At the TiECon Kerala 2024 event, K.T. Rama Rao, the former IT and Industries Minister of Telangana, shared an intriguing story about his efforts to bring Kitex Garments, headquartered in Kizhakkambalam, Kerala—one of the world’s largest manufacturers of children's apparel—to Telangana.
Rama Rao explained that after learning about Kitex's intention to move its manufacturing facilities from Kerala, he took the initiative to personally reach out to Sabu M. Jacob, the managing director of Kitex. At first, Mr Jacob was hesitant to answer the call, suspecting it might be a prank. However, after their conversation, Rama Rao extended an invitation to Mr Jacob to visit Telangana and explore investment opportunities. To Jacob’s surprise, the Telangana government even offered to arrange a private plane for his visit.
Once Mr Jacob arrived in Telangana, Rama Rao took him on a helicopter tour of the textile park in Warangal. Impressed by what he saw, Jacob committed to investing ₹1,000 crore in the state. The following day, after viewing another facility near Hyderabad’s airport, Jacob decided to invest an additional ₹1,000 crore. Ultimately, Jacob was so impressed by the business-friendly environment in Telangana that Kitex decided to invest over ₹3,000 crore in the state, with the factory set to commence production later this month.
In an exclusive interview with Dhanam Online, Rama Rao elaborated on what makes Telangana’s policies so attractive to entrepreneurs. In the state, an entrepreneur can start a business or start construction of a factory by self-certifying that they are in compliance with the law of the land and submit an application for approval. If they don’t get a response within 15 days, then the application is automatically approved.
He explained, "Our policy allows self-certification, so no entrepreneur has to wait for approval or go through a lengthy clearance process. We also provide timely incentives, clearances, and even mentoring support, all of which contribute to a more favorable environment for businesses."
He identified three key elements that Telangana offers to businesses: "Ease of doing business, peace of doing business, and quality of doing business. These should be the foundation for any state or country seeking to attract entrepreneurs." Over the past decade, these policies have helped Telangana attract ₹3.5 lakh crore in investments, creating over 2.4 million direct jobs.
Rama Rao also recognized Kerala's potential in fostering a competitive business environment. "Kerala has incredible young talent, a high literacy rate, and strong human development indices. However, with a bit more policy support and greater marketing efforts, Kerala can unlock even more potential," he said.