Andhra Pradesh CM N Chandrababu Naidu Unveils Six Policies to Attract Rs 30 Lakh Crore Investments

Andhra Pradesh Chief Minister N Chandrababu Naidu has unveiled six transformative policies aimed at various sectors, including industries, MSMEs, and food processing. These initiatives are designed to generate 20 lakh jobs and attract Rs 30 lakh crore in investments over the next five years. The state also aims to secure USD 10 billion in foreign direct investments.

The policies introduced include AP Industrial Development Policy 4.0, AP MSME & Entrepreneurship Development Policy 4.0, AP Food Processing Policy 4.0, AP Electronics Policy 4.0, AP Industrial Park Policy 4.0, and AP Integrated Clean Energy Policy 4.0. Naidu emphasised that these policies will significantly impact job creation and economic growth.

Focus on Job Creation and Investment

Naidu highlighted that the Gross Value Addition (GVA) from the manufacturing sector is expected to rise from Rs 3.4 lakh crore in 2024 to Rs 7.3 lakh crore by 2029, creating five lakh new jobs. The state aims to realise Rs 5 lakh crore from the targeted Rs 30 lakh crore investment and double its exports from USD 20 billion to USD 40 billion by 2024.

Under the AP Industrial Development Policy 4.0, companies generating the most employment will receive the highest incentives. This policy offers up to 62 per cent incentives for the first 200 early investors and up to 72 per cent for value-addition investors involved in component manufacturing.

Encouraging Entrepreneurship and Innovation

The AP MSME & Entrepreneurship Development Policy 4.0 focuses on fostering entrepreneurship with an eight-point strategy that includes MSME facilitation, incubation, mentoring, access to finance, sustainability, import/export promotion, cluster infrastructure development, and special assistance for inclusion.

Naidu stated that up to 75 per cent of investment will be provided as incentives to make MSME products price competitive. The policy's core is "One Family One Entrepreneur," aiming to nurture entrepreneurship across families in Andhra Pradesh.

Sector-Specific Policies and Incentives

The AP Food Processing Policy 4.0 targets Rs 30,000 crore in investments to create three lakh new jobs and foster the emergence of 30,000 new entrepreneurs. Similarly, the AP Electronics Policy 4.0 aims to generate five lakh jobs and attract Rs 84,000 crore investments focusing on IoT, air conditioning, television, mobile, and other sub-sectors.

Mega industries can benefit from up to 45 per cent incentives through subsidies on investment, employment, power, recruitment assistance, and more. Private park developers under the AP Industrial Park Policy 4.0 can receive up to Rs 5 lakh capital subsidy per acre along with exemptions on various charges.

Clean Energy Initiatives

The AP Integrated Clean Energy Policy 4.0 seeks to position Andhra Pradesh as a clean energy hub with an investment target of Rs 10 lakh crore. This policy aims to create employment for 7.5 lakh people while achieving solar energy capacity of 78.5 GWp and wind energy capacity of 35 GW.

The policy also plans for a solar energy capacity of 78.5 GWp and wind energy capacity of 35 GW while installing 5,000 electric vehicle charging points across the state.

Future Plans and Innovation Hub

Naidu mentioned plans for additional policies targeting sectors like tourism and IT soon. He noted that these initiatives aim at empowering youth by encouraging them to think globally and act locally while producing one entrepreneur per family.

The proposed Ratan Tata Innovation Hub will have its main centre in Amaravati with regional centres in Vizag, Rajamundry, Vijayawada or Guntur, Tirupati, and Anantapur following a hub-and-spoke model.

The Ratan Tata Innovation Hub will support technology upgrades in emerging sectors through mentorship by reputed business groups while facilitating product-marketing compliance and prototyping efforts.

Naidu expressed confidence that Andhra Pradesh will become an innovation hub for the knowledge economy with all five centres operating under Ratan Tata's name.