Andhra cabinet approves six ‘game changer’ policies, aims Rs.30L cr investments in 5 years
In a bid to position Andhra Pradesh as an industrial powerhouse, Chief Minister N Chandrababu Naidu announced the approval of six key policies during a Cabinet meeting on Wednesday. These initiatives are designed to attract substantial investments across various sectors and create a significant number of jobs.
The approved policies encompass industrial development, Micro, Small, and Medium Enterprises (MSME) and entrepreneur development, food processing, electronics, private parks, and integrated clean energy. Naidu emphasized that these policies are critical steps towards achieving the goal of generating 2 million jobs within the next five years.
“These policies reflect our commitment to attracting investment, boosting entrepreneurship, and leading in clean energy initiatives. Our focus is on creating employment opportunities and empowering the youth of Andhra Pradesh to engage in global markets,” Chandrababu Naidu stated during a press conference.
The policies are a result of extensive consultations with industry leaders and align with promises made in the election manifesto. The Department of Industries has formulated two anchor policies—one for large and mega investments and another specifically for MSMEs.
Naidu highlighted the importance of reigniting industrial momentum in the state, recalling that between 2014 and 2019, Andhra Pradesh saw significant industrial growth, particularly with companies like Kia. However, he noted that many industries shifted to other states in recent years. “We are now creating a conducive ecosystem with competitive incentives to attract these industries back,” he added.
The industrial policy aims to attract investments worth Rs.30 lakh crore in the manufacturing sector over the next five years, operationalizing investments of Rs.5 lakh crore during this period. The government has set a target of attracting Rs.83,000 crore in Foreign Direct Investment and creating 500,000 jobs in manufacturing.
Additionally, the government plans to develop over 175 sector-specific industrial parks and aims to double exports to Rs.33,200 crore. The strategy includes establishing manufacturing clusters near ports to enhance export potential.
In a bid to attract Fortune 500 companies, the government will offer up to 10% higher incentives to businesses promising substantial employment opportunities. Companies that focus on reducing their carbon footprint will be incentivized with additional subsidies.
The policies also include provisions for private participation in developing and operating industrial parks, with a focus on creating industrial housing within a 5 km radius. The government is encouraging industries to partner with Industrial Training Institutes (ITIs) for training and recruitment, while also rationalizing tariffs for water, power, and layout approvals to lower production costs.
The MSME & Entrepreneur Development Policy aims to draw Rs.50,000 crore in investments, targeting 2.2 million units across both manufacturing and service sectors and creating 500,000 jobs. A Ratan Tata Innovation Hub will be established in Amaravati, featuring five zonal centers for entrepreneur development.
The Food Processing Policy seeks to attract Rs.30,000 crore in investments, to formalize 300,000 MSME units and generate 300,000 manufacturing jobs. Additionally, commodity boards for mango, bananas, and cashews will be established.
Finally, the Electronics Manufacturing Policy aims to draw Rs.84,000 crore in investments, targeting 500,000 jobs and achieving a production value of Rs.4.2 lakh crore. The policy includes a 100% reimbursement of net SGST for five years and a power subsidy of Rs.1 per unit.
With these comprehensive policies, the Andhra Pradesh government is making a strong push to revitalize the state’s industrial landscape and create a sustainable economic future.
For all the latest updates, download PGurus App.
