Telangana To Unveil Six New Industrial Policies Post General Elections

Posted by Written by Archana Rao Reading Time: 3 minutes

India’s southern state of Telangana will introduce six new industrial policies to upgrade its industrial sector, boost economic development and job creation, and make the state more competitive on a global scale.

According to media reports, six new policies are set to be rolled out in the state of Telangana as it competes for investments for industrial development. The policies are: the MSME Policy, Export Policy, New Life Sciences Policy, Revised EV Policy, Medical Tourism Policy, and Green Energy Policy.

In order to grow the textile industry in the state, Telangana Chief Minister A. Revanth Reddy has also recommended developing rules that will assist local power loom and handloom workers. 

New policies to take advantage of Telangana’s strengths

Earlier this month, Reddy held a meeting with representatives of the Telangana State Industrial Infrastructure Corporation to discuss the need for a revised industrial plan.

Find Business Support
Identify the Optimal Investment Destination with Cross Country Competitiveness Benchmarking ⟶

The new policies pertaining to the medical tourism and life sciences industries aligned with Telangana’s goal to be a leading life sciences hub in Asia, currently housing more than 800 life sciences companies with a combined value of US$50 billion. 

The updated industrial policy framework will place a particular emphasis on growing capital-intensive industries that have the potential to increase employment opportunities in the state.

The state government is keen to update relevant policies to attract more investment and accelerate industrial growth in various sectors in Telangana, capitalizing on its high performing areas and expanding capacity and job prospects for locals.

As per the media reports, the new policies are expected to be announced by the first week of June.

Growing competition with other states

Telangana, largely known as the hub of pharmaceutical manufacturing and IT service exports, is in a race with neighboring states like Tamil Nadu and Karnataka to expand its industry portfolio to attract more diversified foreign investments.

In 2024, three major industry players announced their resolve to set up their units in Telangana with total investments worth over INR 220 billion (US$2.64 billion):

  • JSW Neo Energy, a division of JSW Energy, declared its intentions to establish an INR 90 billion (US$1.08 billion) pumped storage project in Telangana.
  • With an investment of INR 80 billion (US$ 962 million) spread over five years, GODI India Pvt Ltd will establish a manufacturing facility for giga-scale cells and related technologies, specializing in lithium and sodium ion batteries.
  • Web Werks has declared that it will invest INR 52 billion (US$625 million) to build data centers in the state.

D Sridhar Babu, Telangana’s Minister of Information, Technology and Industries, has a three-pronged plan for industrial development in the state. Under the new policy framework, the state will be divided into three clusters by the government:

  1. The semi-urban cluster, which lies between the Outer Ring Road and the Regional Ring Road
  2. The urban cluster within the Outer Ring Road (ORR)
  3. The rural cluster, which extends beyond the Regional Ring Road
Find Business Support
Learn about our Location Analysis and Site Selection services ⟶

Upgrading and releasing new industrial policies were among key campaign promises made by the now ruling Congress political party in the run up to the 2023 Telangana state assembly elections.

India’s 29th state of Telangana was formed on June 2, 2014, after which the first state government established the Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) by an Act in 2016. Since then, there had been no changes to the industrial policy.

Summary

The six new policies impacting MSMEs, exports, life sciences, electric vehicles, medical tourism, and green energy are expected to make Telangana’s industrial ecosystem more competitive and offer more attractive incentives to prospective investors. The state is already a prominent base in India for pharmaceutical manufacturing and IT service exports, but seeks to expand its industrial capacity and diversify sector offerings. The new industrial policies will be the first update since 2016, and are aligned with the state’s long term plans.

(US$1=INR83.09)

About Us

India Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Delhi, Mumbai, and Bengaluru in India. Readers may write to india@dezshira.com for support on doing business in India. For a complimentary subscription to India Briefing’s content products, please click here.

Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.