Center ignores Telangana, companies wringing their arms to choose locations like Bundelkhand: KTR

Posted: Posted Date – 7:26 PM, Wed – Mar 2, 22

Hyderabad: Aerospace and defense companies that want to implement a China plus one business model or move from China to India are encouraged by the Center to choose the Bundelkhand region for their operations, the Minister of Industry and Information Technology, KT Rama Rao.

Such an attitude from the Center has caused Telangana to lose a potential investment here. “A large aerospace and defense company wanted to leave China and set up in India. But the union government turned its arm around to settle in Bundelkhand. The company did not want to go there, but preferred Hyderabad. “If a company or an investor does not get an appropriate response, they will look to other countries,” he warned.

Rama Rao also recalled another case in which the defense industrial production corridor was decided in favor of Bundelkhand. “We requested that this corridor be put in place between Hyderabad and Bengaluru as both cities have defense public sector companies and aerospace and defense ecosystems in place. This would have allowed the industrial cluster to take off. However, the Minister of Defense has said that the decision on the location has already been taken,” he told the CII Telangana State Leadership Summit on Wednesday.

Arguing that he wanted Uttar Pradesh to grow, he wondered if UP was able to attract a Lockheed Martin or a Sikorsky or a big aerospace company and give them the confidence to get off to a flying start? “If you really want India to prosper and grow, support states that are doing well and those that have ecosystems in place,” he said.

He said states could not be preferred based on the number of MP seats they have. “We can’t say UP has 80 MP seats so we will focus on that. Telangana has 17 seats so we won’t do it here,” remarked pointing out that Telangana was also part of India He pointed out that Hyderabad was not in competition with Bengaluru, Delhi or any other state but it was in competition with Malaysia, Indonesia, Vietnam to attract players from India. electronics, textiles and other industries.

Although India and China had economies of similar size in 1987, China’s GDP has now reached $16 million, about six times larger than India’s at $2.6 billion. China developed because it chose to set up industrial clusters on 50,000 to 70,000 acres. India’s largest pharmaceutical cluster stood on 14,000 acres in Hyderabad. Telangana has also set up the largest textile park in Warangal at 1,200 acres. “We asked GoI to support us in these projects,” said Rama Rao.

Although India was keen to push Make-in-India, it did not back it up with the right policies. India depended on China for APIs used in the manufacture of drugs and even masks and PPE kits. “If China had closed shop if China had said no during the pandemic, I think the industry would have suffered a lot. Masks and PPE are cheaper to import than to make them here. Automakers are not in able to meet demand due to chip shortages.”Small countries like Taiwan and Singapore were able to create multiple fabs, but India was not,” he said.

Indian production of textiles and clothing represents only 4% of world production and even lags behind Bangladesh and Sri Lanka. “With such a large workforce and a sector with vast potential for job creation, can’t India have a textile policy to run these centers in tier 2 and 3 cities or even cities? smaller towns and hinterlands. Can’t we have some in UP, Madhya Pradesh, Bihar and other states that continue to hold us back in terms of growth? It’s because of the strategic inability to come up with innovations, the inability to rethink ourselves. UP has a population of 22 crores and its contribution to GDP is 15%. Telangana, which has a population of four crores, contributes 5% of the GDP,” he said.

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