Andhra Pradesh reveals Industrial Policy 4.0 with goals of ₹30 lakh crore investments, foreign investments, and focus on MSMEs, clean energy, and electronics.
Andhra Pradesh’s Vision for Industrial Growth
The Andhra Pradesh government has unveiled its Industrial Development Policy 4.0 for 2024-29, setting ambitious targets to attract ₹30 lakh crore in investments and $10 billion in foreign funding over the next five years. Alongside this policy, the state has rolled out specific strategies for sectors like MSMEs, clean energy, green energy, electronics, and food processing.
Chief Minister N Chandrababu Naidu, speaking after the Cabinet’s approval in Amaravati, emphasized that this industrial policy is designed to make Andhra Pradesh a global manufacturing hub by drawing both domestic and international investors. A unique feature of this policy is its first-of-its-kind de-carbon subsidy aimed at supporting green industries.
Key Focus Areas and Incentives
The state aims to double its export target to $40 billion from the current $20 billion, with a focus on industries such as automobiles, MSMEs, pharmaceuticals, food processing, and aerospace. The new policy includes various subsidies, such as investment subsidies ranging from 12% to 40%, a de-carbon subsidy of 6%, and an employment subsidy of up to 10%.
The Chief Minister also highlighted efforts to make investments more affordable by reducing costs related to land, power, water, and other infrastructure. Additionally, measures like rationalization of duties and guarantees for investor security will be implemented to enhance the state’s appeal as a business destination.
Streamlining Business Operations and Infrastructure Development
To promote ease of doing business, the Andhra Pradesh government will introduce initiatives like a time-bound single-window clearance for investors, an integrated data management system, and streamlined regulatory processes. The state plans to establish 175 industrial parks, one in each constituency, to boost industrial growth and investment.
The MSME sector will be developed under the slogan “One Family – One Entrepreneur,” with a focus on facilitation, incubation, and export promotion. A dedicated corpus of ₹500 crore will be created to support MSME development, offering both standard and specialized investment subsidies.
Sector-Specific Strategies: Food Processing and Electronics
Andhra Pradesh’s food processing policy aims to attract ₹30,000 crore in investments and generate 3 lakh jobs. The state will also introduce incentives to encourage technological advancements in this sector.
The electronics policy sets a target to bring in ₹84,000 crore in investments over the next five years while creating 5 lakh new jobs. The policy includes provisions for women to work night shifts when required, reflecting a progressive approach to employment in the industry.
Andhra Pradesh’s Industrial Policy 4.0 marks a significant step in reshaping its economic landscape, with a comprehensive approach to boosting investment, promoting sustainable industries, and strengthening its position as a leading manufacturing hub in India.
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