Telangana Unveils New MSME Policy, Allocates ₹4,000 Crore for Development

The Telangana government has announced plans to invest ₹4,000 crore over the next five years to boost the Micro, Small, and Medium Enterprises (MSMEs) sector. Unveiling the Telangana MSME Policy 2024 on Wednesday, Chief Minister A Revanth Reddy emphasized the state’s commitment to accelerating the growth of MSMEs through various initiatives.

According to the new policy, the government has identified six key areas for improvement to drive MSME growth: availability and affordability of land, access to finance, raw material availability, labour market flexibility, technology adoption, and market access. The state aims to establish over 25,000 new MSMEs in the next five years.

The policy includes measures to facilitate the transition of self-help groups (SHGs) into MSMEs by offering end-to-end support. Additionally, the government aims to strengthen Telangana’s position as a leading exporter by focusing on import substitution.

A procurement policy is also being drafted, which will prioritize MSMEs, particularly those owned by SC/ST and women entrepreneurs. The Department of Industries and Commerce will establish a monitoring mechanism within three months to oversee the implementation of this preferential procurement scheme.

In line with promoting green technologies, the government will offer incentives, such as an additional 15% floor area for MSMEs that install solar photovoltaic plants, solid waste management systems, or achieve a 3 to 5-star rating for green building integrated habitat assessments.

The government is also working to increase e-commerce penetration among MSMEs by encouraging participation on platforms like the Open Network for Digital Commerce (ONDC) and Government e-Marketplace (GeM). To support this effort, awareness workshops will be conducted in collaboration with industry associations and the Government of India to educate small businesses about these opportunities.

The policy is designed to transform Telangana into a hub for MSME innovation and sustainability, ensuring the sector thrives in a competitive and evolving market.

Disclaimer: The information provided in this article is based on updates and reports gathered from various sources. Every effort has been made to ensure accuracy and reliability. We encourage readers to verify the details independently before making any decisions.