Andhra Pradesh Unveils Six Bold Policies To Attract Rs 40 Trillion Investment And Generate 20 Lakh Jobs: Here Are Details

On 16 October, Andhra Pradesh Chief Minister N. Chandrababu Naidu rolled out six exciting policies that could shake up the industrial scene in the state.

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

A cornerstone of his poll promises of creating wealth to uplift financially weaker sections, the significance of these policies is underscored by the fact that Andhra Pradesh cabinet approved the policies in one go at Amaravati.

Here’s what’s on the table:

Industrial Development Policy

Touted as the most attractive industrial policy in India, the A.P. 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 an industrial department note.

In addition to its ambitious job creation goals, the policy seeks to attract Rs 83,000 crore (USD 10 billion) in Foreign Direct Investment (FDI), with plans to double state exports to Rs 33,200 crore.

To achieve these goals, the government has identified 20 key sectors, categorized into “Sustenance” and “Propelling” 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 eligible for a customized incentive package.

Companies creating significant employment will enjoy up to 10 per cent additional incentives, amplifying job creation across the state.

The policy’s most groundbreaking feature? For the first time in India, companies reducing their carbon footprint through pollution control, waste minimization, and efficiency initiatives in power and water usage can earn a de-carbonization subsidy of up to 6 per cent 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.

With a target of attracting an impressive Rs 50,000 crore in investments, the policy aims to support 2.2 million MSME (Medium, Small, and Micro Enterprises) units, generating 500,000 jobs statewide.

Moreover, it aims to double MSME sector exports 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 centres in Visakhapatnam, Rajahmundry, Vijayawada or Guntur, Tirupati, and Anantapur.

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

Kickstart Electronics

In an era where chip manufacturing is taking center stage, Andhra Pradesh seeks to take charge in electronics.

The A.P. Electronics Policy 4.0 zeroes in on high-impact sectors like semiconductors, IoT devices, and 5G communication equipment, positioning the state as a future powerhouse in electronics manufacturing.

In a progressive step toward inclusivity, the policy also enables women to work night shifts where needed, promoting a diverse and modern workforce.

Food Processing

Under the A.P. Food Processing Policy 4.0, Andhra Pradesh has set its sights on attracting Rs 30,000 crore in investments and creating three lakh jobs, with a goal to boost exports to $15 billion.

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

A range of incentives for technology upgrades will also be introduced, driving innovation and operational efficiency.

Additionally, the policy outlines plans to designate three tribal districts as organic zones and establish commodity boards for mango, banana, and cashew plantations.

Plug And Play

The A.P. Private Parks Policy 4.0 attempts to create a favourable business ecosystem by, for instance, inviting private participation in development and operation of industrial parks.

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

Under the policy, it is envisaged to create sector-specific parks, to boost key industries, including aqua, agri and horticulture processing, biotechnology, defense and aerospace, drone manufacturing, electric vehicles (EV), gems and jewelry, leather and footwear, pharmaceuticals, semiconductors and electronics, and textiles.

Clean Energy

The A.P. Integrated Clean Energy Policy 4.0 is setting an ambitious agenda for transitioning to renewable energy, positioning the state as a clean energy powerhouse.

With plans to harness 78.5 GW of solar and 35 GW of wind energy capacity, plus 25 GWh of battery storage, Andhra Pradesh is on track to lead the charge in green energy innovation.

This forward-thinking policy won’t just help India meet its net-zero targets; it’s also set to create a staggering 7.5 lakh jobs and attract Rs 10 lakh crore in investments.

What Lies Ahead

For Naidu, whose legacy is deeply intertwined with the significant transformation of Andhra Pradesh's industrial landscape during his previous tenure as the first Chief Minister from 2014 to 2019, this moment represents a major homecoming.

Upon returning to office, Naidu's first directive to the Industries Department was to devise the New Industrial Policy 2024-29 (NIP) in a manner that positions Andhra Pradesh to compete with the top five industrialised states in India, targeting a 15 per cent growth rate while incorporating the recommendations of NITI Aayog.

This policy emerges from consultations with industry veterans and benchmark studies, and appears to align with the election manifesto promises of the Telugu Desam Party-combine.

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