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

Through these, the Andhra government plans to create around 20 lakh jobs while aiming to attract over Rs 40-lakh crore investment over five years (2024-2029).

A cornerstone of its poll promising to create wealth to uplift the financially weaker sections, the importance of these policies is underlined by the fact that the Andhra Pradesh cabinet approved the policies in one fell swoop in Amaravati.

Here’s what’s on the table:

Industrial development policy

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

Designed as the anchor policy for large and mega investments, IDP 4.0 targets an impressive Rs 30 lakh crore in manufacturing investment and aims to generate five lakh jobs, according to a note from the industrial department.

In addition to its ambitious job creation targets, the policy aims to attract Rs 83,000 crore (USD 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 into “subsistence” and “driver” industries, each critical to accelerating economic growth.

The policy has segmented investments into four categories: sub-large (Rs 50-500 crore), large (Rs 501-1,000 crore), mega (Rs 1,001-5,000 crore) and ultra-mega (Rs 5,001 crore+ ), each being eligible. for a personalized incentive package.

Businesses creating significant jobs will receive additional incentives of up to 10 percent, boosting job creation across the state.

The most revolutionary feature of politics? For the first time in India, businesses reducing their carbon footprint through pollution control, waste minimization and efficient initiatives in the use of electricity and water can benefit from a subsidy of decarbonization of up to 6% of their fixed capital investment (FCI).

One family, one entrepreneur by 2030

The MSME and Entrepreneur Development Policy (AP MEDP 4.0) aims to create an entrepreneur in every family in Andhra Pradesh by 2030.

Aiming to attract an impressive Rs 50,000 crore of investments, the policy aims to support 2.2 million MSME (medium, small and micro enterprises) units, generating 500,000 jobs across the state .

Additionally, it aims to double exports from the MSME sector to $12 billion (₹99,600 crore) by 2029, while also helping over 500 units integrate into the global value chain.

At the heart of this initiative is the establishment of the Ratan Tata Innovation Hub, with its headquarters in Amaravati and five zonal centers in Visakhapatnam, Rajahmundry, Vijayawada or Guntur, Tirupati and Anantapur.

This center will honor the legacy of the former Tata Group chief and will attempt to serve as a hub of mentorship, financial support, knowledge transfer and legal aid for entrepreneurs and facilitate venture capital tie-ups .

Electronic Kickstart

At a time when chip manufacturing is taking center stage, Andhra Pradesh is looking to take the lead in the electronics space.

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

With an ambitious target of attracting Rs 84,000 crore of investments over the next five years, the policy aims to create five lakh new jobs across the state. At the heart of this effort, recruitment assistance of Rs 4,000 per month for new male employees and Rs 6,000 per month for new female employees will be available for six months after one year of employment.

In a progressive move towards inclusiveness, the policy also allows women to work night shifts when necessary, thereby fostering a diverse and modern workforce.

Food processing

Under the AP Food Processing Policy 4.0, Andhra Pradesh aims to attract Rs 30,000 crore of investments and create three lakh jobs, with an aim of taking exports to Rs 15 billion. dollars.

In this process, the government is creating a dedicated corpus fund of Rs 250 crore to advance research and development in the field of food processing technology and quality certification.

A series of technology upgrade incentives will also be introduced, promoting innovation and operational efficiency.

Additionally, the policy provides for designation of three tribal districts as organic zones and creation of commodity councils for mango, banana and cashew plantations.

Plug and Play

The AP Private Parks Policy 4.0 attempts to create a favorable business ecosystem by, for example, inviting private participation in the development and operation of industrial parks.

It will offer substantial incentives such as capital grants and exemptions on various fees for large and mega parks.

Under this policy, it is envisaged to create sector parks to boost key industries including water processing, agriculture and horticulture, biotechnology, defense and aerospace, drone manufacturing, electric vehicles (EVs), gems and jewelry, leather and shoes. pharmaceuticals, semiconductors and electronics, and textiles.

Clean energy

PA’s Integrated Clean Energy Policy 4.0 sets an ambitious agenda for the transition to renewable energy, positioning the state as a clean energy powerhouse.

With plans to harness 78.5 GW of solar power capacity and 35 GW of wind power, as well as 25 GWh of battery storage, Andhra Pradesh is poised to take the lead in innovation in of green energy.

This forward-thinking policy will not only help India achieve its net zero emissions targets; it is also expected to create a staggering 7.5 lakh jobs and attract Rs 10 lakh crore in investments.

What awaits us

For Naidu, whose legacy is deeply linked to the significant transformation of Andhra Pradesh’s industrial landscape during his previous tenure as prime minister from 2014 to 2019, this moment represents a major homecoming.

On his return to power, Naidu’s first directive to the Industries Ministry was to design the New Industrial Policy 2024-29 (NIP) in a way that would position Andhra Pradesh to compete with India’s five largest industrialized states , aiming for a growth rate of 15 percent. while incorporating the recommendations of NITI Aayog.

This policy emerges from consultations with industry veterans and benchmarking studies, and appears to align with the promises of the Telugu Desam Party’s election manifesto.

“All policies are designed to be forward-looking, aiming to boost industrial growth by focusing on job creation, encouraging entrepreneurship, tackling climate change and ultimately generating wealth for the state,” a senior official said.