Telangana achieved a growth rate of 79% in terms of attracting investments between 2011-12 and 2016-17, a study by industry body Assocham said, attributing the performance to a slew of measures initiated by the State government for an investor-friendly business environment.
The rate of growth has catapulted Telangana, the youngest State of the country, to the top in the southern region and way ahead of the national average growth rate of 27%, the study whose details Assocham secretary general D. S. Rawat shared with presspersons here on Thursday.
Highest growth
Noting that the State has beaten its southern peers by achieving highest growth rate of 79% in terms of attracting investments, from domestic and foreign sources across different sectors, the study said: “The State recorded [a] robust growth. Since its formation, the investment growth rate has been significant.”
Telangana attracted total outstanding investments of about ₹5.9 lakh crore as of March 2017 or 79% more compared to the ₹3.3 lakh crore the region saw in FY-12, said the ‘Telangana: Analysis of economic growth and investment performance’ study.
Total investment
The State accounted for 3.3% share in total investments of over ₹177 lakh crore attracted by top industrial states across the country as of FY-17, the study by Assocham Economic Research Bureau said.
The rate of growth in investments, year-on-year, moved up from a mere 0.6% in FY-13 to 5.6% in FY14; about 24% in FY-15; over 22% in FY16 and about 12% in FY17.
The study said 370 projects with investments of around ₹4 lakh crore are under various stages of implementation. Electricity sector has the major share of 85% in all projects under implementation in the State, followed by non-financial services, mining, irrigation and manufacturing.
New projects
In its suggestions, Assocham said Telangana, whose GSDP is highly focused on the services sector, ought to plan for developing agriculture and industrial sector as they are major avenues for employment generation. “With more than 55% of the population being dependent on agriculture, improving the productivity and yield of agriculture coupled with fast tracking irrigation projects is required.”
The industry body said the State need to focus on using public investment exclusively for development of primary sector and private investment for industry and services sector. Promoting public-private partnership model in development of road and rail network, utilities and port would provide much needed push to growth.
Calling for effective implementation of investments, the study said completion of ongoing infrastructure projects and taking up new projects would help bridge the divide between Hyderabad and other parts of the State. A strategy to take the growth to other parts of Telangana has to be rolled out, it said.
