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Andhra Pradesh

AP Industrial Policy

Andhra Pradesh is strategically located on the Southeast coast of India and is a natural gateway to East & Southeast Asia. The state has a population of 4.93 crores (as per population census - 2011), accounting for 4% of country’s population, residing in 4.9% of country’s geographical area. Andhra Pradesh has abundant natural resources (Barytes, Limestone, Bauxite, and a number of minor minerals), fertile land and river basins, water resources, extensive canal system and conducive agro-climatic conditions. The State has the second longest coastline in India and is also one of the largest producers of marine products.

At current prices, the Gross State Domestic Product (GSDP) of Andhra Pradesh was Rs. 4,75,859 crores in 2013-14. Between 2004-05 and 2012-13, the average annual GSDP growth rate of AP was 7.25% while the average per capita income at (current prices) increased from Rs. 46,345 in 2008-09 to Rs. 88,876 in 2013-14. Andhra Pradesh has established a strong presence in agro and food processing, textiles, chemicals & petrochemicals, pharmaceuticals, metallurgy, electronics and electrical engineering sectors.

Policy Approach: The state intends to be the most preferred destination for investors by providing favorable business climate, excellent infrastructure, good law and order and peaceful industrial relations. The new industrial policy focuses on creating a conducive eco-system which makes industries based in Andhra Pradesh innovative and globally competitive. Government of Andhra Pradesh (GoAP) lays utmost emphasis on sustainable industrial development anchored by capacity building at the grassroots level. The policy approach is encapsulated below:

Policy Vision: “To make Andhra Pradesh a progressive and highly industrialized state… a State that is a centre of technology and innovation...And, a joyous population confident of its bright future...” - Shri. Nara Chandrababu Naidu, Chief Minister, Govt. of Andhra Pradesh

Policy Objectives

To ensure sustainable & inclusive industrial growth

To be among the Top 3 states in terms of industrial investments by 2022

To be the most preferred logistics hub and India's gateway to East and Southeast Asia by 2029

To enhance the quantum and quality of skilled manpower and create significant employment opportunities

Policy Targets

Increase the contribution of manufacturing to GSDP from 9.95% (2013-14) to 15% by 2020

Increase the contribution of industries to GSDP from 20.7% (2013-14) to 25% by 2020

Attract investment to the tune of Rs.2 lakh crore by the end of 2020

Create employment opportunities for an additional 10 lakh people by the end of 2020

Policy Validity:

The Policy will be valid for five years from the date of notification.

Strategy& Thrust Areas: GoAP's strategy of attracting sizeable industrial investment is predicated on the following factors:
  • Visionary Leadership
  • 24x7 power supply
  • Conducive Business Environment
  • Industrial Land Bank
  • Fiscal Incentives
  • Progressive Labor Policies and Skill Development
  • Robust Infrastructure
  • Effective Law and Order
10 thrust areas for greater focus:
  • Agro & Food Processing
  • Life sciences (including pharmaceutical, biotechnology & medical equipment)
  • Textile & Apparel
  • Electronics & Information Technology
  • Aerospace& Defence
  • Automobiles& Auto Components
  • Petroleum, Chemicals, (including Fertilizers) and Petrochemicals
  • Energy
  • Mineral based industry
  • Leather
Location-wise key Investment opportunities:

For more details on the opportunities, policies, incentives to do business in AP, visit Us

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