Andhra cabinet clears 6 new policies, eyes Rs 30 lakh crore investments in 5 years

The Andhra Pradesh (AP) cabinet led by Chief Minister Chandrababu Naidu on Wednesday introduced six industrial and investment policies with an objective of creating 20 lakh jobs across the state.
Unveiling the policies at the press briefing, Chandrababu Naidu stated that his government is looking at ways to attract investment worth Rs 30 lakh crore in the next five years.
The six policies are 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.
Naidu also voiced his hope that the state will be getting funds under foreign direct investment totalling USD 10 billion.
He stated that the gross value addition (GVA) from the manufacturing sector, currently at Rs 3.4 lakh crore, is expected to reach Rs 7.3 lakh crore by 2029, creating five lakh new jobs.
Naidu outlined key initiatives in the policies, stating that the state aims to secure Rs 5 lakh crore from the targeted Rs 30 lakh crore investment.
He also mentioned that exports from the state are expected to double to USD 40 billion, up from USD 20 billion in 2024.
“At a time we brought six policies. We exercised a lot on these six policies, and we said only one thing in the polls (that creating 20 lakh jobs is the goal of this government, and we will work toward it). These six policies will be a game changer,” Naidu was quoted as saying by news agency PTI in its report.
The Chief Minister explained that the key aspects of the policies include a competitive incentive structure, support for home-grown global brands, a focus on product quality, promotion of large-scale industrial decarbonisation, and efforts to improve the “speed of doing business.”.
“In the past (between 2014 and 2019), we emerged as number one under ease of doing business (category) for four years. Now I am coining speed of doing business’. We will work out how fast we can do it. We will eliminate multiple windows to set up a single desk on how to clear a proposal as soon as possible under a single window,” he said.
The state government will follow the four-pronged approach of reducing the production cost, enabling “speed of doing business,” reinforcing MSMEs and entrepreneurs, and providing financial services to encourage manufacturing.
The Chief Minister stated that under the AP Industrial Development Policy 4.0, companies creating the most jobs will receive the highest incentives. He described it as one of the best incentive structures for industries in India, offering up to 62 percent incentives for the first 200 early investors and up to 72 percent for value-added investors in component manufacturing.
The core of the AP MSME & Entrepreneurship Development Policy 4.0 is the “One Family, One Entrepreneur” approach, with an eight-point strategy that includes MSME facilitation, incubation and mentoring, unit-level competitiveness, access to finance, sustainability, import/export promotion, cluster infrastructure development, and special assistance for inclusion. Naidu said that up to 75 percent of investment will be provided as incentives to make MSME products more price competitive.
Under the AP Food Processing Policy 4.0, the Chief Minister said Rs 30,000 crore in investments will be targeted to create three lakh new jobs and 30,000 new entrepreneurs.
Similarly, the AP Electronics Policy 4.0 aims to create five lakh jobs and attract Rs 84,000 crore in investments, focusing on sub-sectors like the Internet of Things (IoT), air conditioning, television, mobile, 5G communications, and components.
Under the AP Private Industrial Parks policy, Naidu stated that the government would encourage the establishment of industrial parks with private participation, along with the three industrial corridors with world-class infrastructure with plug-and-play facilities.