Minister for Industries, IT and Urban Development K. T. Rama Rao has stated that economic strength of State is the driving force of the country’s economy and urged the Centre to encourage States to compete at international-level in the economic growth.
Participating in a video conference, along with Minister for Finance T. Harish Rao, conducted by Union Finance Minister Nirmal Sitharaman on Monday night he said Telangana was among the top four States in the country which were contributing most to the country’s GDP. Encouraging States having capability to grow fast by the Centre would help strengthening the country’s economy.
The ministers from the State put forward the views of Telangana at the virtual meet on the faster economic growth. Special Chief Secretary (Finance) K. Ramakrishna Rao, Principal Secretary (Industries) Jayesh Ranjan, Economic Advisor to the State Government G.R. Reddy, Secretary (Finance) T.K. Sridevi and other attended the meeting.
Quoting a recent report of the RBI Mr. Rama Rao said Telangana, which came into being just 7 years back, having 2.5% of the country’s population was contributing 5% to the country’s GDP. The per capita income in Telangana was ₹1.24 lakh in 2013-14 but it had increased to ₹2.37 lakh in 2020-21. Similarly, the GSDP had gone up from ₹5 lakh crore to ₹9.8 lakh crore during the period.
Stating that the economic slowdown had continued for 8 quarters from the beginning of first quarter of 2018 and the investment percentage in GDP had come down to 29.3 in 2020-21 from 39 in 2011-12, the two ministers requested the Centre to improve the investment climate as several countries were interested in investing in India after the COVID breakout in China.
Highlighting the contribution of MSMEs up to 30% to the country’s GDP, they urged the Centre to extend the production linked incentives (PLI) to the sector. The Centre’s decision to shift setting up defence industrial corridor between Bengaluru and Hyderabad to Bundelkhand region in Uttar Pradesh had hit the growth in the defence production sector.
They also urged the Centre to sanction dry ports to land locked States such as Telangana to encourage exports. They also sought tax incentives for industrial promotion under Section 94 (1) of AP Reorganisation Act, release of ₹900 crore funds meant for backward districts under Section 94 (2) of the same Act. They sought release of special grants recommended by the 15th Finance Commission to Telangana.
