Nearly six months after Telangana was born, the state government today unveiled a new industrial policy framework promising rationalisation of taxes and offering incentives, eyeing up to 5 per cent higher manufacturing sector growth than national average.
"Innovate in Telangana, Invest in Telangana, Incorporate in Telangana" would be the motto of industrialisation in the state, the government said.
The vision for the new state's industrialisation is 'Research to Innovation; Innovation to Industry; Industry to Prosperity'.
"It is strongly believed that with the new industrial policy in place, a growth rate of 4-5 per cent greater than the national growth rate in the manufacturing sector can be achieved," the policy document said.
To supplement Research and Innovation Circle of Hyderabad (RICH) and encourage innovation and incubation, the government would create a Research to Market Fund (RMF) to encourage entrepreneurial activity.
It would provide a matching contribution of up to Rs 100 crore to RMF for amounts contributed by private venture capitalists and angel investors.
The state government would remove and revise archaic and outdated laws that adversely impact industry and industrialisation.
The government noted that distortions in tax structure lead to evasion of taxes and clandestine transport of industrial inputs and outputs to neighbouring states, which may have advantageous tax rates.
"To address this problem, inter-state tax rationalisation on industrial inputs and outputs with states like Karnataka, Maharashtra, Gujarat and Tamil Nadu will be brought within a short span of time," the policy said.