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India's Youngest State Telangana: The New E-Commerce, Retail Hub


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Telangana, India's youngest state, is slowly becoming the go-to state in the South for big businesses. In attracting investments from industry majors, the state is giving tough competition to its neighbours Andhra Pradesh and Karnataka.

 

In the past year, Telangana has become the favourite of major e-commerce, retail and aviation companies. WhileAmazon has one of its largest fulfilment centres in the state and is planning to open another, Flipkart has decided to set up its largest warehouse in Hyderabad. In its first major investment in India, Swedish furniture major IKEAhas bought 13 acres near Hyderabad.

 

US aviation giant Boeing will set up a defence plant in the state, in association with the Tata group. This will be the biggest investment in defence sector in the country so far.

 

Speaking to Business Standard, Telangana industries minister Jupally Krishna Rao said: "We assure 100 per cent transparency to industry. Also, any sector trying to set up in our state is assured that all requisite permissions will be given in 15 days."

 

The state also had abundant government land, which makes it easier to deal with businesses exploring new geographies, Rao said. "Also, our taxation policies are streamlined and transparent, making us an ideal destination for investments."

 

He added the state government had promised if projects coming to the state were good, it would either match or provide better taxation policies compared to other states.

 

Amazon claims the Telangana government has been providing support. "Telangana has been home to our IT operations for a while. In the past year, the state government's support and the ease of doing business has encouraged us to make further significant investments. Additionally, we have a huge seller and a customer base in the state," the Amazon spokesperson said.

 

Experts say Karnataka's loss is Telangana gain. "Every company that has to grow in India has to have a hub in the South. Earlier, Karnataka was the favoured destination. But now, the state is unclear on a lot of policies and that is creating a problem for industry. Telangana is earning major brownie points on that front," said Deepak Dhamija, co-founder of Aristotle Consultancy Pvt Ltd.

 

:police:  :police: 

 

 
 
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