Andhra Pradesh unveils six bold strategies to attract Rs 40 trillion in investment and create 20 lakh jobs: Here are the details

On October 16, Andhra Pradesh Chief Minister N. Chandrababu Naidu unveiled six exciting strategies that could shake up the state’s industrial scene.

With this, the Andhra government envisages around 20 lakh jobs, aiming to attract over Rs 40 lakh investment over five years (2024-2029).

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

Here’s what’s on the table:

Industry development policy

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

According to a notification by the industries department, IDP 4.0, designed as a guiding policy for large and mega investments, targets an impressive Rs 30 lakh crore in manufacturing investment and aims to create five lakh jobs.

In addition to ambitious job creation targets, the policy aims to attract Rs 83,000 crore (US$10 billion) in foreign direct investment (FDI), with plans to double the state’s exports to Rs 33,200 crore.

To achieve these goals, the government has identified 20 key sectors categorized under Livelihoods and Motors, each of which is critical to accelerating economic growth.

The policy segments investments into four categories — sub-cap (Rs 50-500 crore), large (Rs 501-1000 crore), mega (Rs 1001-5000 crore) and super-mega (Rs 5001 crore+), each with individual package requirements encouragement

Companies that create significant jobs will receive up to 10 percent additional incentives, which will help create jobs throughout the state.

The most innovative policy feature? For the first time in India, companies that reduce their carbon footprint through pollution control, waste minimization and energy and water efficiency initiatives can get a decarbonisation subsidy of up to 6 per cent of their fixed capital investment (FCI).

One family, one entrepreneur by 2030

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

Aiming to attract an impressive Rs 50,000 crore investment, the policy aims to support 2.2 million MSME (Medium, Small and Micro Enterprises) units, generating 500,000 jobs across the state.

It also aims to double the MSME sector’s exports to $12 billion (Rs 99,600 crore) by 2029 and help more than 500 units integrate into the global value chain.

At the core of this initiative is the creation of a Ratan Tata Innovation Center with headquarters in Amaravati and five zonal centers in Visakhapatnam, Rajahmundry, Vijayawada or Guntur, Tirupati and Ananthapuram.

This center will honor the legacy of the former Tata Group chief and will seek to serve as a hub for mentorship, financial support, knowledge transfer and legal assistance for entrepreneurs, as well as facilitate the attraction of venture capital.

Kickstart Electronics

In an age where chip manufacturing is taking center stage, Andhra Pradesh is looking to take charge of electronics.

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

With an ambitious target of attracting investment of Rs 84,000 crore over the next five years, the policy aims to create five lakh new jobs across the state. Key to this effort is recruitment support of Rs 4,000 per month for male first-timers and Rs 6,000 per month for female first-timers, available for six months after one year of employment.

In a step towards inclusiveness, the policy also allows women to work night shifts where necessary, promoting a diverse and modern workforce.

Food processing

Under the AP Food Industry Policy 4.0, Andhra Pradesh has targeted to attract 30,000 crore rupees in investment and create three lakh jobs with the aim of increasing exports to $15 billion.

In the process, the government is setting up a special corpus fund of Rs 250 crore to promote research and development in food technology and quality certification.

A number of incentives for technological modernization will also be introduced, which will stimulate innovation and operational efficiency.

The policy also outlines plans to designate three tribal areas as organic zones and set up commodity councils for mango, banana and cashew plantations.

Plug And Play

The AP 4.0 Private Parks Policy attempts to create an enabling business ecosystem, for example by involving the private sector in the development and operation of industrial parks.

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

According to the policy, industrial parks are envisaged to stimulate key industries including water processing, agriculture and horticulture, biotechnology, defense and aerospace, manufacturing of drones, electric vehicles (EV), gems and jewellery, leather and footwear, pharmaceuticals, semiconductors and electronics as well as textiles.

Clean energy

AP Integrated Clean Energy Policy 4.0 sets out an ambitious renewable energy transition agenda, positioning the state as a clean energy powerhouse.

With plans to deploy 78.5 GW of solar and 35 GW of wind power, along with 25 GWh of batteries, Andhra Pradesh is on track to become a leader in green energy innovation.

This visionary policy will not just help India achieve net zero targets; it will also create a staggering 7.5 lakh jobs and attract Rs 10 lakh investment.

What lies ahead

For Naidu, whose legacy is deeply intertwined with the significant transformation of Andhra Pradesh’s industrial landscape during his previous stint as the first chief minister from 2014 to 2019, the moment is an important homecoming.

After returning to office, Naidu’s first directive to the Industries Department was to draft the New Industrial Policy 2024-29 (NIP) so that Andhra Pradesh could compete with India’s five most industrialized states, aiming for a 15 percent growth rate. considering the recommendations of NITI Aayog.

The policy stems from consultations with industry veterans and benchmark studies and appears to be in line with the election manifesto promises of the Telugu Desam Party combine.

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