15th July 2022 | Industry and Service sectors: Industrial development; Structure and growth of industrial sector, Micro Small and Medium Enterprises (MSME) sector, Revival of sick industries; Industrial infrastructure.

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Number of questions- Mains: 02, Prelims – 10

Mains Questions of the day:  

1.  Food Processing industry of Telangana has been recognized as one of the thrust sectors of Telangana state in the industrial policy framework of 2014. Explain its significance. 

Introduction:

Mention the present condition of Food processing sector of Telangana.

Body:

Mention the reasons why Food Processing industry of Telangana recognised as one of the thrust sectors of Government policy.

Conclusion:

  • Telangana was declared the 3rd most attractive destination for Doing Business in 2019. 
  • The state has built itself as a pioneer in the export and manufacturing sector. 
  • The Government intends to further strengthen its industry ecosystem through its manufacturing and employment centric approach to industrial development. 
  • Since the formation of Telangana, several steps have been taken to foster an investor-friendly climate. 
  • Telangana Government is expanding its support to high growth potential sectors such as food processing and textiles in order to make the state an export hub in these sectors.

Content:

  • Food processing has been identified as one of the 14 thrust sectors for the state in the industrial policy framework of 2014. 
  • Currently, Food processing industry in Telangana processes 25% agri & allied output by value and adds 12.5% in value. 
  • Telangana has a rich agri-food raw material base. 
  • Telangana was ranked first across the country for production of turmeric and sweet orange in 2015. 
  • Further, Telangana has well-established poultry and seed business. 
  • Moreover, it has huge potential to promote inland fisheries, organized meat processing, greenhouse and exotic vegetable cultivation in the state.
  • To add value to agro-products and to maintain and expand the existing strengths as well as to partner with the national Food Processing Mission, there is a need for encouragement in this sector. 
  • There are numerous subsidies, policies and schemes that state has introduced to support the sector. 
  • There are few major food park projects with integrated cold chains.
  • The state intends to expand the presence of such parks across other districts in the state. 
  • To extend the scope and growth of food processing industries in the state, the Telangana Government introduced a Food Processing and Preservation Policy in 2021. 
  • The primary aim of the policy is to create Special Food Processing Zones (SPFZs) in the state. 
  • In order to attract food processing industries, the state has offered power rebates, reimbursements to Agriculture Produce Marketing Committees (APMCs), capital grants, land cost rebates, and other benefits to the establishments within the SPFZs. 
  • It aims to attract the capital investment and provide a livelihood to Telangana people.

2. Discuss the significance of MSMEs to Telangana’s Economy. Mention the government’s measures to promote the same. 

Intro: Discuss the status of MSMEs in Telangana. 

Body: Discuss the significance of MSMEs and Measures

Conclusion:

Write the way forward- What further measures can be taken

Content: 

It is estimated that Telangana is home to about 2.6 million MSMEs, out of which 56% are in rural areas and 44% in urban areas. 

As many as 63.388 Million registered MSME units have commenced their operations since the formation of the state, with an investment of about Rs.11,487crore. 

Since January 2015, MSMEs have provided additional employment opportunities to approximately 1109.89 lakh persons.

The Telangana government has been according top priority to MSMEs growth. According to the TS iPASS, nearly 16,365 units started operations between January 2015 and January 2022, generating employment for 2.44 lakh people. 

The UDYAM portal data of the Ministry of Micro, Small and Medium Enterprises states that MSMEs are majorly concentrated in Hyderabad, Medchal-Malkajgiri, Sangareddy, Rangareddy and Karimnagar districts, with Hyderabad accounting for the highest share of MSMEs among all the districts.

Government Measures-

Policy measures-

  • T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement)
  • T-PRIDE

Infrastructural Measures-

  1. There are 28 Industrial parks developed by TSIIC which are available for MSMEs across 2500 acres of land. 6 new parks have been proposed and 12 are under upgradation.
  2. Green Industrial park for MSMEs in Yadadri – Industries Minister inaugurated Dandumalkapur TSIIC-TIF-Micro Small and Medium Enterprises (MSMEs) Green Industrial Park in Nov 2019. MSME Park is expected to attract 1,553 crore investments, house more than 450 industries and generate about 35,000 jobs. This is the first model industrial park to be set up for the MSME sector after the formation of Telangana. The government provided the infrastructure and basic amenities in the park and also laid a road from the park to the national highway.
  3. Micro Industrial Park, Rairaopeta, Bibinagar, Yadadri – A new Industrial park development started during 2020-21, for Micro enterprises in 40 acres of land for 171 units. The park will attract investments of Rs. 420 Crores and provide direct employment to 4200 people

To promote growth and employment-generation potential of the MSME sector, the State government has launched several initiatives such as the Telangana State Industrial Development Corporation, Telangana Industrial Health Clinic Limited, has entered into partnership with private players, launched TS Globallinker (a digital networking platform that helps MSMEs contact global buyers and sellers and get appraised about opportunities in the sector).

Prelims questions of the day:

1.What is the percentage of contribution of industries sector to state’s Gross Value Added (GSVA) at current prices during 2021-22?

  1. 23%
  2. 20%
  3. 17%
  4. 18%

Answer: B

Explanation: 

The Industries sector contributed 20.40% to the state’s Gross Value Added (GSVA) at current prices.

 2.Consider the following: 

  1. It is a digital networking platform that helps MSMEs
  2. The platform is collaborating with the Confederation of All India Traders (CAIT) to launch the “SMEs of Digital India” program.
  3. As a part of this program, Kiranalinker, an online grocery platform was launched for the grocery stores during the COVID-19 pandemic.

Which of the above statements are correct with respect to TS Globallinker initiative?

  1. 2 and 3
  2. 1 and 2
  3. All of them 
  4. Only 3.

Answer: C

Explanation: 

In 2019, the Government launched TS Globallinker – a digital networking platform that helps MSMEs contact global buyers and sellers, and get appraised about opportunities in the sector. Currently, 3 lakh SMEs globally, with over 7,000 SMEs from Telangana registered on the platform. The platform is collaborating with the Confederation of All India Traders (CAIT) to launch the “SMEs of Digital India” program. As a part of this program, Kiranalinker – an online grocery platform – was launched for the grocery stores during the COVID-19 pandemic.

3.Consider the following statements with respect to the 2014-15 to 2021-22time period:

  1. The Mining and Quarrying Compounded Annual Growth Rate (CAGR) in Telangana was roughly 1.5 times that at the national level,
  2. The Manufacturing CAGR in Telangana was roughly 1.4 times that at the national level,

Which of the above statements are correct?

  1. Only 2
  2. Only 1
  3. Both of them
  4. None of them.

Answer: C

Explanation:

During 2014-15 to 2021-22, the Compounded Annual Growth Rate (CAGR) for Gross Value Added at current prices of 3 out of 4 sub-sectors under the industries was higher than the CAGR at the national level. The Mining and Quarrying CAGR in Telangana was roughly 1.5 times that at the national level, while the Manufacturing CAGR was 1.4 times the national level, and the Electricity and Utilities CAGR was roughly 1.3 times the national CAGR.

4.According to the Periodic Labour Force Survey 2019-20, How much percentage of the total working population depends on the ‘Manufacturing’ sector?

  1. 10.7
  2. 15.7
  3. 8.7
  4. 12.7

Answer: A

Explanation:

According to the Periodic Labour Force Survey, 2019-20, ‘Manufacturing’ and ‘Construction’ are two major subsectors of employment generation in the state, employing 10.69% and 6.62% of the total working population respectively.

5.Consider the following statements:

  1. We-Hub is a state-led incubator established in 2017 to help foster women’s entrepreneurship in Telangana.
  2. It plays an especially important role in promoting the interest of young women in pursuing Science, Technology, Engineering, and Mathematics education.  

Which of the above statements are incorrect?

  1. 2 only
  2. Only 1
  3. Both of them
  4. None of them

Answer: D

Explanation: 

We-Hub is a state-led incubator established in 2017 to help foster women’s entrepreneurship in Telangana. It provides incubation facilities, access to the Government, and a global network of collaborators for new women entrepreneurs in the state. It plays an especially important role in promoting entrepreneurial skills in Tier-2 and Tier-3 cities, and running programs that increase the interest of young women in pursuing Science, Technology, Engineering, and Mathematics education.

6.Which district has the highest share of MSMEs among all the districts in Telangana?

  1. Karimnagar
  2. Rangareddy
  3. Medchal-Malkajgiri
  4. Hyderabad

Answer: D

Explanation:

Data available on the UDYAM portal of the Ministry of Micro, Small, and Medium Enterprises reflects that the MSMEs are majorly concentrated in Hyderabad, Medchal-Malkajgiri, Sangareddy, Rangareddy, and Karimnagar districts, with Hyderabad accounting for the highest share of MSMEs among all the districts. 

7.What is Telanga’s rank in Export Preparedness Index 2020 published by NITI Aayog among Indian states?

  1. 2nd
  2. 6th
  3. 8th
  4. 3rd

Answer: B

Explanation: 

As per the Export Preparedness Index 2020 published by NITI Aayog, Telangana ranked second among the land-locked states and sixth overall in terms of Export Preparedness.

8.Consider the following pairs  

            Initiative Fullform

  1. T-IDEA —— Telangana State Industrial Development and Entrepreneur Advancement. 
  2. T-PRIDE               —— Telangana State Program for Rapid Incubation Dalit Entrepreneurs incentive scheme
  3. TS-iPASS —— Telangana State-Industrial Project Approval and Self-CertificationSystem

How many pairs matched correctly?

  1. Only one
  2. Only two
  3. Only three
  4. None of them

Answer: C 

Explanation: 

All of them are correctly matched

9.Which district tops in terms of approvals received for setting up of business units Between 2015 and January 2022?

  1. Hyderabad
  2. Sangareddy
  3. Medchal Malkajgiri
  4. Rangareddy

Answer: C

Explanation:

Medchal Malkajgiri (22.2%), Sangareddy (8.25%), and Karimnagar (7.4%) were the top three districts in terms of approvals received for the setting up of business units.

10.Arrange the following components in increasing order based on the Contribution of the sub-sectors to Industry GSVA at current prices in Telangana (2021-22)

  1. Manufacturing
  2. Mining and Quarrying 
  3. Electricity
  4. Construction

A. 3-2-4-1

B. 2-3-4-1

C. 3-2-1-4

D. 2-1-3-4

Answer: A 

Explanation: 

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