Andhra Pradesh Unveils Six Bold Strategies to Attract Investments Worth Rs 40 Trillion and Create 20 Lakh Jobs: Here Are the Details

On October 16, Andhra Pradesh Chief Minister N. Chandrababu Naidu unveiled six interesting measures that could shake up the industrial situation in the state.

With this, the Andhra government plans to create around 20 million jobs, aiming to attract over Rs 40 lakh crore of investment over five years (2024-29).

The cornerstone of his poll is the promise of wealth creation to uplift the financially weaker sections of the population. The significance of this policy is highlighted by the fact that the Andhra Pradesh Cabinet unanimously approved this policy in Amaravati.

Here’s what’s on the table:

Industrial Development Policy

Touted as India’s most attractive industrial policy, AP Industrial Development Policy (IDP) 4.0 aims to transform the state into a global manufacturing power.

Designed as an anchor policy for large and mega investments, IDP 4.0 targets an impressive Rs 30 lakh crore investment in manufacturing and aims to create five million jobs, according to a note from the industries department.

Apart from ambitious job creation targets, the policy aims to attract foreign direct investment (FDI) worth Rs 83,000 crore (US$10 billion) with plans to double government exports to Rs 33,200 crore.

To achieve these goals, the government has identified 20 key sectors, divided into “life support” and “propulsion” sectors, each of which is critical to accelerating economic growth.

Under this policy, investments are classified into four categories – ultra large (Rs 50-500 crore), large (Rs 501-1,000 crore), mega (Rs 1,001-5,000 crore) and ultra-mega (Rs 5,001 crore and above). , each of which meets the criteria. for an individual incentive package.

Companies that create significant jobs will receive up to 10 percent additional incentives, increasing job creation across the state.

The most revolutionary feature of this policy? For the first time in India, companies that reduce carbon emissions through pollution control, waste minimization and energy and water efficiency initiatives can receive a decarbonization subsidy of up to 6 percent of their fixed capital investment (FCI).

One family, one entrepreneur by 2030

The MSME and Entrepreneurship Development Policy (AP MEDP 4.0) aims to create an entrepreneur in every family in Andhra Pradesh by 2030.

The policy aims to attract an impressive investment of Rs 50,000 crore. The policy aims to support 2.2 million MSMEs (medium, small and micro enterprises) generating 500,000 jobs across the state.

Moreover, it aims to double the MSME sector’s exports to US$12 billion (₹99,600 crore) by 2029 and also help over 500 businesses integrate into the global value chain.

At the core of this initiative is the establishment of the Ratan Tata Innovation Centre, headquartered at Amaravati and five zonal centers at Visakhapatnam, Rajahmundry, Vijayawada or Guntur, Tirupati and Anantapur.

The center will honor the legacy of the former Tata Group executive and attempt to serve as a hub for mentorship, financial support, knowledge transfer and legal assistance for entrepreneurs, as well as facilitate linkages with venture capital.

Kickstart Electronics

In an era where chip manufacturing is taking center stage, Andhra Pradesh is looking to take charge in the electronics space.

AP Electronics Policy 4.0 focuses on high-impact sectors such as semiconductors, IoT devices and 5G communications equipment, positioning the state as a future powerhouse in electronics manufacturing.

As part of an ambitious target of attracting investments worth Rs 84,000 crore over the next five years, the policy aims to create five million new jobs across the state. Key to this effort is on-boarding support of Rs 4,000 per month for first-time male employees and Rs 6,000 per month for female freshers, which will be available for six months after one year of service.

As a progressive step towards inclusion, the policy also allows women to work night shifts where needed, helping to create a diverse and modern workforce.

Food industry

Under AP’s Food Processing Policy 4.0, Andhra Pradesh has set a target of attracting Rs 30,000 crore of investment and creating three million jobs with a target of increasing exports to $15 billion.

As part of this process, the government is creating a special fund of Rs 250 crore to promote research and development in food processing technology and quality certification.

There will also be a number of incentives for technology upgrades to promote innovation and operational efficiency.

The policy also lays out plans to designate three tribal districts as organic zones and set up commodity boards for mango, banana and cashew plantations.

Plug and play

AP’s Private Parks Policy 4.0 aims to create an enabling business ecosystem, for example by inviting private participation in the development and operation of industrial parks.

It will offer significant incentives such as capital subsidies and waivers of various fees for large and mega parks.

The policy envisages the establishment of industry parks to boost key industries including aquaculture processing, agriculture and horticulture, biotechnology, defense and aerospace, drone manufacturing, electric vehicles (EV), gems and jewellery, leather and footwear. pharmaceuticals, semiconductors and electronics, and textiles.

Clean Energy

AP Integrated Clean Energy Policy 4.0 establishes an ambitious renewable energy transition program, positioning the state as a clean energy hub.

With a target of 78.5 GW of solar power and 35 GW of wind power and 25 GWh of battery storage, Andhra Pradesh is on track to lead the way in green energy innovation.

These forward-thinking policies will not just help India achieve net-zero targets; it also aims to create a staggering 7.5 million jobs and attract Rs 10 lakh crore in investment.

What’s ahead

For Naidu, whose legacy is closely intertwined with the significant transformation of Andhra Pradesh’s industrial landscape during his previous tenure as the first chief minister from 2014 to 2019, this moment represents a significant homecoming.

Upon returning to office, Naidu’s first order to the Department of Industries was to develop the New Industrial Policy 2024-29 (NIP) in such a way that Andhra Pradesh could compete with the top five industrialized states of India, targeting a 15 per cent growth rate. while incorporating NITI Aayog guidelines.

The policy has emerged from consultations with industry veterans and comparative studies and appears to be in line with the promises of the Telugu Desam Party’s election manifesto.

“All policies are forward-looking and aimed at boosting industrial growth by focusing on job creation, entrepreneurship development, addressing climate change challenges and ultimately creating wealth for the state,” said a senior official.