Impressive Industrial growth in Bangaru Telangana

The dreams of people of Telangana to live in a state of their own and to develop it in
accordance with their hopes and aspirations came to a reality on the historic day of
2nd June 2014, with the formation of the 29thState of the Indian Republic. This tryst
with destiny is just the beginning and a lot of fundamental rethinking and effort is
needed to carve out an enduring future for all. The Vision of the State has to reflect
the native wisdom of the people to harness the local resources optimally and in the
fastest manner possible. States play a major role in boosting India’s growth. This increase
in the level of growth can be attributed to a number of factors like exports, investments,
development of skilled labour force, inflation, institutional quality etcConsidering the
recent emphasis by the Central Government on state level promotion of exports, it becomes
important for each state to develop a strategy in its major product groups. The reason
for emphasis on involvement of states for promotion of exports is the desire for
all-inclusive growth in exports in the country.The Government of Telangana is of the firm
view that industrialization holds the key for higher and sustainable growth leading to
growth of exports.The Government of Telangana has recently unveiled an investor friendly
industrial policy, which is receiving applauds from the Industrial community and being
treated as the best policy in the Country. Each state in the country possesses a production and trade advantage in a particular product. For example, Uttar Pradesh has an advantage in Handicrafts, Leather articles, Brassware etc; Rajasthan exports Gems &Jewellery; Karnataka manufactures products of minerals, electronic items and chemicals.

Thus, there arises a need to assess state specific products for which the state should take steps for enhancing exports. The newly formed state of Telangana has a big task of making its mark in the field of exports. It is a state enriched with huge potential of Industries & Natural Resources which can be a catalyst in promoting exports from it.

The state has large amounts of land available as well as clusters which cater to the production of auto components and spare part s as well as textiles. Telangana



region has rich natural resources. Telangana region is having large amount of forest area and 20 per cent of the country's coal deposits in the country. Telangana is also rich in limestone deposits that cater to cement factories. Telangana has other mineral resources like Granite, bauxite and mica. Telangana has a significant amount of Software exports in India. While majority of the Industry is concentrated over Hyderabad, the other cities are also becoming significant IT destinations in the state. Hyderabad's IT exports exceeded $7 billion in 2014.There have been extensive investments in digital infrastructure.Under this economic scenario, the State of Telangana would now have to examine its economic strategies and policies to become vibrant state in the globally competitive scenario. The framework for the new Telangana Government is to enable its export strategies. International economic theories and global experience point to various strategies such as focusing on resource endowed with, focusing on lime light industry, etc., and clearly point out the importance of foreign trade welfare maximization can be achieved through. In the modern economic order all economies all interlocked and effect of one economy is felt over others as well. This calls for a strategy that also insulates the economy from such negative effects. Export Strategy cannot be viewed in isolation but is embodied in various strategies and policies of the government such as Industrial Policy, Monetary Policy, infrastructure development, Human Resources Development and various other policies. Any exports strategy has to effectively reduce import dependency while encouraging healthy domestic manufacturing. It is not export enhancement as such that results in positive foreign exchange flows but surplus of exports over imports. It is therefore, that we understand Exports Strategy synonymously with foreign trade policy. Often it is the experience of the regulators that in the second and third stages of development of an export oriented economy, while exports seemingly decline, foreign inflows increase. This is due to investments of domestic entrepreneurs in foreign business stablishments which initially results in financial outflows and is followed by subsequent reverse flows of foreign currency in the form of profit repatriation.