Telangana State Budget 2024-25: CII Telangana urges govt to set up 5 logistics parks in State

Budget Recommendation

• Increased investment in agri mechanisation, storage, data-driven farming suggested
• Focus on MSMEs with specific funds, incentives for exports, exclusive parks urged
• Skill development university, revamped ITI curriculum, skill development programmes for mfg proposed
• Budget allocation sought for enhancing women’s health and safety

Hyderabad: As the State government will hold its first budget session in February second or third week, the Confederation of Indian Industry (CII) Telangana Chapter has recommended establishing 4-5 logistics parks in dispersed areas where trade/exports are concentrated in the State. A comprehensive logistics park plays pivotal role in the economic development, CII Telangana Chairman C Shekhar Redddy said.

In a suggestion made to Telangana government on budget, he said: “As part of our ongoing efforts to support the State government in its policy formulations, we are happy to share the industry suggestions for the upcoming State Budget 2024-25. These recommendations can be part of a broader economic or industrial development plan within the State budget.”

Recognising the immense potential of startups in our State, the government shall implement subsidies aimed at supporting the startups to participate in international conferences and trade shows, which will provide them with the necessary financial assistance to showcase their innovations on a global stage, the CII Telangana recommended.

The allocation of funds for agriculture stands as a pivotal investment in the future. Two important points regarding the future of the agricultural sector are mechanisation and storage infrastructure. Increased investment in these areas is crucial for boosting efficiency, productivity, and resilience. The CII also suggested data-driven agriculture and subsidies for micro/ drip irrigation.

The micro, small & medium enterprises (MSMEs) are pivotal contributors to economic growth, innovation, and job creation, playing a distinctive role in the industrial landscape. Allocating funds specifically for MSMEs under industrial development will empower them to thrive, leading to a more resilient and dynamic economic ecosystem fostering entrepreneurship and innovation. With timely access to incentives and subsidies, the MSMEs can compete more effectively in the market, enhancing the overall competitiveness of our industrial sector.

“By introducing incentives for export-oriented activities and establishing exclusive industrial parks for the MSMEs at affordable rates, we can stimulate economic growth, create job opportunities, and enhance the global competitiveness of the manufacturing enterprises in the State,” RS Reddy, Convenor of MSME Panel, CII Telangana, said in a statement.

The capital subsidy should be increased from 15 per cent (SME) up to Rs 20 lakh. The North Eastern States of India benefit from GST (Goods & Service Tax) refund as a percentage of Central tax paid or as a percentage of IGST paid (in excess of Input tax credit availed). Telangana also can devise a similar scheme by suitably modifying the incentive percentage, he suggested.

Reddy further said, “Telangana is having many industries in manufacturing sector and large number of MSMEs. The manufacturing industry production in the State is growing substantially. The ‘ITI’ (institutes) required to be strengthened. The curriculum needs to revamp in view of the changed requirements of the industry.”