FTCCI Urges Telangana Govt to Strengthen Support for Exporters

Quick Summary

• federation of Telangana Chambers of Commerce and Industry (FTCCI) has urged the Telangana government to assist exporters facing global trade challenges.
• The appeal follows U.S.tariff and additional tariff measures announced on imports from India under former President Donald Trump’s management.
• FTCCI President R. Ravi Kumar outlined concerns over potential impacts on key sectors like chemicals, agricultural products, engineering goods, textiles, gems, and jewelry in Telangana.
• The chamber suggested a four-pronged support plan:

1. Exemption of trade license fees for manufacturing industries.
2. reduction in commercial establishment fees to an earlier cap of ₹7,000 per annum (similar to other states).
3. faster release of pending incentives for MSMEs and large industries.4. Subsidies on logistics costs to enhance export competitiveness globally.

• Higher tariffs coupled with weakening capital inflows are seen as notable threats to exporters and MSMEs that contribute significantly to employment generation and Telangana’s GSDP.

Indian Opinion Analysis

The FTCCI’s call for state-level interventions underscores the vulnerability faced by export-dependent businesses amidst shifting global trade dynamics. Industries such as chemicals, agriculture products-including rice-and textiles play a pivotal role in the State’s economy by driving both employment and revenue generation; any escalation in tariffs could severely impact these sectors.

While the Center is exploring national strategies like lowering borrowing costs or reducing testing fees for exporters through initiatives such as Export Promotion Missions, local reforms such as streamlined licensing or subsidy frameworks could provide immediate relief at a state level-especially vital for small enterprises like MSMEs that often lack resources to adapt swiftly.

Balancing international pressures with localized policy measures may prove instrumental not only in safeguarding existing infrastructure but also sustaining growth within critical economic sectors amid global uncertainties.

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