In a significant push towards economic growth and job creation, the Andhra Pradesh cabinet, chaired by Chief Minister N Chandrababu Naidu, approved six industrial and investment policies on Wednesday. These policies aim to attract investors, foster industrial growth, and generate 2 million jobs within the next five years.
During a press conference, Naidu unveiled the policies through a power-point presentation, highlighting that they were developed after comprehensive consultations with industry veterans, benchmarking studies, and alignment with election promises. The six policies include the AP Industrial Development Policy 4.0, AP MSME & Entrepreneur Development Policy 4.0, AP Food Processing Policy 4.0, AP Electronics Policy 4.0, AP Private Parks Policy 4.0, and AP Integrated Clean Energy Policy 4.0.
“We are committed to reigniting the momentum by offering a conducive ecosystem and competitive incentives to attract industries to the state. These forward-looking policies aim to boost industrial growth by focusing on job creation, fostering entrepreneurship, addressing climate change, and generating wealth for Andhra Pradesh,” Naidu said.
The Industrial Development Policy aims to attract ₹30 lakh crore in manufacturing with the potential to create 500,000 jobs, alongside a targeted foreign direct investment of US $10 billion. Additionally, the state aims to develop 175 industrial parks with an export potential of ₹33,200 crore. Companies creating higher employment will be offered up to 10% higher incentives, while those reducing their carbon footprint will benefit from a de-carb subsidy of up to 6%.
The MSME & Entrepreneur Development Policy targets ₹50,000 crore in investment and aims to support 2.2 million MSMEs, generating 500,000 jobs. The establishment of the Ratan Tata Innovation Hub, headquartered in Amaravati, with five zonal centres, will promote entrepreneurship through mentoring, financial support, and venture capital tie-ups, supported by a ₹500 crore corpus fund.
The Food Processing Policy aims to attract ₹30,000 crore in investments, creating 300,000 jobs, and enabling exports worth US $15 billion. Three tribal districts will be notified as organic zones, with a ₹250 crore corpus for research and development.
The Electronics Manufacturing Policy aims to attract ₹84,000 crore in investments and generate 500,000 jobs, with the goal of producing ₹4.2 lakh crore worth of IT products. The Private Industrial Parks Policy will encourage private-sector involvement in developing world-class industrial parks across sectors like biotechnology, defence, aerospace, electric vehicles, and semiconductors.