HYDERABAD: Exports from Telangana registered a growth of 10 per cent in the year 2018-19 as compared to the previous year, standing at $7.38 billion. This was announced by Israr Ahmed, the southern region head of the Federation of Indian Export Organisations (FIEO) while speaking at a seminar on the various issues and prospects of exports from the State, held in Hyderabad on Thursday.
While the 10 per cent year-on-year growth of exports is encouraging, Ahmed pointed out that more than half of the exports from the State, worth around $4.2 billion, were from the organic, chemical and pharmaceutical sectors, indicating a need for promoting exports in other industrial sectors as well.
He also stressed on the immediate need to look into the issue of high logistics costs in Telangana, due to it being a land-locked State. Ahmed said that as per a study conducted by the FIEO at the instance of Telangana State Trade Promotion Corporation (TSTPC), the cost of logistics ranges anywhere between 20-30 per cent in the State. He also pointed out the need for complete digitisation of the process for applying for the IGST and ITC refunds.
Speaking on the same, Director General and CEO of FIEO Dr Ajay Sahai said that the State needed to diversify its exports and must focus on some key sectors wherein it had high potential, such as the defence and aerospace. In fact, there are many companies from these sectors operating out of the city. He also highlighted the need for looking towards other areas like agriculture, food processing, natural stones and developing the in-house capability for valuation of cotton to boost exports.
Dr Sahai also said that drugs worth 250 billion Dollars market will be off-patented in the period of 2018-24, which would open up huge opportunities for drug companies based in Telangana to boost their exports. He also said that Hyderabad was poised to take over the tag of Silicon Valley of India from Bengaluru in a span of five years with a boost in its IT exports, which have already crossed the `1 lakh crore-mark.
Need for ICD at Nizamabad
Dr Sahai raised a long-pending demand of exporters in Telangana — the construction of an Inland Container Depot (ICD) at Nizamabad, which would prove helpful in easing logistical issues. The demand was resonated by exporters who took part in the seminar. He also stressed on the need for setting up food labs in Nizamabad and Zaheerabad, which would boost agriculture and food processing industries.
Issue of high logistical costs in State
Israr Ahmed stressed the immediate need to look into the issue of high logistics costs in Telangana, due to it being a land-locked State. Ahmed said that as per a study conducted by the FIEO at the instance of Telangana State Trade Promotion Corporation (TSTPC), the cost of logistics ranges anywhere between 20-30 per cent in the State. He also pointed out the need for complete digitisation of the process for applying for the IGST and ITC refunds.
Meanwhile, Dr Ajay Sahai raised a long-pending demand of exporters in Telangana - the construction of an Inland Container Depot (ICD) at Nizamabad, which would prove helpful in easing logistical issues