commerce will be offered through a dedicated MSME Digital Innovation Fund.
6. Enhancing Access to Markets: Trade facilitation centers and online B2B platforms will help MSMEs reach domestic and international markets. The ‘Telangana MSME Export Accelerator’ program aims to increase exports.
Investment of Rs 4,000 Crore for Holistic Development
Chief Minister Reddy emphasized the plan to invest Rs 4,000 crore in initiatives aimed at creating a favorable business environment. The policy includes provisions for women entrepreneurs, startups, and green industries, with incentives such as reduced GST and infrastructure grants.
Supportive Infrastructure and Ecosystem
Dedicated MSME hubs will be established in cities like Hyderabad, Warangal, Karimnagar, and Nizamabad, featuring incubation centers, R&D support, and advisory services.
Focus on Job Creation and Economic Growth
With an aim to create over 5 lakh jobs in the MSME sector within the next five years, the policy seeks to boost Telangana’s industrial output by 30%.
Conclusion
The "Telangana MSME Policy 2024" is a comprehensive framework designed to strengthen the MSME sector, fostering growth and resilience among small businesses in Telangana.
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