Empowering Telangana’s Business Landscape – A Conversation with FTCCI President Mr. Suresh Kumar Singhal

The Federation of Telangana Chambers of Commerce and Industry is an Apex Body representing industry, Trade and Commerce in the State of Telangana. The major trade / product / District level associations of Telangana are under the umbrella of FTCCI. The Chamber was started in 1917 as Hyderabad Chamber of Commerce representing the then princely State of Hyderabad which comprised entire present State of Telangana and some Districts of present Karnataka & Maharashtra, forming part of Nizam’s dominion. After subsequent bifurcation of Andhra Pradesh, the Chamber was renamed. It is one of the largest State Chamber in the Country and has become an important forum for interaction between government and industry in a true global perspective. Indian Economy & Market met its President, Mr. Suresh Kumar Singhal to understand the activities and role of FTCCI in the development of the State.

How do you describe the journey of the Federation so far?

The Federation, started as Deccan Chambers in 1917, came a long way to become apex chambers of commerce and industry of the State. The Chamber had been working with government at every stage of State’s progress. After the independence, when the Andhra Pradesh State was formed on the basis of linguistic criteria, the Chambers Name was changed as The Federation of Andhra Pradesh Chambers of Commerce and Industry. Ever since, the Federation has been playing an important role in the industrial progress of the state. The Federation not only function as a bridge between the government and the industry, but works along with government in policy advocacy and making the state a favourite destination for the investors.

As, till 1991, the industrial progress in the country was marginal because of restrictive policies and Licensing Raj. I must say that, here also, erstwhile Andhra Pradesh (now Telangana) had benefitted as many Public Sector Units got established in the state in Pharma (IDPL), Heavy Engineering (BHEL), Machine Tools (HMT and Praga Tools), Aeronautics (HAL), and Defence Organizations such as DRDO, DRL etc. This has given a strong base for industrial progress in the state with the setting up of many ancillary industries. Federation also played its role by taking care of interests of industry, trade and commerce, and with its large number of members, government also looked at the Federation for any kind of guidance, information and policy suggestions for rapid industrial progress and improving the business environment.

What were the notable milestones in the journey of Federation?

The Federation is always in the forefront in raising the issues related to industrial growth and trade expansion activities before the government, both central and state, and strive to resolve them in favour of industries.

The representatives of FTCCI in various committees of government departments, such as, State Level Committee of Industries and Commerce, State Advisory Committee of Electricity Regulatory Commission, Minimum Wages Advisory Board of Telangana, Regional Committees of Commercial Taxes Department, Income Tax Department. EPF, ESI, Micro and Small Enterprises Facilitation Councils etc. are always attending the issues/challenges faced by trade and industry fraternities.

When erstwhile Andhra Pradesh was divided and Telangana State was formed in 2014, FTCCI submitted vision and action plan for industralisation of State recommending Decentralization of industrial development and setting up specialized industrial zones in each district or small group of districts keeping local resources in mind. The vision document was well received by the government of Telangana.

I give few instances where FTCCI is successful in its effort to resolve / mitigate the challenges:

The Federation organized an International Conference on Clean Energy for MSMEs on 14th December 2024. Based on the recommendations that emerged from the event, a proposal was submitted to the Telangana Government. It was well received, leading to a positive outcome with the introduction of the “Green Energy Policy 2025” by the Telangana Government.

Responding to our representation to the Minister for Agriculture, Marketing, Co-operation, and Handlooms & Textiles, Sri Tummala Nageshwara Rao, regarding the non-release of payments for Bathukamma sarees supplied through TSCO, the government released 60% of the outstanding dues. Textile processors have expressed gratitude for FTCCI’s initiative in resolving this matter. When the importers of Cocoa Beans expressed that the inverted duty @16.5% on import of cocoa beans is adversely affecting the processing industry in the country, and leading to huge loss of revenue and employment, FTCCI wrote to the Ministry of Commerce explaining the challenge faced by the industry. The Ministry of Commerce immediately called for a meeting with the industry representatives to resolve the issue and support the industry.

When Small Water Processing units were converted to HT category from LT category, putting more financial burden on these small units, FTCCI successfully represented to Telangana ERC and brought them back into LT category, benefitting small water processing units. With the constant persuasion of FTAPCCI/FTCCI the Government of India established CESTAT (Central Excise Service Tax Appellate Tribunal) Bench at Hyderabad. (Earlier it was located in Bangalore).

FTCCI played a vital role in Introduction of OTS scheme for VAT and in expansion of the scope of scheme to Luxury Tax, Entertainment Tax, RD Cess, Profession Tax and Entry of Motor Vehicles into Local Areas tax and also in extension of availing period of the scheme. These are just a few of FTCCI’s achievements in the recent past, and in its long and illustrious journey of 108^th year, there were many more milestones like setting up of APEDA at Hyderabad at the instance of then FAPCCI etc.

What are the main activities of the Federation?

Our core responsibility is to see that industry grows without having to face many challenges and hurdles. We cannot expect 100 percent freedom to any sector, but the system should be such that, it allows the industries to perform their operations without any obstacles. Apart from that, we conduct many seminars / conferences / workshops / training programs to keep our members, industry and trade fraternity updated on various changes / developments taking place in the policies or technology, bilateral trade opportunities etc.

FTCCI receives business delegations visiting India and Telangana state to improve trade relations between the countries, to provide market opportunities to the industries in Telangana. Trade / Business delegations are taken to other countries as a part of exploring the investment and business opportunities.

We recognise and celebrate the achievements of industries by giving the Excellence Awards in 21 categories. Hon’ble Chief Minister of the State gives away the awards. For the last six years, we are also giving Awards for Excellence in People’s Management (HR Awards) to small, medium and large industries in various categories and also to individual HR Managers and Heads.

How is the progress of Telangana State in industrial sector?

Telangana is one of the fastest growing states in the country and the industrial sector recorded double digit growth consistently for the last 10 years, except in Covid-19 period. The Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) is instrumental in achieving the rapid progress. The state government made it an Act, making it the right of the investors to get the approvals and sanctions for setting up industrial units in the state. The industrial policy is also most progressive and offer many incentives to the eligible units. The state is also consistently at within top 3 rank in ‘ease of doing businesses, making it most favourable destination.

What made Telangana State a hub of pharmaceutical and IT industry?

The state is home to many PSUs and one of them was IDPL. With the presence of IDPL as anchor industry, many smaller ancillary units came up and gradually it became a hub of pharma manufacturing units. After the downfall of IDPL, many experts who worked in the company have started their own units and are now very successful in the market, like Dr. Reddy’s, Aurobindo etc.

Now Hyderabad has become a competitor to Bangalore in IT industry. The then Chief Minister of Andhra Pradesh, Chandrababu Naidu was determined to make Hyderabad an IT capital and started the Hitech City. Over a period, almost all the global companies in IT sector have their presence in Telangana. The infrastructure facilities, availability of technical man power by way of large number of engineering and management colleges also contributed to the rapid development of IT industry.

What are the main challenges, in your opinion, facing the industry in Telangana?

Telangana is a land locked state and has a disadvantage of not having sea port. Dry ports are yet to be developed at various locations and there is a small disadvantage in the transport cost as everything has to be transported either by road or rail. The cost of doing business in Telangana is on higher side as power cost, various license fee (such as trade license fee, factory license fee etc.), property taxes are on higher level. After a long battle, only now, the DISCOMs are allowing to purchase power from Open Access.

Do you feel that India is moving in right direction in industrialization?

Government aims at making India a manufacturing hub and reduce the dependence on other countries for various products. The ‘Make in India’ mission has instilled motivation and encouragement to the industries and there is some progress in the industrial sector. But we are far from achieving the target of having manufacturing share in the GDP at 25%. The sector should be given much more impetus to provide job opportunities to the young population of the country.